Office of the Legislative Auditor - Financial Audit Division

Report Summary

Dakota County Technical College

July 1, 1999, through June 30, 2002

Dakota County Technical College's financial controls showed improvement over prior audits. The current audit found that reconciliations were timely, bank collateral monitoring and deposit delivery controls were improved, and concerns with its Joint Powers Agreement were addressed. The college's budgetary controls provided reasonable assurance that it operated within available resources, and critical state treasury and bank account reconciliations ensured that financial activities were accurately recorded in the accounting records. We noted the following internal control weaknesses and compliance concerns impacting the safeguarding of assets and recording of financial activities in the college's accounting systems.

Key Findings and Recommendations:

• College cashiers, and customized training staff with access to cash, could adjust or alter accounts receivable balances. We recommended the college limit incompatible access or develop alternative detective controls. In addition, the college only retained supporting documentation for backdated cancellation of registration transactions for one year.
• The college did not promptly pay all bookstore, auto parts counter, and cafeteria invoices. We recommended timely payment to take advantage of purchase discounts and minimize the risks of duplicate payments. We also noted that the college did not adequately secure certain bookstore inventory and recommended that the college examine other options for secure storage.
• The college did not adequately control bookstore or cafeteria cash receipts. Collections were vulnerable to theft as independent staff did not verify sales evidence. We also encountered unusual bookstore practices regarding sales transaction voids and recommended that the college independently review voids, returns and cancellations, find other ways to perform "price checks", and compare the daily sales recap worksheets to the cash register tape or sales summary supporting bookstore and cafeteria collections.

Dakota County Technical College is part of the Minnesota State Colleges and Universities (MnSCU) system. This financial related audit report focused on financial management, tuition and fees, payroll, operating and resale expenditures, bookstore and cafeteria receipts, and state financial aid for the period July 1, 1999, through June 30, 2002.