Office of the Legislative Auditor - Financial Audit Division
North Hennepin Community College
July 1, 1997, through June 30, 2000
North Hennepin Community College operated within available financial services and generally complied with legal provisions and management's authorizations. The college made improvements in its financial management since our last audit report was issued. However, we found the following internal control weaknesses impacting the safeguarding of assets and recording of financial activities in the college's accounting systems:
The college did not verify the accuracy of financial activity recorded in its local bank account and did not reconcile cash on MnSCU accounting to cash in its bank accounts.
The college did not control access to its business systems. Without proper security controls, the college is at risk that unauthorized or fraudulent transactions could occur. The college should periodically review system access, limit access to staff requiring it to complete their job responsibilities, and eliminate any incompatible access.
The college did not adequately monitor its agreement with its foundation. The college did not collect all funds owed by the foundation. The college should periodically review the foundation's billings and payments to ensure collection on a timely basis.
The college did not have adequate controls over its fixed asset inventory. Without an adequate system of accounting for fixed assets and periodic inventory counts, theft or misuse of those items could go undetected.
North Hennepin Community College is a part of the Minnesota State Colleges and Universities (MnSCU) system. This audit report represents the conclusions of our audit of the college's tuition and fees, payroll, operating expenditures, supplies and equipment, and the bookstore for the period July 1, 1997, through June 30, 2000. We also reviewed the college's internal controls over compliance with federal student financial aid for fiscal years 2000 and 2001.