Report Summary
Financial-Related Audit
Ridgewater College
July 1, 1997, through June 30, 2000
Ridgewater College resolved many of the issues discussed in the previous audit report but it continued to have weaknesses in significant areas, including the reconciliation of bank accounts and accounting systems and the proper recording of financial activity. The college generally complied with legal provisions and management's authorization.
Key Findings:
- The college did not perform certain duties necessary to ensure the integrity of its accounting data. It had not successfully reconciled its bank cash balance to the MnSCU accounting system since July 2000. It also had not adjusted the MnSCU accounting system to correct discrepancies with the state's accounting system. Finally, college staff had not investigated or resolved unusual balance in certain accounts. We recommended that the college compete monthly bank reconciliations, make the adjustments needed to resolve differences between MnSCU's and the state's accounting systems, and regularly review its recorded financial data it identify and correct transaction errors.
- The college did not maintain sufficient collateral for its bank accounts. Statutes require state agencies to establish collateral equal to 110 percent of the amount on deposit. We recommended that the college revise its contract with the bank to ensure that the bank provides sufficient collateral to secure its local checking account balance.
- The college did not have contracts with the bookstore vendor or the food service vendors. Without contracts, the parties could misunderstand the agreed to terms or conditions of the services. We recommended that the college establish contracts with these vendors.
- The college did not draw down federal funds in a timely manner. We recommended that the college draw down federal financial aid in a timely manner.
Ridgewater College is a part of the Minnesota State Colleges and Universities (MnSCU) system. This audit report presents the conclusions of our audit of the college's tuition and fees, payroll, operating expenditures including supplies and equipment, state grants, and the bookstore for the period July 1, 1997, through June 30, 2000. We also reviewed the university's internal controls over compliance with federal student financial aid for fiscal year 2001.
