Executive Summary

PROJECT TITLE

Finance and Business Affairs Bursar Office Review

OBJECTIVE AND SCOPE

An Assurance – Operational review of the Kentucky State University Bursar Office was performed. The Bursar Office is a division of Finance and Business Affairs. The objective was to perform a review of the Bursar Office Student Billing and Collections activity, which includes the collection and recording of student and departmental deposits. The operating policies, procedures and records specific to the Bursar Office student billing and collections were reviewed. The primary focus was the operational and fiscal administration of the activity. This includes how activity is processed, recorded, and monitored. This audit was performed to obtain assurance that potential risks are adequately mitigated through internal controls in the process.

This was an assurance review based on best practices and existing policies and procedures for the operational and fiscal administration of the Bursar Office. The review included billing and collections activity during Fiscal Year 2015 and the first quarter of Fiscal Year 2016 (July 1, 2014 through September 30, 2015). The details of the scope and methodology of the review are addressed in the Observations and Recommendations section of the report.

INTERNAL CONTROL ASSESSMENT Inadequate

RESULTS

Opportunities exist for improving the internal control structure for the Bursar Office. Examples include the following.

• Cash Management. There were issues noted regarding cash management activity of the Bursar Office.
• There were instances in which cash, check, and credit card receipts were not deposited in the bank in a timely manner.
• There were instances in which student payments were not applied to students' accounts within the Banner system in a timely manner.
• Tuition and Fee Schedule. There were issues noted regarding the accuracy, completeness and appropriateness of the tuition and fees charged to students.
• There were instances in which students were charged tuition and fees that were not in compliance with the applicable Tuition and Fee Schedule for the semester.
• General Administration. There were issues noted regarding the general administration of Bursar Office billing and collection activity.

Finance and Business Affairs Bursar Office Review January 2016