We recommended one adjustment as a result of our audit procedures that was not recorded by the University. The recommended adjustment related to the estimate of the allowance for doubtful accounts. We recommended an increase of $1.1 million in the estimate of the allowance for doubtful accounts. Management believed an increase of $600,000 was adequate. Management's calculation of the estimate took into consideration new collection policies that result in a more aggressive approach to collection of student accounts receivable in the future. See the discussion regarding the allowance for uncollectible accounts in the Significant Accounting Estimates section of this document.
With respect to the supplemental schedule accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the method of preparing it had not changed from the prior period and the information is appropriate and complete in relation to the financial statements as a whole. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements, or to the financial statements themselves.
We have separately communicated control deficiencies identified during our audit of the financial statements. This letter also references the material weakness and significant deficiencies noted during the financial statement audit and the audit in accordance with Circular OMB A-133, reported as Findings 2013-001 through 2013-008 in the Schedule of Findings and Questioned Costs.
We encountered no disagreements with management over the application of significant accounting principles, the basis for management's judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the financial statements.