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Audits show recurring bank-reconciliation and control problems at several ND colleges
Summary
Legislative auditors reported repeated bank-reconciliation and internal-control deficiencies at multiple institutions (Dakota College at Bottineau, Dickinson State) while Minot State and others received clean audits; colleges say shared-services and contracted help are being implemented.
State auditors presented a series of higher-education audits Dec. 9 that showed a mix of clean opinions and recurring internal-control deficiencies across institutions.
Josh Galien of the State Auditor's Office said several campuses received clean financial-statement opinions, but the audits also documented persistent problems at smaller campuses. The Dakota College at Bottineau audit found inadequate monthly bank reconciliations with unsupported reconciling items between about $74,796 and $263,865 and unreconciled differences ranging from negative $357,367 to positive $815,897 for the months tested. The audit warned "Without supporting documentation, the reconciling items could be plug figures."
Minot State University President Steve Shirley told the committee Minot will provide back-office support to Dakota College at Bottineau, including handling bank reconciliations and other business-office functions. "Going forward Minot State University will be handling the bank reconciliations along with a number of other financial services and back office kinds of work on behalf of Dakota College at Botno," Shirley said.
Dickinson State University had several findings, including unsupported journal entries and scholarships/waivers awarded without documented procedures or approvals; auditors identified athletic and presidential scholarship amounts that lacked required approvals and found capital asset inventories had not been performed as required by statute.
Auditors and university officials described shared-services and continuous review initiatives as remedies. Dave Kresbach, deputy commissioner and CFO with the university system office, said the State Board of Higher Education assigned an internal audit engagement to examine system-wide bank reconciliations and will report findings in upcoming audits.
Committee members requested follow-up reports from campus presidents and the university system; presidents who spoke pledged to contract CPA assistance, implement shared services, and return to the committee with progress updates.
