Northland Community and Technical College
Three Fiscal Years Ended June 30, 1999
Northland made significant improvement in its internal control structure since the prior audit. The college substantially implemented many of the 18 prior audit recommendations. However, the college needs to resolve several issues.
Key Findings and Recommendations:
- Northland did not reconcile financial activity recorded on the MnSCU Accounting System to the state's accounting system (MAPS) on a periodic basis and did not prepare adjusting entries following the completed reconciliation. We recommended that the college perform timely reconciliations and complete the reconciling adjustments on a periodic basis to correct any differences between accounting systems. (Finding 1, page 5)
- Collateral for the college's bank accounts was not always sufficient to satisfy statutory requirements. Northland's bank statements showed that bank balances approached $1 million during peak enrollment periods, while the amount of collateral and FDIC insurance maintained by Northland only totaled $400,000. We recommended that the collateral level be increased during peak enrollment periods to properly safeguard assets. (Finding 2, page 6)
- Northland transferred $98,000 of bookstore funds to provide cash flow assistance for the Minnesota Job Skills Project. The college's bookstore policy limits the use of bookstore profits to projects that benefit the general student population. We recommended that the college repay the bookstore account $98,000. (Finding 6, page 17)
In its response, Northland Community and Technical College agreed with the report's recommendations and is taking corrective action to resolve the issues.
Northland Community and Technical College (Northland) is part of the Minnesota State Colleges and Universities System (MnSCU). Dr. Orley Gunderson has been the president of Northland since July 1995. Northland provides more than 21 academic programs for both technical and liberal arts education. The average full-year equivalent enrollment per semester was approximately 1,284 in fiscal year 1999.
Our audit scope included a review of financial management, tuition and fees, payroll, selected administrative expenditure areas, and bookstore operations for the period July 1, 1996, through December 31, 1999. We also examined the administration of student financial aid programs for fiscal year 2000.