|Financial Audit Division Report 09-30||Released September 8, 2009|
The eight colleges in the Minnesota State Colleges and Universities (MnSCU) system included in our scope generally had adequate internal controls over their major financial activities, such as tuition payments, employee salaries, and operating expenses. These controls generally ensured that the colleges 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 colleges complied with financial-related MnSCU policies and legal requirements.
However, the colleges had some internal control weaknesses and noncompliance in certain areas that have a high-risk for errors, including security access to financial systems, employee leave benefits, and management of equipment and college-issued credit cards. In addition, the MnSCU Office of the Chancellor is working towards resolution of prior audit findings concerning security to financial systems, bids for banking services, and retention of sensitive student credit card payment information.
The colleges we reviewed had numerous control weaknesses and noncompliance with requirements for employee compensation, vendor procurements and payments, and employee expense reimbursements.
We examined internal controls and compliance at eight MnSCU colleges: Alexandria, Anoka, and Dakota County Technical Colleges; Lake Superior, Saint Paul, and South Central Colleges; North Hennepin Community College; and Northland Community and Technical College. Our review examined fiscal years 2006, 2007, and 2008, over the following areas: