Salem State University
November 13, 2017 · Read the full official report (PDF) ↗ · official site ↗
Published November 13, 2017 Audit covers July 1, 2014 – June 30, 2016 Under Suzanne M. Bump · 2011–2023
source
“SSU did not conduct complete annual inventories of its IT assets, and its inventory records contained inaccuracies.”
Read the plain-English breakdown
This is a Massachusetts State Auditor performance audit of Salem State University covering July 1, 2014 through June 30, 2016, with some IT inventory testing extended to December 16, 2016.
“In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor (OSA) has conducted an audit of Salem State University (SSU) for the period July 1, 2014 through June 30, 2016.”
Auditors reviewed whether the university properly tracked IT equipment, reported missing or stolen property, managed credit cards and fuel cards, and handled transactions with its assistance corporation.
“In this performance audit, we examined SSU’s activities related to the inventory of its IT assets, its compliance with the reporting requirements of Chapter 647 of the Acts of 1989, and its use of credit cards.”
If equipment is not tracked and missing property is not reported quickly, the university may not catch theft, loss, waste, or weak controls in time to fix them.
“As a result, SSU cannot be certain that all its IT assets are adequately safeguarded against abuse and misuse or that it can effectively detect lost, missing, or stolen items.”
For an ordinary taxpayer, this matters because public resources should be tracked, fuel purchases should be economical, and losses should be reported so problems can be fixed.
“SSU should use WEX system reports and the related fuel transaction data to monitor and properly administer staff fuel use to ensure that all fuel purchases are proper and as economical as possible.”
The auditor found three main issues: incomplete and inaccurate IT inventory records, late or missing reports of losses, and weak controls over fuel card purchases.
“SSU did not ensure that fuel purchases made by its staff were cost effective and proper.”
The university said it would improve asset tracking, assign responsibility for loss reports, and strengthen fuel card rules and monitoring.
“Auditee acknowledges that controls over its operation of the state’s WEX fuel card program need to be both formalized and strengthened to ensure accountability.”
The audit did not find reportable problems in the reviewed transactions with the Salem State University Assistance Corporation, but it did find weaknesses in university controls over assets, loss reporting, and fuel cards.
“Our audit work in these areas did not identify any reportable problems.”
IT assets means the university's technology equipment, such as computers and other tracked tech items; P-Cards are procurement cards used for purchases; WEX is the fuel card system.
“IT information technology”
8 figure(s) pending source verification - not shown
What the Auditor checked
- Did not comply Is SSU’s IT equipment accurately accounted for and properly safeguarded?
- Did not comply Does SSU comply with the requirements of Chapter 647 of the Acts of 1989 in reporting stolen and/or missing property?
- Complied Are procurement card expenditures properly approved, business related, supported by adequate documentation, and compliant with applicable policies and procedures?
- Did not comply Has SSU established adequate internal controls to ensure the integrity of its fuel card program, including eliminating card misuse, fraud, and other forms of waste and abuse?
- Complied Were transactions between SSU and its related party, the Salem State University Assistance Corporation, reasonable and allowable?
What the Auditor found
Why it matters: SSU could not be certain that all IT assets were safeguarded against abuse or misuse or that lost, missing, or stolen items could be detected.
Standard: SSU’s IT Equipment and Technology Inventory Quality Control Policy and the Office of the State Comptroller’s Accounting and Management Policy require an annual physical inventory. ( SSU’s IT Equipment and Technology Inventory Quality Control Policy )
4 recommendations
- SSU should conduct the required annual inventory of all IT assets.agency: agreed
- SSU should allocate the necessary resources to complete the required annual inventory process and update the inventory list each year.agency: agreed
- SSU should determine whether an automated solution such as barcode scanning with automated upload is viable.agency: agreed
- SSU should develop and implement a defined policy and detailed procedure for relocating IT assets.agency: agreed
Agency response & Auditor reply
Agency: "In order to comply with the audit recommendations, auditee has started a search for a professional asset management software package that has the ability to use barcode scanning."
Why it matters: The Office of the State Auditor did not have the opportunity to identify control weaknesses or recommend corrective actions to reduce future thefts or losses.
Standard: Chapter 647 of the Acts of 1989 requires unaccounted-for variances, losses, shortages, or thefts of funds or property to be immediately reported to the state auditor’s office. ( Chapter 647 of the Acts of 1989; SSU’s IT Equipment and Technology Inventory Quality Control Policy )
2 recommendations
- SSU should develop and implement policies, procedures, and monitoring controls to ensure all unaccounted-for variances, losses, shortages, and thefts are immediately reported to OSA.agency: already implemented
- SSU should designate an individual responsible for ensuring required loss reports are immediately filed with OSA.agency: already implemented
Agency response & Auditor reply
Agency: "Auditee has assigned the office of general counsel as responsible for filing a Chapter 647 report with OSA."
Why it matters: SSU could not effectively monitor whether fuel purchases were reasonable and appropriate, increasing the risk of misuse, fraud, waste, or unnecessary costs.
Standard: The state Office of Vehicle Management’s Policies and Procedures Manual provides best practices for Commonwealth vehicle fuel card use, including use of regular or diesel fuel only and monitoring management reports. ( Office of Vehicle Management’s Policies and Procedures Manual )
3 recommendations
- SSU should develop and implement comprehensive fuel card policies and procedures addressing documentation, odometer readings, logs for non-vehicle cards, fuel grade, and management monitoring.agency: agreed
- Management should perform a risk assessment of the fuel card program and tailor WEX notifications, including fuel type and gallons per transaction.agency: agreed
- SSU should use WEX reports and fuel transaction data to monitor fuel use, investigate irregularities, and resolve them appropriately.agency: agreed
Agency response & Auditor reply
Agency: "Auditee acknowledges that controls over its operation of the state’s WEX fuel card program need to be both formalized and strengthened to ensure accountability."
Auditor: "SSU acknowledges the problems we identified with fuel purchases and indicates that it is taking measures to address these problems."
More audits of this entity
Other Office of the State Auditor reports on Salem State University .
- Salem State UniversityCollege / University · September 30, 2011
- Audit of the Salem State University (November 4, 2024)College / University · November 4, 2024