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Audit ReportCollege of Arts & Sciences Financial Service CentersThe following documentation contains information regarding the process audit and risks and controls evaluation of the College of the Arts and Sciences Financial Service Centers at the University of Colorado at Boulder.

2009

Alexander Krantz, Jacob Malson, Katie Baltera, Kimberly Smith, Mariana Mejias, and Stephen Newcomb

Auditing Information Systems II - Audit Team4/29/2009

Table of Contents

Executive Summary 4Audit Plan 5Project Evolution 9Process Maps and Narratives 10Risk Chart 22Preliminary Recommendations 24

Audit Recommendation and ConclusionRecommendation Table 27Recommendations 28Project Summary 36

Supplementary MaterialsMeeting Minutes 38

Ketchum 42Old Main 48Hellems 53

PowerPoint 55

Executive Summary Acting as a third party approving agency, the FSCs provide the extra

compensating controls that were missing in the previous system. the three different FSCs have developed specialized processes in order to provide a high level of customer service. At this point in time, our team was brought in to help address the growing issue of segregation.

Our team participated in an audit of the FSCs that was to focus on the reimbursement processes in place at each FSC. Our goal was to develop process improvements that would help standardize the process across all FSCs to minimize the effects of a high rate of employee turnover. To do this, we aimed at constructing an environment focused on cross-communication to maintain standardization.

To achieve our goals, our team developed a standardized process that all three FSC could utilize effectively. However, we needed to ensure that our solutions were not just a short term fix to a long term problem. We decided to focus on training, communication, and implementation of technology throughout the process. The training process was important to make sure that all employees started off on an even keel. We then decided that increased communication between the different FSC would allow them to evolve the process together and increase the knowledge base of the FSCs overall. Finally, we thought the FSC could benefit from technology in making the process more efficient.

After gathering research from the FSC staff members and the department program assistants, we consulted with professionals from KPMG, Statera, and the LEEDS School of Business to develop creative solutions to the processes shortcomings. Upon the culmination of our research and development of the processes in place at each FSC, we were able to create a list of recommendations that we believe would benefit the client immensely. It will be up to the FSC to implement any of our suggestions but since they were an integral part of the development process, we are confident that our suggestions will appeal to them.

Audit Plan

Date 02/18/09To Cynthia HusekCompany Arts & Sciences Financial Services CenterPrepared By CU Boulder Audit Team

1.0 General Information1.1 Internal Audit Team The internal audit team, with roles and responsibilities, includes the following people:

Katie Baltera (Hellems), Contact for Debra Enevoldseno E-mail: [email protected]

Jacob Malson (Hellems), Contact for Stephanie Weber (FSC Manager)o E-mail: [email protected]

Kimberly Smith (Ketchum), Contact for Leisa Hesebecko E-mail: [email protected]

Mariana Mejias (Old Main), Contact for Megill Stewarto E-mail: [email protected]

Stephen Newcomb (Ketchum), Contact for KPMG IT Advisory Serviceso E-mail: [email protected]

Alexander Krantz (Old Main), Contact for Stephanie Plumberg (Statera)o E-mail: [email protected]

1.2 Duration of Internal Audit The duration of this internal audit will be for three and a half months commencing on February 4th, 2009 and concluded on April 29th, 2009.

It is anticipated that the fieldwork, working papers and drafting of deliverables will be completed by April 15th, 2009.

1.3 Location of Internal Audit The location of the internal audit will be performed at the three Arts and Sciences Financial Service Centers in the Hellems, Old Main, and Ketchum buildings and at the Leeds School of Business in the Koelbel Building, Room 320 at the University of Colorado at Boulder.

It is predicted that a site visit(s) to Old Main Financial Service Center (Old Main Building, Room 1B-43), Hellems Financial Service Center (Hellems Building, Room 151), and Ketchum Financial Service Center (Ketchum Building, Room 8A), will be conducted during the course of this review. In addition, additional site visits will be conducted at select department as needed.

