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

1
Kern, DeWenter, Viere, Ltd.Summary of Audit
Results

• Revenue Fund
• Bemidji State University
• Minnesota State Community and Technical College
• Southwest Minnesota State University
• Rochester Community and Technical College

2
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.

3
Revenue Fund - Performance

• Net assets increased 13.5 million in 2005
  compared to 6.8 million in 2004
• Operating Revenue up 3.3 million over 2004 or
  5, a result of Room Board increases across the
  campuses and added capacities
• Operating Expenses up 803,000 over 2004 or 1.3
  with slight increases in salaries, food services
  and purchased services and a decrease in supplies

4
Revenue Fund - Performance

• Prior period adjustment of 522,000 to record
  interest payable on bonds
• Restricted cash balances declined in 2005 from
  20.5 Million to 9.1 Million as a result of
  completed projects.
• Cash balance at June 30, 2005 was 36,570,000
  compared to 38,341,000 at June 30, 2004.
• Bonds were issued after year end totaling
  45,320,000.
• One compliance finding relating to reserve
  deposit

5

• Bemidji State University
• Net Assets 6/30/05 43.4M.
• Invested in Capital Assets 37.0M.
• Restricted Net Assets 5.5M.
• Unrestricted Net Assets 835K, down from 1.8M.
• Cash and Investment Balance 14.3M or 26.6 of
  Operating Expenses Excluding Depreciation, down
  from 30.4 at 6/30/04.
• Change in Net Assets for 2005 was (775K) an
  improvement from 2004 of (2.66M).
• Operating Revenues Increased 5.9.
• Operating Expenses Decreased 0.1, Salaries flat
  at 37.4 Million.
• State Appropriations decreased 0.4.
• Foundation Statements included in campus audit
  for 2004 and 2005.

6
Bemidji State University
7

• Minnesota State Community and Technical College
• First Year as MSCTC
• Net Assets 6/30/05 15.8M.
• Invested in Capital Assets 13.8M.
• Restricted Net Assets 285K.
• Unrestricted Net Assets 1.7M.
• Cash and Investment Balance 5.9 M or 15.0 of
  Operating Expenses Excluding Depreciation
• Change in Net Assets (1.4M).
• Operating Expenses 40.5 Million, salaries
  29.2M.
• State Appropriation revenue 16.4M.

8
Minnesota State Community and Technical College
9

• Southwest Minnesota State University
• Net Assets 6/30/05 42.3M.
• Invested in Capital Assets 36.1M, up 10M.
• Restricted Net Assets 4.3M, a decrease due to
  completion of food service fire rebuild
• Unrestricted Net Assets 1.9M.
• Unrestricted Cash and Investment Balance 12.3M
  or 32.3 of 2005 operating expenses, down from
  43.7 in 2004.
• Change in Net Assets 4.4M.
• Operating Revenues Increased 14.2.
• Operating Expenses Increased 3.7.

10
Southwest Minnesota State University
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• Rochester Community and Technical College
• Net Assets 6/30/05 55.5M.
• Invested in Capital Assets 46.0M.
• Restricted Net Assets 474K.
• Unrestricted Net Assets 9.0M.
• Cash and Investment Balance 13.1M or 38.0 of
  Operating Expenses Excluding Depreciation.
• Change in Net Assets 969K.
• Prior Period Adjustment 224K for receivable
  writeoffs.
• Operating Revenues Increased 10.1.
• Operating Expenses Increased 3.2.

12
Rochester Community and Technical College
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• Northwest Technical Colleges
• Analysis of breakup was performed to ensure
  accountability for successor entities.