| FINANCIAL
OPERATIONS (CURRENT FUNDS) |
FY 1999 |
FY 1998 |
| REVENUES
Appropriations
Student tuition and fees
Grants, contracts, and gifts
Auxiliary enterprises
Payments on behalf of the University
Other
Total
|
$23,319,900
11,227,033
10,208,772
1,180,355
5,592,034
9,451,351
$ 60,979,445 |
$ 21,987,971
11,159,726
8,166,495
906,173
5,030,595
9,037,133
$ 56,288,093 |
| EXPENDITURES
AND MANDATORY TRANSFERS
Instruction
Research
Public Service
Academic support
Student services
Institutional support
Operation of plant
Staff benefits
Scholarships
Auxiliary enterprises
Mandatory transfers
Total
|
$20,532,609
59,695
1,234,364
1,972,083
9,054,558
16,594,672
4,561,840
5,156,821
432,844
1,057,908
59,184
$60,716,578 |
$ 19,016,033
32,863
1,294,556
1,907,433
7,536,293
15,869,606
4,209,149
5,399,935
359,618
953,958
67,735
$ 56,647,179 |
| SELECTED
ACCOUNT BALANCES (ALL FUNDS) |
JUNE 30, 1999 |
JUNE 30, 1998 |
Cash and
short-term investments
Library Books
Buildings, land, and equipment
Accrued compensated absences
Fund balances (deficit):
Unrestricted
Restricted
Loan
Net investment in plant
Income Fund
|
$8,498,186
9,090,307
65,664,604
7,677,558
(4,330,059)
129,762
3,309,378
74,442,686
(913,739) |
$3,461,317
8,737,867
63,065,941
8,271,503
(4,592,926)
30,768
3,165,838
71,257,863
(1,086,788) |
| SUPPLEMENTARY
INFORMATION |
FY 1999 |
FY 1998 |
Employment
Statistics (Full Time Equivalent)
Appropriated funds:
Faculty/administrative
Civil service
Student employees
Nonappropriated funds:
Faculty/administrative
Civil service
Student employees
Total Employees
|
384.4
233.4
51.2
152.0
57.8
52.1
930.9 |
348.6
232.6
39.1
149.0
58.2
53.1
880.6 |
| Selected Activity
Measures Annual full-time equivalent students - undergraduate
Annual full-time equivalent students - graduate
Full-time equivalent cost per student |
2,079
1,952
$12,075 |
2,052
1,837
$12,071 |
| UNIVERSITY
PRESIDENT |
|
During Audit Period: Dr. Paula Wolff
Currently: Dr. Paula Wolff
|
No reconciliations of Federal Direct Loan Program
Inadequate physical security system
Inaccurate cash balances reported
Inadequate controls over unemployment benefit claims and payments
|
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
FEDERAL DIRECT LOAN PROGRAM NOT RECONCILED
The University’s disbursements for the Federal Direct Loan Program were not
reconciled prior to fiscal year 1999. Testing of the University’s Federal Direct Loan
Program disclosed that reconciliations in progress for the period from 09/01/96 through
6/30/98 had not been completed.
Due to these deficiencies, program costs of $6,194,196 were classified as questioned
costs, and the auditors’ opinion on compliance with requirements applicable to major
federal programs was qualified. (Finding 1, pages 20-22) This finding has been repeated
since 1996.
We recommended the University continue to implement procedures to ensure compliance
with federal regulations and work with the Department of Education to expedite a
resolution of the reconciliations of prior year amounts. University officials agreed with
our finding and recommendation and stated they have submitted required documentation and
will continue to work toward resolution with the Department of Education. (For previous
agency responses, see Digest Footnote 1)
INADEQUATE CONTROLS OVER LIBRARY BOOKS
The University’s controls over library books were inadequate. During testing
of the library’s physical security system, we noted that it was not adequate to
safeguard library books from loss or theft. Although the University has an alarm system
installed at the entrance/exit to the library, it does not always detect books that have
not been properly checked out. Library books are carried at a cost of $9,090,307 on the
University’s balance sheet. (Finding 3, pages 25-26) This finding has been
repeated since 1995.
