Office of Internal Audit
Kentucky State University
Bursar Office Audit Follow-Up
Below is the audit follow-up of the Bursar Office Review specifically related to the timeliness of depositing cash receipts into the bank. Testing of this particular activity was performed to address concerns brought forth at the July 2016 Board of Regents Meeting. A follow-up of all issues where corrective action has not been fully implemented will be performed by the end of the calendar year.
The status of corrective action will fall into one of the following categories:
The corrective action has been implemented. This means management has implemented the corrective action plan and an assessment was performed by the internal auditor to evaluate its effectiveness.
In process. This means that some corrective action has been implemented but not completed.
No action taken yet. This means that corrective action has not been evaluated, planned or implemented.
Assumption of risk. This means that corrective action has been evaluated and no further action is intended. The department assumes the risk associated with the issue.
| Audit Area: Cash Management |
| Audit Issue | There were 6 of 18 instances in which cash and check receipts were not deposited in the bank in a timely manner. The number of days between the transaction date and the date the receipts were deposited in the bank ranged from two to six days. |
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| Audit Recommendation | All cash, check, and credit card receipts should be deposited in the bank daily in accordance with Bursar Office policy. This would help safeguard funds and accurately reflect the information within the Banner system. |
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| Management's Response | Management concurred with and planned to implement the audit recommendation noted. In addition, management stated the following: “The Bursar Office is exploring the option of purchasing a cash recycler from Fifth Third Bank that would electronically deposit cash receipts real-time.” |
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| Current Status (Implemented, In process, No action yet taken) | Corrective action taken. |
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| Indicator of Implementation / Progress | A sample of twenty cash receipts was tested to verify timeliness. All twenty cash receipts included in the sample were deposited in the bank in a timely manner. It appears corrective action has been implemented and working effectively for this particular issue. |
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