Summary

Our operational audit for the fiscal year ended June 30, 2008, disclosed the following:

Finding No. 1:         The University did not perform collection procedures timely for certain returned checks receivable.

Finding No. 2:        Payments to vendors did not appear timely in several instances, contrary to University policies.

Finding No. 3:        The University needed to improve its controls over communication expenses.

Finding No. 4:        University procedures did not provide for adequate monitoring of cellular telephone (cell phone) usage.  Also, the University should confer with the Florida Department of Financial Services to report to the Internal Revenue Service the value of cell phone services as income for employees who did not make an adequate accounting of the business use of their assigned cell phones.

Finding No. 5:        Payments to some contractors were not made pursuant to a signed and sufficiently detailed written agreement.

Finding No. 6:        The University did not verify its insurable values for buildings and other structures and improvements with amounts actually insured.

Finding No. 7:        The University’s security controls within the PeopleSoft Financials System needed improvement.

Management’s response is included as Exhibit B.