spot_imgspot_img

Audit: Louisiana student assistance program had inaccurate reporting in 2023

spot_img

(The Center Square ) — The Louisiana Office of Student Financial Assistance did not have adequate controls over financial reporting to ensure their financial statements were accurate and complete.

The Louisiana Legislative Auditor’s Office reviewed the financial statements of the Student Tuition Assistance and Revenue Trust Program, or START, for the year ending Dec. 31, 2023. The auditors found six office failures resulting in overstatements and material disclosure errors.

First, the securities lending note disclosure contained language that failed to describe the current securities lending agreement and related investment risks. Instead, the office described the prior securities lending agreement and related risks that was last applicable in the Dec. 31, 2021, audit report.

The office eventually provided an accurate version of the disclosure and other information showing that they completed this note accurately during the compilation process, but failed to update their report template for the new language.

Second, the interest receivable was overstated on the financial statement by $5.5 million, and cash and participant deposit receivable were understated by $2.71 million and $2.79 million, respectively.

This happened because the office essentially switched them, misclassifying cash and participant deposit receivables as the interest receivable.

Additionally, participant deposit receivables and participant deposit additions were further understated by nearly $1.9 million because deposits that occurred or were effective on December 29, 2023 were not recorded until the following month.

Third, cash and the net increase in fair value of investments were overstated by $3.09 million for errors in posting.

The office’s journal entry was calculated accurately. However, the full entry was not recorded to the financial statements due to other errors in the compilation.

Fourth, $4.08 million of manual adjustments were made to the supplementary information schedules moving cash from the START column to the K-12 column. This happened without adequate support or documented reason why.

For the fifth error, multiple instances were found in which the financial statements, note disclosures, and schedules did not agree to one another and had footing errors.

To make all of this worse, the last issue found were problems from previous audits that weren’t properly fixed. Ultimately it was determined the prior-year audit adjustments accepted by management were not reflected in the current year statements, causing repeat adjustments once again.

DON’T MISS OUT

Be the first to know about the latest news, giveaways, events, and updates from The Black Chronicle!

We don’t spam! Read our privacy policy for more info.

spot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Clark County recount underway in Senate race; GOP lawsuit already filed

(The Center Square) – Clark County election officials have...

Small business optimism spikes after election

Small business owners' optimism saw a significant spike after...

WATCH: Fallon prices security fence at Butler, Pa. rally at $410

(The Center Square) – Of the many costly security...

SCOTUS won’t hear Wisconsin school’s transgender notification policy case

(The Center Square) – The U.S. Supreme Court said...

How much is Washington overspending? Depends on who you ask

(The Center Square) – Washington state is overspending its...

Youngkin announces over $50M in education investments

(The Center Square) – The Virginia Department of Education...

Bernie Sanders says Musk is right on military spending

(The Center Square) – President-elect Donald Trump's new Department...

Shapiro: UnitedHealthcare shooter ‘not a hero’

(The Center Square) – The manhunt for the person...

More like this
Related

Clark County recount underway in Senate race; GOP lawsuit already filed

(The Center Square) – Clark County election officials have...

Small business optimism spikes after election

Small business owners' optimism saw a significant spike after...

WATCH: Fallon prices security fence at Butler, Pa. rally at $410

(The Center Square) – Of the many costly security...

SCOTUS won’t hear Wisconsin school’s transgender notification policy case

(The Center Square) – The U.S. Supreme Court said...