120013-Audit-Committee-Report-Part-3.pdf — PaddleOCR-VL (Baidu)

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KENTUCKY STATE UNIVERSITY

Schedule of Prior Year Audit Findings

Year ended June 30, 2013

Finding 12-01:

Condition:

The year-end accounts receivable aged trial balance that was presented to us for audit purposes indicated that a large percentage of receivables were over 365 days old, and several accounts were as much as two years old. We believe that some of these accounts are not collectable at this point in time and the University should review the adequacy of the allowance during the year and appropriately adjust the allowance.

Recommendation:

The following formal collection procedures should be established:

The continuous review of accounts receivable for old and slow-paying accounts.
A formal periodic review of the account receivable aged trial balance.
The implementation of formalized procedures for contacting delinquent accounts for payment, such as sending letters to slow-paying customers.

The increased use of collection agencies and the department of revenue to aid in collecting delinquent accounts.

We recommend the University conduct an overall evaluation of the allowance for doubtful accounts at year end and base the allowance on the aging of the balance, instead of the last semester the student attended to ensure a more accurate balance in the allowance for doubtful accounts.

Current Status:

This finding was resolved in the current year.

Finding 12-02:

Federal Program: U.S. Department of Education Federal Direct Student Loan Program, CFDA 84.268

Condition:

During the audit, we noted that the status change for students identified as ‘unofficial withdrawals’ in the spring semester were not being reported to lenders or guaranty agencies in a timely manner. These students were not being reported as withdrawn to the lenders and guaranty agencies until the next roster file was submitted at the start of the fall semester. Per our review of 20 students who were unofficial withdrawals, 7 students who unofficially withdrew were not reported to lenders or guaranty agencies in a timely manner.