Stewardship, Accountability and Regulatory Compliance

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Stewardship, Accountability and Regulatory
Compliance

• Jim Corkill
• Sandra Featherson
• Office of the Controller

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Stewardship

• Stewardship
• The careful and responsible management of
  something entrusted to ones care.
• Fund Accounting
• Sources and uses of funds.

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Why is Stewardship So Important?

• Mission
• Funding
• Image
• Stakeholders

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What Is Our Mission?

• Teaching
• Research
• Public Service
• We should be able to identify a cost to one of
  our missions.

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Where Does UCSB Get Funding?

• Taxpayers
• Donations
• Variety of Agencies/Foundations
• Fee for Service
• Housing
• Parking
• Indirect Cost Recovery

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Why Is Our Image Important?

• Ability to attract students
• Ability to attract faculty
• Ability to attract staff
• Quality of research
• Community perception
• World renowned public institution

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Who Are Our Stakeholders?

• Students
• Parents
• Employees
• Donors/Agencies
• Taxpayers in California

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Discussion Item 1
A distinguished visitor is coming at the request
of your department to give a lecture. After the
program, your department is hosting a
wine/cheese reception. What funding source do
you use?
19900 Funds
Opportunity Funds
Conference Fees
NSF Funds
Gift Funds
Gift Funds
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Additional Considerations

• Does the individual coding the entertainment
  request know what funding source to use?
• Has he been properly trained?
• Does she understand the policy?

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Financial Controls

• Do you have the right ones in place?
• Separation of Duties
• Reconciliation and Review
• Proper Training
• Risk assessment

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Risk Assessment

• What are your objectives?
• What are the risks to achieving those objectives?
• What are the consequences?
• What are the controls in place to manage the
  risks?
• Do you have an acceptable level of exposure?

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Scenario 1

• Your department is hosting an international
  conference. Expected revenue is 100,000 for 250
  participants. You are planning to accept
  cash/checks for conference registration. The
  hosting professor decides he wants to accept
  credit cards. Perform a risk assessment and
  evaluate whether or not to accept credit cards.

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Accountability

• Accountability
• An obligation or willingness to accept
  responsibility or to account for ones actions.

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What Are Your Responsibilities as a Business
Officer?

• Establish and maintain effective internal
  controls
• Manage the accountability structure of your
  department
• Ensure a reasonable distribution of workload
• Make sure your department is adequately trained
• When needed, delegate to qualified individuals
  who have the necessary knowledge and authority

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What Are Your Responsibilities as a Business
Officer?

• Review/approve back-up plans, including the
  assignment of back-up personnel, and review
  official record of approval delegations on a
  regular basis
• Assign or obtain the services of a Dept. Security
  Administrator (DSA)
• Ensure a clear audit trail exists for
  delegations, preparation and review of
  transactions

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Preparing / Reviewing

• What does the preparer need to know?
• Policy
• Funding Source
• System Navigation
• What does the reviewer need to know?
• Policy
• Funding Source
• Appropriateness

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Scenario 2

• Your department wants to get a new Flexcard for
  low value purchasing. What is an appropriate
  segregation of duties?

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Regulatory Compliance Its Everywhere

• Payroll
• Visa issues, start dates, Oath/Patent, 72 hour
  rule
• Travel
• IRS issues, reimbursement of actual costs
• Purchasing
• LVPA, consultants
• Record Retention

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Regulatory ComplianceWhy Is This So Important?

• Stewardship and ethics
• Doing the right thing
• Decision making and conclusions
• Financial reports
• Audit Review
• Institution at risk

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Policies/RulesWhere Do You Go?

• Agency Regulations
• University Policies (IRS rules)
• Campus Policy and Guidelines
• Control Point Policies

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Scenario 3

• An academic department has hired a tenured
  professor from England. The Chair promised to
  pay all removal expenses, travel to Santa
  Barbara, and lodging and meals for one week for
  her family once in Santa Barbara.
• What are the regulatory issues?

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Conflict of Interest

• Business to benefit the University, not for
  personal gain
• Perceived conflicts must be evaluated
• Reporting responsibilities

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Conflict of Interest

• Vendor decisions
• Close friend or relative
• Invested in the company
• Personal discounts based on University business
• Policy
• UCSB Policy 5005, Conflict of Interest

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Discussion Item 2

• The copy machine in your office needs to be
  repaired. Your brother-in-law owns a repair shop
  located near the campus. He has the best rates,
  and gets a lot of University business. Is it ok
  to ask him to repair your machine?

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Discussion Item 3

• The director of your department has invested in a
  local software company and they have offered to
  develop a shadow system for your department free
  of charge.
• What do you do?

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Support Groups

• Purpose
• Fundraising
• Public Outreach
• Examples
• Friends of the Library
• The Art, Music and UCSB Affiliates

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Support Groups

• Must receive official recognition from the
  Chancellor.
• Establishes privileges and responsibilities,
  including use of Universitys name, facilities
  and resources.
• Funds raised by such entities must be adequately
  controlled and expended in the same manner as if
  the funds were raised by the University.

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Questions?