| Public Release Date: July 2, 1997 | No. 97-36 |
Moorhead State University is part of the Minnesota State Colleges and Universities System (MnSCU). MnSCU began operations on July 1, 1995, when state universities, community colleges, and technical colleges throughout the state merged. Moorhead State University is a four year university serving the Moorhead area. Dr. Roland Barden is the president of Moorhead State University.
The objectives of our audit were to gain an understanding of the internal control structure over the accounting and reporting of financial activities of the university and to determine if the university complied with material finance-related legal provisions. The areas covered by our audit were tuition and fees, payroll and other administrative expenditures, and bookstore revenues and expenditures for the period July 1, 1995, through December 31, 1996. We also reviewed the university's internal control structure over compliance with federal student financial aid for the period July 1, 1996, to December 31, 1996.
We concluded that Moorhead State University had a good system of internal control over its financial management practices and generally operated in compliance with management's authorization and applicable legal requirements for the items tested, including federal student financial aid regulations. The university had a sufficient process for developing its budget and monitoring its financial operations. Except for an inadequate separation of duties over its cashier function, the university designed and implemented internal controls to provide reasonable assurance that its financial activities were properly recorded on the MnSCU and MAPS accounting systems. In addition, the university properly accounted for and controlled its local bank accounts.
Moorhead State University designed and implemented internal controls that provided reasonable assurance that bookstore revenue collections were complete, promptly deposited and accurately recorded in the accounting records. In addition, bookstore expenditures were properly authorized, documented, and accurately recorded in the accounting records. Bookstore inventory was also effectively controlled. We noted, however, that the university did not establish a systematic basis on which to assess an administrative fee to its bookstore.
Moorhead State University concurred with the audit report's findings and recommendations. The university indicated that it has already taken corrective action concerning the inadequate separation of duties over the cashier function. In addition, the university intends to execute a written agreement with the bookstore concerning the administrative fee assessed and to work with the MnSCU system office to establish a reasonable amount to reimburse the General Fund for various costs.
