Common Audit Findings
Unlicensed software on department computers
According to Longwood policy, for use of technology resources and systems to be acceptable, it must also demonstrate respect for the intent of the individual authorities granted and intellectual property rights. These issues are also addressed in the Virginia Computer Crimes statute and US Code Title 17, Section 109. To ignore these regulations could result in litigation to the university.
Cash receipts not deposited in accordance with University policy
According to University policy, the Cashiering office is responsible for the collection, control, and custodianship of all University revenues. All monies collected by departments must be transmitted to Cashiering for deposit. Cash receipts are to be deposited within 24 hours of the time of receipt. For those departments collecting large sums daily, deposits should be made by 2:00pm. Transmittals for small sums should be made whenever collections equal $100 or more or at least once a week regardless of the amount. If policy is not followed, departments could invite theft or embezzlement.
University assets, including cash, not safeguarded or properly accounted for
Safeguarding of assets, including cash, is important to the financial health of the university. Without proper oversight and accountability, assets could be damaged, lost, or stolen. Departments are responsible for obtaining and regularly completing all inventory control forms designed to track the movement and relocation of equipment and other assets. Physical inventories will be conducted on an annual basis. A list of missing or unaccounted for assets will be submitted to department heads for accountability. The value of assets not located and not previously reported as stolen could lead to budget reduction. University owned equipment may be used at home for University business provided the equipment is properly signed out and approved by the immediate supervisor. In the case of cash funds, proper deposits should be made with Cashiering daily or, if petty cash, the custodian has primary responsibility for ensuring that funds are adequately safeguarded.
Monthly FRS statements not reconciled to transaction
Reconciliation of monthly FRS statements to CARS is required by Longwood University policy. Department level reconciliation items should also be reviewed monthly by its management for accuracy in spending and budget codes. By completing this preliminary step, errors are caught early and the annual reconciliation will be more efficient.
Asset handling and accounting responsibilities are not segregated
Segregation of duties in asset handling and accounting responsibilities is designed to reduce opportunities for a person to be in a position to perpetrate and conceal errors and frauds when performing normal duties. An example of segregation of duties is having one person responsible for handling cash and recording receipts and another person depositing cash and proving the deposits to the cash receipt log.
Written policies and procedures are not updated or maintained
Written policy and procedure represents management's decision of what should be done to effect control. Policy serves as a basis for proper procedures. Policy and procedures that are kept properly updated enable the university community to operate more effectively and efficiently in carrying out individual duties and responsibilities.
Job descriptions are not updated on a regular basis to reflect job responsibilities
Job description updates are required according to the Virginia Department of Human Resource Management Policy #1.4. These position descriptions are required as part of performance planning and evaluation. Without these updates, departments may not hire the most qualified individuals or have adequate criteria on which to base evaluations, promotions, and compensation.
Departments maintain external bank accounts, which are not subject to University internal controls
The Cashiering office has responsibility for the collection, control, and custodianship of all university revenues. The Cashiering office is the sole University unit authorized to transact business with banking institutions in the name of Longwood University. If a department opens and maintains an external bank account, the university has no proper oversight or control over monies, which could be open to theft, embezzlement, or improper use.
Contracts with outside parties are not properly maintained
If contracts with outside parties are not kept current or properly maintained, the university could be in violation of the terms, covenants, or provisions of such contractual agreements or assume that a binding contract exists when one does not. This could result in litigation for the University or disruption of services. Additionally, only individuals and departments that are authorized as contracting representatives for the university should be initiating contracts on behalf of Longwood University.
University telephones used for personal business and personal long distance phone calls charged to department
The use of university telephones is restricted to official business except in the case of emergency or for local calls. When making personal long distance calls, please charge these calls to your home phone or a personal credit card. Another option, offered by Information Instructional Technology, would be to have a personal billing number issued to you as a university employee for your personal long distance calls. When using your personal billing number for long distance calls, you will be sent a monthly bill from our department (See LancerNet directory, page 50). Misuse of university telephones results in fewer funds for departmental use.
Equipment being discarded with no authorization or only verbal authorization
Remember, all capital equipment disposals must be properly authorized and documented. Notify Materiel Management, x2315, for any item needing to be surplussed. Fill out the proper form and keep with the item to be picked up. Transferring equipment from office to office also requires the property movement form to be sent to the Inventory Control Clerk. Lost or stolen items are to be reported immediately. Visit the Materiel Management & Purchasing Department website.
- Unlicensed software on department computers
- Cash receipts not deposited in accordance with university policy
- University assets, including cash, not safeguarded or properly accounted for
- Monthly FRS statements not reconciled to transaction
- Asset handling and accounting responsibilities are not segregated
- Written policies and procedures are not updated or maintained
- Job descriptions are not updated on a regular basis to reflect job responsibilities
- Departments maintain external bank accounts, which are not subject to University internal controls
- Contracts with outside parties are not properly maintained
- University telephones used for personal business and personal long distance phone calls charged to department
- Equipment being discarded with no authorization or only verbal authorization