Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial Audit Report

Hibbing Community College

Three Fiscal Years Ended June 30, 2000

Hibbing Community College operated within available financial resources. Except as noted below, the college operated in compliance with applicable legal provisions and its internal controls provided reasonable assurance that assets were safeguarded and financial activities were properly recorded.

Key Findings:

• The college did not adequately restrict computer access over cashiering. Two employees had cashiering clearances that did not need such access. We recommended that employees only have the access necessary to carry out their job responsibilities.
• The college did not promptly request federal reimbursement of financial aid disbursements. By not requesting federal funds in a timely manner, the college used state funds to cover financial aid payments. We recommended that the college design and implement a policy to determine the timing of drawdowns of federal funds and minimize the impact on state cash resources.

Hibbing Community College, a technical and community college, is part of the Minnesota State Colleges and Universities (MnSCU) system. The college provides approximately 1300 full-time students with two-year degree and certificate programs in areas as diverse as law enforcement and culinary arts, along with transfer concentrations that students can take with them to four-year institutions. Dr. Anthony Kuznik is the president of the college.

Agency Response:

In its written response, Hibbing Community College agreed with the report's findings and is taking corrective action to resolve the issues.

Financial Audit Reports address internal control weaknesses and noncompliance issues found during our audits of state departments and agencies. The scope of our audit work at Hibbing Community College included financial management, tuition, payroll, administrative expenditures, bookstore operations, and student financial aid from July 1, 1997, through June 30, 2000.