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MSO Forum

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Process properly and accurately all receipts and disbursements of funds ... University values, policies, procedures and regulatory requirements to ensure ... – PowerPoint PPT presentation

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Title: MSO Forum


1
MSO Forum
January 15, 2003
2
Outline of Presentation
  • Common areas of Interest and Interdependencies
  • Roles and Responsibilities
  • AFS
  • Enterprisewide Risk Workgroup
  • Management Services Officer (MSO)
  • Areas of Concern
  • Identifying Risks (Option Finder)
  • Training
  • New Tools
  • Ledger Review, Administrative Responsibilities
    Handbook, Other
  • New Business Architecture (NBA) Team Update
  • Emerging Issues
  • Open Forum

3
UC Accounting Program
  • UC maintains and operates a comprehensive
    accounting program in order to
  • Meet its stewardship responsibilities
  • Provide management information to all levels of
    the Universitys administration, as well as State
    and Federal officials.
  • The University has a special stewardship
    obligation to
  • Process properly and accurately all receipts and
    disbursements of funds
  • To account for all financial resources received
    and used
  • To ensure that all financial transactions conform
    to legal requirements and administrative
    policies, and are recorded in accordance with
    GAAP
  • To provide reports that present a complete
    picture of the Universitys funds and their uses.

4
UC Accounting Program
  • The Universitys comprehensive accounting program
    must provide financial information to all levels
    of University administration for
  • Use in planning and budgeting
  • Evaluating the uses of funds
  • Making comparative studies

5
UC / UCD Financial Snapshot - 2002
  • University of California
  • Total Assets of 28 billion
  • Total Liabilities of 13 billion
  • Net Assets of 15 billion
  • Operating Revenues
  • 12.8 billion
  • Operating Expenses
  • 15.9 billion
  • Non-Operating Revenues
  • 3.2 billion
  • Change in Net Assets
  • 42 million
  • Other Changes in Net Assets
  • 573 million
  • Increase in Net Assets
  • 615 million
  • UC Davis
  • Total Assets of 2.9 Billion
  • Total Liabilities of 0.8 Billion
  • Net Assets of 2.1 Billion
  • Operating Revenues
  • 1.4 billion
  • Operating Expenses
  • 1.8 billion
  • Non-Operating Revenues
  • 470 million
  • Change in Net Assets
  • 128 million
  • Other Changes in Net Assets
  • 36.6 million
  • Increase in Net Assets
  • 170 million

6
Accounting Financial Services
  • Associate Vice Chancellor Finance (Controller)
  • Responsible for
  • Establishing campus financial policies and
    procedures
  • Partnering with Administrative Officials to
    design and implement programs and practices that
    establish an ethical environment and improve
    accountability and control
  • The operation of effective financial services and
    financial reporting systems for campus and OP
    operations at UCD
  • Procurement of materials, supplies, equipment and
    services required by the institution in carrying
    out its functions.
  • Providing leadership and direction for
    implementation of the Controls Initiative across
    campus.

7
Overview of Control Responsibilities
The Control Environment All academic and
administrative employees are responsible for
controls when conducting University business.
Although specific responsibilities between
groups may vary, all work toward the same goal
of ensuring an effective and efficient control
environment.
Academic and Administrative Management Responsibl
e for developing, implementing and maintaining
controls to manage risks and achieve objectives.
Controller has primary responsibility for
providing campus leadership to establish
effective internal control and accountability
practices.
The Control Environment
Faculty and Staff
Academic and Administrative Management
(Includes Controller)

