Audit finds SPSU with a deficit of $1.5 million
by Nikki Wiley
March 22, 2014 04:00 AM | 4815 views | 2 2 comments | 13 13 recommendations | email to a friend | print
MARIETTA — A state audit of Southern Polytechnic State University’s financials found that a $1 million surplus was reported while the school actually had a $1.5 million deficit.

The review was performed by the Georgia Department of Audits and Accounts as part of a routine audit required by state law. State universities are audited on a rotation cycle running every three to five years, said Claire Arnold, director of the Education Audit Division of the state audit department.

The mistake was caused by not properly allocating summer tuitions and fees. The cash should have been split over two fiscal years, but the money was only applied to fiscal year 2013, which ran July 1, 2012, through June 30, 2013.

New management in the fiscal affairs department of SPSU corrected the mistake, said Michael Foxman, interim vice president of business and finance.

The previous vice president resigned to accept a position outside of Georgia before the audit was completed. Foxman was brought in as an interim, along with two new financial experts, to help the university address the concerns raised by the review.

“Steps taken to correct the errors include a new management team within fiscal affairs, including two long-term University System of Georgia employees who are CPAs and have extensive accounting and auditing backgrounds,” Foxman said. “Additionally, new internal controls have been put into place.”

Arnold said the report pointed out three items that needed to be addressed, including recording year-end data incorrectly. The errors stemmed from what appeared to be a lack of internal controls, Arnold said.

Foxman said the error has no direct impact on faculty, staff or students.

Comments-icon Post a Comment
Cobb Visitor
March 22, 2014
Clearly not a big "audit find", but how have summer school fees been treated in the past ?

Looks more like an accounting procedure or standard was ignored, but for only one year ?

Dig a little or disregard ?
Cobb resident
March 25, 2014
Dig a little...perhaps. Knowingly applying revenue to the wrong year sounds like management issues with people not knowing how to follow established procedures.
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