An audit by the state legislative auditor concluded that Southeastern misplaced $53,369 worth of computer equipment which it had loaned to high schools participating in the TRIO Talent Search Program, which provides educational opportunities to students from disadvantaged backgrounds.
The 2012-2013 financial audit findings, titled “Lack of Controls over TRIO Talent Search Program,” outlined the issues of noncompliance and failures to meet federal regulations by the university.
Overall, the audit found that the university could not locate any of the computer equipment it had loaned to participating high schools. In total, there were 40 pieces of equipment that was reported missing, but the misplacement of property was not the only issue State Legislative Auditor Daryl Purpera found.
Purpera notes in that audit that the university failed to require the proper application forms before providing services to students.
“In a sample of 150 students, three had incomplete or missing application forms,” the audit states. “Of 10 tested against database records, three were listed in the database under the wrong eligibility code. In addition, the auditors noted that all 78 student participants from Varnado High School had incomplete applications.”
Also, the audit found that two student workers clocked in time reporting for work at the university during scheduled class periods on a total of 38 occasions. According to the audit, this alone questions the use of $576 by the university.
Interim Vice President for Administration and Finance Sam Domiano said the poor record-keeping by the university is unacceptable, but it is unlikely issues like these will never arise because of the scale of the university.
“While there is never a time where any incident would be considered acceptable, it would probably not be realistic to expect there would never be an issue, especially given the diversity and volume of transactions that occur at an agency of our size,” said Domiano.
Since the audit, Domiano has outlined a response which details how the university plans to remedy the poor record-keeping. Domiano said a group of staff has met to review procedures on how to strengthen the application process for the TRIO Talent Search Program.
Domiano also notes how the university has sent emails to all faculty, staff and students to reiterate university policy which states that student workers are not allowed to work during scheduled class periods.
The university, though, is no stranger to critical audits which find mismanagement.
Most recently, the university performed a self-investigation after it was found that the athletic department had disregarded National Collegiate Athletics Association standards and compliance and allowed nearly 140 ineligible student-athletes to compete in a total of 16 sports.
Domiano, however, said the instances are entirely unrelated because they involved two separate departments of the university.
“There is always the potential of a policy or procedure not being followed or a potential need for stronger internal controls,” said Domiano. “However, that is why policies and procedures are in place and should be reviewed and updated periodically, particularly if there have been any changes in staff or processes that could impact internal controls or may require the establishment of new controls.”
But, just last year in the 2011-2012 financial audit, the same legislative auditor pointed out that the athletic department failed to resolve athletic tickets sales, which totaled $326,838, parking revenues totaling $1,400 and all media program sales totaling $3,781.
Furthermore, the audit found that a University Police Department employee fraudulently claimed $9, 126 in overtime pay. The audit blamed the director of UPD for not verifying the accuracy of the employee’s overtime pay. The incident resulted in the resignation of the employee and the replacement of the director.
Domiano said the university owes no money to replace the misplaced or questioned amounts outlined in the audit.