Focused Report
Comprehensive Standard 3.10.5
The institution maintains financial control over externally funded or sponsored research and programs. (Control of sponsored research/external funds)
Off-Site Committee Finding
The institution has a clear set of policies and procedures published in the "FISCAL AFFAIRS POLICY AND PROCEDURES Manual". Extensive training is available to staff pursuing sponsored research, grants, etc. Technical assistance workshops are provided as well as a website. The institution, as per its policies, is clearly in charge of the administration of expenditure from sponsored projects. However, the FY 2006 audit states in the section titled "FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS", re: FS-521-06-02 "Failure to Monitor Sponsored Projects".."An examination disclosed that $755,432.95 was reimbursed by the Resident Instruction Fund, to fund uncollectible Sponsored Project accounts receivable." This was in direct opposition to Board rules that require that uncollectible accounts must be maintained by fund and that "fund integrity must be maintained at all times with respect to uncollectible funds". This audit comment brings to question the administration of the sponsored projects and the controls in place requiring adherence to current policies and procedures. The institutions response to the audit comment was to concur with the finding and propose utilizing a new collection agency and other adjustments. The FY 2007 audit should indicate if remediation has been made; until the review of that audit takes place by the On-Site Committee, the institution is in non-compliance.
Albany State University's Response
The University received its [1] annual audit report in November 2007. It includes an unqualified opinion. The above mentioned finding does not reoccur; it was a one-time occurrence to resolve some historical issues. It is reported as "Previously Reported Corrective Action Implemented."
Supporting Documentation