Audit and Advisory Services Assists management
in their oversight and operating
responsibilities through independent audits and
consultations designed to evaluate and promote
the system of internal controls.
Faculty and Staff Responsible for applying
University values, policies, procedures and
regulatory requirements to ensure consistent
operations.
Audit and Advisory Services
What is Internal Control? Internal control is an
integral part of the University's operations.
Internal control is broadly defined as a process,
effected by our Board of Regents, faculty, and
academic and administrative staff, designed to
provide reasonable assurance regarding the
achievement of instruction, research, patient
care, and community service objectives,
including Effectiveness and efficiency of
operations. Reliability of financial reporting.
Compliance with applicable laws and regulations.
8
Internal Controls
  • Why are internal controls important?
  • Controls help manage the risks and opportunities
    associated with conducting the business of the
    University. Across the broad spectrum of
    University operations, good controls will help
    people take advantage of opportunities as well as
    manage potential problems.
  • It is important that people understand their
    responsibilities for creating and maintaining an
    appropriate control environment when conducting
    the business of the University of California.
  • It is important to understand how the Audit and
    Controller functions interact to strengthen and
    support the Universitys control environment.
  • Describe responsibilities for ensuring a sound
    control environment and how the Audit and
    Controller functions interact within the context
    of internal controls.

9
Five Components of Internal Control
  • Control Environment
  • Tone at the top, integrity, ethics, competence.
  • Risk Assessment
  • Evaluating risks to achieving objectives.
  • Control Activities
  • Mitigate risks and achieve objectives.
  • Information and Communication
  • Relevant, timely and accurate information to
    stakeholders.
  • Monitoring
  • Assessing the quality of the internal control
    system over time.

10
UC Controls Initiative
  • Background
  • In February 1997, the Office of the President
    asked each campus to develop a plan to improve
    financial accountability in response to concerns
    from The Regents, UCs external auditors, and the
    public regarding the effectiveness of the
    Universitys systems of internal controls.
  • A key component is the management of risk, which
    is any issue that affects an organizations
    ability to achieve its objectives.

11
UCDs Approach
  • Initially focused on financial controls
  • November 2002 New Charge
  • Adopted an Enterprisewide approach
  • Broader representation on workgroup
  • Combine efforts of Controls Accountability with
    Risk Management
  • Promote collaboration on risk assessment and
    management activities to ensure coordinated
    efforts.
  • Advance risk awareness.
  • Identify risks associated with UC Davis
    objectives.
  • Ensure mitigation efforts are effective in
    managing risks to an acceptable level of exposure.

12
Enterprisewide Risk Management
  • A rigorous and coordinated approach to assessing
    and responding to all risks that affect the
    achievement of an organizations strategic and
    financial objectives. This includes both upside
    and downside risks.

Enterprise Risk Management Trends and Emerging
Practices, Tillinghast Towers Perrin
13
Managing RisksCollaboration Across the Silos
  • Provosts Office
  • Accounting Financial Services
  • Controls Accountability
  • EHS
  • UCD Health System Compliance
  • Police
  • Campus Counsel
  • Student Affairs
  • Internal Audit Services
  • Risk Management Services
  • Office of Research
  • Human Resources
  • Information Educational Technology
  • Schools Colleges

14
Enterprisewide Risk Work Group
Reporting Structure
Chancellor /Provost
Vice Chancellor -Administration
Enterprisewide Risk Work Group
15
Responsibilities of an MSO
  • Provide management support for Deans, Directors,
    Dept. Chairs and Administrative Officers
  • Responsible for
  • Long range planning
  • Coordinating, organizing, staffing
  • Supervising in the areas of budget, CG
    administration, purchasing, expenditure control,
    space utilization, building and equipment
    security and maintenance
  • Other services which support a teaching, clinical
    or administrative function of the campus.
  • Nearly 200 MSO positions at UCD/UCDMC

16
Separation of Duties
  • UCD PP 330-11 Departmental Financial
    Administrative Controls and Segregation of Duties
  • Describes departmental responsibilities for
    administrative control procedures to
  • Safeguard University assets
  • Assure adherence to prescribed PP
  • Procedures include
  • Departmental review of accounting reports to
    determine the validity of charges and credits
  • DaFIS Transaction listings by account
  • Distribution of Payroll Expense
  • Review the monthly Time Benefits Roster

Note Internal Audit is responsible for
periodically verifying that departments are in
compliance with 330-11.
17
Separation of Duties
  • UCD PP 330-11 (continued)
  • Procedures include
  • Equipment and Supply Inventories
  • Taking of annual physical inventories
  • Perpetual inventory when value in excess of
    50,000
  • Segregation of Financial Administrative duties
    among Departmental Staff Members
  • One persons work routinely serves as a
    complementary check on anothers work.
    Exceptions must be documented and approved in
    writing by AVC-Finance.
  • Cash receiving and recording
  • Payroll and Non-payroll disbursements
  • Physical Inventory of Equipment/Supplies
  • Independent Consultant Services

