UNT spending $1.35M to fix finances

[Harry]

The University of North Texas System will spend at least $1.35 million to get its financial house in order after a series of problems, regents decided Thursday.

Regents voted to spend $350,000 so a consulting firm can finish its work in tracking down all of UNTs financial problems that have started to come to light this year. Regents approved at least another $1 million so the firm, Deloitte & Touche, can help fix those problems.

Its part of an effort that system leaders call their financial transformation.

Read more: http://www.dentonrc.com/local-news/local-news-headlines/20140516-unt-spending-1.35m-to-fix-finances.ece

[UNTFan23]

When employees leave UNT, the payroll system doesn’t promptly show that. As a result, former employees potentially could still get paid.

UNT charge cards aren’t automatically canceled when employees leave. Those former employees could run up charges.

The system needs to make sure employees don’t approve their own financial transactions.

What kind of 1980s accounting (IT) systems were we using and how did stuff like this not get caught sooner?!?

[NorthTexan95]

What kind of 1980s accounting (IT) systems were we using and how did stuff like this not get caught sooner?!?

Get the feeling Excel was a big part of our financial method? There's a lot in that article that awful and shows a serious lack of leadership in the financial departments.

This is what disturbs me the most:

Jackson said that to his knowledge the system’s yearly financial reports — which include UNT’s — have never had a full independent audit. It’s not required;

Whether it's required or not, if an institution is not having independent audits then that's a huge red flag.

The system’s longtime chancellor, Jackson, said Thursday that the system and regents were not at fault for UNT’s financial errors.

Wrong. They were responsible if for no other reason than not having independent audits and not knowing how inadequate the financial methods were. Jackson, the board, V. Lane Rawlins, ... all of those should have had the basic understanding that independent audits should be required and accounting methods should be reviewed on a regular basis.

[GrandGreen]

As one of thousands of CPAs NT has produced, this is particularly disturbing. NT is not along in this, but why with so many very capable business and accounting professors abroad, can this happen. At least back in the dark ages when I attended, almost all the accounting staff were sought after consultants.. Surely any one with very basic auditing schools could have identified numerous problems with NT's financial functions.

There is an obvious need for outside oversight now because of the need for independent review and analysis, but it should never have come to this. My guess is there is very little connection at any level between the academic and operational side of any function. Something I have never understood. Why can't the marketing department aid in so many areas, why can't the accounting department help to insure against fiascos like this one, art department with advertising, etc.? Seems like only the music department is capable of being used by the school.

[UNT90]

It appears to me UNT used the idea of a militant freshman independent studies major for the latest billboard AD campaign.

I don't know what more you could EXPECT...

Edited May 17, 2014 by UNT90

[the green rokemi]

What kind of 1980s accounting (IT) systems were we using and how did stuff like this not get caught sooner?!?

No kidding. What ever happened to basic checks and balances. Especially when it comes to using a card after being gone someone has to get the bill and you would think double check the charges? From when I was at NT you couldn't purchase anything without proper paperwork submitted. Maybe it just ends up being filed without being looked at