Cause: Debt and lease liabilities were not reconciled timely and accrued interest was not properly calculated.
Repeat Finding: No.
Recommendation: We recommend that roll-forwards be performed for all long-term liabilities, supported by appropriate amortization schedules and other supporting documentation, and the general ledger be updated to reflect correct year-end balances.
Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Type of Finding:
Condition: Schedules supporting capital asset balances had errors and were incomplete. As a result, material entries were made to correct capital assets, depreciation expense, and loss on sale of asset.
Criteria or specific requirement: Internal controls are critical to ensure accurate financial reporting. These would include, but not limited to, reconciling statement of net position accounts monthly, a formal process of procedures and internal controls to ensure timely and accurate year-end financial statements and related notes and providing supporting audit documentation that reconciles to the trial balance under audit on a timely basis.
Effect: Capital asset related accounts were materially misstated prior to audit adjustments.
Cause: Capital assets were not reconciled timely which caused for errors in the supporting schedules and the University had not adjusted restricted proceeds and capital asset additions for a major capital project that concluded in fiscal year 2023.
Recommendation: We recommend the University review its controls over accounting for capital assets and ensure the year-end roll-forward is appropriately supported.
Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
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