Summary

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

Finding No. 1:          Certain information in the University’s annual reporting of information for institutes and centers to the Board of Governors was incorrect.

Finding No. 2:          Contrary to University policies, the validity of drivers’ licenses for all authorized drivers of University-owned vehicles had not been verified.

Finding No. 3:          The University had not established policies and procedures prescribing minimum liability insurance coverage for design professionals.

Finding No. 4:          The University, for construction projects administered by a construction manager (CM), did not take advantage of sales tax exemptions by making direct purchases of construction goods, or document that greater savings were realized by the CM making the purchases.

Finding No. 5:          The University had not developed procedures for determining and documenting the reasonableness of energy cost savings reported by the contractor in connection with an energy performance‑based contract. 

Finding No. 6:          The University did not have adequate policies and procedures for determining and documenting insurable values for buildings and other property.

Finding No. 7:          The University did not properly monitor the activities of its athletic camps and did not provide for supervisory review of financial reporting for the camps.

Management’s response is included as Exhibit B.