We recommended the University review its procedures for the tagging of library
books and training its library staff.
University officials agreed with the finding and recommendation and stated they will
institute an ongoing training program for circulation desk staff. (For previous agency
responses, see Digest Footnote 2)
INACCURATE LOCALLY HELD FUND REPORTS
All of the University's locally held fund quarterly reports filed with the Office
of the Comptroller reported inaccurate cash balances throughout the fiscal year. Cash
balances in the current, student activity, agency, and loan funds as of June 30, 1999
totaled $8,396,492.
The total fourth quarter cash balances reported were $391,108 less than the final total
balance of $8,396,492. (Finding 2, pages 23-24)
We recommended the University review its procedures to ensure that all locally-held
funds reporting is consistent and accurate.
University officials agreed with the finding and recommendation and stated it has
implemented corrective action.
LACK OF CONTROLS IN MONITORING UNEMPLOYMENT COMPENSATION
The University failed to develop adequate controls over the review of unemployment
benefit claims and payments which resulted in questionable benefits being paid by the
State.
During the audit period, 25 former/current employees of the University received $82,243
in unemployment benefits. To test controls over unemployment benefit processing, we
selected a sample of 20 Fiscal Year 1999 benefit recipients to determine the
appropriateness of payments. We noted the following:
- In five cases employees received $34,699 in questionable benefits for 129 weeks because
the University failed to protest the unemployment claims.
- In two cases reviewed, the University failed to report/protest benefits to persons who
had received $7,421 in vacation payments which count as wages. These individuals received
12 weeks of unemployment benefits totaling $3,133.
- In one case reviewed, the benefit recipient was employed by the University while he was
also receiving unemployment benefits paid by the State. Questionable unemployment benefit
payments made in this case totaled $1,408 for 16 weeks.
- In seven cases reviewed, the University lacked documentation to evaluate the
appropriateness of benefits paid.
In addition, the University did not review quarterly activity/charge statements sent by
IDES and was unable to provide documentation to support responses to IDES wage inquiries
and was untimely in other responses. (Finding 5, pages 30-32)
We recommended the University develop formal policies and procedures for review of
unemployment benefit activity to ensure state resources are adequately protected.
University officials agreed with our finding and recommendation and stated they have
implemented comprehensive policy and procedural changes.
OTHER FINDINGS
The remaining findings and recommendations were less significant and are being
given attention by University management. We will review progress toward implementation of
our recommendations during our next audit. University responses were provided by Mr.
Thomas Stepke, Director of Business Operations.
AUDITORS' OPINION
Our auditors stated the University’s financial statements as of June 30, 1999 and
for the year then ended are fairly presented in all material respects.
_____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:ROQ:ak
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this audit were De Raimo, Hillger &
Ripp.
DIGEST FOOTNOTES
#1 FEDERAL DIRECT LOAN PROCEDURES NOT RECONCILED
1998: "All data years prior to FY98 have been submitted to the Department
of Education. Final reconciliation is anticipated to be completed by the end of February
1999. Procedures are in place to ensure monthly reconciliation thereafter."
1997: "The University will implement the recommendation."
1996: "The University agrees with the finding and has implemented the
recommendation.
The Financial Aid Office is now sufficiently staffed to minimize federal noncompliance.
As of November 1996, work with the U.S Department of Education and its direct loan
servicer has rectified 90 percent of the data problems."
# 2 INADEQUATE CONTROLS OVER LIBRARY BOOKS
1998: "The University FY99 budget includes funds for replacing the
sensitive/desensitize stations in the library security system."
1997: "The University will arrange for the manufacturer to check the alarm system
to assure it is operating properly. Library staff, particularly those assigned to the
circulation desk, will receive additional security training."
1996: "The library security system upgrade equipment is on order and the upgrade
will be completed in fiscal year 1997."
1995: "The review and upgrade of library security systems has been addressed as
part of the library’s five-year strategic plan."
|
