3.10.3 Control of Finances

Comprehensive Standard 3.10.3 Control of Finances

The institution exercises appropriate control over all its financial resources.

Compliance Partial Compliance Non-compliance

NARRATIVE

Budget and Fiscal Oversight

In 2001, Florida Statute 1004.34 authorized that University of South Florida (USF) Sarasota-Manatee shall “be operated and maintained as a separate organizational and budget entity of the University of South Florida and that all legislative appropriations” for the campus “be set forth as separate line items in the General Appropriations Act .” Florida Statute 1004.34 also created a USF Sarasota-Manatee Campus Board appointed by the University of South Florida Board of Trustees (BOT) with powers and duties that include the review and approval of an annual legislative budget request submitted to the Florida Board of Governors. Article II of the Campus Board Operating Procedures details the USF Sarasota-Manatee Campus Board’s authority to approve and submit an annual operating budget for review and consultation by the BOT. The campus operating budget reflects the actual line-item appropriations contained in each annual General Appropriations Act.

The November 7, 2014 USF Sarasota-Manatee Campus Board Meeting minutes reflect the approval of the last annual Operating Budget prior to submission of this reaffirmation document.  Additionally, Campus Board June 2015 Minutes and BOT BOT June 2015 Minutes reflect the approval the 2015-16 Continuation Budget.

Please see Core Requirement 2.2 (Governing Board) for additional information on Campus Board approval.

The officers responsible for control over the campus’ financial resources and monitoring of the operating budget are the Regional Vice Chancellor for Business & Financial Affairs and the Campus Budget Director. Departments reporting to the Regional Vice Chancellor for Business and Financial Affairs that share in the responsibility of monitoring controls include: the Business Office (Cashiering), Budget, Purchasing (Purchasing, Property, Mail Services, Auxiliaries, and Printing), and Human Resources (Human Resources and Payroll) .

Please see Comprehensive Standard 3.2.8 (Qualified Administrative/Academic Officers) for additional information on administrative qualifications.

The USF System uses Oracle’s PeopleSoft Enterprise Management System software to maintain its financial records. The appropriate functional units have implemented applications for the purchasing, accounts payable, travel, asset management, general ledger, contracts and grants, non-student accounts receivable, human resources, and payroll functions. Student administration functions are processed through Ellucian’s Banner Student software. An interface links the PeopleSoft general ledger system with the Banner Student system. Departments are responsible for monitoring expenditures in relation to the budget on a daily basis. While departments can do reporting directly from the Enterprise systems, the USF System has created a database linking the information from both systems and providing a user-friendly format. This database and reporting application is called the USF Finance Mart. Finance Mart provides departments with the ability to monitor their budget to actual expenditures to ensure that they remain on budget. Finance Mart is updated every evening with the previous day’s financial activity. Reconciliation of Financial Data Training ensures controls are in place to ensure that Finance Mart reconciles with the source Enterprise Management System.

Financial Policy and Regulation

USF Sarasota-Manatee maintains appropriate control over financial resources through multiple strategies. The USF System provides exclusive guidelines in its policies and regulations in the following sections listed in USF System Policy and Regulation Manuals:

Policy/Regulation Link
Audit and Compliance USF System Policy 0-025
Asset/Property Management USF System Policy 5-014
Budgets USF System Policy 0-513
Concession Funds USF System Policy 0-500
Contracts for Commodities and Services USF System Regulation 4.02070
Contracts Regulation USF System Regulation 4.02060
Control of USF System Revenue and Expense Refunds USF System Policy 2-002
Debt Management USF System Policy 06-003
Investments USF System Policy 06-001
Purchasing Services USF System Regulation 4.02020
Real Property USF System Policy 09-001

Annual Audits

External Audits

The Auditor General of the State of Florida audits the University of South Florida (USF) System annually in accordance with Florida Statute 11.45(2)(c). Recent financial audits (FY 2014 Audit, FY 2013 Audit, FY 2012 Audit,  and FY 2011 Audit ) of the USF System demonstrate that it complied with government auditing standards and that there were no material weaknesses in matters of internal control and operation. USF Sarasota-Manatee is included as a part of the USF System audits, receiving a separate audit only during the year of a required Reaffirmation of Accreditation by the Southern Association of Colleges and Schools Commission on Colleges.  The State of Florida Auditor General will provide the USF Sarasota-Manatee Financial Audit sometime between November 2015 and January of 2016 as noted in the 2014-15 Fiscal Year Engagement Letter for USF Sarasota-Manatee.

Internal Audits

The USF System Office of Audit and Compliance (UAC) provides independent, objective assurance and advisory services to assist USF System management and the BOT in the effective discharge of their responsibilities. UAC helps the USF System accomplish its goals and objectives through a systematic, disciplined approach to evaluating and improving risk management, control, compliance, and governance processes. The purpose, authority, and responsibilities of UAC for the USF System are documented in a UAC Charter, which is approved by the USF System President and the BOT. The UAC Executive Director reports directly to the University BOT’s Finance and Audit Workgroup and administratively to the Chief Operating Officer of the University (UAC Organizational Chart). These reporting relationships ensure independence, broad coverage, and adequate consideration of audit findings and recommendations

The UAC periodically performs audits of units within USF Sarasota-Manatee. The most recent audit was an Audit of the USF Sarasota-Manatee Cashier’s Office TickeTrak Operations. No high-priority risks were discovered and the Office found there was an adequate system of internal controls in place to meet audit objectives. Appropriate personnel at USF Sarasota-Manatee have successfully resolved all medium-risk findings in the audits, and no audits are on-going at USF Sarasota-Manatee.

