Office of the Legislative Auditor - Financial Audit Division

Minnesota State Academies

Financial-Related Audit

Minnesota State Academies

July 1, 1996, through June 30, 2000

Overall Conclusion:

In general, the Minnesota State Academies safeguarded its assets and accurately recorded receipts and expenditures in the state's accounting and payroll systems. However, we noted the following internal control and compliance areas where the academies need improvement. Key Findings:

• The Minnesota State Academies did not transfer the correct amount of basic education revenue to the General Fund. During the audit period, the academies retained $167,221 more tuition revenue than provided for in the statutory formula.
• The academies did not adequately segregate duties over student tuition revenue. One individual was responsible for billing school districts for tuition and also receiving the collections.
• The academies need to improve controls over resident accounts by forwarding the signed student allowance sheets to the business office to support resident withdrawals from their accounts.
• The academies input incorrect record dates for certain professional/technical services, supplies, and equipment transactions in the statewide accounting system.

The Minnesota State Academies consists of the Minnesota State Academy for the Deaf (MSAD) and the Minnesota State Academy for the Blind (MSAB). The academies provide educational services to meet the needs of deaf/hard of hearing and blind/visually impaired students. These services include both the public school core curriculum and any required disability-specific curriculum.

Financial-Related Audits address internal control weaknesses and noncompliance issues found during our audits of state departments and agencies. The scope of our audit work at the Minnesota State Academies included payroll, other administrative expenditures, resident accounts, and tuition revenues for the period from July 1, 1996, through June 30, 2000.