Office of the Legislative Auditor - Financial Audit Division

Report Summary

Minnesota West Community and Technical College

July 1, 1998, through June 30, 2001

Overall Conclusions:

Minnesota West Community and Technical College's budgetary controls provided reasonable assurance that it operated within available resources. The college timely completed key state treasury and bank reconciliations to ensure that financial activities were accurately recorded in the accounting records. The college's internal controls provided reasonable assurance that state treasury and bank account financial activities were adequately safeguarded and in compliance with applicable legal provisions and management's authorization.

Key Findings and Recommendations

• The college did not require part-time faculty and administrators, when serving as foundation board members, to abstain from voting on college business. We recommended that the college work with the Office of the Chancellor to resolve this policy matter.
• Tuition and bookstore collection controls require improvement. We found that an excessive number of college employees have incompatible access to process collections, waivers and receivable corrections, and sufficient mitigating detective controls have not been established. Also, an independent verification of the cashiers' work does not occur on all campuses, increasing the risk of cash shortages within receipt processing.
• The college incorrectly recorded $508,790 of grant receipts as tuition revenue and $257,732 of state grants in the private grant fund. We recommended working with the Office of the Chancellor to make corrections.
• The college did not prepare written agreements for certain instructional partnerships and other business arrangements.

Background

Minnesota West Community and Technical College is located at five southwestern Minnesota campuses located in Canby, Granite Falls, Jackson, Pipestone, and Worthington. The college's enrollment is approximately 2,000 students. Dr. Ronald Wood was appointed the college president in July 1998.

Minnesota West Community and Technical College is part of the Minnesota State Colleges and Universities (MnSCU) system. This audit report focused on financial management, tuition, fees, customized training, payroll, operating expenditures, and the bookstore for the period July 1, 1998, through June 30, 2001.