Kern, DeWenter, Viere, Ltd.
Summary of Audit Results
Revenue Fund
Bemidji State University
Minnesota State Community and Technical College
Southwest Minnesota State University
Rochester Community and Technical College
Summary of Audit Results
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Unqualified Opinions issued for all audits.
No Reportable Conditions noted for all audits.
No Material Weaknesses Identified.
Management Letters Issued for Each Audit,
Includes Management Suggestions and Audit Test
Results, Communicated at Campus Level – No
significant comments.
Revenue Fund - Performance
• Net assets increased $13.5 million in 2005
compared to $6.8 million in 2004
• Operating Revenue up $3.3 million over 2004 or
5%, a result of Room & Board increases across the
campuses and added capacities
• Operating Expenses up $803,000 over 2004 or
1.3% with slight increases in salaries, food
services and purchased services and a decrease in
supplies
Revenue Fund - Performance
• Prior period adjustment of $522,000 to record
interest payable on bonds
• Restricted cash balances declined in 2005 from
$20.5 Million to $9.1 Million as a result of
completed projects.
• Cash balance at June 30, 2005 was $36,570,000
compared to $38,341,000 at June 30, 2004.
• Bonds were issued after year end totaling
$45,320,000.
• One compliance finding relating to reserve deposit
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Bemidji State University
Net Assets 6/30/05 $43.4M.
Invested in Capital Assets $37.0M.
Restricted Net Assets $5.5M.
Unrestricted Net Assets $835K, down from $1.8M.
Cash and Investment Balance $14.3M or 26.6% of Operating Expenses
Excluding Depreciation, down from 30.4% at 6/30/04.
Change in Net Assets for 2005 was ($775K) an improvement from
2004 of ($2.66M).
Operating Revenues Increased 5.9%.
Operating Expenses Decreased 0.1%, Salaries flat at $37.4 Million.
State Appropriations decreased 0.4%.
Foundation Statements included in campus audit for 2004 and 2005.
Bemidji State University
Cash and Investment and Net Asset Balances
(In Thousands)
$70,000
$70,000
$60,000
$60,000
$50,000
$50,000
$3,782
$3,724
$9,741
$9,535
$32,209
$33,596
$40,000
$30,000
$1,822
$6,153
$37,048
$20,027
$19,706
2002
2003
$17,876
$40,000
$30,000
$36,218
$20,000
$10,000
$835
$5,535
$14,926
$0
$20,000
$10,000
$0
Invested in Capital Assets, Net of Related Debt
Unrestricted Net Assets
2004
Restricted Net Assets
Cash and Investment Balance
2005
Minnesota State Community and Technical College
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First Year as MSCTC
Net Assets 6/30/05 $15.8M.
Invested in Capital Assets $13.8M.
Restricted Net Assets $285K.
Unrestricted Net Assets $1.7M.
Cash and Investment Balance $5.9 M or 15.0% of Operating
Expenses Excluding Depreciation
• Change in Net Assets ($1.4M).
• Operating Expenses $40.5 Million, salaries $29.2M.
• State Appropriation revenue $16.4M.
Minnesota State Community and Technical College
Cash and Investment and Net Asset Balances
(in thousands)
$16,000
$13,765
$14,000
$12,000
$10,000
$8,000
$5,851
$6,000
$4,000
$1,737
$2,000
$285
$2005
Restricted Net Assets
Unrestricted Net Assets
Invested in Capital Assets, Net of Related Debt
Cash and Investment Balance
Southwest Minnesota State University
• Net Assets 6/30/05 $42.3M.
• Invested in Capital Assets $36.1M, up 10M.
• Restricted Net Assets $4.3M, a decrease due to completion of food
service fire rebuild
• Unrestricted Net Assets $1.9M.
• Unrestricted Cash and Investment Balance $12.3M or 32.3% of 2005
operating expenses, down from 43.7% in 2004.
• Change in Net Assets $4.4M.
• Operating Revenues Increased 14.2%.
• Operating Expenses Increased 3.7%.
Southwest Minnesota State University
Cash and Investment and Net Asset Balances
$40,000,000
$36,070,000
$35,000,000
$30,000,000
$26,081,000
$25,000,000
$18,707,000
$20,000,000
$15,000,000
$17,956,000
$17,415,000
$14,513,000
$12,290,000
$11,045,000
$10,000,000
$4,302,000
$5,000,000
$982,000
$803,000
$1,949,000
$2003
Restricted Net Assets
Invested in Capital Assets, Net of Related Debt
2004
2005
Unrestricted Net Assets
Unrestricted Cash and Investment Balance
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Rochester Community and Technical College
Net Assets 6/30/05 $55.5M.
Invested in Capital Assets $46.0M.
Restricted Net Assets $474K.
Unrestricted Net Assets $9.0M.
Cash and Investment Balance $13.1M or 38.0% of
Operating Expenses Excluding Depreciation.
Change in Net Assets $969K.
Prior Period Adjustment $224K for receivable writeoffs.
Operating Revenues Increased 10.1%.
Operating Expenses Increased 3.2%.
Rochester Community and Technical College
Cash and Investment and Net Asset Balances
$49,343,000
$50,000,000
$47,519,000
$46,039,000
$40,000,000
$30,000,000
$20,000,000
$13,070,000
$9,976,000
$8,856,000
$10,000,000
$520,000
$506,000
$9,005,000
$6,734,000
$5,115,000
$474,000
$2003, Restated
Restricted Net Assets
Invested in Capital Assets, Net of Related Debt
2004
2005
Unrestricted Net Assets
Cash and Equivalents Balance
• Northwest Technical Colleges
• Analysis of breakup was performed to ensure
accountability for successor entities.