Audit finds "significant improvement" in FAMU finances
Florida A&M University has corrected five of the 13 problems outlined in a September financial audit, and has "partially corrected" seven others, according to a just-finished draft audit obtained by The Gradebook.
The draft, by the Florida Auditor General, concludes that FAMU made "significant improvement" in financial management between the 2005-06 and 2006-07 budget years. The timing could not be better: Next week, accreditors will decide whether to remove FAMU from the six-month probation it handed down in June..
The Southern Association of Colleges and Schools could extend the probation or revoke FAMU's accreditation altogether, but President James Ammons believes the new state audit is the best proof his 5-month-old administration is correcting FAMU's long-running, deep-rooted financial management woes.
The September audit found 13 problems for the year ending June 30, 2006, including incomplete bank records, poor controls over sensitive data, and financial statements that were off by millions of dollars.
The latest audit (Download famulatestaudit.pdf), which will be finalized and officially released in coming weeks, found seven problems.
Among them: Inaccurate financial reporting, some of it due to the PeopleSoft system that has plagued many universities; and incorrectly recorded deposits and unrecorded transactions worth nearly $1-million.
Read more in tomorrow's Times