Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Rochester Community and Technical College

Financial Audit For the Two Fiscal
Years Ended June 30, 1997

 

Public Release Date: April 24, 1998 No. 98-28

Background

Rochester Community and Technical College is part of the Minnesota State Colleges and Universities (MnSCU). MnSCU began operations on July 1, 1995, when the state of Minnesota merged the community colleges, state universities, and technical colleges into one system of higher education. MnSCU consolidated Rochester Community College and the Rochester campus of Riverland Technical College in July 1996 to form one combined college. The college is currently headed by an interim president, Mr. Donald Supalla, who assumed this position on July 1, 1997. The college finances its operations through state appropriations, student tuition, fees, and federal grants. It also receives funding from the Rochester Community and Technical College Foundation, a separate non-profit organization.

Our audit scope covered the period from July 1, 1995, through June 30, 1997. We audited general financial management controls, bookstore operations, tuition and fee revenue, purchases and administrative expenditures, and payroll. We also audited the administration of the federal student financial aid program for fiscal years 1997 and 1998. In addition, we reviewed the college's relationship with its foundation.

Conclusions

Rochester Community and Technical College operated within its available resources. Generally, the college properly recorded all of its state treasury and local account activity on the MnSCU and MAPS accounting systems in a timely manner. The college properly accounted for and controlled its local bank accounts and completed bank account reconciliations timely. However, we make recommendations for improved cash handling procedures and control over change funds. The college designed and implemented controls in the business office, bookstore, and financial aid office to ensure that assets were safeguarded, transactions authorized, and financial activity accurately reported in the accounting systems. However, the college did not reconcile food service commissions to total sales. The college did not fully implement all of the recommendations related to federal financial aid that we presented in prior audit reports. We also identified financial aid overpayments to some students.

Rochester Community and Technical College responded positively to the seven audit findings presented in the audit report. In addition, the college has already taken significant action towards resolving the findings.

 

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