KENTUCKY STATE UNIVERSITY Schedule of Findings and Responses, continued

Year ended June 30, 2013

Finding 2013-002, continued:

Recommendation:

We recommend the University complete reconciliation's of the student, grant, and other accounts receivable subsidiary ledgers to the general ledger account balances at least on a quarterly basis and assess the collectability of all receivables, especially student receivables on a quarterly basis.

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.

Management's Response:

We concur. In addition to working with our current collection agencies, the University has submitted an application to the Kentucky Department of Revenue to aid in the collection of delinquent accounts. The University has begun the continuous review of accounts receivable for old and slow-paying accounts. The University has also implemented “The Thorobred Plan” which will assist in collections for currently enrolled students with balances.