Departmental Fiscal Oversight
Division of Finance
Fiscal oversight is provided to achieve transactions that have been properly authorized, recorded, and verified. The frequency and extent of fiscal oversight will vary depending upon the control environment. Factors impacting the control environment include the existence of segregation of duties, complexity of the department, extent of prior errors, the experience of a university employee, and nature of operations. UM System Fiscal Policy 21301 further discusses internal controls and segregation of duties.
Before you begin providing fiscal oversight, it is important to understand the following general items about your department.
- The normal activities of your department, including: budget, revenue sources and restrictions, and expenses.
- The organization structure and roles of individuals in your department to assist in monitoring for proper internal controls, including adequate segregation of duties, and appropriate levels of access to perform tasks.
- Awareness of applicable University policies.
The following tasks are strongly encouraged to provide fiscal oversight to your department and are not inclusive of all department fiscal oversight to be performed. The Division of Finance-Accounting office can assist in establishing or reviewing appropriate department fiscal policies and procedures upon request. In addition, expanded definition and information for this policy is available under Resources below.
The following procedures assist with ensuring compliance with the above policy:
- Transaction Checklist within WebApps Financial Statements
- All transactions are reported timely in the appropriate chartfield and account for valid business purpose.
- Revenues are deposited timely and Advice of Gifts accompanies gift receipts.
- Purchases using the preferred method, in accordance with University policies and appropriate signature authority as per Business Policy and Procedure Manual (BPPM) 3:001 & 2.210.
- View sensitive data to see details of feeder and payroll transactions.
- Correction of transactions within two accounting periods after a month posted in accordance with Business Policy Manual (BPM) 213.
- Budget to Actual Variance Reports within Workday
- Review of payroll transactions (APPM 55.60.02), including:
- Completeness and accuracy of payroll within the general ledger.
- Personnel Action Forms process timely.
- Purchasing Card Reconciliations are performed in accordance with Purchasing Card Policy (PCP) 2.6.
- Unannounced reconciliation of approved petty cash fund in accordance with Cash Receipts Manual (CRM) 604.
- Monitor internal controls to achieve correct operation and effectiveness (APPM 2.25.5).
- Achieve appropriate segregation between functions or effective mitigating controls (APPM 2.25.55). In an ideal environment, a different employee should perform each of the following major functions:
- Custody of Assets
- Managerial Review
- Access to various systems (general ledger, payroll, accounts payable, etc.) are appropriate based on established segregation of duties.
- Signature authorization within WebApps is appropriate based on established segregation of duties policies.
- Provide secure physical access to University assets including: offices, computers, supplies, and safe. Ensure keys are returned from terminated employees and safe combinations changed.
- Physical inventory of capital equipment semi-annually, prompted by Surplus Property (BPM 407).
- Physical inventory to record cost of goods sold at fiscal yearend, prompted by Division of Finance-Accounting.
- Petty Cash verification, prompted by Division of Finance-Accounting.
- Review for department revenues that may be subject to Unrelated Business Income Tax and report to Division of Finance-Accounting.
- Review rates charged by Service Operation, including Equipment Use.
- Fiscal yearend transactions required at the department level:
- Clear deficit balances
- Accrual of revenues or expenses not recorded by UM System automatically