Office of the Legislative Auditor - Financial Audit Division

Report Summary

Alexandria Technical College

July 1, 1999, through June 30, 2002

Alexandria Technical College made substantial progress with the overall management of its financial operations since our last audit in fiscal year 2000. During the audit period, the college operated within available resources and, except as noted below, improved its internal control structure, including controls to provide assurance over compliance with applicable legal provisions.

Specifically, we concluded that the college had an adequate process for recording and depositing tuition revenue during the audit period. For payroll activities, the college's controls provided reasonable assurance that employees were accurately paid in compliance with applicable legal provisions and management's authorization, and that transactions were accurately recorded in the accounting records. The college's controls provided reasonable assurance that the majority of its cash receipts were adequately safeguarded. As noted below, however, the college needs to continue to strengthen its controls over financial operations in certain areas.

Key Findings:

• The college needs to improve its contracting procedures relating to the Alexandria Technical College Foundation and the customized training program.
• The college did not adequately control its purchasing credit cards. We recommended that college employees provide explanations of unusual transactions, that supervisors approve credit card payments, and that the college follow its procedures regarding allowable and ineligible uses of college purchasing cards or revise its procedures while ensuring it adequately controls credit card expenditures.
• The college did not adequately safeguard its food service and DECA store receipts and has not complied with other MnSCU requirements governing its Enterprise Fund activities, such as preparing comprehensive financial statements, business plans, or operating procedures.

Alexandria 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, enterprise fund activities, and the Minnesota State Grant student financial aid program for the period July 1, 1999, through June 30, 2002.