QUARTERLY BUSINESS OFFICERS MEETING JANUARY 2017

Transcription

1 QUARTERLY BUSINESS OFFICERS MEETING JANUARY 2017

2 TODAY S AGENDA I. Introduction of New Business Officers (Selina Martin) II. Budget Update (Terry Johnson) III. University Shared Services Update (Debby Zumbach) IV. Internal Control Findings (Todd Stewart) V. FY 2018 Proposed Fringe Benefits Rates (Selina Martin) VI. Cash Handling Training Compliance in CQ (Selina Martin) VII.Talent@Iowa Update (Cheryl Reardon)

3 NEW BUSINESS OFFICERS F&O Facilities Management Lynne Finn University Hygienic Lab Sarah Dricken College of Pharmacy Bill Wise VP Research Ann Ricketts

4 BUDGET UPDATE TERRY JOHNSON, CHIEF FINANCIAL OFFICER & TREASURER

5 STATE OF IOWA FY17 BUDGET REDUCTIONS ($110 MILLION) Budget Cuts All Other State Agencies, $23.40 Board of Regents Institutions, $25.60 Department of Public Safety, $3.80 Department of Education, $5.50 Department of Human Services, $20.30 Judicial Branch, $7.70 Community Colleges, $8.70 Department of Corrections, $15.00

6 EFFORTS UNDERWAY TIER Student Aid Summer Hawks 5% Budget Prioritization Exercise Full Costing Model Committee on Academic Reorganization Committee on Central Services Expense Reductions

7 FULL COSTING MODEL (BY COLLEGE) Revenue (Appropriations, Tuition, Student Financial Aid, Indirect Cost Recoveries) Direct Collegiate Expense Allocated Expense (based on Tuition, Student Headcount, Building space, Research $, etc.) o Academic Advising o Career Center o Honors Center o Division of Student Life Indirect Expense Revenue - Expense (with Indirects)

8 BUDGET MEETINGS January February 13 March May 9 Budget units present their preliminary budget prioritization plans to Sr. Leadership team in one-onone sessions. Meeting of the Budget Retreat Team. Update on FY17 budget prioritization discussions and FY18 base budget developments. Budget Units present FY18 base budget decisions & plans to address the FY17 budget prioritization effort. Meeting of the Budget Retreat Team. Update on recommendations for addressing the FY18 base budget & FY17 budget prioritization.

9 UNIVERSITY SHARED SERVICES UPDATE DEBBY ZUMBACH, ASSISTANT VP & DIRECTOR, BUSINESS SERVICES

10 INTERNAL CONTROL FINDINGS TODD STEWART, CHIEF AUDIT EXECUTIVE, OFFICE OF INTERNAL AUDIT

11 Internal Audit Findings January 24, 2017 Todd Stewart Chief Audit Executive Office of Internal Audit

12 Internal Audit Findings Character is doing the right thing when nobody s looking. -J.C. Watts

13 Internal Audit Approaches Departmental/Unit Specific Audits Centralized Process Audits

14 Centralized Process Audits 1. Workflow Paths 2. Cash Handling UIHC Cash Handling Cash Handling Policies 3. Human Resources Performance Appraisals Vacation/Sick Leave Usage Early Retirement

15 Departmental Audits 1. Business Planning and Practices 2. Compliance and Internal Controls 3. Human Resources 4. Information Technology (IT) 5. Inventory and Capitalized Equipment

16 Business Planning and Practices Documented Business Continuation and Disaster Recovery Plans Up-to-Date Operations Manual Charge Capture Billing Price Setting Methodology Goods or services Reconciling Cash Collections to Daily Revenues Restrictive Endorsement of Checks

17 Compliance and Internal Controls Unmaintained Contracts Segregation of Duties Incompatible purchasing duties Timely Reconciliations Monthly Statements of Accounts Inventories Transaction Detail Report

18 Compliance and Internal Controls Cash Handling Procedures Oversight of Procurement Card Travel Vouchers Approved by Supervisor Trip Approvals Gifts in Kind Taxable Benefits

19 Human Resources Time and Leave Reporting Human Resources Termination Timely restriction of user access Procurement Oversight Workflow issues Staff Training Various Areas HIPPA and FERPA training Sexual Harassment training

20 Information Technology System Access Controls Server Vulnerability Scans Social Security Number Remediation from Computers Noncompliant Password Protocols

21 Information Technology Insecure Authentication Machine Management Physical and Environmental Security Accessible to the public Not proper environmental placement

22 Inventory and Capitalized Equipment Capital Equipment Tracking Equipment Disposal Not removed from inventory Inventory and Supply Management Unused, defective, and obsolete inventory Inaccurate and missing inventory Inventory procedures/inadequate monitoring

23 PCard Frauds on Campus Happening in multiple places across campus Transactions moving through multiple levels of review Approvals taking place at the highest levels One person committing fraud on multiple cards Receipts have been altered Same receipt has been used multiple times Not Yet Shipped receipts used Shared Services processes continue to identify more fraud Internal Audit is changing the way we test PCard transactions

