Presented ByDaryl DeKam, CPA, Partner

Hennepin Technical CollegeMetropolitan State University

Minneapolis Community and Technical College

Review of AuditJune 30, 2004

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Agenda

• Financial Statement Opinions• Prior Period Adjustments• Compliance Reports• Management Letters• Significant Transactions• Questions

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Financial Statement Opinions

• Unqualified Opinions– Hennepin Technical College

– Metropolitan State University

• Includes reference to other auditors for Metropolitan State University Foundation audit

– Minneapolis Community and Technical College

All of the above are second year individual college audits. The year 2004 is the first year the Foundation was reported as a

component unit of Metropolitan State University.

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Prior Period Adjustments

Beginning of Year Net Assets Increased as Follows:

• Hennepin Technical College - $560,000– Reallocation of prior year capital appropriations between MnSCU

Colleges and Universities

• Minneapolis Community and Technical College – $2,164,000– Reallocation of prior year capital appropriations between MnSCU

Colleges and Universities

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Compliance Reports

• No current year reportable instances of noncompliance– Hennepin Technical College– Minneapolis Community and Technical College– Metropolitan State University

• Metropolitan State University– Prior year finding of noncompliance with certain

student financial aid eligibility and academic progress requirements. Excess awards have been repaid to DOE.

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Management Letter

• Management Letter Issued For Each School– Includes schedule of passed adjusting journal entries

– Includes a schedule of recorded adjustments

– Includes standard required audit committee communications

• Audit work was delayed as a result of the complexities of the capital appropriation reallocation and Metropolitan State/Minneapolis C&T College parking ramp transactions

• Comments Discussed With School Personnel and Office of the Chancellor

• Management and Internal Audit to follow-up on comments

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Significant Transactions

• Minneapolis Community and Technical College– Transfer of parking ramp ($835,000) and cash

($600,000) to Metropolitan State

– Grant revenue from Metropolitan State ($2,530,000)

– Loan from Chancellor’s office of $1,200,000

– Purchase of Billy Graham property for $11,200,000

– Total investment in capital assets of over $21,000,000

– Change in equity of $11,806,000

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Significant Transactions

• Metropolitan State University– Transfer of parking ramp ($835,000) and cash ($600,000) from

Minneapolis Community and Technical College (MCTC)– Grant expense to MCTC ($2,530,000)– Inclusion of Revenue Fund activity and assets– Inclusion of Foundation financial statements in the annual report– Repayment of student financial aid amounts to DOE– Investment in capital assets of approximately $14,000,000– New long term debt of over $8,000,000– Change in equity of $4,082,000

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Significant Transactions

• Hennepin Technical College– Investment in capital assets of approximately

$3,200,000

– Change in equity of $(162,000)

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Questions

Thank you for the assistance of the MnSCU personnel.