BISMARCK – A recent audit of the Dakota College at Bottineau has found that the school’s monthly bank reconciliations are not being completed correctly and timely, according to a report released by the Office of the State Auditor.

The audit was performed in accordance with state law, which requires an audit every two years. The report stated the audit found no errors, internal control weaknesses or potential violations of law were identified. However, it was found DCB did not properly complete monthly bank reconciliations as required by the North Dakota University System Accounting Manual, which increases risk of missing money or incorrect decision making from inaccurate cash balances.

The audit reviewed four months, and found unsupported reconciling items totaling ranging from $74,796 to $362,865. Additionally, there was no evidence who completed or approved the reconciliation for the unsupported items. The report explained, without support, these reconciling items could be “plug figures”, creating a situation where the difference between bank balances and book balances could be larger than shown in DCB’s internal accounting.

The report stated the audit did not attempt to determine the cause of the unreconciled differences due to the pervasive nature and the amount of time necessary to evaluate the differences.

The auditor recommended DCB perform monthly bank reconciliations to zero-dollar difference for all accounts with proper supporting documentation which has been reviewed and approved.

According to the report, DCB responded by agreeing to the recommendation, citing significant turnover in its business office as a cause. DCB said it would address the concern by contracting with Minot State University for assistance with business office functions, including bank reconciliations.