North Shore Community College

This is a Massachusetts State Auditor information technology audit of North Shore Community College, focused mainly on controls over computer equipment from July 1, 2007 through September 30, 2010.

“In accordance with Chapter 11, Section 12, of the General Laws, we performed an information technology (IT) examination of controls over computer equipment at NSCC covering the period of July 1, 2007 through September 30, 2010.”

If the college cannot document inventory checks, it is harder to know whether computers are missing, stolen, misused, or inaccurately recorded.

“As a result, NSCC’s lack of documentation pertaining to the performance of a periodic physical inventory may add to the risk of the unauthorized use or undetected loss or theft of NSCC’s computer equipment, or the unreliability of inventory-related data.”

For students, taxpayers, and employees, this matters because the college held thousands of computer items worth millions of dollars, and stronger tracking helps protect public assets.

“However, our audit did confirm, that all of the 2,157 computer hardware items valued at $3.3 million on the IS Department’s inventory listing were among items listed on the Fiscal Services Department’s official inventory system of record, which contains all of NSCC’s fixed assets.”

The college made real improvements in receiving, recording, and laptop controls, but still needed better documented annual inventory and reconciliation procedures.

“Our follow-up review indicated that NSCC’s senior management has strengthened NSCC’s documented internal control policies, procedures, and practices regarding inventory control of computer equipment in the areas of receiving and recording to help ensure that NSCC properly records, accounts for, and monitors its computer equipment.”

The auditor recommended that the college fully document annual inventory checks and reconciliations, and the college said it had started adding processes and planned yearly completion.

“NSCC should strengthen and fully document its policies and procedures supporting the performance of an annual physical inventory to include the maintenance of evidence supporting the reconciliation to the computer inventory system of record and the physical inventory.”

This was not a finding that all controls failed: auditors said personal information controls and federal stimulus reporting controls were generally adequate, except for the inventory issue described in the audit results.

“Based on our audit testing, we concluded that, except as reported in the Audit Results section of this report, during the period July 1, 2007 through September 30, 2010, NSCC maintained adequate management controls regarding the protection of personal information and had sufficient controls in place and in effect to properly report on the accounting of federal stimulus expenditures.”

A “physical inventory” means checking the actual computers on hand, and “reconciliation” means comparing that real-world count with the official inventory records.

“Our follow-up audit indicated that NSCC still could not provide verification records supporting the performance of an annual physical inventory and a reconciliation of computer equipment (physical inventory) to NSCC’s inventory system of record.”