COMPREHENSIVE STANDARD 3.10.3

The institution audits financial aid programs as required by federal and state regulations.

Compliance

Comment
It appears that the University audits financial and programs as required by federal and state regulations. The Louisiana State Legislative Auditor clearly conducts audits and tests of the major federal programs as evidenced by the management letter of 2006. It appears that the major federal programs at the University are audited in accordance with the Office of Management and Budget (OMB) Audit Criteria A-133.

One remaining question here would be the role of the Internal Auditor at McNeese State University. After the findings of the Legislative Auditor in 2006, has an action plan been implemented by the McNeese State University Internal Auditor to make these student financial aid programs part of the annual audit plan?

Response
Institutional Standards for the Professional Practice of Internal Auditing requires a follow-up process to monitor and ensure that management actions are effectively implemented (2500.A1). The McNeese State University Internal Auditor manual (4300-Follow-Up) states that significant audit concerns are subject to follow-up in accordance with the Standards for the Professional Practice of Internal Auditing.

In accordance with the McNeese State University internal auditor manual, the Internal Auditor routinely follows up on findings of the Legislative Auditor. Results of the follow-up are reported to the University and to the University of Louisiana System.

Based upon discussions with the Internal Auditor, the Internal Auditor is currently performing a follow-up on findings reported in the Legislative Auditor report issued on March 8, 2006. The Internal Auditor states that her follow-up procedures of the finding related to the student financial aid program indicate that the university has taken appropriate corrective action; however, a formal written report has not yet been issued.

ADDITIONAL EVIDENCE
 4300 Follow-Up
 2500 – Monitoring Progress