Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Riverland Community College

Financial Audit For the Period July 1, 1995,
through June 30, 1997

 

Public Release Date: September 11, 1998 No. 98-51

Background

Riverland Community College was formed July 1, 1996, with the consolidation of Austin Community College, Minnesota Riverland Technical College-Austin, and South Central Technical College-Albert Lea. Riverland Community College is a two-year college that offers accredited programs in automotive services, cosmetology, nursing, medical imaging/radiography, occupational and physical therapy, and the construction electrician program. John Gedker was the president of the college during our audit scope. Dr. Gary Rhodes became the president of Riverland Community College on August 15, 1998.

Our audit scope covered the period from July 1, 1995, through June 30, 1997. We audited general financial management, tuition and fees, payroll, administrative expenditures, bookstore activities, and the college's relationships with its affiliated foundations. We also reviewed the college's internal controls over compliance with federal student financial aid regulations for fiscal year 1998.

Conclusions

We found that Riverland Community College designed internal controls to provide reasonable assurance that it properly recorded its financial activities on the MnSCU and MAPS accounting systems, and that the college operated within its available financial resources. However, the college had multiple internal control weaknesses in several areas. The college did not adequately separate duties in several of its financial areas, including customized training, financial aid, the bookstores, and the parts stores. In addition, the college did not verify the accuracy of its accounting records by performing reconciliations for tuition receipts.

For the items tested, the college complied with legal provisions governing financial activities included in our audit scope, except for prompt depositing requirements at certain locations. The college did not have written contracts with its affiliated foundations. We also found a lack of independence between the college and the Austin Technical College Foundation.

In its written response, Riverland Community College agreed with the audit report. The response indicated that the college has already implemented changes to address many of the issues in the report.

 

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