Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit

Fond du Lac Tribal and Community College

July 1, 1997, through June 30, 2000

Fond du Lac Tribal and Community College operated within available financial resources. Generally, the college's internal controls provided reasonable assurance that financial activities were properly recorded on the MnSCU and MAPS accounting systems and were in compliance with applicable legal provisions and management's authorization. However, we identified certain internal control weaknesses that could impact on the college's ability to safeguard assets and to correctly record financial activities in the accounting system.

Key Findings and Recommendations:

• Fond du Lac Tribal and Community College did not adequately restrict access to its accounting system and did not properly monitor transactions entered onto the accounting system. The college should review system security to limit employee access to the functions needed to complete their job responsibilities. In addition, the college should design mitigating controls that would independently monitor the risks posed by such incompatible access.
• Fond du Lac Tribal and Community College did not perform an independent review of backdated registration cancellations or verify tuition waivers issued to waivers authorized. The college should develop a process to independently compare backdated transactions entered into the system with those specifically authorized. The college should compare tuition waivers issued to waivers authorized.
• Fond du Lac Tribal and Community College has not done an adequate job of monitoring and pursuing the collection of past due accounts. The college should turn past due accounts over to the Minnesota Collection Enterprise and restrict students who still owe prior tuition and fees from registering for future classes.
• Fond du Lac Tribal and Community College did not adequately separate duties in the bookstore. The college should properly separate duties or perform independent reviews to ensure the accuracy and completeness of its bookstore financial operations.

Fond du Lac Tribal and 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, employee payroll, selected expenditure areas, and bookstore operations for the period from 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.