Audit Report on Eugenio Maria De Hostos Community College Student Activity Fees

Audit Report In Brief

This audit determined whether all student activity fees collected by the Eugenio Maria de Hostos Community College (Hostos) were turned over to the Hostos Association (Association); the internal controls over the expenditures of student activity fees were adequate; and the expenses incurred by the Association were reasonable, appropriate, and in compliance with prescribed guidelines and bylaws. The scope period of this audit was Fiscal Year 2005. The Association develops educational, social, cultural, and recreational activities for Hostos students; it receives its revenue from mandatory student activity fees levied and collected by Hostos. In Fiscal Year 2005, the student activity fees received by the Association totaled $447,850.

Audit Findings and Conclusions

All moneys collected by Hostos for student activity fees were submitted to the Association. In addition, our review of the 782 payments found that all purchases were for goods and services that were reasonable, appropriate, and in compliance with guidelines and bylaws of the Association. Controls over the reporting of payments made for stipends and services are also adequate.

The Association has adequate controls over the expenditures, including: segregation of duties, proper authorization, and supporting documentation. Of the 782 payments, 743 (95%) had adequate documentation to support the purchase, such as receipts, invoices, and service contracts. The 612 payments for clubs and organizations that required additional authorization were properly authorized, with the exception of nine payments.

Audit Recommendation

Based on our findings, we make one recommendation: the Association should ensure that all payments have adequate supporting documentation.

Agency Response

Hostos officials agreed with the audit’s recommendation.