Metropolitan State College uses several different clearing accounts for its operations. Normally, balances in clearing accounts are zero or near zero by year end. We identified at least one account that should not be classified as a clearing account and other accounts that had larger than expected balances. We also noted accounts that had abnormal balances and some accounts that had unusually large fluctuations from the prior year. Upon further investigation, we found some of these accounts contained misclassified or improperly recorded items.
Several weaknesses exist in controls over cash collected at athletic events.
These include not reconciling the number of people who attend events to cash collected, and not using a standard form to document cash receipts. Not having good internal controls increases the risk for the misappropriation of receipts. The College did not reconcile the amount of federal and state work-study funds recorded on the accounting and student financial aid systems. The audit report for the State Colleges in Colorado for Fiscal Year 1999 contained two audit recommendations.