Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Minnesota State Colleges and Universities

Federal Student Financial Aid Programs

Selected Scope Financial Audit

Fiscal Year 1995

 

Public Release Date: June 28, 1996 No. 96-24

Audit Scope and Objectives

We audited selected federal student financial aid programs of the Minnesota state university and community college systems for the period July 1, 1994, to June 30, 1995. Our audit scope did not include the Minnesota technical colleges, which became state agencies effective July 1, 1995. Our audit was limited to the following federal student financial aid programs that are considered major programs according to the Single Audit Act:

CFDA
Number Program
84.032 Federal Family Educational Loans
84.038 Federal Perkins Loans
84.063 Federal Pell Grants

These programs accounted for approximately $147 million in federal financial aid disbursements during the audit period.

In accordance with the Single Audit Act, our objectives included determining whether the state complied with federal rules and regulations in administering federal student financial aid. We also reviewed the internal control systems over federal student financial aid programs at select state universities and community colleges.

Conclusions

We noted two internal control weaknesses that affected several state universities or community colleges: (1) certain colleges and universities need to improve access controls over financial aid computer systems to prevent unauthorized or unnecessary access to the systems; and (2) several community colleges need to improve cash management procedures over federal programs.

We also noted that several state universities and community colleges overawarded financial aid to individual students from various federal financial aid programs. Collectively, these are not material findings because of the individual dollar amounts of the overawards. We also do not believe the number of overpayments is indicative of systemic problems because of the complexity of the federal regulations governing those programs.

Our audit report also includes a variety of other miscellaneous internal control and compliance findings and recommendations.

 

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155