Audit of the Mount Wachusett Community College Foundation, Inc. (MWCCF)
April 13, 2020 · Mount Wachusett Community College · Read the full official report on mass.gov ↗ · official site ↗
Published April 13, 2020 Audit covers July 1, 2017 – June 30, 2019 Under Suzanne M. Bump · 2011–2023
source
“Our audit revealed no significant instances of noncompliance by the foundation that must be reported under generally accepted government auditing standards.”
Read the plain-English breakdown
This is a state performance audit of the Mount Wachusett Community College Foundation, covering July 1, 2017 through June 30, 2019.
“This report details the audit objectives, scope, and methodology for the audit period, July 1, 2017 through June 30, 2019.”
The audit looked at whether the foundation’s spending was only being used to benefit the college.
“In this performance audit, we examined foundation expenditures that were used for the benefit of the college.”
The foundation handles money meant to support students, programs, facilities, events, and staff development at the college, so its spending controls matter.
“The objective of the foundation is to financially support the educational, social, recreational, and cultural mission of the college and to benefit the students and communities the college serves.”
For students and community members, the foundation supports things like scholarships, academic programs, public events, and cultural activities.
“The foundation does this by providing scholarships to [Mount Wachusett Community College] students, enhancing academic programs and facilities, supporting public and cultural events, and encouraging professional development for faculty and staff.”
The auditor answered yes: the reviewed expenditures were used for the college’s benefit.
“Are the expenditures that the foundation makes used for the exclusive benefit of the college?”
The foundation said it would share the audit with its board and work on documenting policies and procedures, while considering some other control changes.
“This letter, along with the full audit report, will be shared with the Board at our next scheduled meeting.”
The report matters because the foundation managed millions of dollars in assets supporting the college, and the auditor saw a need for better documented accounting practices.
“As of June 30, 2019, MWCCF managed $7.7 million of assets that supported the growth and improvement of Mount Wachusett Community College.”
“Segregation of duties” means splitting financial tasks so one person cannot control an entire payment process alone.
“We suggest strengthening the internal controls surrounding cash disbursement processing by establishing segregation of duties so that one person is not able to complete a cash disbursement transaction from start to finish and be responsible for reconciling the corresponding bank statement.”
1 figure(s) pending source verification - not shown
What the Auditor checked
- Complied Are the expenditures that the foundation makes used for the exclusive benefit of the college?
What the Auditor found
Why it matters: One person could complete a cash disbursement transaction from start to finish and reconcile the corresponding bank statement.
1 recommendation
- Strengthen cash disbursement controls by segregating duties so one person cannot complete a transaction from start to finish and reconcile the related bank statement.agency: disagreed
Agency response & Auditor reply
Agency: "With regard to the treasurer’s access to checks and general responsibility for the checking account, we take exception to the contention that he has sole responsibility."
Auditor: "Although we are confident that the internal control enhancements we suggest will strengthen MWCCF’s control environment and better protect its assets, we acknowledge that it is ultimately up to MWCCF’s management to determine what measures to take to address these issues given MWCCF’s work environment and available resources."
Why it matters: The foundation had increased risk that improper credit card charges could be made or paid without independent review.
1 recommendation
- Strengthen credit card controls by segregating duties and considering board member review and approval of reconciled monthly statements before payment.agency: partially agreed
Agency response & Auditor reply
Agency: "For credit cards, we believe the process we have in place currently is sufficient."
Auditor: "We are encouraged by MWCCF’s acknowledgement that improvements can be made in the areas identified and by its willingness to take the measures it deems feasible to enhance controls over these areas."
Why it matters: If the executive director left the foundation, institutional information supporting expenditures might not be accessible to successors.
1 recommendation
- Accompany all foundation expenditures with business expense forms and retain each form and supporting documentation in foundation files.agency: disagreed
Agency response & Auditor reply
Agency: "We don’t believe the Foundation needs a standard business expense form or more sophisticated Accounts Payable system at this time."
Auditor: "Although we are confident that the internal control enhancements we suggest will strengthen MWCCF’s control environment and better protect its assets, we acknowledge that it is ultimately up to MWCCF’s management to determine what measures to take to address these issues given MWCCF’s work environment and available resources."
Why it matters: Lack of documented procedures could weaken succession training and transparency over accounting for foundation assets.
1 recommendation
- Document accounting policies and procedures in a manual to support succession training and increase transparency.agency: agreed
Agency response & Auditor reply
Agency: "We do agree that the organization could benefit from a documented set of policies and procedures."
Auditor: "We are encouraged by MWCCF’s acknowledgement that improvements can be made in the areas identified and by its willingness to take the measures it deems feasible to enhance controls over these areas."
Verified dollar findings
Identified dollar findings that do not fall in a named band.
Contract sizes, limits, thresholds, and fund balances - scale figures, never counted as money found.
More audits of this entity
Other Office of the State Auditor reports on Mount Wachusett Community College .
-
Audit of Mount Wachusett Community CollegeCollege / University · March 31, 2020 - Audit of Mount Wachusett Community College (December 27, 2024)College / University · December 27, 2024
- Mount Wachusett Community CollegeCollege / University