|Report Title:||University of South Florida - Operational Audit|
|Report Period:||FYE 06/30/2007|
Our operational audit for the fiscal year ended June 30, 2007, disclosed the following:
Finding No. 1: The University’s controls over imprest bank accounts needed improvement.
Finding No. 2: Improvements were needed in the University’s procedures relating to accountability of tangible personal property.
Finding No. 3: The University did not adequately monitor compliance with auxiliary food service, vending, and bookstore contract provisions related to commission and rent income due, and insurance requirements. In addition, the snack vending contract did not establish a timeframe for submitting an annual certified accounting of sales and commission paid, and did not require that the certification be made by an independent certified public accountant.
Finding No. 4: The University did not adequately monitor compliance with credit union contract provisions related to commission due and insurance requirements. In addition, the contract did not address the required amount of general liability insurance.
Finding No. 5: The University did not always retain documentation required by State Board of Education Rule 6A‑10.044, Florida Administrative Code, or adequately monitor student residency status for purposes of assessing and collecting student tuition.
Finding No. 6: The University’s controls over decentralized collections needed improvement.
Finding No. 7: Improvements were needed in the University’s procedures to ensure timely processing of termination pay for unused annual and sick leave.
Finding No. 8: The University’s competitive procurement threshold exceeded the limit established by the Board of Governors.
Finding No. 9: Controls over the purchasing card program needed improvement. Our tests of purchasing card transactions disclosed several instances in which purchasing cards were used in a manner not consistent with purchasing card guidelines.
Finding No. 10: Because University procedures for monitoring cellular telephone (cell phone) usage were not in compliance with the United States Treasury Regulations substantiation requirements, the University was required to, but did not, report to the Internal Revenue Service the value of cell phone services as income for employees assigned cell phones. In addition, the University paid certain taxes on cell phone service for which it was exempt.
Finding No. 11: Employees were reimbursed for travel expenses at rates that exceeded those authorized by Section 112.061, Florida Statutes.
Finding No. 12: User sign‑on accounts were not always timely removed for employees who terminated employment.
Finding No. 13: The University needed to improve controls relating to the application environment. Specific details of the needed improvement are not disclosed in this report to avoid the possibility of compromising University data and information technology resources.
The University's response is included as Appendix B of this report.