The Minnesota State Colleges and Universities System is an Equal Opportunity employer and educator. 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

Slide 2 Background 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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Slide 4 Note: Excludes Federal Work Study and Perkins Loans

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

Slide 6 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)

Slide 7 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)

Slide 8 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

Slide 9 FY 2007 Single Audit – Prior Audit Finding Excessive Security Access to Financial Aid System –Reported in 2005 –Implementation planned for April 2008