Focused Report
Comprehensive Standard 3.11.1
The institution exercises appropriate control over all its physical resources. (Control of physical resources)
Off-Site Committee Finding
The institution states in the Compliance Certificate that it has implemented the necessary internal controls to maintain control of its physical resources. The attachment they use as supporting documentation is a document dated April 6, 2007 which is the institutions self-assessment of it processes and controls. In the FY 2006 audit the auditors note in FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS, FS-521-06-01 ---2.) Inventories -- a.) "Tests of the perpetual inventory system revealed errors between physical counts taken by the auditors and the inventory subsidiary records". It will be necessary for the On-Site Committee to review the magnitude of those differences and compare their findings to the results of the FY 2007 audit; especially in light of the fact that the institution has stated the FY 2006 audit report contains the auditors "qualified" opinion. The remainder of the information provided shows the connection to state reporting requirements and the institution's equipment policies document (undated). The Off-Site Committee has determined that compliance should be withheld until the On-Site Committee reviews the FY 2007 audit to determine if the adverse findings related to the inventory have been rectified.
Albany State University's Response
The University received its [1] annual audit report in November 2007. It includes an unqualified opinion. The above mentioned part of the finding does not reoccur. It reflected minor discrepancies between audit counts taken during the busy Fall registration period and perpetual inventory records maintained by the bookstore.
Supporting Documentation