College owes county $116K

JOHNSTOWN – The Fulton-Montgomery Community College Board of Trustees recently approved paying Montgomery County close to $117,000 after an audit found the county paid for insurance that should have been covered by the college, President Dustin Swanger said.

Swanger said when the college was using the services of Montgomery County Health Insurance Trust, an unforseen liability in the amount of about $116,874 was discovered after an audit.

“We have to reimburse Montgomery County about $117,000 for healthcare expenses from when we were in the health trust,” Swanger said. “Some of the employees were miscoded.”

He said the college stopped using the service in 2011, but an audit discovered some of the college’s employees were miscoded as Montgomery County employees.

As a result, the college will now exceed its adopted operating budget amount for 2013-14. The board approved the operating budget being increased by $125,000 to an amount not to exceed $18.6 million. The previously approved budget was $18.5 million.

The budget amendment by the Board of Trustees will be submitted to the sponsor counties for approval, according to meeting documents.

“It was an unexpected expense,” Swanger said. “We can afford to do it, we just have to make the changes. It will not impact next year’s budget.”

The college is currently in the process of having its proposed $19.7 million 2014-15 budget approved by both sponsoring counties, as well.

The budget calls for no increase in contributions from Fulton and Montgomery counties, but raises tuition by $50 per student for the next academic year. This is the seventh-consecutive year the college is seeking no increases in contributions from the two counties. Fulton and Montgomery counties each contribute about $1.4 million to FMCC.