FAMU Preliminary Audit Shows Significant Financial Improvements

Florida A&M University received its preliminary and tentative findings and recommendations from the Auditor General’s Office Friday which “disclosed significant improvements” in the management of the University finances.

“When one looks at the prior year audit, the University moved from an inauditable financial report with 13 significant financial findings to an auditable financial statement with seven internal control findings,” said Teresa Hardee, interim chief financial officer and vice president for administrative and financial services.

In her analysis of the audit statements, Hardee notes that the auditors stated that the account balances and related note disclosures were a fair presentation of the university’s financial statement. This positive measure provides the evidence recommended by the Special Committee from the Southern Association of Colleges and Schools (SACS).

FAMU officials said that they anticipated some findings since this audit period reflected the financial situation prior to Dr. Ammons’ arrival. In the past two years, FAMU received qualified audits, which ultimately led to the University being placed on probation by SACS. After reviewing documents and speaking with University leaders in October, members of the Special Committee had seven recommendations.

The Committee recommended that the University provide evidence with regard to all aspects of financial management systems as reflected by audits and management letters. The preliminary and tentative report provides such evidence.

On Friday, FAMU submitted to SACS the preliminary and tentative audit findings in the hopes that it would satisfy their concerns.

“We believe through our efforts we have improved the university’s financial status,” said FAMU President James H. Ammons. “We have done everything that we could possibly do to address their concerns and rebuild the fiscal integrity of FAMU.”