The UAC has various resources available to educate employees on appropriate financial controls, including an Employee Compliance GuideInternal Control Audit Guides, and Tools for Audit and Compliance to allow individual departments to self-assess their internal controls.

Risk Management and Property

The USF System Risk Management Insurance programs, as outlined in USF Policy 5-013, ensure that the USF System’s interests are properly protected by providing information and guidance regarding insurance programs and requirements. USF Sarasota-Manatee’s assets are covered through policies developed by the USF System Environmental Health and Safety Office of Risk Management. The USF System is insured under the State of Florida’s self-insurance fund. Fire/Extended Coverage is administered through the State Property Insurance Program, and Casualty Insurance Coverage is administered by the State Risk Management Trust Fund.

The USF System capitalizes and records all assets costing $5,000 or more with a useful life in excess of one (1) year in accordance with Florida Board of Governors Regulation 9.002Florida Board of Governors Regulation 9.003, and USF Policy 5-014. The USF System Office of Asset Management staff is responsible for the physical inventory of all USF System equipment having a value of $5,000 or greater. USF Sarasota-Manatee assists Asset Management Services with the annual physical inventory of items valued at $5,000 or more through the Sarasota Inventory Database.

USF Sarasota-Manatee developed the SID to track Other Capital Outlay (OCO) items (those valued at $5,000 or more) and non-OCO items (items of value less than $5,000). The Inventory List of All Assets is used to value the contents of USF Sarasota-Manatee buildings for insurance purposes.

Cash Collections

Cash is collected and handled only at officially-designated, cash-collection sites. The Cashier’s Office at USF Sarasota-Manatee is an officially-designated site. All employees involved in cash handling, including those who supervise cash handlers, those who reconcile cash, those with access to areas where cash is held, and cashiers, must complete the official, Cash-collection Training and must pass the cash-collection quiz. For all new cash handlers, training and taking the quiz are completed before they begin handling cash. All cash handlers must re-certify annually.

Policies regulate the safekeeping of cash through appropriate Cashier’s Office Procedures for handling, depositing, and recording of cash receipts. Access to bank accounts is limited to only a few authorized individuals. The Cashier’s Office strictly adheres to segregation of duties when completing cash transactions. The Cashier’s Office performs and monitors reconciliations daily. The Office has a cash handling manual to ensure proper procedures are followed in safeguarding cash collected, which includes cash, credit cards, traveler’s checks, electronic funds, money orders, and checks. In addition, random “surprise” cash counts, as well as cash counts upon employee termination and often upon employee vacations, are performed at the cashiers’ drawers and safe.

Purchasing

The USF System Purchasing Services Office, a system-wide service, provides management and oversight to acquire quality commodities and contractual services, while promoting fair and open competition in the public procurement process. In accordance with USF System Regulation 4.02000 and USF System Regulation 4.02070, USF Sarasota-Manatee protects responsible purchasing officials from improper pressures of external political or business interests. The process reduces the appearance and opportunity for favoritism, ensures that contracts are awarded equitably and economically, and establishes effective management oversight in the acquisition of commodities and contractual services in order to preserve the integrity of public purchasing and contracting. Improper pressure may be reported to: USF System Purchasing Director, USF System Controller, USF System Audit and Compliance, and/or by using the USF Ethics Point Hotline.

The purchase of commodities or contractual services exceeding $75,000 are awarded through a competitive solicitation process, such as a sealed Invitation to Bid, Invitation to Negotiate, or an approved exemption, such as a Sole Source or Emergency Purchase.

All purchases, including leases, over one million dollars ($1,000,000) require the approval and signature of the USF System’s Senior Vice President & CFO, Business and Finance. Authority for such items at one million dollars or less is delegated to the Director and Associate Director, Purchasing Services of the USF System, as specified in USF Regulation 4.02020.

Endowment Funds

The USF Foundation manages endowments centrally within the USF System and is the Direct Support Organization established to encourage philanthropic support of USF System priorities and the conduit to accept gifts on behalf of the USF System. Endowment income is provided to USF Sarasota-Manatee to be spent in accordance with the donor’s requirements. The USF System adopted  the USF Investment Policy 06-001 to manage the overall USF System portfolio. The policy allows for sufficient flexibility in the management process to capture investment opportunities while ensuring sufficient operating liquidity and appropriate risk management. Expenditures from endowments are monitored for compliance by the USF Sarasota-Manatee Advancement and University Relations office.

Please see Comprehensive Standard 3.2.12 (Fundraising Activities) for additional information on the USF Foundation.

 

SUPPORTING DOCUMENTATION AND EVIDENCE

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