PEER Report #306

A REVIEW OF PEARL RIVER COMMUNITY COLLEGE’S FOOD SERVICE CONTRACT WITH MORRISON’S CUSTOM MANAGEMENT, December 14, 1993, 44 pages

The Pearl River Community College (PRCC) Board of Trustees awarded its food service contract to Morrison’s Custom Management in 1979 and then failed to exercise sufficient oversight. Trustees allowed college administrators to renew the contract for fourteen consecutive years without seeking competitive bids. College administrators have not monitored the food service contract in an effective manner and have failed to:

• monitor Morrison’s food purchases/inventory and vending operations;
• monitor the use of the college’s cafeteria to provide catering and restaurant services to the general public; and,
• ensure recording and matching of all food service costs and revenues so that financial reports depict whether operations are self-supporting.

During the fall of 1991, the President of PRCC paid $193.87 for a personal social event catered by Morrison’s, even though charges for the event amounted to $727.76 that the President eventually paid after PEER’s investigation, While PEER has no evidence that the President used his position to receive a service below cost, he should have questioned the $193.87 charge from a college contractor.

For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.