Thursday, October 21, 2010

RRC Summary -- 10/20/2010

Notes from the 10/20/10 RRC meeting:  

RRC 2010-10-20.doc

RRC Meeting Summary -
October 20, 2010

TIP:  As I previously
announced, TIP will not run on Oct. 31. 
In the future, TIP will run twice a year, on December 31 and June
30.  Departments are always expected to
keep positive cash balances, even in fund 1701. 
Accruing deficits for six months and then doing all the Foundation transfers
is not an acceptable way to manage Foundation funds.  A central memo will come out on this in
November.  Also, central is going to work
with the Foundation to look at ways to make fund transfers more efficient.


Audits:  Gail Klatt made some
observations about FY10 audit results.  Reconcilers
and approvers should be on heightened alert because employee fraud is on the


P-card transactions are under
particular scrutiny.  Sophisticated
schemes to modify receipts have been uncovered. 
Employees have scanned receipts, electronically modified them, and then
submitted them as documentation.  Forged
signatures on the paper "force-swept" documents have also been found.  Gail noted that p-card justifications are frequently
insufficient.  She also said that in some
of the recently-uncovered fraud cases, supervisors have also been held
accountable for inadequate supervision of the employees committing the fraud.  The special handling process for vendor
payments has also been a vehicle for fraud.   


Other observations from Gail


Accounts receivable practices are
lacking University-wide.  Typically the problems
are with separation of duties in small and mid-sized units.


The number of payroll
overpayments and late payments are of concern.


Excessive hospitality expenses
(over $75/person) are frequently found by auditors.


Effort certification is not being
completed in a timely manner.


Fees:  Central's initial
review of University fees is complete. 
In FY12, revisions will be made to the Technology/Collegiate fees.  (The CSE Tech Fee has been under review and
revision anyway.)  In FY13, all course
fees will be evaluated, and those that are not for consumables or unique
services required by the course will be eliminated.


Budget Model Peer Review:  Some
minor adjustments will be made to the budget model in FY12 in response to the
peer review that was done a few months ago. 
The changes mainly involve how cost pools are allocated to colleges and will
not directly impact departments.  The
Budget Management Advisory Group will also consider other changes that may have
a bigger impact, e.g. the 75/25% tuition split and what statistics to use to
allocate the graduate cost pool as a result of the Graduate School

Friday, October 8, 2010

FY11 Commitments

I'm working on FY11 commitment lists.