A RepoRt
to
the
MontAnA
Legi sL Atu Re
LegisLAtive Audit
division
09-11A
Fi n A n c i A L Au d i t
de c e M b e R 20 09
Montana State
University
For the Year Ended June 30, 2009
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Financial Audits
Financial audits are conducted by the Legislative Audit Division
to determine if the financial statements included in this report
are presented fairly and the agency has complied with laws and
regulations having a direct and material effect on the financial
statements. In performing the audit work, the audit staff uses
standards set forth by the American Institute of Certified Public
Accountants and the United States Government Accountability
Office. Financial audit staff members hold degrees with an
emphasis in accounting. Most staff members hold Certified
Public Accountant (CPA) certificates.
Government Auditing Standards, the Single Audit Act
Amendments of 1996 and OMB Circular A-133 require the
auditor to issue certain financial, internal control, and compliance
reports. is individual agency audit report is not intended to
comply with these requirements and is therefore not intended

M A
P J. O’L
L L.N. T
V R
F H
H  ,
,   
 .
C  F
H :
(S)
---
( H)
-
Direct comments or inquiries to:
Legislative Audit Division
Room , State Capitol
P.O. Box 
Helena, MT -
() -
Reports can be found in electronic format at:
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Room 160 • State Capitol Building • P.O. Box 201705 • Helena, MT • 59620-1705
Phone (406) 444-3122 • FAX (406) 444-9784 • E-Mail
LEGISLATIVE AUDIT DIVISION

Tori Hunthausen, Legislative Auditor Deputy Legislative Auditors
Monica Huyg, Legal Counsel James Gillett
Angie Grove

Montana State University-Northern is a regional, multi-purpose educational center, serving students
who seek both a technical and liberal arts education. It oers courses at the campus in Havre and at
facilities in Great Falls and Lewistown. Montana State University-Northern oers associate, bachelor,
and master’s degrees. A master’s degree program is oered in education, with options in counseling
and development, elementary education, vocational education, and general science.
Montana State University College of Technology-Great Falls oers instruction leading to certicates in
one-year programs and associate of applied science degrees or associate of science in two-year programs
in vocational technical trades and industry. Programs include practical nursing, oce/secretarial,
interior design technology, computer and information sciences, various health-related programs, auto
body repair and renishing, dental hygiene, and business management/entrepreneurship.
A list of appointed and administrative ocials having oversight responsibilities with respect to the
university can be found beginning on page ii.
Beginning on page A-1, you will nd the Independent Auditor’s Report followed by the nancial state-
ments and accompanying notes. We issued an unqualied opinion on the university’s consolidated
nancial statements, which means the reader can rely on the presented information.
is report does not contain any recommendations to the university. Any issues resulting from this
nancial audit have been discussed with university management. e university’s response to this
report is on page B-1.
We thank President Gamble and his sta for their cooperation and assistance during the audit.
Respectfully submitted,
/s/ Tori Hunthausen
Tori Hunthausen, CPA
Legislative Auditor
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
Appointed and Administrative Officials ii
AUDITED CONSOLIDATED FINANCIAL STATEMENTS
Independent Auditor’s Report A-1
Management’s Discussion and Analysis A-3

Robert Barnosky, Student Regent
Lynn Morrison-Hamilton, Regent
Janine Pease, Regent
Sheila Stearns, Commissioner of Higher Education*
Brian Schweitzer, Governor*
Denise Juneau, Superintendent of Public Instruction*
*Ex ocio members
Oce of the Commissioner of
Higher Education
Sheila Stearns Commissioner of Higher Education
Mick Robinson Deputy Commissioner for Fiscal Aairs/Chief
of Sta
Sylvia Moore Deputy Commissioner for Academic and
Student Aairs
Mary Sheehy Moe Deputy Commissioner for Two-Year Education
Tyler Trevor Associate Commissioner for Planning,
Technology and Communication
Frieda Houser Director of Accounting and Budget
Cathy Swift Chief Legal Counsel
Montana State University–
All Campuses
Georey Gamble President
Rolf Groseth Vice President for Intercampus Aairs
Leslie Taylor Legal Counsel
Daniel Adams Director of Internal Audit
Montana State
University–Bozeman
Joseph Fedock Interim Provost and Vice President for
Academic Aairs
Craig Rolo Vice President for Administration and Finance

Chris Wendland Accountant/Budget Ocer
Montana State University–
Great Falls-College of
Technology
Joe Schaer Dean and CEO
Mary Ellen Baukol Associate Dean of Administration and Finance
Heidi Pasek Associate Dean and Chief Academic Ocer
Judy Hay Assistant Dean of Student Services
Robert Hietala Assistant Dean, College of Technology in
Bozeman
Ed Binkley Controller
Deby Gunter Budget and Purchasing Ocer
iii
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Montana Agricultural
Experiment Station
Jerey Jacobsen Director
Jody Barney Budget and Fiscal Director
MSU Extension Services
Douglas Steele Vice Provost and Extension Director
Sandra Rahn-Gibson Budget and Fiscal Director
For additional information concerning the Montana State University
(all campuses), contact:
Daniel Adams, Director of Internal Audit
Suite 7, Hamilton Hall
Bozeman, MT 59717
(406) 994-7035
e-mail:
iv

as of June 30, 2009, and 2008, and the respective changes in nancial position and cash ows, where
applicable, for the years then ended, in conformity with accounting principles generally accepted in the
United States of America.
e Management’s Discussion and Analysis on pages A-3 through A-13 is not a required part of the
basic nancial statements but is supplementary information required by the Governmental Accounting
Room 160 • State Capitol Building • P.O. Box 201705 • Helena, MT • 59620-1705
Phone (406) 444-3122 • FAX (406) 444-9784 • E-Mail
LEGISLATIVE AUDIT DIVISION

Tori Hunthausen, Legislative Auditor Deputy Legislative Auditors
Monica Huyg, Legal Counsel James Gillett
Angie Grove
A-1
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Standards Board. We have applied certain limited procedures, which consisted principally of inquiries
of management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the basic nancial statements of
Montana State University. e Supplemental Information on pages A-54 through A-70 is presented for
purposes of additional analysis and is not a required part of the basic nancial statements. Such infor-
mation has not been subjected to the auditing procedures applied in the audit of the nancial statements
and, accordingly, we express no opinion on it.
Respectfully submitted,
/s/ James Gillett
James Gillett, CPA
Deputy Legislative Auditor
December 8, 2009
A-2
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