Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Red Wing/Winona Technical College

Financial Audit For the Period July 1, 1995,
through June 30, 1997

 

Public Release Date: May 22, 1998 No. 98-35

Background Information

Red Wing/Winona Technical College is part of the Minnesota State Colleges and Universities (MnSCU). MnSCU began operations on July 1, 1995, when the state of Minnesota merged 8 state universities, 21 community colleges, and 34 technical colleges, including Red Wing/Winona Technical College, into one system of higher education. The college is one institution with two campuses located 65 miles apart. The campuses operated as two separate institutions until they merged in 1992. Red Wing/Winona Technical College's mission is to develop knowledge, attitudes, and skills through education. Mr. James Johnson is the president of the college.

Scope and Conclusions

Our audit scope included a review of general financial management controls, tuition and fees, customized training and fee based programs, employee payroll, administrative expenditures, and bookstore operations. We also reviewed the college's internal controls over compliance with federal student financial aid for fiscal year 1998.

We found that the college properly recorded its financial activities on the MnSCU and MAPS accounting systems, and that the college operated within its financial resources.

However, we found that the college did not maintain an adequate separation of duties and appropriate computer access in several of its financial areas, including cashiering, payroll, financial aid, and the bookstores. We also found that the college did not deposit and transfer certain receipts in a timely manner. In addition, the college used federal Carl Perkins funds for certain unallowable expenditures. Finally, the college did not have a formal contract with Winona State University for services provided by the university to the college. The lack of an agreement may have led to certain college account reconciliations not being performed.

In its response to the audit report, the college agreed with most of the findings and is taking corrective actions. However, the college stated that it believes the use of Carl Perkins funds to pay for equity excellence awards was within the scope of the federal grant. It also does not believe that it is feasible to deposit customized training receipts before the first day of class.

 

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