Audit: $1M in Accounting Errors at Fayetteville State
Posted December 10, 2007
Raleigh, N.C. — A state audit released Monday shows more than $1 million worth of accounting errors relating to finances at Fayetteville State University.
The audit for the 2005-2006 fiscal year details numerous problems and sloppy accounting that stem from the implementation of a new accounting system. According to the report, it was not set it up or managed properly.
It caused problems ranging from improper student billing, in which some students were not billed in a timely manner and others were double-billed, to unbalanced balance sheets.
The audit report also shows the university did not know how much money it spent or received during the fiscal year.
Some of the disparities in the report are that the university understated its cash balance by more than $800,000 and underreported money from student tuition and fees by more than $2.2 million, while overstating its sales and service revenue by $1.5 million.
The audit also shows the school overstated supplies and material expense by $1 million.
In a statement, the university says it has hired people familiar with the accounting system and many of the problems have been corrected. The university also said it's working to correct the other issued the audit identified.