Audit reveals financial misstatements at Dyersburg State - WMC Action News 5 - Memphis, Tennessee

Audit reveals financial misstatements at community college

A recent two-year state audit of Dyersburg State Community College found what state auditors call significant financial misstatements. A recent two-year state audit of Dyersburg State Community College found what state auditors call significant financial misstatements.

(WMC-TV) - A recent two-year state audit of Dyersburg State Community College found what state auditors call significant financial misstatements.

"We made errors and probably in three or so documents," says Dyersburg State President Dr. Karen Bowyer.

There were two problems found in the state audit.

The first addressed the lack of control over bank reconciliations. 

Problems were also found in the preparation of the college's financial statements and notes. 

Millions of dollars of donor money was misclassification.

College President Dr. Karen Bowyer says for instance, cash disbursements for utilities and supplies were reported as cash disbursement for scholarships. 

However, Bowyer says there was never a misappropriation of funds. 

"We misclassification-classified two numbers out of a column of 8 or 10 numbers," Bowyer adds.

State auditors say they weren't as concerned about the misclassification but more about what could potentially happen if the problem wasn't fixed.

"The risk would increase if these errors continue but I'm saying we've taken steps to be sure these errors don't continue," says Bowyer.

Dr. Bowyer went on to say that her staff has now been properly trained on how to properly classify these donor dollars. 

On March 1, school officials will meet again with the state as a follow up to the audit. 

To read the complete audit, click here.

Copyright 2011 WMC-TV. All rights reserved.

Powered by Frankly