Cape Cod Community College Examination of Annual Internal Control Questionnaire

This is a Massachusetts State Auditor performance audit of Cape Cod Community College for July 1, 2014 through June 30, 2015.

“I am pleased to provide this performance audit of Cape Cod Community College.”

Auditors checked whether the college’s answers on its 2015 internal-control questionnaire were accurate.

“The objective of our audit was to determine whether certain responses that CCCC provided to OSC on its fiscal year 2015 ICQ were accurate.”

If the college reports inaccurate information, the state cannot reliably judge whether the college’s controls are strong enough for financial reporting.

“Further, inaccurate information on the ICQ prevents OSC from effectively assessing the adequacy of CCCC’s internal control system for the purposes of financial reporting.”

For ordinary citizens, this matters because weak tracking of public assets can increase the risk of loss, theft, misuse, or bad records.

“In addition, without performing and documenting an annual physical inventory, CCCC is not ensuring that its capital assets are properly safeguarded against loss, theft, and misuse and that its inventory records are complete and accurate.”

The college did not dispute the findings, and the auditor said the college appeared to be taking appropriate corrective steps.

“Based on its response, we believe CCCC is taking appropriate measures to address the concerns we identified.”

The auditor recommended that the college fix the identified problems, follow state comptroller requirements, review questionnaire answers carefully, and seek guidance if needed.

“CCCC should take the measures necessary to address the issues we identified during our audit and should ensure that it adheres to all of OSC’s requirements for developing an ICP and accurately reporting information about its ICP, risk assessment, and capital-asset inventory on its ICQ.”

The report is significant because internal controls help a public college meet its mission, follow rules, and protect public resources.

“Without establishing an ICP in accordance with OSC guidelines and updating it at least once a year, CCCC may not be able to achieve its mission and objectives effectively; efficiently; and in compliance with applicable laws, rules, and regulations.”

The Internal Control Questionnaire, or ICQ, is the yearly form state departments use to report whether their checks and safeguards are working.

“Each year, the Office of the State Comptroller (OSC) issues a memorandum (Fiscal Year Update) to internal control officers, single audit liaisons, and chief fiscal officers (CFOs) instructing departments to complete an Internal Control Questionnaire (ICQ) designed to provide an indication of the effectiveness of the Commonwealth’s internal controls.”