Norfolk State Begins Correcting State Audit Issues
[mpoverlay]Norfolk State University has responded to concerns from the Virginia auditor of state accounts with new finance and procurement hires, steps that the school believes will resolve the state’s proposal to skip audit for the 2011-12 year, and to conduct a two-year audit in 2013.
In his letter, (State Auditor of Public Accounts Walter J.) Kucharski told university officials that “material weaknesses in internal controls” have made it difficult for his staff to complete the audit for the previous fiscal year.
“Without significant interim actions, we believe the potential for fraud exists, that normal operations may be impaired, and completion of financial statements for the year ending June 30, 2012, may not occur,” his letter states.
He advises that a two-year audit will be necessary when the university has “re-established internal controls over general accounting functions.” (Richmond Times-Dispatch)
NSU officials acknowledge that sustained vacancies in key positions and new accounting systems at the university are the culprits for the audit inconsistencies.[/mpoverlay]