A recent review by the state auditor’s office found significant deficiencies in internal control over financial reporting at the University of Iowa with respect to donated land and liability for the school’s early retirement programs, State Auditor David Vaudt wrote in a letter to the state Board of Regents.
The audit included a review of the U of I’s financial statements from July 1, 2010, to June 30, 2011.
Auditors found that the university received a land donation valued at $3.7 million but school officials did not record the donated land on its capital assets record or recognize the revenue on its Statement of Revenues, Expenses and Changes in Net Assets.
State auditors also found that the liability of an early-retirement program was not reviewed by an independent source during the preparation of the financing statement. The liability was understated by at least $1.6 million as a result, Vaudt wrote in his letter to the regents.