Minnesota Office of the Legislative Auditor
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Report Summary
Dakota County Technical College

Financial Audit

For Fiscal Year Ended June 30,1996

 

Public Release Date: November 1, 1996 No. 96-43

Background Information

Dakota County Technical College operated as part of Intermediate School District No. 917 through June 30, 1995. The Minnesota State Colleges and Universities System (MnSCU) began operations on July 1, 1995. MnSCU merged 8 state universities, 21 community colleges, and 34 technical colleges, including Dakota County Technical College, into one common system. The mission of the Dakota County Technical College is to provide students with the collegiate level skills necessary to be successfully employed in occupations related to their training. The Chancellor of the Higher Education Board appointed David Schroeder as the president of the college as of July 1, 1995.

Audit Areas and Conclusions

Our audit scope included a review of tuition and fees, payroll, purchase of supplies and equipment, Employment Training Center receipts and disbursements, and bookstore receipts and disbursements for the period from July 1, 1995, through June 30, 1996. The audit fieldwork was conducted July 10 to August 9, 1996. The MnSCU books were not closed until September 27, 1996. The staff told us that many of the issues shown below have been resolved subsequently by the college.

At the time of the audit, the college had not reconciled the state depository bank account or the auxiliary checking account. The auxiliary account contains federal financial aid funds that should be transferred to the state as tuition receipts. In addition, the college has not timely reconciled the MnSCU accounting system to the state accounting system.

We noted weaknesses in the controls over recording, reconciling, collecting and depositing of tuition revenue. The staff told us these areas were addressed before year end closing on September 27, 1996.

Dakota County Technical College properly documented and approved the payroll transactions and paid employees the correct wages in accordance with the bargaining agreements in all material respects.

Dakota County Technical College generally complied with MnSCU purchasing policies and properly approved, documented, paid and recorded supplies and equipment expenditures. However, controls over blanket purchase orders need improvement. The college had not completed recording assets on the state system before the close of the fiscal year, but staff told us they subsequently completed recording the assets. It still has not taken a physical inventory.

Generally, we found that the Employment Training Center adequately documented disbursements and deposited receipts on a timely basis. However, we had concerns about the collection and untimely deposit of Economic Development Partnership program receipts.

Bookstore disbursements were reasonable, properly supported, paid in the proper amounts and properly recorded on MnSCU accounting records. Bookstore receipts, except for the approval of voided transactions, were properly accounted for and deposited on a timely basis.

 

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155