Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Minnesota State Colleges and Universities (MnSCU)

 

Financial Audit Division Report 04-37 Released September 10, 2004

Overall Conclusions:

The colleges included in our audit scope properly safeguarded assets and correctly recorded financial activity in the MnSCU business systems. Financial transactions complied with significant policies and management’s authorization. However, we identified a crosscutting computer system access finding and some isolated concerns related to internal controls at certain colleges.

Key Finding:

  • Certain colleges need to ensure that access to MnSCU computerized business systems is secure and adequately restricted to authorized personnel.
The audit report contained 9 audit findings relating to internal control or legal compliance issues. Some findings related to similar issues at multiple colleges. Other findings pertained to individual colleges. The report included one prior finding, related to security over business systems, that was not fully implemented at two colleges.
   Audit Scope:

We audited the following colleges: Central Lakes, Hibbing, Inver Hills, Itasca, Normandale, Riverland, and St. Cloud Technical College.

Audit Period:
Two or three fiscal years ended June 30, 2003, depending on when the last audit of the college was completed.

Selected Audit Areas:
  • Computer System Access
  • Tuition and Fees
  • Employee Payroll
  • Administrative Expenditures

Agency Background:

The MnSCU Board of Trustees establishes policies for the 32 state universities and colleges. The board appoints a president to oversee the activities at the individual colleges. The colleges finance their operations from three main sources: state appropriations, tuition and fees, and federal grants. In fiscal year 2003, the seven colleges included in our scope accounted for approximately $168 million in operating revenues and state appropriations, and $164 million in operating expenditures, or about 13 percent and 12 percent, respectively, of MnSCU’s total financial activity in those areas. In addition to our audit coverage, MnSCU contracts for annual audits of its consolidated financial statements and separate financial statement audits of several colleges and universities.

More Information

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