Lamar University System Office
1994 Statewide Financial and Compliance Audit
Report Number 95-101
Overall Conclusion
Lamar System is generally complying with the significant bond covenants of its 13 outstanding bond issues ($26.4 million). However, the System should continue its efforts to increase housing revenues to ensure payment of debt service requirements. In addition, the three Lamar University components are generally complying with federal regulations regarding the Federal Family Education Loan ($3.7 million) and the Federal Pell Grant ($3.3 million) student financial assistance programs. However, areas for improvement were identified at all three components. Lamar-Beaumont (LUB) should address its eight issues identified in this report, including improving controls over cash management and the preparation of its Annual Financial Report.
Also, the components' prior year issues involving fixed assets, salaries paid proportional to funding source, and personnel documentation have been resolved. Based on work performed by Lamar System Internal Audit (Report No. AU1094), the prior year issue related to timely appropriation reconciliations is still outstanding.
Key Findings
Lamar-Beaumont does not have cash management procedures to ensure that requests for reimbursement are only made for current expenditures. Also procedures are not in place to prevent excess cash from being requested. An excess cash balance of $88,292 existed at the University, of which a portion was returned, and $49,991 was inappropriately retained by the University.
Lamar-Beaumont is not ensuring that its federal grant expenditures are appropriate and allowable. These inappropriate and unallowable expenditures represent questioned costs totaling $9,831.79.
Lamar-Beaumont did not submit an accurate 1994 Annual Financial Report (AFR) to the State Comptroller. Specifically, the University submitted its 1993 Schedule of Federal Financial Assistance in its 1994 AFR. The 1994 Schedule of Federal Financial Assistance and the AFR also contained other errors.
Lamar-Beaumont's Student Financial Aid Office should not receive loan proceeds from lenders. The office both processes the loan applications and receives the loan proceeds from the lenders. During fiscal year 1994, the University processed $3,705,149 in FFELP loan checks.
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