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NorthWest Arkansas Community College

By Bernice Wilson,2014-05-17 07:37
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NorthWest Arkansas Community College

    NorthWest Arkansas Community College

    Risk Assessment, Frequency and Severity Estimate, and Recommendations Worksheet

Source of Risk: Financial Operations: Risks arising out of the college’s fiscal affairs, including collection of revenue, payment

    of expenditures, and all internal and external fiscal control procedures. Ranking of the Source of Risk Scale of 1 to 3 at 1 = Highest.

Identified Risks/Examples of Risks:

    1. Significant accounting problems

    2. Theft of Funds

    3. Significant receivables write off

    4. Failure to follow proper accounting procedures

    5. Qualified audit

    6. Lack of proper internal controls

    7. Insufficient separation of duties of financial or student records personnel

    Impact of Description of Possible Freq./Severity Comments, Status Risk/Loss Losses Estimates And RECOMMENDATIONS On

    Loss of revenue due to Freq.-Low Legislative Audit performs financial audit annually. Financial

    overstatement of Severity-Business Services uses procedures manuals and trains Resources

    receivables or accounting Moderate personnel. Reasonable efforts are made to collect

    problems. Loss of funds receivables. Separation of duties in every respect is

    due to theft. Failure to not always possible due to limited personnel.

    follow accounting RECOMMENDATIONS: Continue to request from

    procedures. OPM personnel positions so proper separation of

    duties can be maintained and strengthened. Review

    Business Services procedures manually annually.

    Consider background checks before hiring sensitive

    personnel. Have an insurance policy against theft

    losses. Determine if some receivables need to be

    written off to more accurately reflect that asset.

    No material impact Freq.-Low RECOMMENDATION: Regularly review valuation Material

    Severity-of college assets. Resources

    Moderate

    Loss of confidence in Freq.-Low Attempt of made to hire experienced personnel in all Human

    employees and college Severity-High Business Services areas. President is informed of Resources

    leadership. financial status of college on a regular basis and

    Board is provided a financial report quarterly.

    RECOMMENDATION: Mandate training for

    Business Services personnel to assure they are as

    well trained as possible. Immediately inform college

    President of any irregularities or improper personnel

    action. Student Records are Freq.- Low Business Services has many controls in place to keep College

    incorrect. Misinformation Severity- High these student problems from happening. Delivery

    is placed on student bills. RECOMMENDATION: Keep Business Services Services

    staff properly trained to minimize the possibility of

    accounting problems. Short term: No impact Freq.-Low No Recommendations Physical

    Longer term, moderate Severity-Low to Environment

    impact. Moderate

    Lack of trust in NWACC, Freq.-Low RECOMMENDATION: Provide the Board with Public

    donations would be Severity-High monthly information status reports of financial status Perception

    affected. Government of college and a semi annual report of safeguards in of the

    funding could be place to limit exposure to loss. Have a response ready College

    affected. in crisis procedures for the report of any financial

    irregularities or losses May be required to Freq.-Low All third party contracts are reviewed and approved Liability to

    reimburse government Severity-High by Business Services. RECOMMENDATIONS: Third

funds and some donations Determine potential liability to third parties and make Parties

    contingency plans. Investigate putting waiver of

    liability clauses in third party plans. Public Trust in NWACC Freq.-Low RECOMMENDATION: Include plan to respond to Community

    could be ruined or severely Severity: High problems and issues in this area in the college crisis

    diminished. procedures plan and build public trust in the college.

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