Internal Audit and Management Services
Hispanic Research Center 03-05
duly 2003
Distribution: Linda Blwing, Executive Director, Arizona Board of Regenb Milt D.Gkh Executive Vice President and Provost ofthe Unkemity David YO UP^, Dean, College of Liberal Arts and Sciences Gary Kelltr, Mrmtar, Hispanic Research Center h u g Cormell, Assi~tamtDean, College of Liberal A r b and Sciences Mernoy E. Harrison, Execative Vice Pwident for Administration and Ffnaace LeEtta Overmyer, Associate Vice Praideat for Administratian and Ftmance Gerald Snyder, h c h t e Vice President far Finance and Tnmnrer Lysm Carpcater, Assbtrrnt to the Executive Vice President and Provost
InternalMdIt md Management Services
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TAJ3LE OF CONTENTS
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INTRODUCTION
OBJECTIVES AND SCOPE CONCLUSION
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OBSERVATIONS 1. 2.
BILINGUAL REVIEWIPRESS ROYALTY PAYMENTS ACCOUNT RECONCILIATIONS OF THE HISPANIC REiSEARCH
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lnternal Audit and Mmagement Services Hispanic Resebrch Center1
INTRODUCTION
The Hispanic Research Center (HRC) was established by the Arizona Board of Regents in 1985. The Director of the Hispanic Research Center reports to the Dean of the College of L i b d Arts and Sciences. The primary activities of the HRC include the following: Educational Advancement Programs
The Educational Advancement Programs consists of three renewable cost-sharing grants from the National Science Foundation. The granb provide funding for graduate and undergraduate Hispanic students to attend academic conferences and student stipends to recruit and retain Hispanic students in math and science. The Educational Advancement Programs are coordinated by an ASU administrator who reports directly to the Director of the Hispanic Research Center. Publishing
The publishing activities of the Hispanic Research Center are primarily centered on the Bilingual ReviewRress. The Bilingual Review/Press was founded in 1973 at the City College of New York by the current Director of the Hispanic Research Center who brought the Press to ASU at the time of his hire. Although the Bilingual ReviewlPress is an agency account, it has been subsidized by the resources of the HRC. The Bilingual Reviewkess specializes in Hispanic literature and scholarly writing, It is directed by a managing editor who reports directly to the Director of the Hispanic Research Center.
Other Maior Activities
The HRC initiates and perfoms other sponsored projects including: 1) Community Art and Research Outreach projects which are geared toward assisting the economic, cultural, and educational development of Hispanic communities, 2) Image Processing Initiatives which is an attempt to preserve Hispanic art and history electronically, and 3) Faculty Working Groups in which faculty are provided limited seed money h r n state accounts to research potential projects, OBJECTIVES AND SCOPE
Internal Audit and Management Services (IAMS) completed an audit of the operating procedures and related controls of the Hispanic Research Center as of December 3 1, 2002. The objective of the audit was to determine whether the Hispanic Research Center had adequate policies, procedures, and internal controls in place as of December 3 1, 2002.
Internal Audit and Management Services Hispanic Research Vcn
CONCLUSION
Based on the audit work performed, the Hispanic Research Center has an adequate system of internal controls to comply with Arizona State University policies and procedures.
Director Walter B. Silva I n t d Auditor Penny Whitmore
Internal Audit and Manag-ent Services Hispanic Resebrch Center1
OBSERVATIONS, RECOMMENDATIONS, AND RESPONSES 1, BILINGUAL REVIEWIPmSS ROYALTY PAYMENTS
At the time of this review, royalties due authors from sales of the Bilingual ReviewlPress had not been paid in accordance with the agreement between the authors and the Bilingual ReviewiPress. During this review, the Bilingual ReviewPress reduced the outstanding balance of royalty payments due authors by $49,473 resulting in an unpaid balance of $1 2,706due authors. Recommendation The Bilingual Reviewpress should continue its effort in resolving outstanding royalty payments due to authors and develop procedures that facilitate the timeliness of future payments. Response
2%eBilingual Rma'ew/Presswill continue its efoort in reducing ids outstanding royal@ payments due to authors. (Implemented) 2. ACCOUNT RECONCILIATIONS OF THE HISPANIC RESEARCH CENTER
Reconciliations are not performed for HRC non-payroll expenses, foundation activity, and grant accounts. These accounts should be reconciled from supporting documents to detect any out of balance conditions and rnispostings to Advantage. The lack of reconciliations could result in mispostings not being detected or corrected timely. Recommendation
The Hispanic Research Center should implement a process to reconcile the HRC expenses, foundation activity, and grant accounts from the Advantage reports to supporting documentation.
Accounts will be reconciled or monitored periodicatly to ensure expenses are posted
correctly beginning September 30, 2003.
