|Agency:||Valley City State University||Report Date:||April 12, 2018|
|Type:||Operational||LAFRC Date:||June 27, 2018|
|Issued By:||State Auditor||Period Ending:||June 30, 2017|
Valley City State University Report Highlights
We found areas that could be improved related to procurement and construction.
- Valley City State University did not comply with NDCC by properly procuring commodities and services and adequately documenting sole source purchases.
- Valley City State University did not comply with NDCC for the Construction Management at-Risk (CMAR) selection process and did not maintain adequate documentation for the Heat Plant Replacement.
Valley City State University entered into a Ground Lease and Development agreement on May 1, 2015 with Valley City Parks and Recreation for 3.17 acres of land for the Gaukler Family Wellness, Health and Physical Education Center (Center). The lease term is 99 years and the rental payment is $1/year. A Joint Powers Agreement between the two parties was entered on December 26, 2014 for a period of 99 years for the purpose of providing for the construction and operation of the Center. The SBHE approved a student fitness facility fee of up to $12/credit hour to give students access to the Center.
- Valley City State University failed to enter into all required agreements and failed to verify Valley City Parks and Recreation had all proper insurance coverage as outlined in the Joints Powers Agreement and Ground Lease and Development Agreement.
We evaluated and tested high risk areas of internal control. We did not note any deficiencies that are required to be brought to the attention of those charged with governance.
Source: ConnectND Financials
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