office of the legislative auditor report #07-25 minnesota state colleges and universities system...
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![Page 1: Office of the Legislative Auditor Report #07-25 Minnesota State Colleges and Universities System Internal Control and Compliance Audits of Selected Colleges](https://reader036.vdocuments.site/reader036/viewer/2022082820/56649f565503460f94c7ab6b/html5/thumbnails/1.jpg)
Office of the Legislative AuditorOffice of the Legislative Auditor
Report #07-25
Minnesota State Colleges and Universities System
Internal Control and Compliance Auditsof Selected Colleges
Brad A. White, Audit Manager
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Office of the Legislative AuditorOffice of the Legislative AuditorOffice of the Legislative AuditorOffice of the Legislative Auditor
MnSCU Colleges Examined:• Central Lakes College
• Inver Hills Community College
• Normandale Community College
• Pine Technical College
• Ridgewater College
• Riverland Community College
• Saint Cloud Technical College
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OffiOffice of the Legislative Auditorce of the Legislative Auditor
Audit Period– Fiscal Years 2004, 2005, & 2006
Financial Cycles– Security Access– Tuition and Fees– Personnel/Payroll– Operating Expenses– P/T Contracts– Banking and Local Cash– Pine TC: ETC Programs
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OffiOffice of the Legislative Auditorce of the Legislative Auditor
Professional-Technical Services Contracts:
– Metro State University– Mpls. Community & Technical College– MN State Community & Technical College– Winona State University– Office of the Chancellor
Audit Period– Fiscal Year 2006
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Office of the Legislative AuditorOffice of the Legislative Auditor
Overall Conclusions
Generally……
• Internal controls were adequate• College transactions complied
However, 24 findings identified– internal control weaknesses– instances of noncompliance
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Office of the Legislative AuditorOffice of the Legislative Auditor
Tuition and Fees – Key Finding:
• Sharing cashier drawers and no review of negative receipt transactions– diminishes accountability– increases risk
Other Important findings:– tuition credit card documents– backdated registration changes– detective controls not formalized
(when granting incompatible security access)
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Office of the Legislative AuditorOffice of the Legislative Auditor
Personnel/Payroll – Key Findings:
• Ineffective Control Over Supplemental Pay– increased risk due to course workload changes
dependent on registrations
• Inaccurate Severance Payments– undocumented and un-reviewed calculations
Other Important findings:– accounting for paid leave benefits
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Office of the Legislative AuditorOffice of the Legislative Auditor
Operating Expenses – Key Findings:
None considered critical by MnSCU management
Other Important findings:– expense and equipment controls– credit card purchasing– detective controls not formalized
(when granting incompatible security access)
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Office of the Legislative AuditorOffice of the Legislative Auditor
P/T Contracts – Key Finding:
• University contract lacked solicitation, terms, duration, and proper approval– noncompliance with MnSCU Policy/Procedure– oversight and monitoring needed
Other Important findings:– no written contract or amendments– ‘best practices’ observations
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Office of the Legislative AuditorOffice of the Legislative Auditor
Key Findings – Pine Technical College Employment and Training Center (ETC)
• ETC social service programs may not comply with higher education mission
• College did not recover indirect costs of operating the ETC
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Office of the Legislative AuditorOffice of the Legislative Auditor
Overall Conclusions
The MnSCU colleges examined……..(except for the 24 finding areas)
• had internal controls ensuring– safeguarding of assets & public funds– accurate recording & control of transactions
• complied with MnSCU policies and management authorization
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Office of the Legislative AuditorOffice of the Legislative Auditor
Audit Report #07-25
http://www.auditor.leg.state.mn.us
Questions ???