Hennepin Technical College
Metropolitan State University
Minneapolis Community and Technical College
St. Cloud State University
Review of Audit
June 30, 2005
Presented By
Daryl DeKam, CPA, Partner

• Financial Statement Opinions
•
Compliance Reports
• Management Letters
•
Significant Transactions
• Comments and Questions
MnSCU- 6/30/05 Page 2

•
Unqualified Opinions
– Hennepin Technical College (third year audit)
–
Metropolitan State University (third year audit)
• Includes reference to other auditors for Metropolitan State
University Foundation audit
– Minneapolis Community and Technical College (third year audit)
– St. Cloud State University (first year VK was auditors)
• Includes reference to other auditors for 2005 St. Cloud State
University Foundation
The year 2004 is the first year the Foundation’s were reported as component units of Metropolitan and St. Cloud State University.
MnSCU- 6/30/05 Page 3

MnSCU- 6/30/05 Page 4

•
Management Letter Issued For Each College or University
– Includes schedule of passed adjusting journal entries
–
Includes a schedule of recorded adjustments
–
Includes standard required audit committee communications
• Audit work and completion was delayed as a result of the complexities of the compensated absence calculation changes for both classified and unclassified personnel
• Method for computing scholarship allowances was revised
MnSCU- 6/30/05 Page 5

• Comments discussed with school personnel and
Office of the Chancellor. Separate communication letters issued to Metropolitan and Hennepin for other observations concerning deferred revenue procedures, journal entry procedures and funds held for others
•
Management and Internal Audit to follow-up on comments
MnSCU- 6/30/05 Page 6

• Minneapolis Community and Technical College
–
Co-location transactions with Metropolitan State
– Loan from Chancellor’s office balance of $961,000
– Total investment in capital assets of over $26,000,000 in the last two years
– Change in equity in 2005 is ($3,614,000) and in 2004 is
$11,806,000 (capital allocations in 2004 totaled
$12,996,000)
MnSCU- 6/30/05 Page 7

•
Metropolitan State University
–
Co-location agreement transactions
– Repayment of student financial aid amounts to DOE
– Investment in capital assets of approximately
$18,600,000 in the last two years
– New long term debt of over $8,650,000 in last two years
–
Change in equity in 2005 of ($788,000) and in 2004
$4,082,000
MnSCU- 6/30/05 Page 8

• Hennepin Technical College
–
Investment in capital assets of approximately
$5,700,000 in last two years
–
Change in equity in 2005 of $566,000 and in 2004
($162,000)
MnSCU- 6/30/05 Page 9

• St. Cloud State University
–
Investment in capital assets of approximately
$21,000,000 in last two years
–
Change in equity in 2005 of $10,957,000 and in 2004
$13,601,000
–
Transactions with the St Cloud State University
Foundation
MnSCU- 6/30/05 Page 10

•
VK audit scope and testing was adequate to issue an unqualified opinion
•
Core business activities are presented by object as well as by function in the financial statements
•
Higher risk – significant transactions received more VK audit attention than routine activity
•
VK reports on internal controls reported no findings
•
VK has considered the risk of fraudulent financial reporting in our audits of the financial statements
MnSCU- 6/30/05 Page 11

Thank you for the assistance of the MnSCU personnel .
MnSCU- 6/30/05 Page 12