Louisiana Legislative Auditor
Daryl G. Purpera, CPA, CFE

December 28, 2015

Inadequate Collection Procedures Found at SLCC; Outstanding Account Balances in FY15 Total $2.9 Million

South Louisiana Community College (SLCC) did not establish adequate collection procedures over accounts receivable for the second year in a row, while students who owed balances were still allowed to enroll during subsequent semesters, according to a report released Monday by Legislative Auditor Daryl Purpera.

As a result, outstanding student account balances as of June 30, 2015, totaled $2.9 million. Auditors wrote that the College’s failure to establish adequate procedures to collect these funds could make this nearly $3 million uncollectible and impair SLCC’s funding of ongoing operations.

“(Louisiana Community and Technical College) System policy states that it is the responsibility of each institution to establish the terms and/or conditions for payment at the time an account is created and to follow up routinely and diligently on all accounts receivable,” the state auditor’s report said. “In addition, the College’s policy requires sending the student three collection letters and then forwarding the account to the Attorney General’s office for collection.”

However, auditors noted several deficiencies in the way the College deals with collection of outstanding balances.

This was just one of six findings auditors reported for the 2015 fiscal year. Others included the inaccurate reporting of student enrollment status, which could jeopardize the federal government’s ability to recover student loan money; noncompliance with federal record retention and cash management requirements; and inadequate controls over the return of federal funds.

For more information contact:

Legislative Auditor
225.339.3800



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