Procedure No. 605.4
Area: Finance Department
Revisions Approved: 4/15/08
Description: Audit Rules
In preparing the audited schedule of credit-hour enrollments as required by the Accounting Standards, the audit firm must adhere to the following:
1. The auditor shall review the Accounting Standards, all contracts with third party providers, and grant contracts to determine the State funding eligibility of credit courses.
2. The college shall maintain a clearly defined audit trail to enable the auditor to certify credit-hours reported by the college.
3. Student credit hours shall be reconciled to tuition income, including cash received, accounts receivable, and waivers.
4. The auditor shall send a confirmation letter to a statistically valid sample of students who are listed as having attended courses during the year under audit. The methodology and results of this sample shall be appended to the year end audit report.
5. The auditor shall follow the format for audited enrollment schedule provided by the Department of Treasury.
i. If the auditor plans to deviate form any of the audit procedures, he or she shall obtain prior written approval from the Department of Treasury.
ii. Such approval, if granted, shall be valid only for the audit in process.
6. Course outlines shall be made available to the auditors who shall submit sample course outlines along with the credit course category classification assigned to these courses by the college.
i. The auditor shall certify that course outlines are on file for all of the college's State fundable course offerings and that these courses have been classified and meet course eligibility criteria as defined in the Accounting Standards accepted by the State of New Jersey Department of Treasury.
ii. The Course Review Committee of the Council of County Colleges may request and review all official course outlines.
iii. Atlantic Cape Community College shall have the burden of establishing that a course has been properly classified as a credit course.
iv. Upon review of the recommendation of the Council of County Colleges, the decision to approve or reject the classification and eligibility of a credit course for State support rests with the Department of Treasury.
7. Based upon examination of the college’s audit trail including registration records, attendance records, and course descriptions, the auditor shall in an opinion letter accompanying the schedule of credit hour course categories eligible for State support, certify that:
i. the audit trail is valid and adequate for certification of the schedule of credit-hour enrollments;
ii. the schedule of credit-hour enrollments is accurate;
iii. the eligible portions of grant and third party funded courses are calculated and reported accurately;
iv. the review of the documentation underlying the calculation of credit hours is valid and adequate for certification of the credit-hour enrollment schedule;
v. he or she has reviewed and has completed the enrollment audit in accordance with the provisions of the Accounting Standards.
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