State University of New York

Maritime College: Faculty Student Association, Selected Financial Management Practices (Follow-Up Review)

Maritime College trains students to become licensed officers in the American merchant marine. The College’s Faculty Student Association (FSA) is a not-for-profit corporation that provides the College with such services as a bookstore and food services. The activities of the FSA should be overseen by its Board of Directors, the College President and SUNY System Administration. However, in our initial audit report 2001-S-25, we found that FSA activities received little oversight. For example, even though the FSA had 15 contracts totaling more than $24 million, there was no evidence the contracts had been reviewed or approved by the FSA Board of Directors, and only one of the contracts had been competitively bid. We further determined that the time and attendance practices of FSA employees were not adequately controlled, and the need for several FSA expenditures was not documented. We made several recommendations for strengthening controls over FSA operations, and in our follow-review, we found that significant progress had been made in implementing our recommendations.

For a complete copy of Report 2004-F-28 click here.