Single Audit Report Fiscal Year Ended June 30, 2012 - State ...

State of GeorgiaFinancial Statement Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Effect:Recommendation:The lack of controls and monitoring could impact the reporting of the University's financial positionand results of operations. Failure to prepare and submit accurate financial statements prohibits usersfrom having access to pertinent financial information needed for decision making.The University should review the accounting controls and procedures currently in place, identifyweaknesses, and design and implement procedures necessary to strengthen controls over thepreparation of the financial statements.Finding Control Number: FS-533-12-04REVENUES/RECEIVABLES/RECEIPTSInadequate Accounting ProceduresCondition:Criteria:Internal control procedures were insufficient to provide adequate collection of student accountsreceivable balances.The Board of Regents' Business Procedures Manual establishes guidelines for granting of credit tostudents and the collection and billing of student account balances. Violations of the following policyrequirements were noted upon testing student accounts receivable amounts at the University:1) Per Section 10.1.1, "all students having student accounts with a balance older than ninety (90)days must have services withheld until the balance is paid. The restriction of services will preventthe student from having access to transcripts, registering for additional classes, or graduating untilthe receivable is paid."2) Per Section 10.7.4, "collection efforts should occur at 30, 60 and 90 days since the due date andthe account should be referred to a collection agency when the account is more than 180 days pastdue."3) Per Section 10.4.1, "all uncollectible accounts aged more than one hundred eighty (180) days fromthe due date should be reserved as an uncollectible account."Information:A review of student accounts receivable balances revealed the following:1. Upon testing of ten students, there were three instances noted of services that were provided tostudents and charges were placed on student accounts when the student had maintained anoutstanding balance on their student account for a period greater than 90 days.2. Auditor found that out of a sample of 36 students, collection efforts were not sufficient for 16students.3. Receivables amounts held in financial aid clearing accounts were not reviewed to determine ifbalances aged more than 180 days should be recorded as an uncollectible account.Cause:Effect:Recommendation:The University's management did not properly implement Board of Regents' policies designed topromote the collection of past due student accounts receivables.The University has incurred student accounts receivable that are not likely to be collected.The University should follow billing and collection guidelines as set forth in the Board of Regents'Business Procedures Manual.70