NC H87

Repeals Section 10.15(a) of S.L. 2013-360 regarding community colleges program auditing.

Changes the State Board of Community Colleges' auditing function from annual program audits to periodic compliance reviews with a statistically valid sample size.

Narrows the scope of reviews to verify that (i) data used to allocate state funds is reported accurately and (ii) tuition and registration fees are charged and waived consistent with law.

Requires that material compliance review findings be reported to the college president, local board of trustees, the State Board of Community Colleges, and the State Auditor.

Directs the State Board of Community Colleges to adopt rules governing the frequency, scope, and materiality standards for compliance reviews, effective July 1, 2015.