|Financial Audit Division Report 10-29||Released September 14, 2010|
The five colleges in the Minnesota State Colleges and Universities (MnSCU) system included in our scope (Central Lakes, Ridgewater, Inver Hills, Riverland, and Pine) generally had adequate internal controls over their major financial activities, such as 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, the colleges generally complied with finance-related 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.
The Office of the Chancellor did not resolve the four systemic findings from our 2009 audit report. We repeat those findings in this report (Findings 2, 4, 5, and 6). The MnSCU colleges resolved some of the prior audit findings related to the areas we audited specific to this group of colleges. However, the colleges did not resolve some findings now classified as systemic findings and one other finding that we repeat in this report. (Finding 11)
The colleges we reviewed had other control weaknesses and noncompliance with various requirements for employee compensation, vendor procurements and payments, and employee expense reimbursements.
We examined internal controls and compliance at five MnSCU colleges: Central Lakes, Ridgewater, Inver Hills, Riverland, and Pine. Our review examined fiscal years 2008, 2009, and 2010, through December 31, 2009, over the following areas: