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Section 1: Internal Control

Fiscal Accountability and Stewardship of University Resources

Effective Date:

12/15/09

Approved By:

Lenora Chapman, Associate Vice President, Financial Affairs

Last Revised On:

05/01/14

For Assistance Contact:

Associate Vice President for Financial Affairs

PURPOSE/SCOPE

To define financial accountability and stewardship of university resources and the roles and responsibilities for employees.

AUTHORITY

UT System Policy UTS142.1- Policy on the Annual Financial Report


UNIVERSITY GUIDELINES

Table of Contents

A. Fiscal Accountability and Stewardship of University Resources

Stewardship refers to processes and structures that manage, allocate, and monitor resources critical to UTSA's mission. Stewardship of UTSA's financial resources begins with compliance with laws, regulations and policies, sufficient transparency, and appropriate internal controls to prevent excessive financial commitments and overspending.

B. Roles and Responsibilities

Stewardship of UTSA's resources is the responsibility of all employees. Various administrators have specific responsibilities:

1. Vice President for Business Affairs

The Vice President for Business Affairs (VPBA) has primary responsibility for control over UTSA’s financial and physical resources. As the chief financial officer, the VPBA is responsible for establishing and communicating policies and procedures to ensure the proper and efficient use of UTSA resources, cash handling, and related functions, in compliance with applicable state and federal laws and regulations, Board of Regents rules and regulations, and sound business practices. 

The following areas report to the VPBA and have key roles in the monitoring, control and safeguarding of UTSA’s financial resources:

  • Administration

  • Financial Affairs

  • Human Resources

  • Facilities

2. Department Managers

Department Managers are responsible for all financial aspects of UTSA funds allocated under their authority and serve as financial stewards of UTSA resources by:

  • Learning, following and upholding all financial policies and procedures established by UTSA. Periodic internal reviews must be performed to ensure continued compliance with UTSA's financial policies and accounting procedures.

  • Maintaining adequate records as required by UTSA's Records Retention Schedule and external regulatory agencies.

  • Expending or committing funds within approved UTSA budgets using appropriate financial, accounting and procurement procedures to assure that purchased goods and services are necessary to meet operational requirements of UTSA and obtained at the best available price.

    • Expenditures and revenues must be reviewed regularly and accounts must be reconciled to assure appropriateness.

    • All budget changes must comply with guidelines and instructions issued by the Budget Planning & Development office consistent with The University of Texas System Budget rules and procedures.

  • Reconciling time and effort reports to assure correct payment of salaries and wages to employees. Assuring leave administration records are accurate and compliant with UTSA policy, state and federal laws.

  • Reviewing internal controls for proper segregation of duties.

  • Correcting any internal control weakness that could lead to waste, misuse or destruction of assets, including data and data integrity.

  • Identifying potential conflicts of interest and taking effective action to avoid or prevent these conflicts.

  • Reporting any suspected or known misuse or destruction of assets (including data and data integrity) and/or conflicts of interest following institutional procedures.

  • Maintaining and safeguarding sensitive information as required.

  • Assuring the security of institutional data and other UTSA records.


C. Compliance Training

UTSA employees are required to complete web-based training to assure understanding of the relevant compliance issues that impact their employment. For information on compliance training, review the UTSA Audit, Compliance and Risk Services website.

D. Certifications and Sub-Certifications

1. Management Certification and Fiscal Management Sub-Certification

Separate from Compliance training, Department Managers are required to complete the Management Certification and Fiscal Management Sub-Certification each fiscal year for all of their Cost Centers/Project IDs (see Financial Management Operational Guideline - Chart of Accounts) with $3,000 or more of activity.

    a. Management Certification: Detailed guidance on Management Certification is available in the Management Assessment Tool.

    b. Fiscal Management Sub-Certification: Department Managers are required to certify, among other items, that all Cost Centers/Project IDsunder their authority are reconciled timely, financial duties within their department are adequately segregated, and any material internal control weaknesses have been appropriately reported and addressed.

2. Other Certifications

The President, Financial Reporting Officer, the Chief Administrative Officer, the Assistant Vice President for Financial Affairs/University Controller and the Internal Audit Director will certify to the Financial Reporting Officer of UT System Administration that the financial statements are fairly presented and that they contain no false information or omissions of information that would materially affect their accuracy. They will also certify that significant deficiencies and material weaknesses in the design or operation of internal controls as well as all known frauds have been appropriately reported and addressed. In addition, the Financial Reporting Officer will certify that the Monitoring Plan for Segregation of Duties and Reconciliation of Accounts was completed as approved.


DEFINITIONS

Term Definition

Department Manager

An individual with fiscal responsibility including Statement of Accounts reconciliation and decision-making authority for UTSA resources who has approval access to commit funding using the institutional financial accounting system.

Chief Administrative Officer

The UTSA Vice President for Business Affairs is designated as the Chief Administrative Officer.

Conflict of Interest

When an employee owes a professional obligation to UTSA that is or might be compromised by the pursuit of outside interests. Acceptance or solicitation of gifts or other benefits from third parties, outside employment or compensation, personal investments, business/professional activities, and other outside interests can potentially create a conflict between the employee's duty to the university and his/her personal interest. This could impair the employee's judgment and cause him/her to make decisions that are not in the best interest of the university.

Financial Reporting Officer

The UTSA Associate Vice President for Financial Affairs is designated as the Financial Reporting Officer.

Internal Audit Director

The UTSA Executive Director of Audit, Compliance and Risk Services is designated as the Internal Audit Director.

Internal Control

The process designed to provide reasonable assurance that UTSA's goals and objectives are being accomplished for effectiveness and efficiency of operations and use of resources, reliability of financial reporting, and compliance with applicable laws and regulations. For more information, see UTSA Financial Management Operational Guideline (FMOG) Internal Control Overview.

REFERENCES/LINKS

RELATED FORMS/WORKSHEETS

None at this time.


REVISION HISTORY

Date Description

05/01/14

Updated DEFINE information for transition to PeopleSoft.

02/22/12

In Certifications and Sub-Certifications section, added detail to reflect requirement of Management Certification and Fiscal Management Sub-Certification for accounts with $3,000 of activity.

06/29/11

03/08/11

Changed Financial Reporting Officer definition in Definitions section. Removed "Administration" occurrences in References/Links section for UT System Policy links for UTS policies.

02/08/11

Conducted document revision to remove information pertinent to, and available in, other FMOGs.

12/15/09

Published guideline.


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