18
Delegation of Authority
  • UCD PP 330-10 Approval Authorization
  • Describes the policy and procedures regarding
    approval authority for departmental transactions
    and the delegation of that authority.
  • Has authority been delegated in your department?
  • If so, has it been documented?
  • Functions that require a formally documented
    delegation of authority
  • DaFIS
  • Entertainment
  • PPS
  • Travel
  • Are persons who have been delegated authority
    competent and knowledgeable to carry out their
    delegated duties?

19
Identifying Risks
  • What are the things that can prevent you, as an
    MSO, form reaching your objectives?

20
Responsibilities of an MSO
  • Provide management support for Deans, Directors,
    Dept. Chairs and Administrative Officers
  • Responsible for
  • Long range planning
  • Coordinating, organizing, staffing
  • Supervising in the areas of budget, CG
    administration, purchasing, expenditure control,
    space utilization, building and equipment
    security and maintenance
  • Other services which support a teaching, clinical
    or administrative function of the campus.
  • Nearly 200 MSO positions at UCD/UCDMC

21
Training - UCD Business Officer
  • Certificate Series 2002-03
  • Series allows business officers to select a
    curriculum tailored to their strengths, skills
    and needs. Participants need not have attended
    the UC BOI program.
  • To earn a UCD BO Certificate of Completion,
    participants shall attend at least the following
  • 2 Courses in Budget Financial Management
  • 1 Course in The Control Environment
  • 1 Series in Human Resources
  • 1 Course in Human Resources
  • 2 Courses in Risk Management
  • 4 Courses selected from the remaining 5 content
    areas

22
Training - UCD Business Officer
  • New Courses in Budget Financial Management
  • Introduction to University Accounting
  • University Financial Management
  • Reviewing Ledgers
  • Extramural Accounting
  • Working with OVCR to develop Certificate Series
    in Grants Management
  • Pre-Award
  • Post-Award
  • Any 4 courses from the following list
  • Sponsored Projects
  • Environmental Occupational Safety
  • Information Technology
  • Planning Organizing
  • Communication

23
Training Request from CAT
  • In September 2002, the CAT Subcommittee
    (Co-Chaired by Edi Joy and Pat Conners) for
    Education Training raised the following
    concerns
  • Increase efficiency and effectiveness for staff
    attending facilitated training sessions
  • Combine classes that teach PP with DaFIS
    classes, e.g. Purchasing Training
  • Encourage training partnerships among different
    organizational units, e.g. Student Employment
    with Human Resources and Graduate Studies
  • Training Channel on MyUCDavis to centralize
    enrollment and offering information
  • Follow UCSD model

24
Training AFS Response to CAT
  • Action Items presented by AFS at December 2002
    Meeting with CAT Subcommittee and SDPS
  • AFS will work to merge PP classes with DaFIS
    classes
  • Will work to enlist units outside AFS
  • Revamp Travel class to include DaFIS training
  • Revamp Accounts Payable class to cover VI and DC
    transactions
  • Merge planned Equipment Management class with the
    current DaFIS CAMS class
  • Review other offerings for potential partnering,
    provide input
  • Develop new training opportunities to fill
    current gaps
  • Work to combine enrollment systems (SDPS, DaFIS,
    UNEX)

25
Training Other Issues
  • Comprehensive review to ensure clarity in
    communicating with target audience
  • Title
  • Course Description
  • Content
  • Process or Policy
  • How to do it.
  • Why?
  • Identify learning objectives
  • New compliance areas (HIPAA, USA Patriot Act)

26
New Tools General Ledger Review
  • General Ledger Task Force Objectives
  • Encourage regular reviews of ledgers
  • Improve efficiency and effectiveness of review
    process
  • Share best practices
  • Explain requirements for ledger reviews
  • Why review the ledgers?
  • Integrity of Financial Reports
  • Provides reasonable assurance charges credits
    are valid
  • Help Prevent Misuse
  • Ensures no one person has complete control over
    any transaction
  • Maximize Use of Limited Funds
  • Corrects Errors Save Money

