Olds College revamps financial controls after auditor’s report

The financial operations at Olds College have been revamped and are running smoothly now, says the school’s chief financial officer, after an auditor general’s report identified Olds College to be lacking basic financial controls.

The financial operations at Olds College have been revamped and are running smoothly now, says the school’s chief financial officer, after an auditor general’s report identified Olds College to be lacking basic financial controls.

“There are some struggles when you are a smaller institution with a small staff,” said Stewart MacNabb for Olds College. “But we are now fully confident in our financial operations.”

Auditor general Merwan Saher released a report on Monday stating Olds College had problems creating accurate and quality financial statements in a timely manner. An earlier report by the auditor general, from April 2011, found similar problems.

“We have taken their recommendations seriously and prepared plans,” said MacNabb.

The college was notified of the audit results in October and has since reorganized its management structure.

For example, MacNabb’s role as chief financial officer didn’t previously exist. It was the vice-president who oversaw financial duties, among others.

Now governance is more streamed for efficiency, said MacNabb. They’ve also implemented more timely processing for year-end financial reporting, he said.

In February, the college provided an update on its progress with the audit committee.

Lack of financial controls “often result in significant inefficiencies, can impair the quality of information that management and the board use in decision making and increase the risk of fraud not being detected,” said Saher in a press release.

Along with Olds College, Monday’s report identified Northern Lakes College, Grant MacEwan University, Alberta College of Art and Design and NorQuest College as schools with internal accounting problems.

These institutions spend about $4.5 billion annually on the education of Albertans, said Saher.

Several errors were found in the records at Olds College, such as a $600,000 receivable balance recorded as a liability rather than an asset and donation revenues of $134,000 recorded in the 2011 fiscal year that were actually related to 2010.

The report recommended that Olds College improve its processes and controls over year-end financial reporting and segregate privileged systems access from data entry responsibilities. Some unqualified college staff had passwords for privileged systems access.

Effective controls in this area are needed for accountability as well as to prevent unauthorized users from making changes, stated the report.


Just Posted

Cannabis legalization won’t impact one Red Deer pot dispensary

Nothing changes for Compass Cannabis Clinic in Red Deer despite legalization

Cannabis retail store will open later in October in Red Deer

Two cannabis stores coming to downtown Red Deer

Neighbours drop opposition to Red Deer County communications tower

Communication tower to be located in Balmoral Heights

Legal cannabis comes with many unknowns: Red Deer County councillors

Councillors question how rural municipalities will be able to enforce cannabis regulations

Kitten season puts pressure on Red Deer shelter

More public education needed to control cat population

WATCH: Two weeks away from Canadian Finals Rodeo in Red Deer

In just two weeks, Ponoka’s Shayna Weir will compete with the best… Continue reading

Wickenheiser, Pegula reflect NHL’s trend toward diversity

BUFFALO, N.Y. — With a laugh, Kim Pegula’s competitive nature kicked in… Continue reading

Harry and Meghan bring rain to drought-stricken Outback town

DUBBO, Australia — The Duke and Duchess of Sussex were jokingly thanked… Continue reading

TV Review: A Roseanne Barr-less ‘The Conners’ is a triumph

NEW YORK — Can there be a “Roseanne” without Roseanne? The answer… Continue reading

Canadian manufacturing sales fell 0.4 per cent in August: Statistics Canada

OTTAWA — Statistics Canada says manufacturing sales fell 0.4 per cent to… Continue reading

Brian Mulroney joins board of directors of New York-based pot company

NEW YORK — Former prime minister Brian Mulroney is joining the board… Continue reading

Canadians waking up to legalized cannabis: ‘My new dealer is the prime minister’

ST. JOHN’S, N.L. — Canadians across the country woke up to legalized… Continue reading

B.C. man accused of swimming naked in Toronto shark tank arrested in Thunder Bay

THUNDER BAY, Ont. — Police have arrested a B.C. man who is… Continue reading

‘Start low, go slow’: Experts walk bud beginners through cannabis 101

With the countdown to cannabis legalization Wednesday ticking towards 4-20, some novice… Continue reading

Most Read