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Executive Summary:

Fee Accountability We conclude North Dakota State University (NDSU) and the University of North Dakota (UND) have inappropriately used fee moneys. Improvements are also needed with the establishment of fees. The State Board of Higher Education (SBHE) needs to ensure an effective process for fee establishment, monitoring, and use of fee moneys exists to enhance consistency and the accountability of fees. Improvements are needed with monitoring cash balances of fee moneys as significant cash balances were identified with certain fees. Due to the comingling of moneys, there is a lack of accountability and transparency regarding fee moneys being used by NDSU and UND.

NDSU and UND Fees We identified improvements were needed with how NDSU and UND used program, course, and other fee moneys. Improvements are needed at NDSU and UND related to course fee establishment. Also, improvements are needed with SBHE requirements related to program and course fees.

Additional Areas Requiring Improvement Our review of expenditure transactions identified improvements were needed regarding the use of public funds. NDSU should ensure compliance with procurement requirements and make improvements related to the use of personal vehicles. UND should ensure reimbursement of employee meals are in compliance with requirements and establish adequate safeguards for use of University property.

Findings:

• Fee Accountability - 5 Recommendations
• Mandatory Fees - 1 Recommendation
• Program Fees - 5 Recommendations
• Course Fees - 6 Recommendations
• Other Fees - 2 Recommendations
• Additional Areas - 5 Recommendations

2017 Follow-up

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Executive Summary:

The Office of the State Auditor conducted an audit follow-up on the performance audit entitled Fees Charged at NDSU and UND (report #3032) dated June 5, 2012. The audit scope of the original performance audit related to a review of fees at NDSU and UND from July 1, 2007 through December 31, 2010. The objective of this follow-up was to determine the status of the 24 recommendations included in the performance audit report. 

Findings:

Our review of actions taken by the State Board of Higher Education identified an approved action plan in 2012, which included the implementation of a new tuition model. Under the new tuition model, the intention was to merge program and course fees with (into) tuition. The implementation of the new tuition model has been delayed several times and is currently scheduled for Fall 2019.