Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial Audit

St. Paul Technical College

July 1, 1996, through December 31, 1999

St. Paul Technical College operated within available resources. Except as noted below, the college complied with applicable legal provisions and its internal controls provided reasonable assurance that assets were safeguarded and financial activities were properly recorded. The college made significant improvement in administering its programs since our last audit report was issued in August 1997.

Key Findings:

• St. Paul Technical College (college) did not adequately restrict computer access in several areas. (Finding 1, page 7)
• The college needs to improve controls over Minnesota Satellite and Technology (MnSAT) revenues, including its monitoring of accounts receivable. (Finding 2, page 8)
• The college needs to improve controls over customized training revenue. (Finding 3, page 13)
• The college had an inadequate separation of duties in the bookstore. In addition, college bookstore staff did not perform an independent review of disbursements processed by the business office. (Findings 4 and 5, page 19)
• The college miscoded certain computer purchases on MnSCU accounting. In addition, the college did not record all items in the fixed asset system and did not provide adequate physical control over its inventory. (Finding 6, page 26)

St. Paul Technical College is a part of the Minnesota State Colleges and Universities (MnSCU) system. This audit report focused on financial management, tuition and fees, payroll, administrative expenditures, auxiliary enterprises, and the Minnesota Satellite and Technology (MnSAT) activities for the period from July 1, 1996, through December 31, 1999. We also reviewed the college's internal controls over compliance with federal student financial aid for fiscal year 2000. The college's response to our recommendations is included in the report.