The State University of New York (SUNY) consists of 29 State-operated campuses. Campuses of the SUNY system each operate and manage their own telephone systems. Campuses may own or lease their own telephone system called a private branch exchange (PBX). A PBX makes a campus a miniature telephone company with the ability to add and delete telephone…

This article describes expanded audit requirements for managing federal awards to colleges and universities, as outlined in Circular A-133 of the Office of Management and Budget. Applying lessons learned by state and local governments in implementing A-128 audits is recommended to help assure a successful, cost-effective transition. (MSE)

Elements in the effort to make the annual Nova University (Florida) audit more time efficient included gaining agreement with the auditors for a specific closing date; coordinating efforts of various departments involved; identifying and eliminating major obstacles; streamlining procedures when needed; and continuous coordination and monitoring of…

A survey of 288 college and university auditors investigated patterns in their appointment, reporting, and supervisory practices as indicators of independence and objectivity. Results indicate a weakness in the positioning of internal auditing within institutions, possibly compromising auditor independence. Because the auditing function is…

Suggestions for implementing new National Collegiate Athletic Association guidelines for intercollegiate athletics program financial audits include forming an internal task force, preparing an organization chart, choosing the type of audit, conducting a survey of booster groups, preparing a schedule of revenues and expenditures, selecting an…

The first two stages of the financial audit required by federal Circular A-133, for nonprofit institutions receiving $100,000 or more in federal funding and cost-type contracts, as implemented by the University of Southern California, are described. Audit observations, issues emerging from the experience, and recommendations for other colleges and…

A federal tax official specializing in tax-exempt organizations discusses the relatively new use of coordinated examination audits. Significant issues being raised as the use of such audits expands are examined, including employment tax, contractors, withholding on students, unrelated business income, bond financing, the audit process, corporate…

A revision in the federal regulations governing audits of student financial aid programs will require changes in present practices concerning student aid "servicers" that administer financial aid in small institutions and may lead to modifications in servicing contracts and financial terms. The new requirements are described in detail. (MSE)

The objectives and content of the Internal Revenue Service (IRS) proposed comprehensive guidelines for conducting audits of tax-exempt organizations are outlined, and feedback received from higher education institutions concerning those guidelines are summarized. Comments reflect institutions' concerns about the IRS' lack of understanding of…

This publication is designed to be a desktop reference and assist financial officers in both public and independent institutions of higher education in the preparation of consolidated financial statements. Chapter 1 covers generally accepted accounting principles and other accounting literature, and summarizes reporting rules of the Financial…

Internal institutional auditing can improve effectiveness and efficiency and protect an institution's assets. Many of the concepts and techniques used to analyze higher education institutions are qualitative in nature and suited to institutional research, including fiscal, operational, data-processing, investigative, management consulting,…

This article argues that, to be effective and ethical organizations, colleges and universities should develop and implement codes of conduct and staff training programs in business ethics and fraud prevention, which are most logically managed by the internal audit department of the institution. (MSE)

A survey of 90 colleges and universities found that 40 percent have internal audit departments. Information on auditor time allocation, salary ranges, departmental independence, and auditor roles and responsibilities was collected. A summary analysis by type of institution (large, small, research, nonresearch, public, independent, four-year,…

In many colleges and universities the responsibility of the governing board's audit committee is to arrange and oversee regular audits of financial activities, comply with donor restrictions on gifts, adhere to laws and regulations, and conform to established board policies. Membership of three to five is usually sufficient, and while the…

Describes and evaluates four alternatives for planning and budgeting for capital reinvestment for college and university facilities: physical plant auditing; a depreciation-based approach; percentage of current replacement value; and facility subsystem modeling, or life-cycle modeling. Each has advantages and limitations in budgeting for and…