Office of the Legislative Auditor - Financial Audit Division
Financial-Related Audit Report
Anoka-Hennepin Technical College
July 1, 1997, through June 30, 2000
Anoka-Hennepin Technical College's budgetary controls provided reasonable assurance that it operated within available resources. The college completed reconciliations to ensure that financial activities were accurately recorded in the accounting records. The college's internal controls generally provided reasonable assurance that state treasury and local bank account financial activities were adequately safeguarded and in compliance with applicable legal provisions and management's authorization.
The college did not adequately restrict certain employee access to its computerized information systems. We recommended restricted access, or the development of detective controls, to minimize the risks caused by incompatible duties.
The college did not adequately monitor and control daily cashier activities. Cashiers commingled daily collections in a single cash drawer and were responsible for posting accounts receivable adjustments and tuition waivers. Staff in the tuition office shared one system logon ID making it difficult to track transactions and shortages to a specific user. We also found nonstandard practices for processing employee tuition waivers.
The college did not have an adequate process to monitor and follow-up on outstanding receivables for contract customized training. Outstanding receivables totaling $187,000 were over one year old.
The college's controls over bookstore activities need improvement. We recommended tracking sales by individual salesperson, promptly depositing receipts, timely posting accounting transactions, and having an independent review of sales returns. We also noted that certain expenses recorded in the accounting system were not included in internally-prepared financial statements prepared for college management.
Anoka-Hennepin Technical College is part of the Minnesota State Colleges and Universities (MnSCU) system. This audit report focused on financial management, tuition and fees, employee payroll, administrative expenditures, and bookstore revenue 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 year 2001.