Office of the Legislative Auditor - Financial Audit Division

Key Findings:

• The American Indian Student Association did not maintain adequate records to support its financial activity.
• The association’s faculty advisor spent $3,110 in association funds that could not be reasonably explained or supported. The advisor admitted use of association funds for personal reasons and has repaid $500. Pursuant to Minnesota Statutes 3.975, we have referred this report to the Attorney General and Blue Earth County Attorney for further action.
• MnSCU needs to review its procedures for oversight of student organizations to ensure there is appropriate accountability for financial activities.

Audit Scope:

Audit Period:
September 1999 – May 2004

• American Indian Student Association’s receipts and disbursements

Background Information:

The American Indian Student Association is a recognized ethnic student organization at the Minnesota State University, Mankato. The association’s mission is to increase and spread the awareness of the American Indian culture throughout the university and the local community. The association sponsored several events, including an annual powwow. The association collected money from fundraising events and donations made by individuals and Native American communities. The association’s local bank account reflected receipts and disbursements of about $1,000 each year, with the exception of calendar year 2001 when the association sponsored a large powwow and collected and disbursed over $15,000.