Year ended June 30, 2014

Finding 2014-001, continued:

Management's Response:

Management concurs. Accounts receivable will be reviewed for old and slow-paying accounts at least quarterly. The aged trial balance will also be reviewed at least quarterly. Management is developing new processes for contacting slow-paying or delinquent registered students. Beginning Fall 2014, the University has implemented more stringent policies for new and returning students, with regard to their responsibility to pay their outstanding bill. Students that fail to pay their outstanding balances will be sent to collection agencies at minimum, the end of each term, to assist with the collection of outstanding balances.

Condition:

During the audit it was noted that the University has not performed a physical count of capital assets in several years.

Effect:

The University cannot substantiate that the capital assets ledger is accurate.

We recommend that the University implement a process such that a physical count of capital assets is performed at least every two years and reconciled to the general ledger.

Management concurs. A plan to conduct a physical count of inventory will be established and then performed by the end of fiscal year 2015.

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