IAS-09-13 Audit News v3

A00809217

Description

Shadow vs. Off-Books Resignation/Termination/Transfer Procedures Accounting Records Human Resources has developed a checklist to We have received questions concerning the facilitate the resignation, termination or transfer propriety of maintaining shadow accounting process. The process helps to ensure: records. In an effort to clarify any misunderstandings, we will define two types of non-Banner accounting records by their • USU property, keys, P-Card, ID card, etc. are purpose and appropriateness: returned • Services are discontinued–phone, email, etc. Shadow Records ARE Appropriate • Banner access permissions are terminated • Accounts are transferred, if applicable As the name implies, shadow records mirror the • Proxies are changed, if applicable transactions in Banner. The only difference between shadow records and Banner would be A checklist is available at the HR website: the timing of transactions. A shadow system http://www.usu.edu/hr/functions like a personal check register—it benefits/docs/facilitates reconciliations with Banner (similar to Termination%20Checklist%a bank in this analogy) and provides the most 20Rev.%2014,%2001-22-current balances. 2009.pdf Shadow records are a useful tool when used in conjunction with Banner. Banner is the (Shadow vs. Off-Book Accounting Records, cont’d) University’s accounting system and any shadow recordkeeping method should only be used to (ledger to ledger, index to index), then, they ...

Sujets

• management
• managers

Informations

• Publié par: Kivim
• Nombre de lectures: 31
• Langue: English

Extrait

We have received questions concerning the

propriety of maintaining shadow accounting

records.

In

an

effort

to

clarify

any

misunderstandings, we will define

two types of

non-Banner

accounting

records

by

their

purpose and appropriateness:

Shadow Records

ARE

Appropriate

As the name implies, shadow records mirror the

transactions in Banner. The only difference

between shadow records and Banner would be

the timing of transactions. A shadow system

functions like a personal check register—it

facilitates reconciliations with Banner (similar to

a bank in this analogy) and provides the most

current balances.

Shadow records are a useful tool when used in

conjunction with Banner. Banner is the

University’s accounting system and any shadow

recordkeeping method should only be used to

reconcile and review the transactions reported

in Banner. Shadow records should never

replace Banner.

Off-Books Records

ARE

NOT

Appropriate

In contrast to shadow records, off-books

records do not

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t

i

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n

s

i

n

B

a

n

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r

.

Instead, transactions are detailed only in an off-

books ledger, spreadsheet or accounting

software.

The

transactions

are

usually

combined in Banner.

When transactions are not reflected the same

in Banner as they are in off-books records

Shadow vs. Off-Books

Accounting Records

(Shadow vs. Off-Book Accounting Records, cont’d)

(ledger to ledger, index to index), then, they

are not readily available for review or audit.

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t

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review transactions without having to rely on

off-books data to determine the nature of

transactions or the individual balances.

Human Resources has developed a checklist to

facilitate the resignation, termination or transfer

process. The process helps to ensure:

•

USU property, keys, P-Card, ID card, etc. are

returned

•

Services are discontinued–phone, email, etc.

•

Banner access permissions are terminated

•

Accounts are transferred, if applicable

•

Proxies are changed, if applicable

A checklist is available at the HR website:

http://www.usu.edu/hr/

benefits/docs/

Termination%20Checklist%

20Rev.%2014,%2001-22-

2009.pdf

Resignation/Termination/

Transfer Procedures

IN THIS ISSUE

1

Shadow vs. Off-Books Accounting Records

1 Resignation/Termination/Transfer Procedures

2 Management Responsibility for Effective

Controls

2

Board of Regents’ Policy R581

Audit News

A Publication of Internal Audit Services

Utah State University

Old Main Hill, Room 63

Tel.: [phone] *

Hotline: [phone]

http://www.usu.edu/ias/

Board of Regents’ Policy

R581—

Payment of Dues and

Memberships

Management Responsibility for

Effective Controls

In Issue 6 of the

Audit News

(IAS-07-35, July

2007), we defined a control as anything which

helps the University meet its objectives and

employees to complete their jobs effectively.

Although management may consult internal

auditors to help evaluate procedures, policies

and risks, ultimately, managers and supervisors

are responsible for establishing effective

controls for their unit/organization.

Management must understand the primary risks

in their operation or department and develop

controls to manage and mitigate those risks.

Overall, the goal of a control is to help ensure

an organization meets its objectives.

What is an effective control?

•

Provides reasonable (not

absolute)

assur ance

t he

organizations goals are being met

•

Helps prevent or detect errors

•

Is cost effective when compared to the

costs of the possible errors

•

Should be up-to-date to address current

processes, business conditions and policies

•

Communicated to all employees responsible

for implementing the control

•

Should not be redundant or excessive

We are in the process of developing a

comprehensive reference guide* to help

managers

understand

different

types

of

controls and how they apply to their operations.

When it is completed, it will be posted on our

website. We will let you know when it is done.

*

Thank you to Assistant Vice President Dan Sampson,

CIA, Office of the President, University of California for

allowing us to adapt their guide for USU

.

Board of Regents’ Policy R581 governs

institutional funds to purchase membership in

various organizations. The policy differentiates

between organizational dues or membership

and

individual

employee

membership

in

professional organizations or certifications.

Per section 3.1 of the

Payment of Dues and

Memberships

Policy R581, the President is

“authorized to approve the payment of

organizational dues and memberships as

required and deemed necessary for the

effective operation of said public university…”

In addition, the President’s approval is required

for

individual

memberships—meaning

the

membership is in the name of an employee, not

the University, college or department.

Section

3.2 of the policy states:

“Funds administered by

any institution will no

t

b

e

u

s

e

d

t

o

a

c

q

u

i

r

e

memberships in associations required or

desired

by individuals with current employment

assignments….exceptions may be made only

with the authorization of the President or

appropriate administrative officers designated

by her or him.”