BUTLER TWP — Butler County Community College will submit three financial reports to Butler County Commissioners in November and December, including a cost allocation study Jack McMillin, county controller, requested.

On Nov. 1, BC3 is scheduled to present its 2011 budget to the commissioners, as it does every year.

Next, BC3's board of trustees will review the college's annual audit at their Dec. 1 meeting. If it is approved, the audit will be sent to the commissioners, said Jim Hrabosky, BC3 vice president of administration and finance.

In addition, before January, Hrabosky expects to have in hand the cost allocation study McMillin requested.

All government agencies are required to prepare a budget and provide an annual audit of their finances. However, the cost allocation study is under way to evaluate the financial performance of BC3's out-of-county sites at McMillin's request.

In April, McMillin charged that Butler County residents help to fund BC3's campuses in Lawrence and Mercer counties through their Butler County taxes.

BC3, on the other hand, maintains that its 45 percent overhead rate that the school collects from the out-of-county campuses, recovers the college's costs. The 45 percent overhead rate was fixed by an internal study conducted by the college, Hrabosky said.

The consulting firm Black, Bashor and Porsch, certified public accountants, also will recommend an overhead rate, per McMillin's request and based on their own assessment.

Black, Bashor and Porsch, of Sharon, completed both BC3's annual audit and the cost allocation study.

Internally, the college arrived at the 45 percent overhead fee after Hrabosky gathered information from other organizations and chief financial officers regarding their organizations' overhead rates.

He determined that a 45 percent overhead rate would clearly recover the college's investments.

"I think it (the overhead figure determined by the consultants) is going to be less than 45 percent," Hrabosky said.

Even if he's right, he doesn't anticipate that BC3 will change the funding formulas it uses at campuses outside the county.

"It will make our argument stronger," Hrabosky said.

In April, McMillin refused to pay BC3 the first of four $1.2 million payments it receives from the county, a total of $4.9 million annually.

BC3 and the county sued McMillin to release the funds, but the suit was dismissed after the college agreed to provide McMillan with the cost allocation study.

The county already has made three $1.2 million payments to BC3 this year. The fourth payment is due in December.