Central Lakes College Financial Audit For the Period July 1, 1995, through June 30, 1998 May 1999 Financial Audit Division Office of the Legislative Auditor State of Minnesota_part4 docx

Central Lakes College 27 Status of Prior Audit Issues As of March 12, 1999 Most Recent Audit Legislative Audit Report 99-19, issued in March 1999, covered activities material to the state’s general purpose financial statements for the year ended June 30, 1998. It included the testing of federal programs to determine compliance with federal requirements. The report did not include any findings related specifically to Central Lakes College. Legislative Audit Report 98-16, issued in March 1998, covered the material federal financial aid programs administered by the State of Minnesota in fiscal year 1997. We audit the federal financial aid programs on an annual basis as part of the Single Audit of the state’s federal expenditures. This report did not include any findings related specifically to Central Lake College. Other Audit History Legislative Audit Report 96-35, issued in August 1996, covered the transition of technical colleges into state government. This report included an audit of the business systems and the transfer of technical college assets to the state, payroll, tuition and fees, and student financial aid. A number of issues related to the Central Lakes College were included in the report. Four issues remain partially unresolved. As explained in Finding 1, the college was unable to reconcile the cash balance recorded on the MnSCU accounting system to the bank statements. The college did not promptly record tuition revenue and timely deposit customized training tuition, as reported in Finding 5. The college did not adequately separate the duties over the collection of customized training receipts and the billings of third party funding, as discussed in Finding 6. Finding 11 explains that the financial aid office had unnecessary access to financial aid checks. State of Minnesota Audit Follow-Up Process The Department of Finance, on behalf of the Governor, maintains a quarterly process for following up on issues cited in financial aid reports issued by the Legislative Auditor. However, Finance has delegated this responsibility for audits of the Minnesota State Colleges and Universities (MnSCU) to the MnSCU Office of Internal Auditing. MnSCU’s Office of Internal Auditing process consists of quarterly activity reports documenting the status of audit findings. The follow-up process continues until the Office of the Internal Auditing is satisfied that the issues have been resolved. The process covers all colleges and universities within the MnSCU system. Central Lakes College 28 This page intentionally left blank. . Universities (MnSCU) to the MnSCU Office of Internal Auditing. MnSCU’s Office of Internal Auditing process consists of quarterly activity reports documenting the status of audit findings. The follow-up. 11 explains that the financial aid office had unnecessary access to financial aid checks. State of Minnesota Audit Follow-Up Process The Department of Finance, on behalf of the Governor, maintains. process for following up on issues cited in financial aid reports issued by the Legislative Auditor. However, Finance has delegated this responsibility for audits of the Minnesota State Colleges