The operational audit for the period January 1, 2004, through December 31, 2004, and selected transactions through March 31, 2005, disclosed the following:

Finding No. 1: The Board of Trustees did not receive sufficient financial information for use in monitoring the College’s financial position.
 

Finding No. 2: The College’s 2004 calendar year annual physical inventory of tangible personal property was not timely reconciled with the property records. Numerous property items not located during the physical inventory had not, of record, been investigated or reported as missing to the appropriate law enforcement agency.
 

Finding No. 3: Controls over collections at the Institute of Public Safety were not adequate.
 

Finding No. 4: Performance appraisals due for the 2003-04 fiscal year were not on file for three employees, and the performance appraisal for another employee was completed late.
 

Finding No. 5: Procurement card accounts for four former employees were not closed in a timely manner after their termination date.
 

The College’s response is included as Appendix B.