Financial Reporting/Budgeting

Major Sections:

• Expenditures
• Personnel/Payroll
• Cash Receipts
• Financial Reporting/Budgeting
• Certification Standards

Financial Reporting/Budgeting- Internal Control Objectives Minimum Internal Control Techniques

A. Valid authorization of all financial documents

1. Require all unusual or nonrecurring financial entries to be supported by adequate documentation.
2. The department business manager reviews and approves each nonrecurring entry.

Response:

• All unusual or nonrecurring entries are always supported by adequate documentation and require Chair and/or Director signature.
• The DBA reviews and approves each non-recurring entry.
• The DBA does not participate in entry preparation.

B. Completeness of processing of all financial documents

1. The department business manager performs period-to-period comparisons of recurring entries in PeopleSoft.

Response:

• The Accountant/Financial Coordinator reviews the PeopleSoft reports on a monthly basis. Based on the PeopleSoft reports and VNet reports prepared by the reconciler, the DBA performs period-to-period comparisons of recurring entries in PeopleSoft. The DBA reviews the reconciled VNet reports on a monthly basis.

C. Accuracy of financial reports

1. Investigation of an imbalance in PeopleSoft by appropriate departmental personnel.
2. Periodic reconciliation of departmental records to PeopleSoft by an individual who does not handle cash.

Response:

• PeopleSoft is reconciled every month by the Accountant/Financial Coordinator in the responsible department. The reconciler follows up on any problems or errors in a timely manner.
• The Accountant/Financial Coordinator reconciles the accounts. This individual does not handle cash.

D. Accuracy of budgets

1. Senior management communicates its fiscal expectations and all appropriate levels of personnel and faculty are involved in the establishment of annual budgets.
2. All revisions to budget cost centers are reviewed and authorized by the College Business Manager.
3. Budget developers are involved in day-to-day activities of the business unit.

Response:

• The Dean and Director of Business Operations set’s budget and financial expectations prior to each new fiscal year. Each Chair and DBA meets with the Dean and Director prior to finalizing each departmental budget to ensure all expectations are met. A final budget from each department is signed by the Chair and forwarded to the Dean
• All revisions to budget cost centers are reviewed by the DBA and authorized by the Director.
• Budget developers are involved in day-to-day activities of the business unit.

E. Timeliness of Budget Information

1. Budgets are finalized prior to the start of the fiscal year.
2. Monthly comparisons of actual to budgeted revenues and expenses are performed and any significant variances are investigated and reported to management (department chair or college/division administrator).

Response:

• Budget are finalized and approved prior to the start of the fiscal year by the Dean, Chair and Director.
• The Director and DBA does monthly comparisons of budgeted revenues and expenses and reports any variances to the Dean and Chair. Each month the Chair signs the UGL1063 and sends it to the Dean. College distributed budgets to the departments are reconciled monthly and a copy is sent to the Director.

F. Consistent and efficient responses to inquiries

1. College Business Manager is responsible for all financial reporting and budgeting questions and is the primary contact person to whom all questions are directed.

Response:

• The Director is the primary point of contact for all financial reporting and budgeting questions. However, inquiries may be directed to the DBA.