The California State University system audited Long Beach State on its cash handling and cashiering practices from July 1, 2016 to Aug. 24, 2018, and found a lack of effectiveness in “operational, administrative, and financial controls.”
According to the audit report released on Oct. 5, the locations on campus that are authorized to handle money did not fully comply with LBSU and statewide requirements.
The findings revealed that money management in general needs improvement, but they found that this did not keep finances from being managed in order to meet objectives.
The auditing team reviewed five locations on campus: the Carpenter Performing Arts Center, College of Continuing and Professional Education, Community Clinic for Counseling and Education Services, the main cashier’s office and the physical therapy department.
“The audit told us that one of our deficiencies was that the students or cash handlers need to be taught how do cash handling better,” said Jesse Luna, Associated Students Inc. treasurer.
LBSU also “had an appropriate framework” for handling cash, but many locations had trouble following through on the policies set in place. The audit report did not specify which problems related to which campus location. However, the auditors found that there were issues with:
- The acceptance of full credit card information via fax.
- The retention of full credit card information for returning clients. This is strictly prohibited by campus policy.
- Keeping money safe. One location on campus did not change the safe combination, despite campus policy requiring a combination change semi-annually.
- Two of the 10 employees that handle cash did not undergo a background check, as is required.
The auditing team suggested that the campus:
- Recommunicate the requirement involved with handling cash.
- Make sure key personnel is properly trained and that the training should emphasize. credit card payments and safe combination changes.
- Remind campus key personnel to perform background checks.
This audit was conducted to make sure financial duties remain accurate, accountability is maintained, and the campus follows policies and procedures related to money management.
According to campus management, audit issues relating to cash management are to be resolved by Jan. 21, 2018.
The Carpenter Performing Arts Center, the main cashier’s office and university spokeswoman Terri Carbaugh could not be reached for comment.