State audit finds problems with “untimely bank account reconciliations” at FSCJ

Florida Auditor General Sherrill F. Norman released her operational audit of Florida State College at Jacksonville (FSCJ) on March 11. A finding in that report stated that “the College did not always timely complete bank account reconciliations.”

Cleve Warren, the chairman of the Florida A&M University Board of Trustees, is the chief financial officer (CFO) of FSCJ. He has served as the CFO of the college since June 17, 2013 and earns $150,000 per year.  

According to the CFO job description at the college’s website: “The Chief Financial Officer (CFO) provides executive leadership and guidance for all financial aspects of the College… The CFO is also responsible for ensuring that the College financial reports are accurate and completed on time.”

The operational audit stated:

“While bank account reconciliations were timely prepared and approved for the period July 2014 through April 2015, College personnel did not prepare and approve the May 2015 and June 2015 bank account reconciliations until November 6, 2015, or 159 and 129 days, respectively, after month end. In addition, the July 2015 bank account  reconciliation was not prepared until January 18, 2016, and the August 2015 through  October 2015 bank account reconciliations had not been prepared as of February 12, 2016. College personnel indicated that the bank account reconciliations and related approvals were delayed as a result of employee turnover and the reassignment of experienced personnel from the reconciliation process to work on the implementation of the College’s new enterprise resource planning system.”

“Although the June 2015 bank account reconciliation disclosed that the general ledger cash amount was materially correct and properly classified for financial reporting  purposes, untimely bank account reconciliations increase the risk that any cash transaction errors or misappropriations that may occur will not be timely detected.”

FSCJ Vice President for Business Services Albert P. Little responded to the finding with a statement that said: “The College fully agrees in the importance of timely reconciliations. Finance staff are working diligently to overcome challenges of the initial implementation of a new computer system, and reconciliations are progressing.”

The state audit concluded the finding with a recommendation that “College management should ensure that bank account reconciliations are timely completed, reviewed, and approved.”  

Read the full state operational audit of FSCJ here.