The University has taken several steps to address the continuing concerns raised in this audit. With regard to journal entry review and posting processes, effective July 1, 2023 all manual journal entries are processed
through a PeopleSoft workflow that requires secondary approval by either the Cont...
The University has taken several steps to address the continuing concerns raised in this audit. With regard to journal entry review and posting processes, effective July 1, 2023 all manual journal entries are processed
through a PeopleSoft workflow that requires secondary approval by either the Controller or one of the two Associate Controllers prior to posting to the general ledger system. Without this approval action, a manual
journal entry will not post to the general ledger. The listing of open manual journal entries is maintained within the PeopleSoft workflow tool for the three authorized reviewers.
In January 2023, the University purchased the FloQast workflow management system in an effort to address internal control concerns identified in the prior year audit. This product is specifically designed to manage
financial account reconciliation, variance analysis and closing processes. FloQast receives a daily file import of the PeopleSoft trial balance for all general ledger accounts. Reconciliation of each general ledger account is
assigned to a University staff member for either monthly or quarterly review. Reconciliations occur within the FloQast system with secondary staff approvals as needed for key general ledger accounts. FloQast will provide
user alerts to any reconciled account becoming out of balance due to adjusting entries. Further, as historical balances are added to the FloQast system, variance analysis reports will be generated down to the individual
account level. Finally, monthly, quarterly and annual closeout procedures are being built into the FloQast workflow process to allow for timely identification and status tracking of each process, by both the process
owner and the final approver.
While accounting processes exist in an internal process memo utilized by the Controller’s Office staff, a formalized process and procedures manual is being developed and will be maintained on a publically facing
page of the University intranet to allow all campus users access for reference.
As of July 18, 2023, the University added two new positions; Internal Auditor, reporting directly to the Vice President of Financial Affairs and the Audit Committee Chair, and Project Accounting Analyst, reporting to the
Controller. While the Internal Auditor will have broad ranging oversight to University systems, it is expected that further University-wide policies and procedures will be developed as a result of these reviews, including those
directly impacting financial operations and controls. The purpose of the Project Accounting Analyst position is to review and monitor net asset balances at the project level. A key component of the position involves meeting
with campus account managers in conjunction with the Budget Office staff on a quarterly basis to review current activity, address questions related to transactional activity and promote prompt and timely close out of
projects. In conjunction with this work, stale projects are being reviewed for potential closeout or ability to utilize available funding sources for current operations. All of these activities are designed to maintain better insight
and control over net asset balances. This position is also tasked with developing policies and procedures around the creation and management of project accounts.
Over the past year, Management has utilized the resources of the National Association of College and University Business Officers (NACUBO) for consulting, training and advising purposes. Management will
continue to utilize this resource and other available resources to further enhance knowledge and develop best practices. Management has committed to contracting with an outside accounting firm to provide further training,
support and best practice guidance to the accounting staff. Further, an effort is underway to fill current vacancies within the Controller’s Office with individuals trained to a higher level of accounting knowledge, as
well as knowledge specific to the higher education and not for profit fund accounting sector. Through the current audit cycle, a series of reports and procedures have been developed to aid in a more timely and
accurate preparation of financial statements.