Summary
This report compiles the status of recommendations from our 2023 financial statement audits of post-secondary institutions. It also includes a report card on each institution’s financial reporting processes and internal controls with comparative assessments from our 2022 and 2021 audits.
Preparation of Financial Statements
We issued unqualified audit opinions on the 2023 financial statements of 19 post-secondary institutions.
At the time of writing this report, management of Olds College is still finalizing its 2023 financial reporting. When done, we will complete our audit. Management and the board of governors say they are committed to making all necessary adjustments to ensure we can issue an unqualified audit opinion on the final 2023 college consolidated financial statements. We will repeat our recommendation for the college to improve its financial reporting processes at the completion of our audit.
Nineteen institutions have adequately applied processes to promptly prepare accurate financial statements. While institutions completed their financial reporting on time, we identified an upward trend in the number of accounting differences in financial reporting.
We also saw gaps in the completeness of financial analysis and in the consistent application of financial reporting processes this year.
This year, we expanded our financial statement audit work, examining institutions’ cybersecurity risk-management processes.
Outstanding Recommendations
Five institutions have nine total outstanding recommendations. Three of the outstanding recommendations are to improve testing and monitoring of the effectiveness of internal controls at an institution, while four of the recommendations highlight the importance of strong information and related technology (IrT) processes and internal controls.
New Recommendations
We issued one new recommendation to the University of Calgary to improve its access controls for terminated employees. We found management was not consistently applying related university IrT policies.
Implemented Recommendations
Bow Valley College improved the consistent application of financial statement reporting processed based on the recommendation we made last year. The college improved processes for establishing clear responsibilities, segregating duties, and reviewing its financial reporting and disclosures.