|Public Release Date: June 25, 1999||No. 99-30|
Century Community & Technical College (Century College) was created on January 1, 1996, when Northeast Metro Technical College merged with Lakewood Community College. The individual colleges merged with other state universities, community colleges, and technical colleges on July 1, 1995, to form the Minnesota State Colleges and Universities (MnSCU). Dr. James Meznek was the college president from February 14, 1994, to December 31, 1997. Dr. Gary Langer served as interim president until the MnSCU Board of Trustees appointed Dr. Charles Hays as president effective August 15, 1998.
Our audit scope included a review of college financial management, tuition revenue, payroll, administrative expenditures, bookstore activities, and other revenue for the period July 1, 1995, through June 30, 1998. We also reviewed the college's internal controls over compliance with federal student financial aid for fiscal year 1999.
The college designed controls to provide reasonable assurance that it operated within available financial resources in compliance with legal provisions and management's authorization and had an appropriate operating relationship with related organizations. We found, however, that the college did not record certain financial activity accurately and timely on MnSCU accounting and did not adequately restrict access to its computerized business systems. In addition, the college did not perform key reconciliations in a timely manner or resolve a cash difference between MnSCU accounting and its local bank accounts.
The college had several internal control weaknesses during fiscal years 1996, 1997, and part of 1998. Significant improvements have been made by the current administration of the college. While the college has made progress, our audit identified some internal control weaknesses in which the college still needs to resolve. The college needs to improve controls over computer security for its key financial management systems and reconciliation of its business systems. It also needs to improve controls over student tuition receipts, federal financial aid, and bookstore activities. For example, as discussed in Finding 2, the college did not reconcile its bank accounts to MnSCU accounting during fiscal years 1996, 1997, and part of 1998. With this example, and others, the college has taken steps to improve its internal control structure. For example, the college has gone from having seventeen accounts in five banks to three accounts in two banks. According to the college, it plans to move its accounts to a single bank.
In its audit response, Century Community and Technical College agreed with the audit findings and is taking corrective action to resolve the issues.