Presented By Daryl DeKam, CPA, Partner

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Presented ByDaryl DeKam, CPA, Partner
Hennepin Technical CollegeMetropolitan State
UniversityMinneapolis Community and Technical
CollegeSt. Cloud State UniversityReview of
AuditJune 30, 2005
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Agenda

• Financial Statement Opinions
• Compliance Reports
• Management Letters
• Significant Transactions
• Comments and Questions

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Financial Statement Opinions

• Unqualified Opinions
• Hennepin Technical College (third year audit)
• Metropolitan State University (third year audit)
• Includes reference to other auditors for
  Metropolitan State University Foundation audit
• Minneapolis Community and Technical College
  (third year audit)
• St. Cloud State University (first year VK was
  auditors)
• Includes reference to other auditors for 2005 St.
  Cloud State University Foundation
• The year 2004 is the first year the Foundations
  were reported as component units of Metropolitan
  and St. Cloud State University.

4
Compliance Reports

• No current year reportable instances of
  noncompliance requiring disclosure

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Management Letters

• Management Letter Issued For Each College or
  University
• Includes schedule of passed adjusting journal
  entries
• Includes a schedule of recorded adjustments
• Includes standard required audit committee
  communications
• Audit work and completion was delayed as a result
  of the complexities of the compensated absence
  calculation changes for both classified and
  unclassified personnel
• Method for computing scholarship allowances was
  revised

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Management Letters

• Comments discussed with school personnel and
  Office of the Chancellor. Separate communication
  letters issued to Metropolitan and Hennepin for
  other observations concerning deferred revenue
  procedures, journal entry procedures and funds
  held for others
• Management and Internal Audit to follow-up on
  comments

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Significant Transactions

• Minneapolis Community and Technical College
• Co-location transactions with Metropolitan State
• Loan from Chancellors office balance of 961,000
• Total investment in capital assets of over
  26,000,000 in the last two years
• Change in equity in 2005 is (3,614,000) and in
  2004 is 11,806,000 (capital allocations in 2004
  totaled 12,996,000)

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Significant Transactions

• Metropolitan State University
• Co-location agreement transactions
• Repayment of student financial aid amounts to DOE
• Investment in capital assets of approximately
  18,600,000 in the last two years
• New long term debt of over 8,650,000 in last two
  years
• Change in equity in 2005 of (788,000) and in
  2004 4,082,000

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Significant Transactions

• Hennepin Technical College
• Investment in capital assets of approximately
  5,700,000 in last two years
• Change in equity in 2005 of 566,000 and in 2004
  (162,000)

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Significant Transactions

• St. Cloud State University
• Investment in capital assets of approximately
  21,000,000 in last two years
• Change in equity in 2005 of 10,957,000 and in
  2004 13,601,000
• Transactions with the St Cloud State University
  Foundation

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Other Comments

• VK audit scope and testing was adequate to issue
  an unqualified opinion
• Core business activities are presented by object
  as well as by function in the financial
  statements
• Higher risk significant transactions received
  more VK audit attention than routine activity
• VK reports on internal controls reported no
  findings
• VK has considered the risk of fraudulent
  financial reporting in our audits of the
  financial statements

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Questions and Comments

• Thank you for the assistance of the
  MnSCU personnel.