| Public Release Date: February 25, 1999 | No. 99-12 |
Itasca Community College was founded in 1922. The State Board for Community Colleges had jurisdiction over the college until June 30, 1995. On July 1, 1995, the college consolidated with other state universities, community colleges, and technical colleges to form the Minnesota State Colleges and Universities (MnSCU). Dr. James Clarke served as the interim president until November 1996 when Dr. Joseph M. Sertich, Jr., became president.
Our audit scope covered the period from July 1, 1995, through June 30, 1998. We audited general financial management, tuition and fees, payroll, supplies and equipment purchases, bookstore operations, and the college's relationship with its foundation. We also reviewed the college's internal controls over compliance with federal and state student financial aid regulations for fiscal year 1998.
Itasca Community College operated within its available resources. Generally, the college properly recorded its state treasury and local account activity on the MnSCU and MAPS accounting systems in a timely manner. Generally, the college properly accounted for and controlled its local bank accounts and completed bank account reconciliation timely. We found, however, that the college did not have sufficient collateral for its bank accounts, subjected itself to security and safety risks in transporting receipts to the bank, and did not adequately monitor access to the college accounting systems.
Generally, the college designed and implemented controls to provide reasonable assurance that it accurately recorded tuition and fee revenue, payroll, supplies and equipment purchases, and student financial aid in the accounting records and complied with legal provisions and management's authorization. However, the college did not adequately separate duties over administrative adjustments or the receipt process over continuing education or the computer education center. In addition, the college did not adequately separate the awarding and disbursing functions for the Federal Family Education Loan Program. Also, the college did not deposit the computer education center receipts timely. Finally, the college did not adequately segregate bookstore duties or accurately record bookstore operations in MnSCU accounting or in its financial statements.
Itasca Community College responded positively to the eight audit findings presented in the report. In addition, the college has already taken significant action towards resolving the findings.
