NEW AUDIT STAFF ORIENTATION OVERVIEW
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AUDIT STAFF ORIENTATION OVERVIEWTable of ContentsI. IntroductionII. History of the University of Wisconsin System and its AccountingSystemsIII. Administration and Reporting Structure of the University ofWisconsinA. Department of AdministrationB. UW System Board of RegentsC. President of the University of Wisconsin SystemD. ChancellorsE. University of Wisconsin System Map with Links to CampusWebsitesIV. Audit OfficesA. University of Wisconsin System Administration Internal AuditB. External Auditors -Legislative Audit BureauC. UW Institutional Audit OfficesV. Resources for University of Wisconsin Auditors1IntroductionThe following information was compiled to provide auditors who are joining University ofWisconsin institutions with some general information about the University of Wisconsin Systemand audit-related resources. This overview includes a brief history of the University of WisconsinSystem, the administrative and reporting structure of the system, an overview of the audit functionand a list of general resources that should be useful to university auditors in their work.This packet is not intended to be a comprehensive primer on the UW System or the role ofinstitutional auditors. It is perhaps a starting point for individuals wishing to gain a fullerunderstanding of the UW System’s history, of the auditing function within that system and of othersources of technical information related to the audit ...
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| Publié par | Ficir |
| Nombre de lectures | 36 |
| Langue | English |
Extrait
AUDIT STAFF ORIENTATION OVERVIEW
I. Introduction
Table of Contents
II. History of the University of Wisconsin System and its Accounting Systems
III. Administration and Reporting Structure of the University of Wisconsin
A. Department of Administration B. UW System Board of Regents C. President of the University of Wisconsin System D. Chancellors E. University of Wisconsin System Map with Links to Campus Websites
IV. Audit Offices
A. University of Wisconsin System Administration Internal Audit B. External Auditors -Legislative Audit Bureau C. UW Institutional Audit Offices
V. Resources for University of Wisconsin Auditors
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Introduction
The following information was compiled to provide auditors who are joining University of Wisconsin institutions with some general information about the University of Wisconsin System and audit-related resources. This overview includes a brief history of the University of Wisconsin System, the administrative and reporting structure of the system, an overview of the audit function and a list of general resources that should be useful to university auditors in their work.
This packet is not intended to be a comprehensive primer on the UW System or the role of institutional auditors. It is perhaps a starting point for individuals wishing to gain a fuller understanding of the UW System’s history, of the auditing function within that system and of other sources of technical information related to the audit function.
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History of the University of Wisconsin System and its Accounting Systems
The Merger of the University of Wisconsin and Wisconsin State University Systems
The University System Prior to 1971-72 The State of Wisconsin had two university systems before the merger of 1971-72. There were Wisconsin State Universities (WSU) and the University of Wisconsin (UW). Each had an administrative body similar to the current Board of Regents. The state universities were regulated under Chapter 37 of the Wisconsin Statutes and the University of Wisconsin, under Chapter 36.
Chapter 37 universities included Eau Claire, La Crosse, Oshkosh, Platteville, Stevens Point, River Falls, Stout, Superior, and Whitewater. Some of the two-year colleges, such as Richland Center, were affiliated with Chapter 37 institutions. After the merger, Chapter 37 institutions continued to have separate accounting systems. However, their statutory authority was transferred to Chapter 36.
Chapter 36 universities were known as the University of Wisconsin. The universities under Chapter 36 included UW Green Bay, Extension, Madison, Milwaukee and Parkside. Some of the University System's two-year colleges were also affiliated with Chapter 36 institutions. The institutions pooled their accounting functions and provided a centralized accounting control ledger system, which is commonly known as “the Peterson accounting system. The accounting system is physically housed in Madison in a building named after one of the past UW Madison accounting staff--A.W. Peterson. After the merger of 1971-72, all universities were combined under one administration, but separate accounting systems continued to exist.
The University of Wisconsin System (UWS) after 1971-72 The merger of 1971-72 brought about a new administration. The two governing bodies were combined and formed the Board of Regents, which had statutory authority over the newly formed university union known as the University of Wisconsin System. A centralized administration was created to manage the affairs of the new system. This administration is headed by a president who is under the oversight of the Board of Regents.
