Report Summary
Financial-Related Audit
St. Cloud Technical College
July 1, 1997, through June 30, 2000
Since our last audit, St. Cloud Technical College made significant improvements in its internal controls over recording financial activity in the accounting systems, restricting security clearances to those systems, and separating incompatible duties. In addition, the college improved its budgetary controls and operated within available financial resources. Finally, the college performed key state treasury and bank reconciliations. We found, however, the following internal control weaknesses and instances of noncompliance with finance-related legal provisions.
Key Findings:
- We found the college did not resolve a $244,564 difference between the bank and its accounting system. The college has reconciled bank activity to the current financial activity recorded in the accounting system, but it has been unable to resolve a difference from prior years. We recommended the college work with the MnSCU system office to resolve or write-off the difference.
- The college did not accurately record some faculty members' leave usage in SCUPPS. We also found the college overpaid nine faculty by miscalculating 1998 retroactive backpay and one faculty member by recording the wrong number of credits for an overload assignment. We recommended the college recalculate all faculty members' fiscal year 1998 retroactive pay, resolve any erroneous payments, and improve controls over input of overload credits.
- The college bookstore lacked an inventory control system. We recommended the college consider the need for a perpetual inventory system to improve accountability and detect inventory shortages.
- We noted weaknesses in the college's process of packaging and awarding student financial aid and some instances of noncompliance with federal and state regulations regarding student financial aid. As a result, the college overpaid some students.
St. Cloud Technical College is part of the Minnesota State Colleges and Universities (MnSCU) system. This financial-related audit report focused on financial management, tuition and fees, employee payroll, selected operating expenditures, and bookstore operations for the period from July 1, 1997, through June 30, 2000. We also reviewed the college's internal controls over compliance with federal student financial aid for fiscal year 2001.
