Recommendation: We recommend that cash reconciliations be completed and reviewed, no later than a month after the period being reconciled and any required adjustments be made timely within the general ledger.

Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

Action taken in response to finding: As part of the audit preparation process for the fiscal year-ended June 30, 2024, the University utilized a consulting firm to complete its bank reconciliations. The University's accounting staff completed bank reconciliations during the fiscal year-ended June 30, 2025, however, staff were unable to successfully research and resolve transactions with dates prior to FYE June 30, 2025. The University plans to utilize a consulting firm to finalize bank reconciliations for the fiscal year-ended June 30, 2025. The University has also taken steps to recruit and hire capable individuals to fill open positions.

Name(s) of the contact person(s) responsible for corrective action: Melissa Hicks, Controller

Planned completion date for corrective action plan: June 30, 2026

Recommendation: We recommend that the University support grants receivable with a detailed listing by funding agency and invoice and unearned revenue be supported by a detailed listing by grant. We further recommend that grant revenues have a control in place to ensure allowable expenses are incurred prior to the recognition of revenue.

Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

Action taken in response to finding:

The University currently maintains an excel spreadsheet that identifies balances by funding agency, award, and invoice. The University will implement procedures to strengthen grant accounting controls by reconciling its excel spreadsheet to the general ledger grants receivable and unearned revenue on a monthly basis with review and approval documented by the Grant Accounting Manager and the CFO.

In addition, the University will implement controls to ensure that grant revenue is recognized only after allowable expenses have been incurred. This control will require Grant Accountants to verify and document that all revenue entries are supported by eligible expenditures in accordance with sponsor and regulatory requirements, with supervisory review prior to posting. The University has also taken steps to recruit and hire capable individuals to fill open positions.

Name(s) of the contact person(s) responsible for corrective action: Melissa Hicks, Controller and Dorothy Daley, Director of Grants

Planned completion date for corrective action plan: June 30, 2026