BLOUNTVILLE — A Tennessee Comptroller of the Treasury’s audit of Northeast State Community College for the 2009-10 and 2010-11 fiscal years found a series of seven mistakes.
The college concurred with the findings of the seven issues, also reporting that procedures, personnel and computer software have been changed to address the situation.
The complete 80-page report is available at www.comptroller.tn.gov/repository/SA/cu12056.pdf.
“The college needs to improve financial statement preparation and review procedures to prevent errors in its financial statements,” states the report.
The seven issues included under-reporting of 2011 Financial Report. More than $1.19 million of Tennessee Technology Center at Elizabethton cash held by the college was not reported in the note, amounts in bank accounts were understated by $800,547, and Local Government Investment Pool deposits were understated by $391,677.
Others findings included classifying of cash as current instead of non-current and a typographical error.
The college concurred with the findings, adding: “In June 2010, Northeast State Community College began a reorganization of the college’s organizational structure within the Business Affairs Division that included hiring two additional positions to better manage workloads. Staffs were working many extra hours, which could potentially lead to errors. During the reorganization implementation, a Business Manager was hired in October 2010, along with other staff reassignments. For the two years included in this audit period, a different staff member prepared the financial statements for each. These changes in staff, along with the other employee reassignments, resulted in reporting errors.
“These specific strategies were implemented in May 2012 to improve accuracy in financial statement preparation and review procedures.”