NMJC Receives Top Rating on Audit Report
3/4/2015 12:18:33 p.m. - Hobbs, NM. (story by Jaycie Chesser - Hobbs News Sun - February 20 2015)
New Mexico Junior College received the highest possible rating on its 2014 financial audit report.
The institutional portion of the audit was awarded an unmodified opinion rating, which was announced Thursday during the regular board meeting.
“An unmodified opinion means the financial statements present fairly, in all material aspects, the respective financial position of the business-type activities, the discretely presented component unit and the fiduciary fund of New Mexico Junior College as of June 30, 2014,” Cindy Bryan, auditor for Accounting and Consulting, said.
Dan Hardin, NMJC vice president for finance, said an unmodified opinion is the opinion that the college strives to obtain.
“In the past years it was called an unqualified opinion,” he said. “As with the 2013 audit, the 2014 audit was a challenge because personnel from the state auditor’s office did a portion of the audit as a joint review.”
NMJC paid Accounting and Consulting $43,740 and the state auditor was paid $14,648 for the completion of the audit. Hardin said fiscal year 2015 will be the last year of the joint audit review with the state auditor’s staff. Each year due to the dollar amount of restricted funds or grant funds that the college receives, the auditors do a review over the federal awards.
“The opinion of the federal awards was a qualified opinion, which means that there were issues that had material weaknesses and deficiencies,” Bryan said. “Five audit findings were included in the audit in the federal awards area. However, none of the findings were repeats from the 2013 audit.”
Steps have been taken to remedy and resolve these problems and they expect that these issues will not be repeated in the next audit, Hardin said.
The net position of NMJC, which is the change in the amount of assets minus liabilities, increased from $81.6 million in 2013 to $87.9 million in 2014.
The two major factors that increased the net position were the accounts receivable moving from $2.8 million in 2013 to $5.9 million in 2014 and the booking of capital assets, Bryan said.