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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial-Related Audit

Minneapolis Community and Technical College

Period from July 1, 1996, through December 31, 1999

Key Findings:

  • Minneapolis Community and Technical College continued to struggle with its financial management practices. We concluded that the underlying cause of these difficulties related to the organizational structure of the college's financial management function and inadequate staffing levels. (Finding 1, page 7)
  • Poor financial management practices cited in the audit report include the following prior audit findings that had not been resolved by the college:

    --The college had not reconciled the cash balance in its bank account to amounts recorded in the accounting system since July 1999. Also, during this audit, the college did not ensure that sufficient collateral was pledged against funds on deposit.
    -- The college did not post adjusting entries in the accounting system in a timely manner.
    -- We found numerous instances of inappropriate access to the college's computer systems.
    -- The college did not timely deposit receipts or adequately monitor commission revenues or parking cards.

  • The college needs to resolve discrepancies in its accounts receivable balances and periodically write-off uncollectible accounts.
  • The college incurred obligations prior to ensuring sufficient funds were available, exceeded a contract amount, did not pay invoices promptly, and did not properly record the date liabilities were incurred.

Other Key Audit Conclusions:

The college operated within its available resources and complied with the system office reserve requirements. As of June 30, 1999 the college had an unrestricted reserve in its General Fund of approximately $2.4 million. The college administered federal financial aid in compliance with applicable regulations. In addition, the college maintained an appropriate relationship with its foundation. The college also improved certain financial operations since the last audit, including the administration of the college bookstore and processing of the college's payroll.

Minneapolis Community and Technical 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, and purchased goods and services 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.