Although the former Chapter 36 institutions continued to have separate accounting systems, to provide a combined financial activity report for the universities, a centralized accounting function was created. The accounting and data processing function of accumulating Wisconsin State Universities’ data was commonly known as the WARF accounting system, housed at the Wisconsin Alumni Research Foundation (WARF) building. In recent years an effort has been under way to merge all accounting systems. The WARF accounting functions were transferred to UW Madison and are managed and included as part of the Peterson accounting system.
The State of Wisconsin Legislative Fiscal Bureau prepared an informational paper in January 1999 (#37) entitled University of Wisconsin System Overview. This report can be accessed at the Bureau’s website http://www.legis.state.wi.us/lfb/lfbinfo.html ).
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Administration and Reporting Structure of the University of Wisconsin System
This section describes the University of Wisconsin’s administrative position within state government and the reporting structure within University of Wisconsin System Administration. Department Of Administration (DOA h ttp://www.doa.state.wi.us/ ) One of the chief duties of the Department of Administration is to provide the governor with fiscal management information and the policy alternatives required for preparation of Wisconsin's biennial budget. It analyzes administrative and fiscal issues faced by the state and makes recommendations. The department also coordinates statewide planning for information technology, housing, telecommunications, energy, and coastal management. It is responsible for providing a wide range of support services to other state agencies, and it operates and maintains the state's buildings, including the State Capitol. A secretary appointed by the governor administers the department. UW System Board Of Regents (BOR) The Board of Regents develops and approves policies governing the University of Wisconsin System. A full discussion of its role and policies can be found on the Board's website, which is located at http://www.uwsa.edu/bor/ . Statement of Purpose and Mission In creating the university system, the legislature set forth several goals or principles. Specifically, the legislature found it in the public interest to provide a system of higher education which: ! enables students of all ages, backgrounds and levels of income to participate in the search for knowledge and individual development; ! stresses undergraduate teaching as its main priority; ! offers selected professional graduate and research programs with emphasis on state and national needs; ! fosters diversity of educational opportunity; ! promotes service to the public; ! makes effective and efficient use of human and physical resources; ! functions cooperatively with other educational institutions and systems; and ! promotes internal coordination and the wisest possible use of resources. [s. 36.01(1), Wis. Stats.]
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The mission of the system is to: ! develop human resources; ! discover and disseminate knowledge; ! extend knowledge and its application beyond the boundaries of its campuses; and ! serve and stimulate society by developing in students heightened intellectual, cultural and humane sensitivities, scientific, professional and technological expertise and a sense of purpose. Inherent in this broad mission are methods of instruction, research, extended training and public service designed to educate people and improve the human condition. Basic to every purpose of the system is the search for truth. [s. 36.01 (2), Wis. Stats.] The President of the University of Wisconsin System “President means the chief executive of the UW System and is appointed by the Board of Regents. The president’s office is located on the UW Madison campus. The president: ! is vested with the responsibility of administering the system under board policies; ! directs a central administration; and ! appoints each vice president, associate vice president and assistant vice president of the system. Central administration assists the Board of Regents and the president in: ! establishing systemwide policies; ! monitoring, reviewing and evaluating these policies; ! coordinating program development and operation among institutions; ! planning the programmatic, financial and physical development of the system; ! maintaining fiscal control; and ! compiling and recommending educational programs, operating budgets and building programs for the board. [s. 36.09(2), Wis. Stats.] Chancellors The Chancellors are the chief executive officers of their respective institutions and are appointed by the UW System Board of Regents. The Board has delegated to each chancellor the necessary authority for the administration and operation of the institution within the policies and guidelines established by the Board. Chancellors are responsible for:
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! administering board policies under the coordinating direction of the president; and
! being accountable and reporting to the president and the board on the operation and administration of their institutions.
Subject to Board policy and in consultation with their faculties, the chancellors of the institutions are responsible for:
! designing curricula and setting degree requirements;
! determining academic standards and establishing grading systems;
! defining and administering institutional standards for faculty peer evaluation and screening candidates for appointment, promotion and tenure;
! ecommending individual merit increases; administering associated auxiliary services; and r administering all funds, from whatever source, allocated, generated or intended for use of their institutions.
