State Cited Oversights in AAMU Audit

State auditors cited Alabama A&M University this week for $171,316 shown on its books but not found in its bank acount at the end of the 2008 fiscal year.

Auditors also cited the university for bypassing a certified low bidder and buying goods from another vendor and for eight other unresolved issues from previous audits.

The audits were conducted by the State Examiners of Public Accounts. The latest, for the fiscal year 2008, was posted on the examiners' Web site Friday.

The audit found that "the university's General Fund cash account on the general ledger balance did not reconcile with the bank statements at year-end. The reconciliation incorporated adjustments not made to the general ledger at year-end resulting in a difference of $171,316.00."

Auditors recommended A&M "post all adjustments at year-end to ensure that general ledger balances and bank statement balances have been reconciled and are in agreement."

Still unresolved from previous years, auditors reported that A&M:
• Improperly adjusted its general ledger student receivables control account at the end of FY 2008.
• Had not completed a physical inventory of capital assets in recent years.
• Did not support its bank reconciliation with an accurate list of outstanding checks.
• Did not make necessary adjustments to its accounting records in a timely manner.
• Allowed students to register and attend class while still owing unpaid balances from prior semesters.
• Had fixed asset subsidiary account balances that did not support amounts presented in the financial statements.
• Did not keep records of revenue collected for athletic events or deposit them in a timely matter.
• Did not obtain required vendor disclosure statements for all bids and contracts exceeding $5,000.
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Source: HBCU blog