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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota Higher Education Services Office


Financial Audit Division Report 04-22 Released May 20, 2004

Key Conclusion:

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 obligation dates.
  • 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.
   Audit Scope:

Audit Period:
Fiscal Years 2001-2003

Selected Audit Areas:
  • Financial Aid Grants
  • Student Educational Loan Fund
  • Contracts

Agency Background:

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.

Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : or 651‑296‑4708