Schedule of Findings and Responses

Section I – Summary of Auditors' Results:

June 30, 2015

Financial Statements:

  • The type of report issued on the financial statements: Unmodified Opinion
  • Internal control over financial reporting:
  • Material weaknesses: Yes
  • Significant deficiencies identified that are not considered to be material weaknesses: None noted
  • Non-compliance which is material to the financial statements: No

Section II – Financial Statement Finding:

Finding 2015-001:

Condition:

During the year ended June 30, 2015 the University did not have adequate controls over financial reporting to allow for timely, accurate financial reporting. All general ledger accounts were not reconciled to subsidiary ledgers or other supporting detail at least on a quarterly basis.

Effect:

During the audit, 15 adjusting journal entries which impacted the year ended June 30, 2015, were recorded to accurately reflect the financial position of the University as of June 30, 2015. Net Position for the year ended June 30, 2015 was increased by $3,027,191 as a result of these entries. These journal entries primarily related to student accounts receivable, grants, cash, and accounts payable.

Recommendation:

We recommend the University implement internal control procedures which require general ledger accounts to be reconciled at least quarterly. Not having accurate transactions posted in a timely manner can affect the financial statement information that is available for making informed business decisions and supervision of operations. This weakness in accounting infrastructure increases the risk of errors in the financial records and is less likely to detect irregularities, including fraud, on a timely basis. The quarterly reconciliation process allows for the preparation of accurate quarterly financial statements. For bank reconciliations, management should satisfy themselves as to the nature of any unusual reconciling items before authorizing adjustments to correct the balances. These adjustments should be thoroughly documented and promptly made so that it will not be necessary to carry them forward to the next reconciliation.