Minnesota Office of the Legislative Auditor
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Report Summary
South Central Technical College

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

 

Public Release Date: October 8, 1998 No. 98-59

Background Information

South Central Technical College (the college), a part of the Minnesota State Colleges and Universities (MnSCU) system, is a two-year college whose mission is to provide quality higher education for employment and continuous learning. The college has two campuses, located in Mankato and Faribault. For the 1996-97 school year the full-time equivalent student population at the college was 2,346. Dr. Kenneth H. Mills serves as president of the college.

Scope and Conclusions

Our audit covered the period from July 1, 1995, through June 30, 1997. We audited general financial management controls, tuition and fee revenue, payroll expenditures, bookstore revenues and expenditures, and operating expenditures. We reviewed the college's internal controls over federal student financial aid for fiscal year 1998. In addition, we reviewed the college's relationship with its foundation.

Generally, the college operated within its available resources. Generally, it recorded its financial activities on the MnSCU and MAPS accounting systems in a timely manner, and adequately safeguarded and accurately reported in the accounting records money held in local bank accounts. However, the college did not transfer some tuition and fee receipts to the state treasury in a timely manner, and needed to improve its computer system security practices.

The college had significant control weakness in its receipt process. The college did not adequately separate incompatible duties, verify the accuracy of its bank deposits, control voided or refund transactions, or adequately safeguard its receipts and bookstore inventory.

The college accurately reported payroll expenditures in the accounting records. However, it did not consistently determine retroactive adjustments for some employees, and did not perform an independent verification of payroll data.

The college managed its federal student financial aid programs in compliance with applicable legal requirements.

The college had several weaknesses in its purchasing process. Also, the college had not completed a fixed asset inventory since 1994, and the college's fixed asset records contained errors and omissions. The Mankato bookstore had not adequately separated incompatible duties.

South Central Technical College agreed with the findings and is taking corrective action.

 

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