The University of Montana financial-compliance audit for the two fiscal years ended ..

144 Pages·1996·5.5 MB·English

by  Montana. Legislature. Legislative Audit Division

s
378.106
L72UM
2000
Legislative Audit Division
State of Montana
Report to the Legislature
March 2001 Financial-Compliance Audit
For the Two Fiscal Years Ended June 30, 2000
The Montana
University of
This report contains audited financial statements for each ofthe four
campuses ofThe University ofMontana. This report presents 6
recommendations. These recommendations address issues related to:
Overtime payments which do not comply with University policy and
procedures.
Control over property and equipment.
Compliance with various state and federal laws and regulations.
SW7E
DOCUMENTS
COLLECTION
' 7 2001
'
Direct comments/inquiries to: MONTANA STATE LIBRARY
Legislative Audit Division HcLENA, MONTANA 595PO
Room 160, State Capitol
PO Box 201705
MT
00-10 Helena 59620-1705
Helpeliminatefraud, waste,andabuse in state government. Call the Fraud Hotline at 1-800-222-4446
statewideor444-4446 in Helena.
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3 0864 0015 5576 5
FINANCIAL-COMPLIANCE AUDITS
Financial-compliance audits are conducted by the Legislative Audit Division to determine ifan
agency's financial operations are properly conducted, the financial reports are presented fairly,
and the agency has complied with applicable laws and regulations. In performing the audit
work, the audit staff uses standards set forth by the American Institute ofCertified Public
Accountants and the United States General Accounting Office. Financial-compliance audit staff
members hold degrees with an emphasis in accounting. Most staff members hold Certified
Public Accountant (CPA) certificates.
Government Auditing Standards, the Single Audit Act Amendments of 1996 and OMB Circular
A-133 require the auditor to issue certain financial, internal control, and compliance reports.
This individual agency audit report is not intended to comply with these reporting requirements
and is therefore not intended for distribution to federal grantor agencies. The Legislative Audit
Division issues a statewide biennial Single Audit Report which complies with the above
reporting requirements. The Single Audit Report for the two fiscal years ended June 30, 1999,
was issued on March 30, 2000. The Single Audit Report for the two fiscal years ended
June 30, 2001, will be issued by March 31, 2002. Copies ofthe Single Audit Report, when
available, can be obtained by contacting:
Single Audit Coordinator Legislative Audit Division
Office of Budget and Program Planning Room 160, State Capitol
State Capitol PO Box 201705
MT MT
Helena 59620 Helena 59620-1705
Phone [phone]
MEMBERS OF THE LEGISLATIVE AUDIT COMMITTEE
Senator Jim Elliott Representative Bill Eggers
Senator Ken Miller Representative Dick Haines
Senator Linda Nelson Representative Hal Jacobson
Senator Corey Stapleton Representative Jeff Pattison
Senator Mike Taylor Representative Steve Vick
Senator Jon Tester Representative David Wanzenried
LEGISLATIVE AUDIT DIVISION
Scott A. Seacat, Legislative Auditor Deputy Legislative Auditors:
John W. Northey, Legal Counsel Jim Pellegrini, Performance Audit
Tori Hunthausen, IT & Operations Manager James Gillett, Financial-Compliance Audit
March 2001
The Legislative Audit Committee
ofthe Montana State Legislature:
This is our financial-compliance audit report on the University of Montana all campuses
for the two fiscal years ended June 30, 2000. Our report contains 6 recommendations
concerning overtime pay, control over property and equipment, and federal and state
compliance issues.
We
thank the university president, chancellors and their staffs, as well as the Office of
the Commissioner of Higher Education, for their assistance and cooperation during the
audit.
illy submitted,
Scott A. Seacat
Legislative Auditor
Room 160, State Capitol Building, PO Box 201705 Helena MT59620-1705
Phone [phone] FAX [phone] E-Mail [email protected]
Digitized by the Internet Archive
in 2012 with funding from
Montana State Library
http://archive.org/details/universityofmont2000nnont
Legislative Audit Division
Financial-Compliance Audit
For the Two Fiscal Years Ended June 30, 2000
The University of Montana
Members ofthe audit staffinvolved in this audit were Pearl M. Allen, Laurie
Barrett, Chris G. Darragh, Laurie H. Evans, Wayne D. Guazzo, Scott Hoversland,
Emlyn Neuman-Javomik, Wayne Kedish, Brenda Kedish, Jim Manning, Laura L.
Norris, Paul J. O'Loughlin, Lorry Parriman, Sonia Powell, Vickie Rauser, and
Jennifer Solem.