24 High Risk Vendor? Primary Schemes: Amazon! Purchase multiples of the item requested, (ex: three world maps) return two, and put the credit on a gift card Create order print the Not Yet Shipped receipt cancel that order and then purchase the fraudulent item Fraudsters are using a personal Amazon account for university business requiring a subpoena to gain access to their Amazon account to determine a ship to address

25 How Can You Prevent This Fraud? Look at all receipts with professional skepticism Look at the transaction detail for those vendors that provide it Pay particular attention to vendors like Amazon Tell your staff exactly what you re looking for when you approve or have a PCard reconciled Ensure the reconciliation is completed timely Use ebuy as much as possible

26 What to do if You Suspect Fraud Don t panic Don t confront the person you suspect of fraud Be discreet Lock down relevant data Contact one the of the following: Todd Stewart, Chief Audit Executive Terry Johnson, Chief Financial Officer and Treasurer Human Resources or your College Dean

27 Ethicspoint The University of Iowa recognizes its obligation to maintain the highest ethical standards Policy compliance is a shared responsibility that depends on individuals voicing their concerns

28 Ethicspoint The Ethicspoint site provides an anonymous, confidential way to report potential issues The university will address reports promptly and discreetly, sharing facts only with personnel needed to investigate and resolve the matter

29 Go to uiowa.edu/ethics for more information Ethicspoint

30 Thank You! For more information on the Department of Internal Audit, please visit our website at

31 FY18 PROPOSED FRINGE RATES SELINA MARTIN, ASSOCIATE CONTROLLER

32 FY18 PROPOSED FRINGE RATES

33 MERIT POOL FY18 Charge Rate = 60.00%

34 STANDARD FRINGE RATE TREND 5 MAJOR POOLS

35 STANDARD FRINGE RATE TREND 6 MINOR POOLS

36 COMPLIANCE & QUALIFICATION SYSTEM (CQ) MONITORING CASH HANDLING TRAINING COMPLIANCE SELINA MARTIN, ASSOCIATE CONTROLLER

37 WHICH ROLES ARE REQUIRED TO COMPLETE ANNUAL TRAINING?

38 COMPLIANCE & QUALIFICATION SYSTEM Includes My Training One place/one stop for all requirements Automation of population assignment Dashboard/quick reporting tools Available to all who have a compliance

39 DEADLINE INDICATORS

40 NOTIFICATIONS Upon Assignment 30 Days from deadline (goes to yellow) 5 days from Deadline Past Due

41 MY COMPLIANCE. EMPLOYEE VIEW

42 OPTIONS FOR MEETING COMPLIANCE

43 RECORD ACTION COMPLETION (HR REPS RESPONSIBILITY)

44 MY COMPLIANCE. EMPLOYEE VIEW

45 ACTIONS & REPORTS SUPERVISOR VIEW

46 ACTIONS & REPORTS SUPERVISOR VIEW

47 HR REPS & COMPLIANCE MANAGER S VIEW Reports have the features to drill down to the Department.

48 University Human Recourses Presentation Business Officers January 24, 2017

49 Charge: To assess and make recommendations for the strategic direction and priorities of the centralized human resource functions and services supporting the University of Iowa and UI Health Care Compliance & EOD Faculty HR Central HR Services University HR Health Care HR

50 People are the University s Most Valuable Resource To remain competitive in today s knowledgebased economy, the UI must: Attract and retain world-class talent Address the aging workforce Adapt to technologies driving change (e.g. social networks) Utilize HR metrics and analytics for data driven decisions Maintain and enhance compliance with federal regulations Overcome challenges to diversify the workforce in a rural state Recognize differing generational cohorts expectations around work life balance $2B per Year 54% of all University funds - salary/fringe 65% of GEF Funds

51 Integrated Strategies for Centralized HR Recommendations Fundamentally, the task force advocates a change in thinking about human resources, shifting our emphasis from a transactional to a strategic resource and a full business partner with university leadership. HR IT Systems Data Strategic Partnerships Talent & Engagement Agility & Flexibility

52 An integrated approach to grow Human Resources as a strategic partner Phase 1 Progress Talent@Iowa Governance Council 20 members from UI Community Phase 2 - Feb Benchmark Data Diversity Talent Train & Onboard Phase 3 - May Policy Succession Planning Class & Comp

53 9 Month Roadmap (September 2017) University Strategic Priorities Strategy Balance Operations Lead the implementation of Develop integrated strategic vision with input from the HR leaders & HR community Search & onboard -Talent Acquisition Director Preliminary Talent Strategy Maintain HR Operational & Service Excellence Finalize UHR organizational structure Strengthening partnerships: Health Care Alumni Association HR community & Senior HR Leaders Campus leaders (SIT, OT and budget) action plans Year of HR Innovation

54 Questions

55 Next Meeting: March 24 th Rembolt Conference Room (CDD)