Observations and Recommendations
A review of the Bursar Office student billing and collection activity was performed. The operating policies, procedures and records specific to the Bursar Office were reviewed. The primary focus was the operational and fiscal administration of the activity. This included how activity was processed, recorded, and monitored. The objective was to obtain assurance that potential risks were adequately mitigated through internal controls in the process.
Bursar Office activity was tested using a sampling approach. A review of the Bursar Office tuition/fee compliance and cash management activity was performed. 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). Samples of transactions were selected for testing accuracy, completeness, and timeliness as follows.
A sample of 25 students, including 170 tuition and fee charges, was judgmentally selected for review. The students were selected from each of the semesters included in the audit period to review the validity and accuracy of their tuition and fee charges.
A sample of 18 transactions, including 17 deposits, was judgmentally selected for review. Student payments and departmental deposits were selected from each of the semesters included in the audit period to review the accuracy, completeness and timeliness of receipts.
A sample of two reconciliations was judgmentally selected for review. Reconciliations were selected from dates within the audit period to verify accuracy, completeness, approval and timeliness of the reconciliations.
A sample of five returned payments (check, online payments) was judgmentally selected for review. The returned payments were reviewed to verify the appropriate fees were charged and the returned payment was recorded on the student's account in a timely manner.
The total population of students (60) who met the requirements to receive the residential rate for tuition/fees per the Choice Act of 2014 was reviewed to determine compliance with federal regulations.
The examination would not reveal all non-compliance issues because it was based on selective review of data.
Issues were noted with the Bursar Office Billing and Collections activity. As a result, the effectiveness of the internal control structure is inadequate and needs improvement. Opportunities to strengthen the controls include the following.
Cash Management
Tuition and Fee Compliance
General Administration
Details of these begin on the following page.
Page 9 of 17