27
New Tools General Ledger Review
  • Statistical Sampling - Help for Large Units
  • Save Time Reviewing Low Value Transactions!
  • Review 175 instead of 1,000 items
  • Automatic
  • Just indicate you want to use it
  • Flexible
  • You define org, accounts, doc types and sources
    to be sampled

28
New Tools General Ledger Review
  • Ledger Annotator
  • Review Ledgers Anytime
  • Easier when transactions fresh in your memory
  • Automatic Annotation
  • If Approver doesnt change document
  • Notes May Be Added to Annotations
  • Electronic Certification of Ledgers
  • Certification Log prepared automatically
  • Click to certify your ledgers online
  • See valid/invalid annotation ratio
  • Consolidate multiple reviewers

29
New Tools General Ledger Review
  • Training
  • Part of Business Officer Certificate Series
  • Includes General Payroll ledgers
  • Learn
  • Use of tools annotator, sampling, certification
  • Best Practices how to deal with problems
  • How Payroll Ledgers feed GL

30
AFS Review of Accounts
  • What we have already found
  • Outstanding Travel Advances
  • 7,200 over 6 months old 1,500,000
  • Expired Accounts with Balances
  • 400 600,000 (net)
  • One 3,800,000
  • Purchasing encumbrances gt 12 months with no
    activity
  • 2,100 1,500,000
  • ECs RECs July 1, 2002 January 13, 2003
  • Nearly 12,000 documents with gt 80,000 lines 91
    million

31
New Tools Administrative Responsibilities
Handbook
A Reference Guide for Academic and Non-Academic
Personnel
  • Handbook Objectives
  • Resource for Administrative Officials
  • Expertise and assistance available from central
    administrative support departments.
  • Administrative Financial Responsibilities
  • Define and clarify areas of accountability.
  • Highlight critical management and research
    issues.

32
New Tools Administrative Responsibilities
Handbook
  • Vice Provosts
  • Deans
  • Associate Deans
  • Assistant Deans
  • Vice Chancellors
  • Associate Vice Chancellors
  • Assistant Vice Chancellors
  • Department Chairs
  • Principal Investigators
  • Directors
  • Associate Directors
  • Assistant Directors
  • Unit/Department Heads
  • Managers
  • Assistant Managers
  • Department Business Officers

And/or to whom financial, administrative, or
management responsibility has been delegated.
33
New Tools Administrative Responsibilities
Handbook
  • Key Areas of Responsibility
  • Academic Personnel
  • Conflict of Interest
  • Environmental Health Safety
  • Finance / Internal Controls
  • Human Resources
  • Information Systems / Data Integrity
  • Research

34
New Tools Administrative Responsibilities
Handbook
  • Organization
  • Overview
  • UCD Accountability Structure Internal Controls
  • Central Administrative Support Departments
  • Administrative Official
  • Delegated Authority, Responsibility, Areas of
    Potential Risk
  • Selected Policies / Guidelines
  • Principles Accountability, Community, Conflict
    of Interest, Data Integrity, Financial
    Management, Regulatory Requirements
  • Animal Care and Use
  • Informal Conflict Resolution
  • Research Involving Human Subjects
  • Examples of Good Business Practices
  • Quick Reference Listings

35
New Tools Administrative Responsibilities
Handbook
  • Project Status
  • Obtaining Central Unit Input
  • Next Steps
  • Obtain Campus Input
  • Survey at http//accounting.ucdavis.edu
  • Publish
  • Hardcopy (Late Spring)
  • Web
  • Incorporate Principles
  • Searchable
  • Links to PP

36
New Tools
  • DS Report for UCOP Endowment Estimated Income
  • Available this month
  • Web based FedEx Air bill
  • Charges fed nightly into DaFIS
  • No Direct Charge document required
  • On-line tracking of shipments
  • Consolidate campus agreements
  • DaFIS TP2
  • New Accounts Receivable module this Spring
  • Web based Travel Gather requirements
  • Travel Subcommittee of CAT

