|Financial Audit Division Report 08-23
|Released October 8, 2008
The Minnesota State Colleges and Universities (MnSCU) Office of the Chancellor and the nine colleges included in our scope generally had adequate internal controls over major financial areas, such as resident tuition, employee salaries, and operating expenses. These controls generally ensured they safeguarded assets, accurately paid employees and vendors in accordance with management’s authorization, produced reliable financial information, and complied with finance-related legal requirements. For the items tested, with certain exceptions, the Office of the Chancellor and the individual colleges complied with financial-related MnSCU policies and legal requirements.
However, the office and the colleges had a variety of control weaknesses and noncompliance over complex areas that have a high-risk for errors, such as tuition reciprocity, employee leave, and credit cards. In addition, the MnSCU system had not resolved some recurring prior audit findings.
We examined internal controls and compliance at the Office of the Chancellor and nine selected MnSCU colleges (Anoka-Ramsey, Hibbing, Itasca, Rainy River, and Vermilion community colleges; Mesabi Range and Minnesota West community & technical colleges; Fond du Lac Tribal & Community College; and Minnesota State College-Southeast Technical) for fiscal years 2005, 2006, and 2007 over:
MnSCU’s Office of the Chancellor provides system-wide administrative management and develops policies for 32 state universities and colleges. The colleges finance their operations from state appropriation allocations and tuition revenues.