Applying Sarbanes-Oxley Principles to Colleges and Universities

Sean Goins, CPA, and Don E. Giacomino, CPA, and Michael D. Akers, CPA, CIA, CMA, CFE, CBM

In the wake of the financial scandals that have occurred in the corporate sector, the public is demanding more accountability not only from corporations but also from nonprofit organizations such as universities. Boards of trustees report more concerns about the proper accounting for the use of resources. Institutions can enhance corporate governance by implementing some of the principles and procedures the Sarbanes-Oxley Act of 2002 (SOX) have mandated for public companies. Because public accounting firms audit universities, the firms can provide a valuable service to such clients by recommending ways in which universities can implement SOX practices that are appropriate and applicable.