Crowder College received a mixed report from auditors on Tuesday, when the college's board of trustees was presented with the annual audit for the financial year ending in June 2012.
Tony Lynn, of Davis Lynn and Moots, told the board that they would have received a good, clean report, however, the Governmental Accounting Standards Board's requirements call for a study to recognize the college's post-retirement benefits, and Crowder College has not yet had the study done.
According to the audit report, the cost of coverage is charged to retirees at a blended rate for all employees, and the college has not made a formal projection on what the future cost of that plan would be in relation to retirees.
"There's an elaborate study that has to be done to calculate that number and you haven't done that yet at this point in time, so, that's the reason for the qualification statement, not a big deal in my opinion," Lynn said.
College officials said they would look into having the study done in the future.
The audit also reported five findings, though Crowder College has responded to each finding with corrections or vows to correct those findings in the future.
Most findings related to simple paperwork issues, with one being that the Crowder Foundation relied heavily on Microsoft Excel spreadsheets, as opposed to an integrated business system.
The auditors suggested that switching to a different system could cut down on inadvertent errors as data would no longer have to be entered multiple times.
The Foundation's response notes that the switch to Jenzabar, a fully integrated system, began in the 2011-2012 year.
The audit also takes note of the college's participation in the Missouri Department of Economic Development's Division of Workforce Developments New Jobs Training and Retained Jobs Training programs.
While state regulations require each participating community college to audit each project's program activities and disclose, in footnotes to the financial statements, the total amount of the project, the amount of certificates sold to pay for the project, the total certificates sold or retired on a pay as you go project and the balance that remains outstanding, in prior years the college had failed to include that information in footnotes.
Crowder's response indicates that the college's business office, with assistance from the audit firm, will monitor compliance and that the college will comply with those requirements in the future.
Other findings included the manner in which some federal awards were reported, which Crowder College said will be corrected in the future, also noting that they were not notified by former external auditors of those errors.
The audit showed that as of June 30, the college had $52.8 million in total net assets, up from $46 million in 2011.
"That's very healthy at this time," Lynn said. "I've seen several of them range much smaller than that or nothing at all in the last year, so that's very good that you're showing an increase."
Page 2 of 2 - Meanwhile, the college had $40,521,746 in total operating revenues as of the end of June, while the total operating expenses came in $534,599 more than that at $41,056,345.
Crowder board members opted not to vote on acceptance of the audit in Tuesday's meeting, to allow time for each trustee to review the report, as they had just received it at the meeting.
The board will consider accepting the audit report in their February board meeting.
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In other business, board president Andy Wood, and board member Vickie Barnes were the only two candidates to file for their two seats on the board, which come up for re-election this year.