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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Pine Technical College

Financial Audit For the Period
from July 1, 1995, through December 31, 1996


Public Release Date: September 5, 1997 No. 97-47


Established in 1965, Pine Technical College is a two-year college that offers programs in business, health, management, and service occupations, including unique classes such as locksmithing, gunsmithing, security management, and taxidermy. Pine Technical College has been a part of the Minnesota State Colleges and Universities System (MnSCU) since the higher education merger on July 1, 1995. Prior to the merger, the Pine Technical College was part of Independent School District 578. Mr. Eugene Biever is the president of Pine Technical College.

Our audit scope covered the period from July 1, 1995 through December 31, 1996. We audited general financial management controls, tuition and fees, payroll, supplies and equipment, bookstore activities, and the Employment and Training Center. We also reviewed the college's internal controls over compliance with federal student financial aid for fiscal year 1997.


Pine Technical College did not properly administer its financial activities. The college did not adequately separate duties for critical financial responsibilities in tuition and fees, payroll, financial aid, and the bookstore. In addition, the college did not verify the accuracy of its accounting records by performing reconciliations of its major financial activities. The college did not comply with certain legal requirements concerning faculty leave accruals, one employee's early retirement, meals and refreshments, and federal cash management.

Pine Technical College also did not properly administer the financial activities of the Employment and Training Center. The center had several significant weaknesses in internal control, including separation of duties. We found several additional issues with the center, relating to adequate documentation, appropriate authorization, compliance with contract provisions, and proper recording of transactions.

In its written response, Pine Technical College agreed with the audit report. The response indicated that the college has already implemented many of the report's recommendations. It is in the process of making organizational changes, as well as policy and procedural changes, to address the remaining issues.


Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : or 651‑296‑4708