37
A New Business Architecture
In June 2000, the Office of the President
released a report entitled "UC 2010 A New
Business Architecture for the University of
California." This report spells out a plan of
action designed to prepare all UC campuses for
the anticipated challenges of this decade,
including the unprecedented growth associated
with 60,000 additional students and 7,000 faculty
members by 2010. In addition to managing growth,
the report provides a blueprint for all UC
campuses to control costs, improve the work
environment, and implement best business
practices.
38
Objectives of the NBA
  • Unprecedented growth and an increasingly complex
    regulatory environment demand a new approach to
    the Universitys core business processes and
    structure. A New Business Architecture will
    enable the University to
  • Manage growth
  • Control costs
  • Improve the work environment
  • Implement best business practices

39
New Business Architecture
  • Six broad strategies will allow the University to
    achieve these objectives
  • Develop business portals to integrate components
  • New approaches to recruit, retain and develop the
    very best people
  • Streamline cumbersome policies and processes
  • Leverage new technology to contain costs and
    improve services to constituents
  • Integrate campus financial systems and provide
    enhanced reporting
  • Embed performance management systems in UC
    business processes and focus on the most
    important financial controls

40
Components of the New Business Architecture
41
Implementing the NBA at UC Davis
  • February 2001, NBA Steering Committee formed
  • Co-Chaired by Janet Hamilton and John Bruno
  • Steering Committee will
  • Provide overall sponsorship
  • Confirm overall scope and project plan
  • Review progress at formal approval points and
    address any issues
  • Approve the recommended action plan
  • Approve budget and resources

42
Implementing the NBA at UC Davis
  • September 2001, Implementation Workgroup formed
    by Steering Committee
  • Co-Chaired by Dave Shelby and Mike Allred
  • Implementation Committee will
  • Provide leadership, support and direction to
    project manager
  • Review overall scope and project plan
  • Prioritize portal functionality development
    projects
  • Review progress at major milestones
  • Recommend investments and allocate resources

43
Overview of Proposed NBA Team Structure
44
Implementing the NBA at UC Davis
  • NBA Project Manager Deborah Flagg-Parker
  • Manage the project on a day-to-day basis
  • Coordinate, communicate and facilitate all
    activities and resources
  • Draft and manage the project plan and budget
  • Review project deliverables
  • Identify additional resources as appropriate
  • Act as liaison between project teams
  • Analyze and take action to mitigate project risk

45
Implementing the NBA at UC Davis
  • Technology Development Team, Co-chaired by
  • Jeff Barrett, OOA
  • Brian Alexander, IET
  • Coordinate development teams for all major UC
    Davis computing systems
  • Identify needs for and develop campus-wide
    standards, tools and testing procedures
  • Coordinate development of the architecture
    required to support the enterprise portal process
    and functionality
  • Coordinate data interface standards, performance
    and scalability, reliability and evaluation of
    functional requirements

46
Implementing the NBA at UC Davis
  • Business Process Team, Co-Chaired by
  • Janet Brown-Simmons, CAES
  • Joseph Calger, Advancement Services
  • Process identification and preliminary
    prioritization of key processes
  • Process and policy redesign
  • Research innovative practices
  • Validate and implement target processes

47
Implementing the NBA at UC Davis
48
Implementing the NBA at UC Davis
  • Change Management Team, Co-Chaired by
  • Kathleen Moore, OOA
  • Bob Loessberg-Zahl, Provosts Office
  • Change Management Team
  • Communications
  • Formulate a communications strategy
  • Training/User Support
  • Establish scope, readiness and documentation

49
Implementing the NBA at UC Davis
50
Emerging Issues
  • Service Unit Cost Recovery
  • Surplus/(Deficit) Carry-forward gt 8
  • Submit plan to correct
  • Effort Reporting for PIs
  • New system for UC Campuses?
  • Electronic Research Administration
  • Labor Distribution in DaFIS
  • Gross to net in PPS
  • Accounting distribution in DaFIS
  • Dealing with the Budget Crisis

51
Open Forum
http//accounting.ucdavis.edu
Obtain a copy of this report at...
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