Hennepin Technical College
Metropolitan State University
Minneapolis Community and Technical College
Review of Audit
June 30, 2004
Presented By
Daryl DeKam, CPA, Partner
Agenda
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Financial Statement Opinions
Prior Period Adjustments
Compliance Reports
Management Letters
Significant Transactions
Questions
MnSCU- 6/30/04
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Financial Statement Opinions
• Unqualified Opinions
– Hennepin Technical College
– Metropolitan State University
• Includes reference to other auditors for Metropolitan
State University Foundation audit
– Minneapolis Community and Technical College
All of the above are second year individual college audits. The
year 2004 is the first year the Foundation was reported as a
component unit of Metropolitan State University.
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Prior Period Adjustments
Beginning of Year Net Assets Increased as
Follows:
• Hennepin Technical College - $560,000
– Reallocation of prior year capital appropriations between MnSCU
Colleges and Universities
• Minneapolis Community and Technical
College – $2,164,000
– Reallocation of prior year capital appropriations between MnSCU
Colleges and Universities
MnSCU- 6/30/04
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Compliance Reports
• No current year reportable instances of
noncompliance
– Hennepin Technical College
– Minneapolis Community and Technical College
– Metropolitan State University
• Metropolitan State University
– Prior year finding of noncompliance with certain
student financial aid eligibility and academic
progress requirements. Excess awards have been
repaid to DOE.
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Management Letter
• Management Letter Issued For Each School
– Includes schedule of passed adjusting journal entries
– Includes a schedule of recorded adjustments
– Includes standard required audit committee communications
• Audit work was delayed as a result of the complexities of the
capital appropriation reallocation and Metropolitan
State/Minneapolis C&T College parking ramp transactions
• Comments Discussed With School Personnel and Office of
the Chancellor
• Management and Internal Audit to follow-up on comments
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Significant Transactions
• Minneapolis Community and Technical College
– Transfer of parking ramp ($835,000) and cash
($600,000) to Metropolitan State
– Grant revenue from Metropolitan State ($2,530,000)
– Loan from Chancellor’s office of $1,200,000
– Purchase of Billy Graham property for $11,200,000
– Total investment in capital assets of over $21,000,000
– Change in equity of $11,806,000
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Significant Transactions
• Metropolitan State University
– Transfer of parking ramp ($835,000) and cash ($600,000) from
Minneapolis Community and Technical College (MCTC)
– Grant expense to MCTC ($2,530,000)
– Inclusion of Revenue Fund activity and assets
– Inclusion of Foundation financial statements in the annual report
– Repayment of student financial aid amounts to DOE
– Investment in capital assets of approximately $14,000,000
– New long term debt of over $8,000,000
– Change in equity of $4,082,000
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Significant Transactions
• Hennepin Technical College
– Investment in capital assets of approximately
$3,200,000
– Change in equity of $(162,000)
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Questions
Thank you for the assistance of the MnSCU
personnel.
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