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Audit finds revenue recognition, monitoring, and reconciliation issues at North Dakota University System campuses
Summary
A March 24 audit of the North Dakota University System issued an unmodified opinion but reported four findings including material audit adjustments tied to Strategic Investment and Improvements Fund revenue recognition, insufficient monitoring of service organizations (~$585M), improper bank reconciliations at three campuses, and improper investment reconciliations at Bismarck State College.
Auditors presented the North Dakota University System annual audit March 24, issuing an unmodified opinion on the system's consolidated financial statements but identifying four material findings.
Dan Cox, Director of Audit Services in the State Auditor's office, told the Legislative Audit and Fiscal Review Committee the audit identified: material audit adjustments at multiple campuses related to recognition of revenue connected to the Strategic Investment and Improvements Fund; insufficient monitoring of service organizations involving roughly $585 million in transactions; improper bank reconciliations at Dakota College at Bottineau, Dickinson State University, and Williston State College; and improper investment reconciliations at Bismarck State College. Robin Putnam, Director of Financial Reporting for the North Dakota University System office, described that the System's financial report includes 11 public universities, the System office, Core Technology Services, and required component-unit foundations.
Committee members and campus officials discussed shared-services monitoring and bank-reconciliation remediation. Dustin Walcker, Senior Internal Auditor for the University System, said internal auditors have completed monitoring at 9 of 11 institutions and are awaiting reconciliations at Dickinson State University and Dakota College at Bottineau. Dickinson State President Scott Molander and other campus finance officials described ongoing corrective actions and said Dickinson State will continue using shared services with North Dakota State University after remediation steps.
The committee recorded the findings and accepted the University System annual financial report during its meeting.