The chancellor may designate a person as provost, to act as chief executive officer of the institution in the chancellor’s absence, if the person currently holds a limited appointment as vice chancellor, associate chancellor, assistant chancellor, associate vice chancellor or assistant vice chancellor. [ss. 36.09(3)(a) & (b), Wis. Stats.]
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University of Wisconsin Campus Geographical Location http://www.uwsa.edu /vgsc.htm
The websites for the campuses shown on this map can be accessed through http://www.uwsa.edu/vgsc.htm .
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Audit Offices
UW System Administration Office of Internal Audi ( t h ttp://www.uwsa.edu/audit/index.htm ) Prior to the 1996-97 fiscal year, System Administration Office of Internal Audit was responsible for conducting most of UW System audits. These audits were primarily operational/financial in nature and included all UW institutions. After 1996-97, some functional restructuring took place and the Office was charged with the responsibility of conducting primarily program and management audits. However, some audits such as NCAA, Corporation for Public Broadcasting (CPB), and Electronic Data Processing continued to be performed by UW System Internal Audit. ! Functions -The UW System Office of Internal Audit currently conducts program reviews and management audits. It also aids in coordinating system-wide audit activities by external auditors. The Office’s mission statement and status reports can be found on its website. ! Reporting structure - The director of internal audit reports to the Vice President for Finance and presents the Office's reports to the Board of Regents Audit Subcommittee.
External Auditors - Legislative Audit Burea ( u h ttp://www.legis.state.wi.us/lab/index.html ) External Auditor - The external auditor for the University of Wisconsin System is the Legislative Audit Bureau (LAB). LAB conducts system-wide audits such as A133 and Comprehensive Annual Financial Report (CAFR). LAB generally informs the director of System Internal Audit about all external audit activities involving UW institutions. General information about LAB can be obtained from its website at http://www.legis.state.wi.us/lab/index.html .
UW Institutional Audit Offices Prior to the UW System Administration restructuring of 1996-97, some system institutions had no internal audit operation. Institutions that had their own internal auditors included Madison, Milwaukee, Eau Claire, Extension, Colleges, Platteville, Stevens Point, Oshkosh, and Whitewater. Some of the auditors had split responsibilities and performed non-audit functions. After the restructuring, some UW System internal audit positions were eliminated and in their place institutional audit positions were created. Initially, System Administration provided some transitional position funding to help establish an audit function at the campus level. Functions UW institutional auditors are charged with the primary responsibility of conducting operational or financial audits at their own campuses. A secondary responsibility is to be a liaison to UW System and external auditors. Institution Audits The audit areas listed below comprise a sample of operational audits that were formerly conducted by the UW System Office of Internal Audit. ! Student center or union operations ! Food service operations
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! University bookstores ! Textbook rental services ! Housing or residence life operations ! Vending and amusement contract compliance and commission accounting ! Physical plant operations ! Parking and transportation operations ! Fleet and garage operations ! Capital inventory ! Conference centers ! Stores (sometimes included in Physical plant audits) ! Copy and duplicating centers (sometimes included in campus wide cash audits) ! Cash handling activities and revenue center operations ! Academic fees Audit responsibility was transferred to institutional auditors as part of the restructuring arrangement. Each institution is expected to devise its own audit schedules and audit scope. Audit Programs and Outlines Audit programs and outlines are included in the workpapers that UW System Internal Audit provided to institutional auditors. UW System Internal Audit has some copies of the audit programs or outlines should auditors need to refer to them. Core Audit Areas UW System, in conjunction with the UW institutional auditors, has identified the following core audit areas. Institutional auditors are expected to assess the risk and materiality of these areas in relation to their institution: ! Cash handling activities, such as areas that handle large sums of money or that produce revenue through internal transfers. ! Payroll/personnel matters, such as proper handling of leave reporting, timesheets, and payroll exchanges. ! Property control, such as theft items under $5,000. ! Auxiliary operations, as determined by the auditors, based on their judgment about materiality levels and appropriate scope of work. ! Tuition and segregated fee revenues, with audit efforts targeted toward assuring accountability and compliance with policies. ! Major system reviews, including major processes or segments of major processes. The UW System Office of Internal Audit provides assurance to the Board of Regents Audit Subcommittee that the institutions are conducting audit activities in these areas. Institution Audit Reports Internal audit reports are distributed in accordance with individual institutional policies.
