Report to the Legislature : financial audit for the fiscal year ended June 30 ..., the University of Montana

58 Pages·2002·2.9 MB·English

by  Montana. Legislature. Legislative Audit Division

s
378.106
L72UM
2005
Legislative Audit Division
State ofMontana
Report to the Legislature
December 2005 Financial Audit
For the Fiscal Year Ended June 30, 2005 STATE DOCUMENTS COLLECTION
nrc 2 9 2005
MONTANA STATE LIBRARY
151S t. ©th AVE.
HELENA, MONTANA 59620
The University of Montana
A Component Unit ofthe State ofMontana
We performed a financial audit ofThe University ofMontana's
consolidated financial statements forthe fiscal year ended June 30, 2005.
These financial statements present the financial position, the results of
operations, and cash flows, on a consolidated basis, ofall four campuses
affiliated with The University ofMontana: The University ofMontana-
Missoula; Montana Tech ofThe University ofMontana (located in Butte);
The University ofMontana-Western (located in Dillon); and The
University ofMontana-Helena College ofTechnology.
The statements include component unitfinancial information as required
under GASB 39. This report contains an unqualified opinion on the
university's financial statements and accompanying notes for the fiscal
year ended June 30, 2005, and the comparative information forthe fiscal
year ended June 30, 2004. This opinion means the reader may rely on the
financial statement information presented. Supplemental Information on
page A-43 is presentedfor additional analysis.
This audit is performed to attestto the fairness ofthe consolidated
financial statements ofThe University ofMontana. Audit issues, ifany,
identified duringthis audit have been discussed with university
management and, ifappropriate, will be reported in our financial-related
audit ofthe university for the two fiscal years ended June 30, 2007.
Direct comments/inquiries to:
Legislative Audit Division
Room 160, State Capitol
PO Box 201705
MT
05-10 Helena 59620-1705
Help eliminate fraud, waste, and abuse in state government. Call the Fraud Hotline at
1-800-222-4446 statewide or 444-4446 in Helena.
MontanaSlateLibrary
3 0864 1003 6066
1
FINANCIAL AUDITS
Financial audits are conducted bythe Legislative Audit Divisionto determine ifthe financial
statements included inthis report arepresented fairly and the agencyhas complied with laws and
regulations having a direct and material effect onthe financial statements. In performing the
audit work, the audit staffuses standards set forth bythe American Institute ofCertified Public
Accountants andthe United States Government Accountability Office. Financial audit staff
members hold degrees with an emphasis inaccounting. Most staffmembers hold Certified Public
Accountant (CPA) certificates.
OMB
Government Auditing Standards, the Single Audit Act Amendments of 1996 and Circular
A-133 requirethe auditorto issue certain financial, internal control, and compliance reports. This
individual agency audit report is not intendedto comply withthese requirements and is therefore
not intended fordistribution to federal grantoragencies. The Legislative Audit Division issues a
statewide biennial Single Audit Report which complies withthe above reporting requirements.
The Single Audit Report forthetwo fiscal years endedJune 30, 2005, will be issued by March
31, 2006. The Single Audit Report forthe two fiscal years ended June 30, 2003, was issued on
March 23, 2004. Copies ofthe Single Audit Report canbe obtained by contacting:
Single Audit Coordinator Legislative Audit Division
Office ofBudget and ProgramPlanning Room 160, State Capitol
State Capitol PO Box 201705
MT MT
Helena 59620 Helena 59620-1705
Phone [phone]
MEMBERS OF THE LEGISLATIVE AUDIT COMMITTEE
SenatorJoe Balyeat, Vice Chair Representative Dee Brown
SenatorJohn Brueggeman Representative Hal Jacobson
SenatorJim Elliott Representative Christine Kaufmann
SenatorDan Harrington Representative Scott Mendenhall
SenatorLynda Moss RepresentativeJohn Musgrove, Chair
SenatorCorey Stapleton Representative Janna Taylor
LEGISLATIVE AUDIT DIVISION
Scott A. Seacat, Legislative Auditor Deputy Legislative Auditors:
John W. Northey, Legal Counsel Jim Pellegrini, Performance Audit
&
Tori Hunthausen, IS Audit Operations
James Gillett, Financial-Compliance Audit
December 2005
The Legislative Audit Committee
ofthe Montana State Legislature:
This is our financial audit report onThe University ofMontana's consolidated financial statements forthe
fiscal year endedJune 30, 2005. The statements include comparative information forthe fiscal year ended
June 30, 2004. The University requestedthis audit to providetimely audited financial statements to interested
parties. The objective ofouraudit was to determine ifThe University's financial statements present fairly its
financial position, changes in its financial position, and its cash flows as ofand forthe fiscal year ended June
30, 2005. This objective included determining TheUniversity's compliance with laws and regulations having
a direct and material impact on the financial statements. Ouropinion for fiscal year 2004 is based onthe audit
weperformed inthe fall of2004.
