Summary

Our operational audit for the fiscal year ended June 30, 2007, disclosed the following:

Finding No. 1:     The University assessed an administrative service charge for certain international students without specific legal authority to do so.

Finding No. 2:     The University’s office supply store, Office Plus, extended credit to nongovernmental entities, contrary to Article VII, Section 10 of the Florida Constitution.

Finding No. 3:     The University’s controls over parking permit collections needed improvement, including the development of written procedures for Parking Services employees.

Finding No. 4:     The University overpaid an employee by a total of approximately $100,000 due to the failure to enforce the specialized terms of the employee’s written compensation agreement.

Finding No. 5:     The University’s competitive procurement threshold exceeded the limit established by the Board of Governors.

Finding No. 6:     Travel reimbursement vouchers for travelers who received travel advances were not always submitted in a timely manner.

Finding No. 7:     The University paid taxes on cell phone services for which it was exempt.

Finding No. 8:     The University needed to improve its procedures for determining insurable values for buildings, and the University’s written insurance policies and procedures did not address the level of insurance coverage to be maintained or the method to be used to determine insurable values.

Finding No. 9:     Noncompliance with grant requirements caused delays in receiving Federal grant funds, which resulted in the University forgoing interest earnings.

Finding No. 10: The University made $7.4 million of loans to the UCF Athletics Association, Inc., a University direct‑support organization, without specific legal authority to do so.

Finding No. 11: The University transferred approximately $13 million of student athletic fees to UCF Athletics Association, Inc., contrary to Section 1009.24, Florida Statutes.

Finding No. 12: The University transferred $2 million of State matching funds received under the 21^st Century World Class Scholars Program to the University of Central Florida Foundation, Inc., without specific legal authority to do.

Finding No. 13: Several University Board of Trustees members and employees did not timely file their 2006 calendar year statement of financial interests with the Florida Commission on Ethics.

The University's response is included as Appendix B of this report.