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Audit: $1M in Accounting Errors at Fayetteville State

Posted December 10, 2007

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— 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.

8 Comments

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  • wfisher5 Dec 11, 2007

    Okay, I heard some ridulous comments already. This can and does happen at many state supported institutions. Whether it is an HBCU or private school or any thing else you want to call it. FSU is probably one of the most diverse schools I know and I'm including the faculty and staff as well as the students, thus, it has nothing to do with it being a "Minority Institution", but to be truthful the blacks are the minority at this school. It drives me nuts when I here comments that because its and HBCU theres gonna be problems. Besides how in the hell can you compare the 70s to now at any institution. get real...

  • AM is Back to Being Immaculate Dec 11, 2007

    Many universities as well as other types of state funded organizations have very similar issues. Reference the Randy Parton Theatre! So let's not make this into an issue of FSU being an HBCU.

  • jackadoo Dec 11, 2007

    Like alot of "State" universities, FSU is primarily a minority institution. These kids are trying to improve their lives by getting a decent education, and the administration is making fools of themselves. Kids, try to go elsewhere if you can. You do not need to wear this burden, that is no fault of your own. I lived there all during the 70's, there are other options. Fay gets a bad rap, perhaps it deserved it back then, but from my more recent visits, it is an OK small city.

  • mugofstout2 Dec 11, 2007

    And this is a surprise? What kind of University is it?

  • BUCKEYEnNC Dec 11, 2007

    Yes they do! Keep in mind the academics and the business office are two separate activities. You'd think they could have some of the students go in and help fix the problem.

  • richard2 Dec 11, 2007

    Do they offer a degree in accounting?

  • BUCKEYEnNC Dec 11, 2007

    Hopefully this will get the attention and remedies that it deserves!

  • srjbdl Dec 10, 2007

    FSU had serious accounting issues in 1999 when I left there. Embezzlement, lack of oversight, no accountability, and an utter disregard for GAAP was the standard.