The Minnesota Higher Education Services Office (MHESO) properly allocated
and monitored state financial aid paid to post-secondary institutions
and trade schools and had appropriate oversight of the contractor hired
to manage its student loan program. However, we identified some isolated
concerns with contracting practices.
Finding and Recommendation:
MHESO did not always document contractor selection and
concerns were raised with contract length, estimated payments, and
The office should seek clarification of statutory language
requiring that Minnesota College Savings Plan assets be held in
the state treasury.
The audit report contained 2 audit findings relating to internal
control and legal compliance. The office resolved all findings included
in our prior audit report.
Fiscal Years 2001-2003
Selected Audit Areas:
Financial Aid Grants
Student Educational Loan Fund
The MHESO administers state financial aid grant and loan programs.
The office issued over $133 million of state grants in fiscal year 2003.
Outstanding loan balances totaled $433 million at June 30, 2003.