Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit

Anoka Ramsey Community College

July 1, 1997, through March 31, 2001

Anoka Ramsey Community College operated within its available resources. We found, however, that the college had several internal control weaknesses that impacted the safeguarding of assets and the recording of financial activities on the college's accounting systems.

Key Findings and Recommendations:

• The college had numerous bank accounts. Many reconciling items for various accounts were not resolved. The college should reassess the need for each of its bank accounts and should consolidate and close unnecessary accounts. It should determine the cause of differences between cash balances in the bank and the MnSCU accounting system and resolve them in a timely manner.
• The college did not sufficiently restrict employee access to certain computerized business systems. It should limit employee access to the minimal level necessary to complete their job responsibilities.
• The college did not accurately and timely record certain financial activities on the MnSCU accounting system and did not completely reconcile all MnSCU accounting system accounts to the state's accounting system (MAPS). The college should accurately and timely enter all transactions. It should reconcile all of its MnSCU accounts in a timely manner.
• The college did not ensure that contract training revenues were properly deposited. It should record all contract training receivables in the accounting system.
• The college did not adequately pursue its outstanding accounts receivable. It should pursue outstanding receivables and develop procedures for billing and record holds.
• The college had a lack of separation of duties over revenue collection in the Coon Rapids campus bookstore. It should separate duties associated with the bookstore's cash receipts.

Anoka Ramsey Community College is part of the Minnesota State Colleges and Universities (MnSCU) system. This financial-related audit report focused on financial management, tuition and fees, payroll, administrative expenditures, and bookstore operations for the period from July 1, 1997, through March 31, 2001. We also reviewed the college's internal controls over compliance with federal student financial aid for fiscal year 2001.