Kern, DeWenter, Viere, Ltd.Summary of Audit Results

Bemidji State UniversityMinnesota State University Moorhead

Northwest Technical CollegesSouthwest Minnesota State University

Rochester Community and Technical College

Summary of Audit Results

• Unqualified Opinions issued for all audits• No Reportable Conditions noted for all audits• No Material Weaknesses Identified• Management Letters Issued for Each Audit,

Includes Management Suggestions and Audit Test Results, Communicated at Campus Level – No significant comments

Bemidji State University• Net Assets 6/30/03 $45.1M • Invested in Capital Assets $33.6M• Restricted Net Assets $7.8M• Unrestricted Net Assets $3.7M• Cash and Investment Balance $19.7M or 36.9% of

Operating Expenses Excluding Depreciation, down from 39.9% at 6/30/02

• Change in Net Assets for 2003 was $1.1M

Minnesota State University Moorhead• Net Assets 6/30/03 $39.5M• Invested in Capital Assets $32.5M• Restricted Net Assets $7.9M• Unrestricted Net Assets 6/30/03 $(862K)vs (68K) at

6/30/02• Unrestricted Cash and Investment Balance $18.5M or

24.9% of Operating Expenses Excluding Depreciation, down from 25.3% at 6/30/02

• Change in Net Assets $4.9M, due to increased Capital Appropriation

Northwest Technical Colleges• Net Assets 6/30/03 $23.6M• Invested in Capital Assets $18.5M• Restricted Net Assets $681K• Unrestricted Net Assets $4.4M• Cash and Investment Balance $9.2 M or 21.2% of

Operating Expenses Excluding Depreciation, up from 20.0% at 6/30/02

• Change in Net Assets $1.6M

Southwest Minnesota State University• First Year Audit• Net Assets 6/30/03 $33.1M• Invested in Capital Assets $18.7M• Restricted Net Assets $13.4M, including fire insurance proceeds of

11.1 M• Unrestricted Net Assets $981K• Unrestricted Cash and Investment Balance $19.8M, includes $9.8M

insurance proceeds• Change in Net Assets ($1.7M) prior to insurance proceeds, $8.2M

after insurance proceeds• Prior period adjustment of $384K to adjust A/R allowance for 2002

Rochester Community and Technical College• Net Assets 6/30/03 $51.0M• Invested in Capital Assets $49.4M• Restricted Net Assets $500K• Unrestricted Net Assets $1.0M• Cash and Investment Balance $5.7M or 18.0% of

Operating Expenses Excluding Depreciation• Change in Net Assets $3.2M• Prior Period Adjustment $1.36M for addition of

roadway costs and land improvements

• Fergus Falls Community College/Northland Community College

• Balance Sheet procedures performed for each campus

• No material adjustments noted as a result of our procedures

• No audit assurance given, agreed upon procedures designed for future audit assurances

Other Discussion Items• SAS 61 Audit Committee Communication

• Information presented by Deloitte and Touche

• No items of concern to report for our campuses

• Thank You for the opportunity to provide our audit and accounting services to MnSCU