March 11, 2008
Report: University finances need overhaul
Trustees of the state university system yesterday received a report from accounting firm PricewaterhouseCoopers that outlines ways the financially strapped University of Southern Maine, as well as the rest of the state university system, can practice better financial oversight.
The $40,000 review found that previous USM budgets failed to account for cost-of-living increases, ignored the effect of contractual raises, under-funded benefits and fuel, overestimated enrollments, did not reprimand departments for overspending, and did not reflect those departmental deficits into its overall budget, among other findings.
Among the recommendations, the review suggested USM improve controls to prevent overspending and fully implement USM software that provides budget controls over staff costs. The University of Maine System issued a response to the recommendations in the report, agreeing with many of the changes, specifying which were already underway and setting up a work plan to implement the rest.
The $40,000 review found that previous USM budgets failed to account for cost-of-living increases, ignored the effect of contractual raises, under-funded benefits and fuel, overestimated enrollments, did not reprimand departments for overspending, and did not reflect those departmental deficits into its overall budget, among other findings.
Among the recommendations, the review suggested USM improve controls to prevent overspending and fully implement USM software that provides budget controls over staff costs. The University of Maine System issued a response to the recommendations in the report, agreeing with many of the changes, specifying which were already underway and setting up a work plan to implement the rest.
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