The University ofMontana consists ofcampuses located in Missoula, Butte, Dillon, and Helena. The
campuses are accredited by the Commission on Colleges oftheNorthwest Association ofSchools and
Colleges and provide a diversity ofundergraduate and graduateacademic and two-year vocational/technical
programs to students.
The University ofMontana-Missoula is a comprehensive university offering four-yearundergraduate
programs along with master and doctoral graduate programs. It includes professional schools and significant
research activities. The campus is the centerofliberal arts education in the Montana University System and
operates the only law school in the system. Otherschools includebusiness administration, education, fine arts,
forestry, pharmacy and allied health services, andjournalism. In addition, the campus includes a two-year
college oftechnology that provides a broad range oftechnical and occupational education andtraining courses.
Montana Tech ofThe University ofMontana provides a variety offour-year and graduate programs witha
focus on mineral, geological, environmental, petroleum, mining, and other engineering and science programs
and majors. It also includes a college oftechnology that provides two-year degrees in various occupational
and technical programs and core education courses.
The University ofMontana-Western provides bothtwo-yearand four-yearundergraduate degree programs
with a focus on elementary and secondary education. It also provides a four-year liberal arts degree with
several emphases that complement the education programs.
TheUniversity ofMontana-Helena College ofTechnologyprovides two-year Associate ofScience
degree programs and a variety ofotheroccupational, technical, and training specialties. These areas
include accounting technology, carpentry, computertechnology, practical nursing, electronics
technology, and welding technology. The college is expanding its offerings and will serve as a higher
education centerby offering certain courses transferable to degree programs offered at othercampuses
ofthe Montana University System.
Room 160, StateCapitol BuildingPO Box 201705 Helena, MT 59620-1705
Phone[phone] FAX[phone] E-Mail [email protected]
.
A list ofAppointed and Administrative Officials having oversight responsibilities with respect to The
University ofMontana can be found on page
i.
Beginning on page A-l, you will find the Independent Auditor's Report followed by The University's
financial statements and accompanying notes. We issued an unqualified opinion on The University's
consolidated financial statements, whichmeans the readercan rely on the presented information.
This report does not contain any recommendations to The University. Audit issues, ifany, identified
duringthis audit have beendiscussed with university management. The University's responseto this
report is onpage B-l
We thank President Dennison and his stafffortheircooperation and assistance during the audit.
pectfully submitte
Scott A. Seacat-
Legislative Auditor
Appointed and Administrative Officials
Board ofRegents ofHigher Brian Schweitzer, Governor*
Education Linda McCullough, Superintendent ofPublic Instruction*
John A. Mercer, Chair
Mike Foster, Vice Chair
Kala French, Student Regent
Lynn Morrison-Hamilton, Regent
Stephen M. Barrett, Regent
Mark Semmens, Regent
Lila Taylor, Regent
*Ex officio members ofthe Board ofRegents
Commissioner ofHigher Sheila M. Stearns Commissioner ofHigher Education*
Education
RodgerBarber Deputy Commissioner forAcademic and
Student Affairs
Mick Robinson Associate Commissioner for Fiscal Affairs
David Gibson Associate Commissioner for Economic
Development and Outreach
Pam Joehler Director ofBudget and Accounting
Cathy Swift ChiefLegal Counsel
The University ofMontana, George M. Dennison President
All Campuses
The University ofMontana- Lois Muir Provost and Vice President, Academic
Missoula Affairs
Robert Duringer Vice President forAdministration and
Finance
Daniel J. Dwyer Vice President for Research and
Development
Teresa S. Branch Vice President for Student Affairs and
University Vice President
David Aronofsky Legal Counsel
James R. Darcy Director ofBusiness Services
Page
i
8
Appointed and Administrative Officials
Montana Tech ofThe W. Franklin Gilmore Chancellor and University Executive Vice
University ofMontana President
Susan B. Patton Vice Chancellor forAcademic Affairs and
Research and University Associate Provost
Joseph F. Figueira Associate Vice Chancellor for Academic
Affairs and Research, Dean ofthe
Graduate School
John C. Badovinac Controller/Business Manager
Lynn Job Director ofContracts and Grants
The University ofMontana- Richard Storey Chancellor
Western
Karl E. Ulrich Provost and Vice Chancellor for Academic
Affairs, University Associate Provost
Susan D. Briggs Vice Chancellor for Administration and Finance,
University Associate Vice President
Virginia Dale Director ofBusiness Services
The University ofMontana- Daniel Bingham Dean/CEO
Helena College of
(Vacant) Associate Dean forAcademic Affairs
Technology
Cristobal Valdez Associate Dean, Student Services
Russ Fillner Associate Dean, Fiscal and Plant
For further information onThe University ofMontana (All
Campuses) contact:
Kathy Burgmeier, Director, Internal Audit
University Hall 01
MT
Missoula 59812
[phone]
[phone] (fax)
burgmeierka(a>mso umt edu
. .
