1. The Minnesota State Colleges and Universities System is an Equal Opportunity employer and educator. MnSCU Audit Committee Review Office of Legislative Audit Report September 18, 2007

2. Slide 2 MnSCU External Audit Plan Legislative Auditor examines 20 colleges on a 3- year rotation cycle –Focus on internal controls and –Fiscal Compliance –Consultation with Internal Auditing and MnSCU Finance on audit scope Other 5 colleges and 7 state universities subject to annual CPA audits Go to Legislative Auditor Presentation Slide 1

3. Slide 3 Internal Auditing Finding Classifications “Critical” findings merit immediate attention and remedy. “Important” findings may develop into serious problems, but do not show evidence that immediate adverse consequences exist. “Limited Impact” findings indicate problems that have limited consequences and low risk.

4. Slide 4 Trend of Audit Findings based on Core Audit Scope 2004 to 2007

5. Slide 5 Comparative Analysis of Core Audit Findings By Audited college

6. Slide 6 2007 Legislative Audit Report Findings by Audit Scope Area

7. Slide 7 Critical Audit Findings Central Lakes cashiering - Finding 4 Inver Hills Payroll/Personnel – Findings 5-6 Metropolitan contract – Finding 16 Pine Technical College Employment and Training Center – Findings 23 and 24 Go to Legislative Auditor Presentation Slide 6

8. Slide 8 Board Motion The Board Chair shall refer the audit finding pertaining to the authority for Pine Technical College to enter into a joint powers agreement for the operation of its Employment & Training Center to another policy committee of the board for further consideration. The Board of Trustees expects that the Office of the Chancellor will work with college and university presidents to ensure prompt implementation of the corrective actions provided in response to Legislative Audit Report 2007-25. The Office of Internal Auditing shall provide periodic reports to the presidents, Chancellor, and Audit Committee on the status of these audit findings.