There are inherent limitations in any system of internal control. Errors may result from misunderstanding of instructions, mistakes of judgment, carelessness, or other personnel factors. Some controls may be circumvented by collusion. Similarly, management may circumvent control procedures by administrative oversight.
A thorough understanding of the Bursar Office student billing and collection activity was obtained in order to evaluate the internal control structure. This was achieved through interviews of key personnel and examination of supporting documentation. This included obtaining an understanding of the policies and procedures for processing, recording, monitoring, reconciling, and reporting of student tuition/fee charges and the collection of student payments and departmental deposits. Testing of activity was also performed to determine the effectiveness of the controls.
The operational and fiscal administration of the Bursar Office was reviewed. The review included student billing and collection activity during Fiscal Year 2015 and the first quarter of Fiscal Year 2016 (July 1, 2014 through September 30, 2015). The review included assessing whether activity was processed, recorded, and monitored accurately, appropriately and in accordance with applicable policies and procedures. The details of the scope and methodology of the review will be addressed in the Observations and Recommendations section of this report. The examination would not identify all weaknesses because it was based on selective review of data.
It is my opinion that the internal control structure for the Bursar Office student billing and collection activity is inadequate. The internal control rating is on page 6 of this report. The rating quantifies my opinion regarding the internal controls, and identifies areas requiring corrective action. Opportunities to strengthen the internal control structure were noted. Examples include the following.
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