THE SUNSAT EXTERNAL AUDITOR WAKANENE & ASSOCIATES CONDUCTS ITS FIRST CONSULTANCY ASSIGNMENT BY ASSESSING THE CURRENT UNIVERSITY ACCOUNTING SYSTEM.
SUNAT is a new community-owned public university located at Sheikh District of Somaliland. The university commenced operations on February 2020. Because of its infancy nature, the Board of the university desired to undertake an early assessment of the university’s system of financial accounting and management so as to determine whether the system, as currently designed, is adequate to ensure the achievement of the university’s objectives relating to operations, reporting, and compliance. Subject to the above need, the university engaged its external auditor to undertake this assignment.
The process involved the following two procedures: Inspection of documents and accounting records prepared for the university and made available by the project manager; and Discussions with the project manager on the financial accounting and management system as currently developed by the university, and comparison of the system with the international best practice of similar universities. The assessment specifically focused on the following major requirements:
- Undertake a gap assessment on the university’s accounting system together with the financial management system.
- Adequacy of the accounting system used
- Adequacy of the financial records maintained and the financial statements generated;
- The existence of appropriate human resources procedures
- The existence of appropriate procurement procedures; and
- The existence of appropriate financial procedures.
2. Test and verify:
- The sufficiency of the system according to the university needs
- The level and quality of the system
- Whether appropriate supporting documents, records and books of accounts are established; and
- The adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
3) Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement;
4) Communicate any matters that might have been overlooked in the system which might have a significant impact on the sustainability of the university; and
5) Suggest and recommend any new additions to the system which may be essential for consideration.
a final report summarizing the major results of this work along with future recommendations were submitted to the university management.