Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit Report

Lake Superior College

For the Period July 1, 1996, through December 31, 1999

Lake Superior College operated within available financial resources and generally complied with applicable legal provisions and management's authorization. The college made significant improvements in its financial management since our last audit report was issued. However, we found the following internal control weaknesses impacting the safeguarding of assets and recording of financial activities in the college's accounting systems:

Key Findings:

• Lake Superior College did not verify the accuracy of its accounting records.

• The college did not limit access to its computer systems.

• The college did not maintain sufficient collateral for its local bank account.

• The college did not properly monitor academic progress for recipients of financial aid resulting in overpayments to eleven students.

Lake Superior College is part of the Minnesota State Colleges and Universities (MnSCU) System. This financial-related audit report represents the conclusions of our audit of the college's tuition and fees, payroll, bookstore operations, private grants, and other operating expenditures for the period 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 is included in the report.