Financial-Related Audit Report
Dakota County Technical College
July 1, 1996, through December 31, 1999
Dakota County Technical College operated within available financial resources. During the audit period, the college improved controls to provide reasonable assurance that financial activities were properly recorded on the accounting systems. In fiscal years 1999 and 2000, the college completed timely accounting system reconciliations to the state treasury and local bank account records. The college also corrected significant accounting errors and bank reconciliation differences from previous fiscal years. However, we noted the following compliance concerns and internal control weaknesses impacting the safeguarding of assets and recording of financial activities in the college's accounting systems.
- The college's Joint Powers Agreement with the local school district was not amended for subsequent changes in responsibilities and staffing, and personnel arrangements created some problems. (Finding 1, page 7)
- Employee access to college computerized business systems was not sufficiently restricted. We recommended the college limit access to the minimum level necessary to complete employee job responsibilities. (Finding 2, page 8)
- The college had poor security over deposit delivery and weak controls over money turned in from remote collection sites. (Finding 3, page 10)
- The college did not ensure sufficient bank collateral was provided to protect bank balances. (Finding 4, page 10)
- The college did not adequately control tuition waivers, assess third party billings, or accurately process tuition refunds. (Findings 5 and 6, pages 15 - 17)
- Some customized training receipt logs could not be located, and accounts receivable controls require improvement. We recommended that the college centrally collect customized training revenues in the business office and coordinate collection of customized training receivables with other outstanding balances. (Finding 7, page 20)
- The college did not properly procure certain items and did not have a control structure to require department approval of certain payments and ensure vendors were paid in a timely manner. We also noted that the college did not adequately safeguard or account for its fixed assets. (Findings 9 through 11, pages 28 - 31)
- The college paid one student a Federal Supplemental Educational Opportunity Grant (FSEOG) in excess of campus policy and did not ensure financial aid overage checks were timely distributed to students. (Findings 12 and 13, page 37)
In its response, Dakota County Technical College agreed with the report's findings and is taking corrective action to resolve the issues.