III.D.8. The institution’s financial and internal control systems are evaluated and assessed for validity and effectiveness, and the results of this assessment are used for improvement.
ASCC’s engagement contract with the external auditors includes and outlines the A-133 Single Audit, which is now called COFAR Part 200, as mandated by the Federal Government. Funding agencies occasionally conduct financial reviews.
It is mandatory that all purchases and usage of funds are used for their initial intentions and as approved by the granting federal agencies. Any changes to the budget must be approved by the granting federal agencies.
The auditor's opinion as expressed through the audit report reflects the integrity of ASCC's financial management. From 2010 to 2012, ASCC received a “qualified opinion” of its A-133 Single audit due to two material weaknesses, Cash Management and Equipment and Property Management. ASCC, through its finance division, implemented improved operating procedures to resolve these two findings and as evident in the 2013audit report, ASCC received an “unqualified opinion” for its A-133 audit. In its 2014 A-133 audit report, the institution received an “unmodified opinion” for all federal programs except for Federal Pell Grant Program due to the material weakness finding that relates to Financial Aid Verification, which has been resolved.
ASCC reviews the effectiveness of its internal control through its program review process. The annual external audit regularly evaluates the institution’s financial management practices and identifies any deficiencies.
The institution through the finance division assesses the institution program review and audit recommendations to be implemented to improve ASCC’s financial management practices. These recommendations for improvements are used to update the finance division’s standard operation procedures. 1
For further quality assurance, the finance division reviews its SOPs quarterly to ensure that internal controls are in place, streamlining of processes, and practicality.