Audit Committee
March 19, 2008 Meeting
Review 2007 Federal Financial
Assistance Audit Report
Beth Buse, Deputy Director of Internal Auditing
Christopher Halling, System Director for Financial Aid
Steve Wischmann, Partner with Kern, DeWenter, Viere
The Minnesota State Colleges and Universities System is an Equal Opportunity employer and educator.

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• Annual audit required by federal law
• Focus on major programs
– Student Financial Aid
• Testing performed by Principal Auditor
– With assistance from Internal Auditing
• Results included with State of Minnesota
Report
– To be submitted to federal government by
3/31/08

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MnSCU Federal Financial Assistance: 2002 to 2007
400
350
300
250
200
150
100
50
0
2002 2003 2004
Fiscal Years
2005 2006 2007
Student Fin'l Aid Grants Other Grants Student Loans

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Average Per Student Federal Financial Aid
Expenditures: 2004 to 2007
5000
4000
3000
2000
1000
0
2004 2005
Fiscal Years
2006
Student Fin'l Aid Grants Student Loans
2007
Note: Excludes Federal Work Study and Perkins Loans

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Federal Student Financial Aid - Summary of Questioned Costs
Fiscal Year 2003 - 2007
Questioned Cost Type
Fiscal
Year
2003
2004
2005
2006
2007
Loan Maximums
$ 7,055
Return to Title
IV (R2T4)
Satisfactory
Academic
Progress
$ 794,803 $ 4,852,888
$ 12,551
$ 10,466
$ 33,581 $ 629,633
$ 117,289
$ 3,540 $ 945,859 $ 530,245
$ 10,323
Other Grand Total
$ 5,654,746
$ 675,765
$ 13,294 $ 141,049
$ 1,479,644
$ 10,323
Grand
Total $ 33,612 $ 1,901,855 $ 6,012,766 $ 13,294 $ 7,961,527

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FY 2007 Single Audit Findings
• Return of Title IV Funds
– St. Paul College (questioned costs - $10,323)
• Timely return of loan funds (3 institutions)
• Timely reporting
– NSLDS (multiple institutions)
– Pell (2 institutions)
• Notification of loan disbursement information (multiple institutions)

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FY 2007 Single Audit Findings continued
• Administrative requirements reconciliations (3 colleges)
• Verification policies incomplete
(3 colleges)
• Satisfactory academic progress policy did not reflect practice (1 college)

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USDOE Program Review Status
• Final Determination Letters Received:
– St. Cloud State University: Return to Title IV
– Metropolitan State University: Return to Title
IV
• Awaiting Final Determination
– Minneapolis Community and Technical
College: Satisfactory Academic Progress
• Information sent to USDOE November 2006

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FY 2007 Single Audit – Prior Audit
Finding
• Excessive Security Access to Financial
Aid System
– Reported in 2005
– Implementation planned for April 2008