An accounts payable audit has found more than $70,000 worth of funds belonging to Kennesaw State University went missing during 2010. A number of factors, ranging from inadequate internal controls of the school's K-Cash processes to liberal access of funding, resulted in the lost cash.
The school's Auxiliary Services and Programs (ASaP) consists of vending, copy and print, culinary and hospitality services, the KSU bookstore and the department of parking and transportation. Staff and students can access the K-Cash program through nine terminal locations on campus – and it was missing funds within these machine that prompted the audit.
"I was extremely disturbed by the initial concerns which led to this audit," KSU vice president for operations Randy Hinds told Coos Valley News, "and I commend the auditors for the … review that they conducted of the K-Cash operations. The improved processes … that will be implemented are giant steps in the right direction."
AP audits can play a crucial role in discovering ineffective internal processes or other payment loopholes, as KSU found.