Internal audit releases three reports; external reviews and year-end report presented

The Office of Internal Audit presented three reports released between May and August 2025 and summarized two external reviews during the Austin Peay State University Audit Committee meeting.

Chief Audit Officer Blaine Clemons said the internal audit team released three reports: a review of the janitorial services contract (released June 30, 2025), a review of the Little Govs Child Learning Center (released July 30, 2025), and a capital planning, design and construction review (released in August). Clemons said the janitorial contract is significant because it exceeds $2,000,000 and covers about 2,500,000 square feet of campus; the audit identified opportunities to improve how contractor access to campus facilities is managed and the internal audit team plans a follow-up to verify corrective actions.

On the Little Govs Child Learning Center, Clemons said the center serves almost 40 children and is licensed by the Tennessee Department of Human Services with a three-star rating. The audit flagged that departmental corporate-card transactions were not always reviewed timely; Clemons said corporate-card review is the most common fraud-related allegation the office investigates and that another follow-up is planned later in the year.

Clemons described the capital planning, design and construction audit as a briefing for incoming leadership in a department experiencing turnover; the report did not include significant opportunities for improvement. He noted that these departmental reviews help incoming managers understand standing issues and compliance expectations.

Clemons also summarized two external reviews. The Tennessee Student Assistance Corporation (TSAC), a nonprofit established by the legislature to facilitate financial-aid programs including the HOPE Scholarship, conducted a campus review and identified opportunities for improvement; university management provided corrective-action plans that TSAC accepted. Separately, the Tennessee Bureau of Investigation reviewed campus police access to the National Crime Information Center (NCIC) system and reported no misuse.

Finally, Clemons presented the Office of Internal Audit's FY2025 year-end brochure, part of the university's fraud, waste and abuse awareness outreach distributed to more than 100 leaders. He described the brochure's role in explaining internal audit work and directing employees on what to report.

A committee member asked how janitorial performance is evaluated; an administrative speaker said JLL (which subcontracts to CMTI) conducts periodic campus surveys and that monthly plant-walks involve a CMTI representative and university facilities staff. The speaker said the janitorial contract is multiyear and likely expires next June and that the university maintains a 90- to 180-day termination window without penalty.

All three audits were listed as information items requiring no committee action at the meeting. Follow-up work was planned for the janitorial contract access issues and the corporate-card review findings.