Worcester State University
July 21, 2015 · Read the full official report (PDF) ↗ · official site ↗
Published July 21, 2015 Audit covers July 1, 2012 – June 30, 2014 Under Suzanne M. Bump · 2011–2023
source
“Below is a summary of our findings and recommendations, with links to each page listed.”
Read the plain-English breakdown
This is a state performance audit of Worcester State University covering July 1, 2012 through June 30, 2014.
“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2012 through June 30, 2014.”
The issues matter because weak oversight can make it harder to protect public assets, track money owed, and ensure funds are used with proper approval.
“Without financial information for all activities in the SPTF, the board of trustees cannot properly exercise its oversight responsibilities or direct resources for the SPTF.”
If you are a student, parent, taxpayer, or Worcester resident, better controls help make sure university money and property are tracked and used as intended.
“Because WSU has not established adequate controls in this area, there is a higher-than-acceptable risk of undetected theft or misuse of fixed assets and of inaccuracies in WSU’s financial records and reports regarding the value of its fixed-asset inventory.”
The auditor found three main problems: trust-fund money was reallocated without proper board approval, inventory controls were weak, and required accounts-reivable reports were not filed.
“WSU is not updating its accounts receivable monthly and filing midyear Summary Aging Receivable Reports as required by OSC.”
The university said it would improve reporting for the trust fund, hire help to review inventory controls, and comply with state receivables rules.
“WSU is in the process of hiring a consulting firm to conduct a baseline inventory of all University assets, evaluate the current inventory process, and provide a plan for improvement, thereby implementing the above-mentioned OSA recommendations.”
The audit is significant because it found repeatable control problems, not just paperwork mistakes, especially around inventory and financial reporting.
“We found numerous resulting problems with WSU’s inventory of fixed assets.”
The Strategic Planning Trust Fund was a pool of money meant for one-time projects tied to Worcester State’s five-year plan.
“In 2011, Worcester State University (WSU) established the SPTF to support multiple one-time initiatives to achieve WSU’s five-year strategic plan.”
3 figure(s) pending source verification - not shown
What the Auditor checked
- Complied Are the administrative and managerial controls over WSU’s food-service contract effective in ensuring that all the contract provisions are followed and that commissions due WSU are monitored and reconciled?
- Did not comply Are the financial and managerial controls over WSU trust funds sufficient and effective to ensure that money is spent appropriately and in compliance with the funds’ purposes?
- Did not comply Are there effective inventory controls that safeguard WSU’s property and equipment?
- Complied Is WSU complying with Chapter 647 of the Acts of 1989 in reporting stolen and/or missing property?
- Complied Are WSU’s internal controls over administrative expenditures effective in ensuring that expenditures are reasonable and appropriate?
- Complied Are WSU’s internal policies and procedures sufficient to ensure its compliance with the federal Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act?
What the Auditor found
Why it matters: The board of trustees could not properly exercise oversight or direct Strategic Planning Trust Fund resources without complete financial information.
Standard: Chapter 73, Section 14, of the Massachusetts General Laws; WSU’s Strategic Plan Trust Fund Agreement; WSU’s Strategic Planning Trust Fund Guidelines and Processes ( WSU’s Strategic Plan Trust Fund Agreement; WSU’s Strategic Planning Trust Fund Guidelines and Processes )
1 recommendation
- New initiatives and reallocation of project funds should be approved by the finance and facilities subcommittee and ultimately the full board of trustees, per the fund agreement and guidelines.agency: agreed
Agency response & Auditor reply
Agency: "The University asserts its position that the Strategic Planning Trust Fund was properly administered."
Auditor: "We do not agree with WSU’s position that the SPTF was properly handled."
Why it matters: There was a higher-than-acceptable risk of undetected theft or misuse of fixed assets and inaccurate financial records and reports.
Standard: OSC’s Fixed Assets—Accounting and Management Policy; WSU’s Inventory Control Procedures; Chapter 647, Section F, of the Acts of 1989 ( OSC’s Fixed Assets—Accounting and Management Policy; WSU’s Inventory Control Procedures, Section IV(B); Chapter 647, Section F, of the Acts of 1989 )
3 recommendations
- WSU should ensure that all of its departments comply with OSC’s and its own policies for the inventory of its fixed assets.agency: agreed
- The property control manager should be notified when items are moved or discarded, and WSU’s inventory list should be updated accordingly.agency: agreed
- WSU should consider tagging all items before they leave the Central Receiving office.agency: agreed
Agency response & Auditor reply
Agency: "WSU is in the process of hiring a consulting firm to conduct a baseline inventory of all University assets, evaluate the current inventory process, and provide a plan for improvement, thereby implementing the above-mentioned OSA recommendations."
Why it matters: The Commonwealth could not be certain that MMARS accurately reflected WSU’s outstanding accounts receivable.
Standard: OSC’s Accounts Receivable—Receivable Recognition and Reconciliation Policy ( OSC’s Accounts Receivable—Receivable Recognition and Reconciliation Policy )
2 recommendations
- WSU should report accounts receivable in summary every month and complete the midyear Summary Aging Receivable Reports.agency: agreed
- WSU should ensure that it is aware of current OSC policies and complies with the latest requirements.agency: agreed
Agency response & Auditor reply
Agency: "The University intends to comply with the OSC’s Receivable Recognition Policy (issued July 1, 2004 and last revised November 1, 2006)."
Verified dollar findings
Estimated or sample-projected amounts - shown separately because they are not a hard-identified dollar figure.
Identified dollar findings that do not fall in a named band.
More audits of this entity
Other Office of the State Auditor reports on Worcester State University .
- Worcester State University's Use of American Recovery and Reinvestment Act FundsCollege / University · October 13, 2011
- Audit of the Worcester State UniversityCollege / University · March 11, 2022