| Public Release Date: September 3, 1999 | No. 99-47 |
Bemidji State University was established in 1919 and is located in north central Minnesota. The university offers majors in more than 50 baccalaureate fields of study as well as master of arts and master of science degrees. Dr. M. James Bensen is the president of Bemidji State University.
The audit scope included general financial management; tuition, fees, and room and board revenue; employee and student payroll expenditures; and supplies, equipment, and services expenditures. We also reviewed the university's internal controls over compliance with federal student financial aid for fiscal year 1999.
Bemidji State University designed and implemented internal controls to provide reasonable assurance that it operated within available financial resources. However, we found that the university did not fully and timely reconcile local and state treasury transactions, and did not adequately restrict computer access in several areas. Also, the university needs to clarify the operating relationship with its foundation.
Bemidji State University designed and implemented internal controls to provide reasonable assurance that tuition, fees, and room and board revenue collections were safeguarded, accurately reported in the accounting records, and in compliance with legal provisions. However, the university did not adequately separate duties over the collecting and recording of revenue.
The university designed and implemented internal controls to provide reasonable assurance that payroll and other expenditures were accurately reported in the accounting records and in compliance with applicable legal provisions. In addition, student financial aid transactions were properly recorded in the accounting system, accurately reported to the federal government, and administered in accordance with federal regulations. However, the university did not adequately separate some financial aid duties and did not assign uncollectible Federal Perkins loans.
Bemidji State University responded positively to the six audit findings presented in the report. In addition, the university has already taken significant action towards resolving the findings.
