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

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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.
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