Type of Finding:
Condition: The allowance for doubtful accounts regarding student receivables was not adjusted from the balance of the prior year.
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. The University is required to assess the allowance for doubtful accounts for student accounts on an annual basis to adjust for current year circumstances.
Effect: Allowance account was not analyzed or adjusted for the current year. As a result, users of the financial statements could make decisions based on financial results that are not complete and accurate.
Cause: Lack of formal closing policies and procedures.
Recommendation: We recommend closing procedures include steps to ensure that the allowance is analyzed and adjusted.
Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Type of Finding:
Condition: During our audit process surrounding grant activity, it was noted that grant receivable, grant unearned revenue, and grant revenue and expenditure were not reconciled.
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.
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