1.4 Arts and Sciences Financial Service Center Business Hours Hellems, room 151: M-F, 8-5Ketchem, room 8A: M-F, 8-5Old Main, room 1B-43: M-F, 8-5

1.5 Key Contacts Contact Position Company E-mail Contact No.

Cynthia Husek

Director of Budget and

Finance

Arts and Sciences

FSC

[email protected] 303-492-4361

Stephanie Weber

FSC Manager

Arts and Science

FSC


Debra Enevoldsen

Hellems FSC Supervisor

Hellems FSC


Leisa Hesebeck

Ketchum FSC

Supervisor

Ketchum FSC


Megill Stewart

Old Main FSC

Supervisor

Old Main FSC


Stephanie Plumberg

Senior Consultant

Statera [email protected] 303-507-0939

Maggie Cheney

IT Advisory KPMG [email protected] 303-382-7174

1.6 Definitions Inefficiencies – Issues arising from non-value adding activities and from

noncompliance to regulatory methods. Inconsistencies – Issues arising from differences between processes and

practices among the three FSCs. Based upon findings and customer service needs, the processes may have

deviated too much among the FSCs to effectively standardize them.

2.0 Internal Audit Objective and Scope2.1 Internal Audit Objective The objective of this review is to:

Document the processes in each FSC and identify best practices among the three.

Provide recommendations on how to best standardize the processes among the individual FSC’s.

Explore inefficient data storage procedures to see if the opportunity exists to reduce paper usage.

Identify areas where the FSCs’ procurement cards, accounts payable, purchasing, and travel reimbursement procedures can be made more efficient.

2.2 Internal Audit Scope and Approach

The scope of this review includes an assessment of the process, controls, and risks of the College of Arts and Sciences FSC program and recommendations for this program. Specifically, this review will include:

Establish understanding of the current FSC focusing on the activities surrounding procurement cards, accounts payable, purchasing and travel. Then review the differences among the three FSCs.

Identify which processes or steps within the processes are most likely to be skipped over, delayed or take more time than necessary and recommend procedures to speed the processes and eliminate any non-value added processes or steps.

Find procedures that will reduce paper usage and/or allow for more efficient data storage.

Establish standardized processes and procedures and use of technology associated with employee training both within the FSC and for the departments.

Understand current procedures for ensuring compliance with standard processes and regulation and identify areas that may be improved upon.

To standardize processes among the three FSCs while maintaining risk control in compliance with CU, State and Federal rules and regulations.

2.3 Deliverables Project deliverables will consist of the following: Meeting Agendas/Meeting Minutes Questions to be provided prior to arrival Audit Plan Process Maps

o As-Is and To-Be Work Papers and Testing Documentation Audit Findings and Audit Reports Risk Assessment Chart Audit Recommendations for Operational Improvement

It is planned that the above deliverables will be delivered to you by April 15, 2009 for your review and subsequent discussion.

3.0 High-Level Work ProgramThe following are specific areas where the audit team will focus its field work in order to meet the objectives previously stated. The subsequent bullets are specific areas in which audit work will be conducted.

Verify that the Procurement Card Program Handbook is both up to date and utilized by employees.

Obtain sample of monthly reconciliations to verify accuracy Observe and evaluate the processes for Travel Reimbursements

4.0 High-Level Work ScheduleDate Task

February 25 2009 Final Audit Plan DeliveredMarch 4, 2009 “New Employee Training Day” (*Old Main FSC Team only)March 11, 2009 “As-is” Process Maps delivered and discussion of possible

recommendationsMarch 18, 2009 Risk Assessment and Test Plan DeliveredApril 1, 2009 TestingApril 8, 2009 TestingApril 15, 2009 Review Audit Findings and Prepare Final DeliverablesApril 22, 2009 Review Client PresentationApril 29, 2009 Final Client Presentation

