Office of the Legislative Auditor - Financial Audit Division

Conclusion:

The Minnesota State Colleges and Universities (MnSCU) designed and implemented many controls over its financial reporting system to ensure the accuracy and completeness of its annual financial statements. However, MnSCU could strengthen some controls to improve the efficiency of its financial reporting process and to better limit access to the financial reporting system and data.

Findings:

• MnSCU did not have a formal process to verify the initial entry of data summarized from its main accounting system.
• MnSCU’s financial reporting system lacked some automated edits to prevent certain data entry errors.
• MnSCU did not actively monitor its list of accounts for errors or inconsistencies.
• MnSCU lacked strong password controls for its financial reporting system.
• Some individuals had more access to data and system resources than was necessary.

Audit Scope:

Audit Period:
As of April 2005

• Selected Application Controls
• Selected Security Controls

This information technology audit assessed the adequacy of specific controls in MnSCU’s computerized financial reporting system. MnSCU implemented a financial reporting system to assist with preparing consolidated and individual financial reports for its colleges and universities.

For the fiscal year ending June 30, 2004, MnSCU published a consolidated financial report for its 32 institutions. It also issued separate financial reports for 12 institutions. External audits of these financial reports resulted in unqualified audit opinions.