A Performance Audit
An Audit Report on Financial Processes at Midwestern State University
Midwestern State University (University) established processes and related controls to help ensure that financial transactions were managed in accordance with applicable requirements. However, it should strengthen processes related to procurement card transactions, asset documentation, and financial system access requirements.
The University Established Processes to Help Ensure That Expenditures Are Managed in Accordance with Applicable Requirements; However, It Should Strengthen Its Review Processes
While Midwestern State University (University) had established processes to ensure that expenditures were reviewed and approved, accurately recorded in its financial systems, and properly supported, it did not always follow those processes for procurement card transactions.
In addition, the University had not established a documented review process to help ensure that procurement card transactions comply with applicable requirements.
The University Had Processes for Managing Assets; However, It Should Strengthen Related Controls to Help Ensure Assets Are Recorded Accurately
While the University established processes for managing assets using an internal inventory log to track the addition and removal of assets, it should improve that process to ensure that the log accurately reflects the value and location for those assets in the State Property Accounting System (SPA).
The University had policies and processes in place to help ensure that budget requests are authorized appropriately and that budget transfers are performed according to policy. The purpose of the budget transfer is to allocate funds (1) between budget categories within the same account, or (2) from one account to another, or (3) for additional appropriations to the approved operating budget, or (4) from one account code to another within the same fund. The University’s process includes both intrafund and interfund budget transfers.
The University Had Controls Over Automated Systems and Certain Information Technology Resources to Help Ensure the Reliability of Its Financial Data
The University had appropriate automated processes and controls over its financial data to help ensure that it administered financial transactions in accordance with applicable statutes, rules, and policies. While the University established logical access controls over its financial system, it should improve its access requirements.
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