Summary

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

Finding No. 1:     The University’s controls over parking citation receivables needed improvement.

Finding No. 2:     Our tests disclosed that tangible personal property records were not always complete and accurate.

Finding No. 3:     Our test of tangible personal property deletions disclosed several instances in which survey forms, used to document the reasons for deletions, were not properly completed.

Finding No. 4:     Bonus payments to two employees exceeded the limit established by the Board of Governors.

Finding No. 5:     The University needed to enhance its procedures for documenting the process of competitively selecting vendors.  Also, the University’s competitive procurement threshold exceeded the limit established by the Board of Governors.

Finding No. 6:     Payments for professional services were not always evidenced by written agreements or purchase orders executed prior to the dates services were rendered.

Finding No. 7:     Purchasing card accounts for former employees were not always timely cancelled upon termination.

Finding No. 8:     The University did not, of record, adequately monitor cellular telephone (cell phone) usage to determine personal calls made and any needed reimbursements.  As such, the University was required to, but did not, report to the Internal Revenue Service the value of cell phone services as income of these employees.

Finding No. 9:     Vehicle usage logs were not always complete, and did not include evidence of supervisory review.

Finding No. 10: The University had not implemented adequate procedures to assess the reasonableness of fuel consumption of University vehicles.

Finding No. 11: The University did not always timely correct deficiencies noted in fire safety inspection reports.

Finding No. 12: There was a need for improved University-level governance of the PeopleSoft financials system and the enterprise data contained therein.

Finding No. 13: Improvements were needed in certain security controls within the overall operations of the application and the supporting network environment at the University.

Finding No. 14: The University needed to enhance its procedures to ensure that terminated employees’ access to data files and information technology resources is timely removed.

Finding No. 15: Environmental control improvements were needed at the University’s Data Center.

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