Minneapolis Community and Technical College made substantial progress with the overall management of its financial operations since our last audit in fiscal year 1999. During the audit period, the college operated within available resources and, except as noted below, has improved its internal control structure, including controls to provide assurance over compliance with applicable legal provisions. Although the college implemented many of the improved financial practices in fiscal year 2002, the college has emphasized structural organizational changes and process improvements that should provide reasonable assurance over its financial operations, assuming its commitment to sound financial management practices continues.
Specifically, we concluded that the college had an adequate process for recording and depositing tuition revenue during the audit period. However, the controls over tuition waivers and accounts receivable were not fully developed until after the end of the audit period. For payroll and bookstore activities, the college's controls provided reasonable assurance that employees were accurately paid in compliance with applicable legal provisions and management's authorization, and that transactions were accurately recorded in the accounting records. The college's controls provided reasonable assurance that cash receipts and bookstore inventory were adequately safeguarded. As noted below, however, the college needs to continue to strengthen its controls over financial operations in certain areas. Many of the following issues relate to prior audit findings that had been partially corrected at the time of our audit.
Key Findings and Recommendations
