Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit

Riverland Community College

July 1, 1997, through June 30, 2000

Overall Audit Conclusion:

Riverland Community College's budgetary controls provided reasonable assurance that it operated within available resources. Except as noted below, the college's internal controls provided reasonable assurance that assets were safeguarded, and financial activities were properly recorded in the accounting system and complied with applicable legal provisions.

Key Findings:

• Riverland Community College did not adequately restrict certain computer security clearances. The college should limit access and periodically monitor security clearances to ensure an adequate separation of duties and prevent unauthorized access to data.
• Riverland Community College did not record the correct occurrence dates in the MnSCU accounting system for supplies and equipment expenditures. The occurrence date determines the college's liabilities at year-end for financial reporting purposes. The college should ensure that the occurrence date recorded in the accounting system is the date that goods were received.
• Riverland Community College did not have adequate controls over some bookstore activities including inventory control, voids and refunds, and third-party billings.

Riverland Community 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, and bookstore revenue for the period July 1, 1997, through June 30, 2000. We also reviewed the college's internal controls over compliance with federal student financial aid for fiscal year 2001.