Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Alexandria Technical College

Financial Audit For the Period
July 1, 1995, through December 31, 1996

 

Public Release Date: July 18, 1997 No. 97-38

Background Information

Alexandria Technical College is part of the Minnesota State Colleges and Universities System (MnSCU). MnSCU began operations on July 1, 1995. MnSCU merged 8 state colleges, 21 community colleges, and 34 technical colleges, including Alexandria Technical College, into one common system. Prior to the MnSCU merger, Alexandria Technical College operated as part of Independent School District No. 206. The mission of Alexandria Technical College is "to provide the highest quality polytechnic education through the use of modern and adequate facilities, a highly qualified staff, and up-to-date equipment." Mr. Larry Shellito is the president of the college.

Our audit scope included a review of general financial management controls, tuition and fees, payroll, supplies and equipment, student organizations, enterprise activities, and the college's relationship with its foundation. We also audited the administration of the federal student financial aid program for fiscal year 1997.

Conclusions

Generally, Alexandria Technical College designed and implemented internal controls to provide reasonable assurance that its major financial activities were accurately reported in the accounting records and complied with applicable legal provisions and management's authorizations. These major financial activities include tuition, payroll, purchasing, and student financial aid. However, the college did not perform various reconciliations that are critical to the integrity of the accounting data. In addition, the college needs to transfer financial aid funds for tuition and fee payments to the state's account in a more timely manner. The college needs to promptly record financial aid disbursements and tuition and fee revenue in MnSCU accounting. The college also needs to improve security over receipts prior to their deposit. We also found that the college had not adequately separated financial aid disbursement duties.

Our report also discusses other issues related to payroll, supply and equipment purchases, student organizations and enterprise activities, the college's relationship with its foundation, and an unresolved issue with Independent School District No. 206.

The college concurred with the audit report findings and recommendations. The college indicated that it has already taken corrective action on several areas as shown in the agency response.

 

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