Minnesota Office of the Legislative Auditor
Financial Audit Division

Menu

Minnesota Office of the Legislative Auditor Menu

Report Summary
Anoka-Hennepin Technical College

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

 

Public Release Date: September 25, 1998 No. 98-55

Background

Anoka-Hennepin Technical College operated as part of the Anoka-Hennepin Public School District No. 11 through June 30, 1995. The college merged with other state universities, community colleges, and technical colleges on July 1, 1995, to form the Minnesota State Colleges and Universities System (MnSCU). Dr. Clifford Korkowski is currently the interim president of the college.

Our audit scope included a review of college financial management, tuition and fees, payroll, supplies and equipment, and bookstore activities for the period July 1, 1995, through June 30, 1997. We also reviewed the college's controls over compliance with federal student financial aid for fiscal year 1998.

Conclusions

Our audit found that the college operated within its available resources and had an effective process to monitor budgets. The college properly recorded its financial activities on the MnSCU accounting system. However, key reconciliations of MnSCU accounting to the state treasury balances were not completed timely, and the college did not reconcile its local bank account. In addition, we noted weaknesses in security controls to access its accounting and payroll systems.

Overall, the college designed and implemented controls providing reasonable assurance over tuition, payroll, materials, supplies, equipment, and bookstore activities. However, two findings were developed regarding tuition reconciliations and transfer of funds to the state treasury. Two other tuition issues concerned the need to resolve old, disputed charges from another MnSCU college and the prompt deposit of three large receipts. Another finding addressed the need to take physical inventory of equipment. One bookstore issue identified that the college did not allocate all operating costs to the bookstore, and another identified the need to separate duties and independently reconcile revenues. For student financial aid, two internal control and two compliance findings were developed.

In its response to the report, Anoka-Hennepin Technical College agreed with the audit findings and suggested recommendations. They have completed key reconciliations and are pursuing corrective action to resolve all findings.

 

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