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West Virginia University at Parkersburg receives ‘clean’ audit

Photo by Brett Dunlap West Virginia University at Parkersburg Executive Vice President Alice Harris discusses the results of a recent audit report done for the university.

PARKERSBURG — West Virginia University at Parkersburg received an exceptional audit report which school officials pointed to as proof that cost-saving initiatives the school has implemented are helping to keep the institution financially sound.

The Board of Governors voted to accept the 72-page audit report prepared by the accounting firm Clifton Larson Allen at its monthly meeting at the university Wednesday. The audit is part of a regular review of the university’s finances required by the state.

“We worked hard to establish accounting and internal controls that provide a system of ongoing monitoring that ensures the college’s assets are used wisely,” said WVU-P Executive Vice President Alice Harris. “Those are solid controls and easily repeated and consistently applied.”

Harris said these controls have been embraced campuswide by the faculty and staff.

The most important thing the university did was centralize the purchasing functions, she said.

When she came to WVU-P 4¢ years ago, spending was not being watched closely, Harris said.

“Budgets were not really monitored like they should have been,” Harris said. “We put all of that in and that was the results of the audit that we are seeing today.”

Officials said the audit stated the university had no deficiencies or reportable conditions that would concern anyone.

Harris said the university has improved in the areas of cash balances and increases in unrestricted assets.

The university has seen an increase in cash from over $13 million in 2015 to $19.6 million toward the end of 2018, Harris said.

“We have more money invested so our earnings from our investments have increased,” Harris said.

Over the last four years, the university has been able to take care of a lot of maintenance, including roof repairs, parking lot paving and improvements to the Jackson County Center.

The school’s debt includes a lease being paid to West Virginia University for energy improvement equipment installed in 2008. Harris estimates WVU-P has another five years to pay on that lease as well as a loan it needs to pay off for an air system installed on the fourth floor.

The university has been able to increase its Rainy Day Fund to be able to cover six months of expenses, which was the recommended amount.

“Having this money in our Rainy Day Fund allows us to be able to pay for capital projects we have no other money available to pay for,” Harris said. “It gives us a cushion in the event we have a sudden unexpected cost that we haven’t anticipated.”

Because the school has faced regular budget cuts from the state, it wanted to be able to build that fund in case it would be needed, she said.

Revenues have been declining over the last four years as state money has been cut back and available grant money has also gone down, Harris said.

However, the school did receive almost a $400,000 state grant for robotics equipment and other grants that were not anticipated.

Around 66 percent of the school’s expenditures go to staff and benefits. WVU-P has seen a lot of savings in the supplies and operating expenses because of centralizing the purchasing functions and being careful what it spends money on, Harris said.

Tuition and fees are being collected at a rate of 98 percent, Harris said.

“I don’t know if we can do much better than that,” she said. “I guess only an accountant can say this, but when I look at the balance sheet of the college, it makes me smile, because I know we have a secure financial position.

“That is the best I can do to help the university to move forward.”

The board members were impressed with the report’s findings.

“This was the cleanest auditor’s report I have ever seen,” said Steve Hardman, board member

Jason Landers, chairman of the audit committee, said the auditors issued an “unmodified opinion,” which is the highest level an auditor can give.

“I have been through many audits over the course of my career,” he said. “This was an extremely clean audit.

“We should all be proud to be part of an institution that received these kind of glowing results.”

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