ASU Foundation audit finds questions with IRS forms

ASU Foundation audit finds questions with IRS forms
ASU Interim Chief Development Officer Randae Davis (Source: WALB)
ASU Interim Chief Development Officer Randae Davis (Source: WALB)

ALBANY, GA (WALB) - A recent Albany State University Foundation audit revealed the foundation may have been filing IRS forms incorrectly and it could cause legal issues.

Mauldin and Jenkins completed the audit for the foundation back in December.

In it, auditors gave the foundation business advice.

MORE: ASU Foundation Audit reveals financial control concerns

One of the auditor's suggestions was to amend some IRS forms from the last year.

Auditors said from 2013 to 2015 the foundation failed the public support test on one part of the form.

Typically when that happens, and the IRS catches it, foundations would become private and could be asked to pay income tax.

University officials said auditors found the error when they looked at how funds were classified.

"In essence, it would say that we are taking in more income in a certain area than what we should. That is not correct, or not that I know of," explained ASU Interim Chief Development Officer Randae Davis.

Davis said the university is seeking legal counsel to see if the previous issue needs to be corrected.

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