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Resources for University of Wisconsin Auditors
The following is a list of some of the resources auditors may find helpful in preparing for audit duties. The list includes website links that can be accessed to download needed information. Federal Regulations http://www.access.gpo.gov/nara/cfr/cfr-table-search.html ) The Code of Federal Regulations (CFR) is a codification of the general and permanent rules published in the Federal Register by the executive departments and agencies of the federal government. The CFR is divided into 50 titles that represent broad areas subject to federal regulation. Each title is divided into chapters that usually bear the name of the issuing agency. Of particular interest to most institutional auditors is 34 CFR 668 because it deals with Financial Aids programs. Other sites that might be resources are listed below. ! OMB Circulars http://www.whitehouse.gov/OMB/circulars/index-education.html ! OMB Circular A-133 http://www.whitehouse.gov/OMB/circulars/a133/a133.html ) OMB Circular A-133 establishes audit requirements for institutions of higher education and other non-profit institutions receiving federal funds. State of Wisconsin The State of Wisconsin’s Information Server is located at http://badger.state.wi.us/departments.html . This site contains links to state agencies, educational links, local and federal government sites, the governor’s office, and an on-line directory of state employees and agency phone numbers. Wisconsin Statutes http://www.legis.state.wi.us/rsb/stats.htm . Chapters 20.285 and 36 have specific UW information. Board of Regents The Board of Regents website is located at http://www.uwsa.edu/bor . It contains copies of special reports and governing rules, bylaws, agendas and minutes of the Board of Regents. Addresses of specific resources on the Board of Regents website are as follows: ! UW System Administrative Rules: http://www.uwsa.edu/bor/rules/index.htm ! Board of Regents Bylaws: http://www.uwsa.edu/pdffiles/borbylaw.pdf ! Board Policies: http://www.uwsa.edu/rpd/rpd.htm ! Board Minutes: http://www.uwsa.edu/bor/minutes/searchx.htm
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UW System Directory UW System Administration: ! Homepage: http://www.uwsa.edu ! Staff directory: http://www.uwsa.edu/uwsa_add.htm UW System Office of Internal Audit: ! Homepage: http://www.uwsa.edu/audit/index.htm ! System Internal Audit staff directory: http://www.uwsa.edu/audit/staff.htm ! System Internal Audit mailing address and phone number: http://www.uwsa.edu/audit/mail.htm UW institution auditors: ! Staff directory: http://www.uwsa.edu/fadmin/direct/intaud.htm FPPP and GAPP: http://www.uwsa.edu/fadmin/fap.htm The Financial Policy and Procedures Papers (FPPP) and General Administrative Policy Papers (GAPP) are developed at System Administration with the assistance of selected campus administrators. These policy papers are revised or eliminated periodically. Currently, the papers are commonly known as Financial and Administrative Policies or simply “FAPS. The best place to get the latest versions of the papers is the System Administration website shown above. To obtain an official interpretation of certain issues addressed in any of the policy papers, contact Gary Prisbe from UW System Financial Administration. System Travel Policies UW System travel guidelines are part of the financial and administrative policies. Application of the guidelines may vary at each institution. Therefore, it is advisable to check with an institution’s business services office. To access system wide travel guidelines, go to http://www.uwsa.edu/fadmin/fppp/fppp36.htm .
Risk Management, Worker’s Compensation and Environmental Health & Safety Each institution has a risk management function. Risk management functions and associated environmental health and safety issues are coordinated by UW System Office of Safety & Loss Prevention ( http://www.uwsa.edu/oslp/ ). Auditors conducting Physical Plant, Stores, and University Fleet audits may find information contained in this website particularly helpful.
Procurement Policies and General Information All UW system institutions have purchasing functions and responsibilities. However, UW System Office of Procurement http://www.uwsa.edu/proc/ aids in coordinating purchasing activities, particularly with System contracts. Auditors conducting purchasing and contract compliance audits may find information contained in this website helpful. This website contains links to information about the State of Wisconsin Vendor Net system, System contracts, contract waivers, bid contract forms, and minority business information.
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