5338
Table of Contents
Appointed and Administrative Officials Page iv
Report Summary Page vii
Introduction Audit Objectives Page
1
Background Page
1
The University ofMontana—Missoula Page 7
Montana Tech ofThe University ofMontana Page 7
Western Montana College ofThe University of
Montana Page 7
Helena College ofTechnology ofThe University
ofMontana Page 7
Prior Audit Prior Audit Recommendations Page 9
Recommendations Recommendation Not Implemented Page 9
Recommendations Partially Implemented Page 9
Findings and Payroll Policy Issues Page 1
Recommendations Overtime Pay Page
1
Compensatory Time Page 14
Control Over Property and Equipment-Helena College
ofTechnology Page 14
Federal Compliance Issues Page 15
Leave Pool Page
1
Employee Time and Effort Reporting Page 17
Financial Aid Reports Page 18
Notification ofTheft Page 1
Independent Auditor's Independent Auditor's Report Page A-3
Report and The University
ofMontana - Missoula Balance Sheet - June 30, 2000 Page A-6
Financial Statements
Statement ofChanges in Fund Balance
Year Ended June 30, 2000 Page A-8
Statement ofChanges in Fund Balance
Year Ended June 30, 1999 Page A-10
Statement ofCurrent Funds Revenues, Expenditures
and OtherChanges Year Ended June 30, 2000 Page A-12
Page
i
Table of Contents
Statement ofCurrent Funds Revenues, Expenditures
and OtherChanges Year Ended June 30, 1999 Page A-14
Notes to the Financial Statements Page A-17
Independent Auditor's Independent Auditor's Report Page B-3
Report and Montana Tech
ofThe University of Balance Sheet - June 30, 2000 Page B-6
Montana Financial
Statements Statement ofChanges in Fund Balances
Year Ended June 30, 2000 Page B-8
Statement ofChanges in Fund Balances
YearEnded June 30, 1999 Page B-10
Statement ofCurrent Funds Revenues, Expenditures
and OtherChanges Year Ended June 30, 2000 Page B-12
Statement ofCurrent Funds Revenues, Expenditures
and OtherChanges Year Ended June 30, 1999 Page B-13
Notes to the Financial Statements Page B-15
Independent Auditor's Independent Auditor's Report Page C-3
Report and Western
Montana College ofThe Balance Sheet - June 30, 2000 Page C-5
University of Montana
Financial Statements Statement ofChanges in Fund Balance
YearEnded June 30, 2000 Page C-6
Statement ofChanges in Fund Balance
Year Ended June 30, 1999 Page C-7
Statement ofCurrent Funds Revenues, Expenditures
and Other Changes Year Ended June 30, 2000 Page C-8
Statement ofCurrent Funds Revenues, Expenditures
and Other Changes Year Ended June 30, 999 Page C-9
1
Notes to the Financial Statements Page C-l 1
Page
ii
Table of Contents
Independent Auditor's Independent Auditor's Report Page D-3
Report and Helena College
ofTechnology ofThe Balance Sheet - June 30, 2000 Page D-5
University ofMontana
Financial Statements Statement ofChanges in Fund Balance
Year Ended June 30, 2000 Page D-6
Statement ofChanges in Fund Balance
Year Ended June 30, 1999 Page D-7
Statement ofCurrent Funds Revenues, Expenditures
and OtherChanges Year Ended June 30, 2000 Page D-8
Statement ofCurrent Funds Revenues, Expenditures
and Other Changes Year Ended June 30, 1999 Page D-9
Notes to the Financial Statements Page D-l 1
University Response The University ofMontana Page E-3
Page
iii
Appointed and Administrative Officials
Board ofRegents of Higher Judy Martz, Governor*
Education
Linda McCullough, Superintendent ofPublic Instruction*
Margie Thompson, Chair
Edwin H. Jasmin, Vice-Chair
Richard Roehm, Regent
Lynn Morrison-Hamilton, Regent
Mark Semmens, Regent
Deborah Wetsit, Regent
Jessica Kobos, Student Regent
*Ex officio members
Commissioner of Higher Richard Crofts Commissioner ofHigher Education
Education
Joyce Scott Deputy Commissioner for Academic Affairs
Rod Sundsted Associate Commissioner for Fiscal Affairs
Laurie Neils Director ofBudget and Accounting
The University of Montana George M. Dennison President
Administrative Personnel
The University of Robert L. Kindrick Provost and Vice President forAcademic
Montana - Missoula Affairs, and University Provost
Through 7/31/00
Lois Muir Provost and Vice President for Academic
Affairs and University Provost
Effective 7/1/00
V. Scott Cole Vice President for Administration and
Finance and University Vice President
Through 10/31/00
Rosemary M. Keller Interim Vice President for Administration
and Finance and University Vice President
Effective 11/1/00
T. Lloyd Chesnut Vice President for Research and
Development and University Vice President
Page iv