Bates Technical College. Ad Hoc Report. December 17, Prepared for the Northwest Commission on Colleges and Universities

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1 Bates Technical College Ad Hoc Report December 17, 2015 Prepared for the Northwest Commission on Colleges and Universities 1 P a g e B a t e s T e c h n i c a l C o l l e g e

2 Contents Introduction... 3 Response to Recommendation... 3 Recommendation 9:... 3 Actions taken by the college to address recommendations... 3 The Audit Report... 4 Conclusion... 4 Appendix A P a g e B a t e s T e c h n i c a l C o l l e g e

3 Introduction Bates Technical College hosted a Comprehensive Year Seven Peer-Evaluation visit that was held from October 23-25, On February 3, 2014, Bates Technical College s accreditation was reaffirmed by NWCCU based on the committees report and requested that the College submit an Ad Hoc report in Fall 2014 to address Recommendation 9 of the Fall 2013 Year Seven Peer- Evaluation Report. We received an extension to fall of The following response is to Recommendation 9. Response to Recommendation Recommendation 9: The evaluation committee recommends that for each year of operation, the College undergo an external financial audit that the results from such audits, including findings and management letter recommendations, be considered in a timely, appropriate and comprehensive manner by the Board of Trustees (Eligibility Requirement 19 and Standard 2.F.7). Actions taken by the college to address recommendations In order to share knowledge about the restatement process across colleges, the State Board for Community and Technical Colleges (SBCTC) convened a pilot group consisting of nine colleges. Bates Technical College was not a member of the pilot group. A variety of tools were developed to assist colleges with the process of restating their financial information to businesstype activity reporting. Starting in December 2013, these colleges began the process of preparing an inaugural set of financial statements for FY Throughout the process, as challenges were identified, additional tools were developed and pilot colleges shared the knowledge gained with one another. The first colleges completed their statements in May As a non-pilot college, Bates Technical College completed an inaugural set of financial statements for College financial staff attended a financial statement preparation workshop hosted by the SBCTC on August 19, Although the pilot resulted in improvements to the tools used to prepare the financial statements, each college is expected to experience a significant learning curve when preparing its inaugural financial statements. As a result, Bates Technical College estimated that its financial statements would be completed sometime around December January Additionally, the community and technical college presidents (convened as the Washington Associations of Community and Technical Colleges, or WACTC) recognized that they and their board members have not reviewed and examined financial information in business-type activity format. As a result, WACTC asked SBCTC to present an initial overview of what was expected and what the financial statements looked like and showed them how to review and understand the content. 3 P a g e B a t e s T e c h n i c a l C o l l e g e

4 This overview was presented to pilot college presidents in May It was presented to nonpilot college presidents in September It was made available for interested college trustees during their fall 2014 Conference in November In consequence of the time frame of the pilot and non-pilot colleges, Bates Technical College had it fiscal year 2014 financial statements completed in October To assist in this matter the College had to hire a Director of Finance with significant relevant experience in the preparation of Governmental Accounting Standards Board (GASB) financial statements. The College also had to hire a budget manager to assist with the preparation of the required financial statements. As a non-pilot college, Bates contracted with the State Auditor's Office (SAO) for audit services. As stated above, Bates estimated its statements be completed in December January Due to the SAO s availability, the audit was conducted in fall We received the auditor s preliminary report that included an opinion and any management letters or findings in early December Upon completion of the financial statements, the College financial managers reviewed the statements with college administration. In addition, auditing standards required the auditors to present their report to college management and the governing board. This was accomplished by having the President and one Board member attend the audit exit conference, along with the college s financial managers. The results of the financial audit were presented to its Board of Trustees at the December 2015 meeting in a public format. The Audit Report The Financial Statements Audit Report for Bates Technical College for the period of July 1, 2013 through June 30, 2014, was issued by the Washington State Auditor s Office in early December The finalized preliminary draft report provides information on the College s financial condition. The audit was conducted by the Washington State Auditor s Office by Jan M. Jutte, CPA, CGFM. The preliminary draft report includes: 1. Independent Auditor s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 2. Independent Auditor s Report on Financial Statements 3. About the State Auditor s Office Conclusion Bates Technical College is fully addressing Recommendation 9 (College undergo an external financial audit) by participating in the Washington Community and Technical College system sponsored revised accounting process. Finally, the Financial Report for fiscal year 2014 has been completed and reviewed by the State Auditor s Office. An exit conference with the administration and Board of Trustee occurred on December 15, 2015, to conclude the audit. 4 P a g e B a t e s T e c h n i c a l C o l l e g e

5 Appendix A Financial Statements Audit Report for Bates Technical College (see attached document) 5 P a g e B a t e s T e c h n i c a l C o l l e g e

RENTON TECHNICAL COLLEGE

RENTON TECHNICAL COLLEGE Ad Hoc Report December 15, 2015 Prepared for the Northwest Commission on Colleges and Universities Table of Contents Introduction..... 1 Response to Recommendations Recommendation