Members ofthe audit staffinvolved in this audit were Pearl M. Allen,
Danielle Gamradt, Paul J. O'Loughlin, Sonia Powell, Vickie Rauser,
JeffTamblyn, Lena Tamcke, and Amber Thorvilson.
Page
ii
LEGISLATIVE AUDIT DIVISION
Scott A. Seacat, Legislative Auditor Deputy Legislative Auditors:
John W. Northey, Legal Counsel Jim Pellegrini, Performance Audit
&
Tori Hunthausen, IS Audit Operations
James Gillett, Financial-Compliance Audit
INDEPENDENT AUDITOR'S REPORT
The Legislative Audit Committee
ofthe Montana State Legislature:
We have audited the accompanying Consolidated Statements ofNet Assets ofThe University of
Montana, a component unit ofthe state ofMontana, as ofJune 30, 2005, and 2004, and the related
Consolidated Statements ofRevenues, Expenses and Changes in Net Assets and Consolidated
Statements ofCash Flows forthe fiscal years then ended and the Combined Statements ofFinancial
Position-Component Units as ofJune 30, 2005, and 2004, and the related Combined Statement of
Activities-Component Units forthe fiscal years then ended. The information contained in these financial
statements is the responsibility ofthe university's management. Ourresponsibility is to express opinions
on these financial statements based on ouraudit. We did not audit the financial statements ofthe
university's aggregate discretely presented component units. Those statements, which includeThe
University ofMontana Foundation, the Montana Tech Foundation, The University ofMontana-Western
Foundation, and the Montana Grizzly Scholarship Association, were audited by other auditors whose
reports thereon have been furnished to us, and ouropinion insofaras it relates to the amounts included
forthe component units ofthe university, as noted above, are based on the reports ofthe other auditors.
We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whetherthe financial statements are free ofmaterial misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accountingprinciples used and significant estimates made by management, as
We
well as evaluating the overall financial statement presentation. believe that our audit and the reports
ofotherauditors provide a reasonable basis forouropinion.
In our opinion, based on our audit and the reports ofother auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position ofThe University of
Montana and the aggregate discretely presented component units as ofJune 30, 2005, and 2004, and the
respective changes in financial position and cash flows, where applicable, forthe years then ended, in
conformity with accounting principles generally accepted inthe United States ofAmerica.
Page A-l
Room 160, StateCapitol Building, PO Box 201705, Helena MT 59620-1705
Phone[phone] FAX [phone] E-MaiI [email protected]
The Management's Discussion and Analysis on pages A-3 through A-l 1 is not a required part ofthe
financial statements but is supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally ofinquiries of
management regarding the methods ofmeasurement and presentation ofthe required supplementary
information. However, we did not audit the information and express no opinion on it.
The Supplemental Information onpage A-43 is presented forpurposes ofadditional analysis and is not a
required part ofthe basic financial statements. Such information has not been subjected to the auditing
procedures applied in the audit ofthe financial statements and, accordingly, we express no opinion on it.
Respectfully submitted,
James Gillett, CPA
Deputy Legislative Auditor
November 9, 2005
Page A-2
The University ofMontana's
Management Discussion and Analysis,
Financial Statements, and Notes
Digitized by the Internet Archive
in 2012 with funding from
Montana State Library
http://archive.org/details/reporttolegislat2005mont