Criteria or specific requirement: Internal controls are critical to ensure accurate financial reporting. These would include, but not limited to, ensuring the year-end SEFA is complete and accurate.
Effect: Material audit adjustments were required to federal expenditures.
Cause: No formal processes or procedures regarding reconciliation of the SEFA to the related general ledger accounts.
Recommendation: We recommend that the University develop policies and procedures to appropriately reconcile the SEFA to the general ledger.
Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
Type of Finding:
Condition: In a sample of purchase card transactions, it was noted that a significant number of transactions selected were not supported by receipts or management approval.
Criteria or specific requirement: Management is responsible for establishing and maintaining effective internal controls for the proper administration of the University's corporate credit cards.
Effect: Without appropriate administration over the corporate credit card program, the University is at greater risk of misappropriation of assets and noncompliance with internal policies that would not be detected in a timely manner.
Cause: No process was in place to ensure direct supervisory review of credit card purchases, nor was there a process to follow up on missing receipts for transactions on an individual's card.
Repeat Finding: Yes, 2022-004.
Recommendation: We recommend that policies and procedures regarding use of purchase cards be reviewed and adjusted as needed, and these policies and procedures be strictly followed.
Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.
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