Hennepin Technical College
Metropolitan State University
Minneapolis Community and Technical College
Review of Audit
June 30, 2003
Presented By
Daryl DeKam, CPA, Partner
Karen Angell, CPA, Partner
Agenda
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Financial Statement Opinions
Prior Period Adjustments
Compliance Reports
Management Letters
MnSCU- 6/30/03
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Financial Statement Opinions
• Unqualified Opinions
– Hennepin Technical College
– Metropolitan State University
– Minneapolis Community and Technical College
All of the above are first year individual college audits.
MnSCU- 6/30/03
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Prior Period Adjustments
Beginning of Year Net Assets Increased (Decreased) as Follows:
• Hennepin Technical College - $1,335,713
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Miscalculation of fiscal 2002 allowance for doubtful accounts - $1,245,914
Miscoding of construction in progress to expense in 2002 - $89,799
• Metropolitan State University – ($436,362)
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Over-award of federal and state financial aid funds – ($1,008,444)
Capitalize project cost of chiller project - $572,082
• Minneapolis Community and Technical College – ($21,002,780)
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Record land cost - $5,907,145
Reduce recorded cost of buildings – ($51,803,509)
Change in depreciation related to building cost - $24,893,584
MnSCU- 6/30/03
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Compliance Report
• No reportable instances of noncompliance
– Hennepin Technical College
– Minneapolis Community and Technical College
• Metropolitan State University
– Noncompliance with certain student financial aid
eligibility and academic progress requirements
– Described in Note 13 to the financial statements
MnSCU- 6/30/03
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Compliance Report
• Metropolitan State University – excerpt from report
(page 46)
– As part of obtaining reasonable assurance about whether
Metropolitan State University’s financial statements are free of
material misstatement …the results of our tests disclosed no
instances of noncompliance that are required to be reported under
Government Auditing Standards
• Other than the University’s noncompliance with certain
student financial aid eligibility and academic progress
requirements noted as a result of a program review
conducted by the United States Department of Education
in December 2002, as more fully described in Note 13 to the
financial statements.
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Compliance Report
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Metropolitan State University – excerpt from Note 13 (page 35)
– A federal financial assistance program review was conducted at the
University by the United States Department of Education in
December 2002.
– It was determined that the University had granted $933,445 in
federal financial aid over-awards for prior years.
– In addition, the University determined there was an estimated
liability of $75,000 for state grant over-awards in prior years.
– These over-awards, totaling $1,008,445 were booked in fiscal year
2003 as an increase to prior period expense.
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Management Letter
• Management Letter Issued For Each School
– Includes schedule of passed adjusting journal entries
• Comments Discussed With School Personnel and Office of
the Chancellor
• Management and Internal Audit to follow-up on comments
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