Auburn University maintains appropriate control over its financial resources by 1) hiring and retaining qualified personnel, 2) creating sound and effective fiscal policies, and 3) establishing and executing strong internal controls.   

Definition of Scope: Auburn University Structure 

As described in Section 14-5.a, as a legal entity, Auburn University is composed of four divisions: two separately accredited institutions and two units related to its land-grant mission. This includes Auburn University, Alabama Agricultural Experiment Station, Alabama Cooperative Extension System, and Auburn University at Montgomery (AUM). AUM is separately accredited; therefore, for fiscal purposes and discussion throughout this narrative, three divisions—Auburn University, AAES, and ACES—will be referred to as “Auburn University.”  

Hiring and Retaining Qualified Personnel 

The Vice President for Business & Finance and Chief Financial Officer (CFO) is responsible for the oversight of the fiscal operations of Auburn University. The CFO has three areas of responsibility. The direct reports are the Associate Vice President for Human Resources (AVPHR), the Associate Vice President for Financial Services/Controller (AVPFSC), and the Assistant Vice President for Budget and Planning Services (AVPBPS). The units that report to the AVPFSC and the AVPBS (referred to as Business & Finance) are responsible for the day-to-day financial processes. Auburn University’s CFO,, AVPFSC,, and the AVPBPS, obtained certifications in public accountancy and have each worked in public accounting prior to accepting their current positions. Business & Finance experiences very low turnover. Most attrition is due to retirements.   

Business & Finance provides leadership in the development, implementation, and continuous improvement of the business and financial services essential for Auburn University to pursue its mission of teaching, research, and outreach. Services are provided for students, faculty, staff, and various external constituencies. Business & Finance provides education through a variety of Human Resource Development courses. In addition, continuous education and training occurs through quarterly Finance Liaison meetings and one-on-one discussions of policies and procedures as necessary. Business office personnel receive training to maintain their knowledge and skills relating to their job responsibilities, and all licensed certified public accountants attend continuing professional education courses in accordance with the requirement of the state in which they are licensed.    

Auburn University’s administrative systems provide budgetary units with online access to their financial account data. Banner Finance was implemented in October 2005, while Auburn University brought the Banner Human Resources and Banner Student modules online the following two years. The Banner System includes a number of self-service features which allow maximum collaboration between Auburn University constituents. It manages student information, accounts receivable, financial aid, finance transactions, and employee data.   

Individual departmentscan generate account statements and other reports that provide current month- and year-to-date activity,,. Financial reports are also provided to senior management showing the financial performance of the institution and to assess the financial performance of the institution. In 2019, Auburn University employed a budget and planning platform called Anaplan that helps streamline reporting for units and senior leadership by providing real-time data analysis and various other reporting capabilities which allow for better-informed decisions. 

Sound and Effective Fiscal Policies 

Auburn University provides written policies and procedures for credit card processing and security, collections, spending as well as administering moveable equipment. The policies and procedures are designed to establish strong internal controls. The Collections, Contributions, and Accounts Receivable Policy details procedures for safeguarding cash. The procedures define an employee’s responsibilities in the cash-handling process which, if implemented, will protect employees from mishandling funds. As detailed in Auburn University’s Moveable Equipment Policy, Property Services completes a physical inventory, at least every two years using Radio Frequency Identification (RFID). Other policies implemented to ensure Auburn University is maintaining the financial resources responsibility include theBusiness Expense & Reimbursement Policy, Purchasing Card Policy, Spending Policies and Procedures, Travel Policies, and Unreimbursed and Unallowable Sponsored ProjectsExpenditures Policy. All Business & Finance policies are published on the university website. Periodic reviews of Business & Finance policies and procedures are conducted by the applicable Business & Finance department. 

External Review of Internal Controls 

Auburn University adheres to strict guidelines promulgated by the Government Accounting Standards Board (GASB) and the generally accepted accounting principles and standards of the American Institute of Certified Public Accountants (AICPA) and is subject to internal audits as well as annual audits by external auditors.   

An institutional audit opinion and a management letter, if applicable, are issued at the completion of the external audits. The auditors also report on the internal controls over financial reporting, compliance with requirements that could have a direct and material effect on each major program, and internal controls over compliance in accordance with the Office of Management and Budget’s (OMB) Uniform Guidance.   

The financial statement opinion included in the most recent Independent Auditor’s Report, dated January 21, 2022, is that Auburn University’s “financial statements… present fairly, in all material respects, the respective financial position of the business-type activities and the aggregate discretely presented component units of Auburn University as of September 30, 2021 and 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.” In addition, the auditors did not identify any deficiencies in internal control over financial reporting that were considered to be material weaknesses. 

Auburn University received an unqualified opinion for all audits in the accreditation period and has not received a Report to Management since 2009,,. Similarly, during that same time period, Auburn University did not have any deficiencies in internal control over financial reporting that were considered to be material weaknesses. According to PriceWaterhouseCoopers, a Report to Management provides the auditors’ “observations on certain matters involving the internal control structure and its operations and […] recommendations designed to help Auburn University make improvements and achieve operational efficiencies.” If the auditors had identified management letter comments, material weaknesses, or significant deficiencies in internal controls, they would have documented the issues in their required communications to the Board of TrusteesAudit and Compliance Committee. One main reason items have not been identified in the past four years is adherence to Auburn University’s strong fiscal policies.Annually, Auburn University is also audited by the Alabama Department of Examiners of Public Accounts. These audits are compliance audits, which identify instances in which Auburn University does not adhere to State of Alabama regulations or Auburn University policies. Auburn University has not received a finding in the last three years of review,. The review for 2020-2021 will be completed the summer of 2022.  

Conclusion 

Auburn University hires and maintains qualified personnel, creates sound and effective fiscal policies as well as establishes and executes strong internal controls. These procedures substantiate the fact Auburn University maintains appropriate control over its financial resources.