Business Service Center Audits: Feedback from and Results of the UBSC Audit

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Business Service Center Audits Feedback from
and Results of the UBSC Audit

• Presented by
• Pamela Doran (Associate Audit Director)
• Robin Yager (Director, University Business
  Service Center)
• Robert Beveridge (Senior Auditor)

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Agenda

• Audit Approach Refresher (Pam Doran)
• UBSC Audit Scope (Bob Beveridge)
• Audit Results Helpful Hints (Robin Yager)
• Overall Audit Conclusion (Bob Beveridge)
• What to expect for Future BSC Audits (Pam Doran)
• QA (All)

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Audit Approach Refresher
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UBSC Audit Scope

• Assessing the overall control environment in the
  University Business Service Center
• Use a general ICQ to get broad overview of the
  control environment
• Internal Operating Policies and Procedures
• Signature Authority
• Staff Competency Training
• Customer Service

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UBSC Audit Scope Cont.

• Evaluating the documented Roles and
  Responsibilities for completeness,
  appropriateness, and clearly defined
  accountability
• Ensuring that a signed Service Package
  Agreement has been executed for each customer
• Evaluating the effectiveness of the University
  Business Service Center in meeting defined
  performance measurement metrics

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UBSC Audit Scope

• Business Process Transaction Testing
• Identifying key control activities by analyzing
  the business process flow charts for each
  business cycle
• Testing the identified key control activities for
  each business process for adequacy and
  effectiveness
• Reviewing UBSCs process for handling and
  following up on policy violations (e.g. Pcard)

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UBSC Audit Scope Cont.

• Business Processes Reviewed
• Purchase Orders
• Procurement Cards
• AP Vouchers/Payment Requests
• Travel Reimbursements
• Pay Rep Activities
• Vacation Sick Accrual Reporting

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Audit Results Helpful Hints
Robin Yager Director, University Business Service
Center
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Overall Audit Conclusion

• Overall Conclusion System of Internal Controls
  is Satisfactory, no major weaknesses were noted.
• Things UBSC did well
• Comprehensive Operating Policies Procedures
• Ensuring adequate segregation of duties
• Due diligence review and documentation of
  business purpose
• Pcard policy violation tracking and subsequent
  suspension and or revocation of pcard privileges
• Well trained staff
• Etc. (UBSC did many other things well)

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What to expect for Future BSC Audits

• We will be reviewing
• Roles Responsibilities (make sure they are
  clearly defined and documented)
• If the services provided to your customers are
  not uniform (e.g. cafeteria plan) we will be
  looking for Service Agreements or equivalent
• Written operating policies and procedures (there
  should be procedures for each service provided)

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What to expect for Future BSC Audits

• We will be reviewing
• Transaction/Signature authority
• 1. Does the delegation make sense for both the
  unit and the service center.
• 2. Are transactions approved by an individual
  with the appropriate signature authority level.
• Policy compliance and policy enforcement
  (effectiveness of BSC to bring about greater
  policy compliance for the units they serve)
• Segregation of duties (separate transaction
  initiators and approvers)

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What to expect for Future BSC Audits

• Scope will depend on what services your BSC
  provides
• Our Audit Approach for Service Centers is
  evolving and is subject to change

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Questions