|Public Release Date: December 6, 1996||No. 96-45|
Minnesota Technology, Incorporated (MTI) is a public nonprofit corporation under the direction of a 14 member board. It is located in Minneapolis. MTI has technical resource centers in Moorhead, Rochester, Redwood Falls, Virginia, and St. Cloud. The board appointed Jacques Koppel as its president in September 1990.
Our audit objectives were to obtain an understanding of management controls relevant to payroll, contracts, grants, travel reimbursements, and fixed asset inventory. We also designed our audit to provide reasonable assurance that MTI complied with provisions of laws and regulations.
We concluded that MTI processed payroll according to its policies and procedures. MTI's internal control structure was adequate to detect or prevent material payroll errors in a timely manner. However, MTI did not properly separate accounting duties over its payroll account. MTI should also transfer its nonpayroll receipts balance from the payroll account into a special revenue fund. We also noted that MTI employee timesheets occasionally lacked proper authorization. In addition, MTI could further strengthen controls by developing a written agreement for services with its payroll processor.
We concluded that MTI is awarding contracts in accordance with its policies and procedures, including its competitive bidding process. In addition, MTI identified and resolved potential conflicts of interest brought to its attention by its employees. We concluded that MTI supported grant awards with written contracts or stock purchase agreements. However, MTI's equity fund's investment in seven-county metropolitan area based companies exceeds the 20 percent limitation specified in Minn. Stat. Section 1160.122.
We concluded that MTI's travel policy was reasonable and similar to the state of Minnesota's travel policy. MTI reimburses its employees in compliance with its travel policy, however, travel reimbursement requests did not always demonstrate a deduction for commuter miles. Per diem payments to board members are proper. In addition, we concluded MTI's inventory controls are inadequate. MTI improved controls since the prior audit over new computer purchases. However, inventory lists are not up-to-date, asset activities are not recorded, and spot checks are not performed.