The Maricopa County Community College District added at least two and as many as four employees from private special interest groups to the state retirement rolls despite a 2005 report by state auditors that found such deals "improper."

Use of state benefit plan called improper

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District Chancellor Rufus Glasper said Friday he's known of the arrangements between the district and several nonprofit lobbying organizations since 2002, but was unaware of the auditor's report until late last year.

After learning of the auditor's opinion, Glasper said he met with members of the East Valley Partnership and the Arizona Business and Education Coalition in November to tell them he was ending the program at the end of this year.

A third group, the Arizona Community College Association, has a similar arrangement, but district officials say it can legally remain on the state system because its funding comes primarily from governments. However, district officials have not said whether that deal will continue after this year.

Glasper said he wanted to give the groups and their employees a long transition period because they had been "such good partners" over the years.

Despite the auditor's report, he maintained there was nothing wrong with the deal that allowed the groups to send their paychecks through the college district, thereby allowing them to enroll in the state's retirement system, which is reserved for government employees.

A similar arrangement between Santa Cruz County and a private nonprofit organization was found to be "improper" by the state auditors in 2005, according to an e-mail from the district sent Thursday to the Tribune.

Glasper was emphatic that the deal did not cost taxpayers any money. Roc Arnett, executive director of the East Valley Partnership, has also told the Tribune the organization regularly reimbursed the district for any expenses related to the deal.

The private groups are supposed to reimburse the district for any costs, under the employment agreements. But the district has yet to provide any records that show it was repaid by them.

State records show the district added one employee from the East Valley Partnership in 2006 and one employee from the Arizona Education and Business Coalition in 2007 to the state retirement system, after the publication of the 2005 auditor's report. Two other employees from those firms were added in 2005, but it is unclear if it was before or after the audit was published.

The Arizona Community College Association entered into its agreement with the district in 1987.

Glasper was the district's chief financial officer five years ago when those two groups were put on the state retirement plan and said he never thought there was anything improper about the agreements. Glasper said he met with district lawyers when the deal was being made to make sure it was legal.

Meanwhile, officials at the Arizona State Retirement System said they want the deals between the district and the private groups investigated.