Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota State Academies
Internal Controls and Compliance Audit

 

Financial Audit Division Report 13-24

Released October 3, 2013

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Conclusion

The Minnesota State Academies (academies) generally had adequate internal controls to ensure that it safeguarded its financial resources, accurately paid employees and vendors in accordance with management’s authorizations, produced reliable financial data, and complied with finance-related legal requirements. For the items we tested, the academies generally complied with finance-related legal requirements. However, the academies had some internal control weaknesses and instances of noncompliance.

The academies resolved 15 of 16 prior audit findings.

Key Findings

• The Minnesota State Academies had not eliminated or mitigated the risk created by assigning employees incompatible security roles in the state’s accounting system.
• The Minnesota State Academies had not adequately administered free and reduced student meals and meal ticket sales.
• The Minnesota State Academies had not reviewed employees’ activity logs to ensure they billed school districts only for special education services provided.

Audit Objectives and Scope

Objectives	Period Audited
Internal controls Legal compliance	July 1, 2009, through January 31, 2013
Audited Areas
Payroll expenditures Selected revenues Student account activity	Selected administrative expenditures Local bank account and imprest cash activity Computer system security access