This report, from the Auditor of Public Accounts of the Commonwealth of Virginia, discusses an audit of the Virginia Community College System (VCCS) balance sheet as of June 30, 2000. The auditors considered internal controls over financial reporting and tested compliance with certain provisions of laws, regulations, contracts, and grants in accordance with generally accepted standards and the standards applicable to financial audits contained in Government Auditing Standards. Internal Control findings included the following: Five of nine Germanna Community College credit card holders tested did not comply with small purchase charge card procedures. Some cardholders split purchases in order to appear to be in compliance with purchase limits. Tidewater Community College failed to cancel a terminated employee's credit card until 85 days after termination. The audit also found that Germanna did not have written procedures for removing computer access for terminated employees. Northern Virginia Community College failed to remove access to critical financial systems for seven terminated employees. Virginia Highlands Community College recorded acquisitions, disposals, and transfers of assets in its fixed asset system up to 11 months after the change occurred, recorded incorrect assets for three assets, and failed to remove one asset no longer in its possession. This report also makes recommendations for remediation. (NB)