Project EvolutionThroughout the audit it became clear that the original audit plan may not

enable us to adequately complete the final goals of our audit. It became clear from

the first field day that we were not going to provide an assessment of risk surrounding

the accuracy of the reimbursement procedure, but rather process improvements to

consider. This eliminated the need for quantitative testing, and directed our group to

focus on efficiency of the FSC’s. To do this we met with the FSC staff on a question

and answer basis and began to identify risks to overall success. We then followed

those meetings with meetings at the department level to understand problems and

questions that they were experiencing. These actions took the place of our testing

days, and added support to our recommendations for a process improvement. The

process was best benefited by improvements around communication and utilizing

technology. Due to these qualitative observations a “to-be” process map seemed to be

unbeneficial to create. Finally, we decided to add the procedures around Procurement

“ACARD” cards because they fit the mold of the rest of our audit. These deviations

from our audit plan seem to be necessary and beneficial to our client.

Ketchum FSC As-Is Process Maps

Procurement Card PurchaseThe card holder uses their procurement card to make a purchase. This

purchase can be made almost anywhere, but the goods or services purchased must somehow benefit and serve the business purpose of the University. A single purchase must not exceed a set dollar limit (currently $5,000). The monthly purchase varies by card holder and is usually determined by the department. In addition, the card holder must watch their university account (speedtype) balance to avoid creating a zero or negative account balance. The FSC technicians are responsible for helping the ACARDACARD users do not exceed their limit of their speedtype balances.

When a purchase is made, the amount of the purchase is directly deducted from the account to which the card is linked. This transaction happens similarly to a purchase made with a personal credit card. The card holder retains the proof of purchase and itemized receipts from the purchase to turn into their financial service center so the FSC can review the purchase was for University purposes and is in compliance with fiscal policy.

Once the purchase is complete and a receipt is received, the card holder, or the program assistant from their department, fills out ACARD an ACARD purchase receipt form, attaches the receipt to the form, and turns the form into the FSC. Meanwhile, the procurement service center downloads the purchase deduction from the bank so the FSC technician will be able to reallocate the purchase to the correct speedtype. When the FSC technician receives the ACARD ACARD purchase receipt form with attached receipt(s), they date stamp the form so they know what day the form was received. The technician checks to make sure the proper receipt documentation is present and that the explanation and purpose of the purchase benefits the university. If the receipt is missing, reallocation information is not complete, or the technician needs further explanation of the purchase, then he/she contacts the card holder or program assistant to request clarification. The technician then uses a computer application, Pendragon, to reallocate the purchase to the proper speedtype and account code. Once reallocation is complete, the technician notes the transaction number, signs the form and files it for later use in the monthly reconciliation.

After the end of each monthly cycle (the 25th to the 24th), the FSC technician prints a monthly statement for each card holder who had activity on their card in the preceding month. The technician then has each cardholder review, sign and return the statement. Upon return, the FSC technician finds each ACARDACARD purchase receipt form that has been filed since the last reconciliation for that card holder, matches the forms to the purchases that appear on the statement, attaches all of the forms to the monthly statement and delivers the attached forms and statement to the FSC supervisor who serves as the approving official. The approving official reviews the monthly statement and attached forms for compliance, signs and then returns the packet to the specialist to file.

Procurement Card ApplicationWhen someone (faculty, employee, student, etc.) needs a procurement card the

department must first send authorization to the financial service center. This authorization may be submitted in writing, as an e-mail, through a phone call, or simply by stopping in the office to let the FSC know the person is authorized to receive a card. The authorization must include information about the card applicant including their name, department, address, what speedtype the card should be linked to, dollar limits and other details the FSC needs to fill out the card application.

Once authorization from the department is received, the FSC then completes the card application and sends it to the card applicant. The applicant signs the form and returns it to the FSC. This signature must be original, so the applicant must return the hard copy to the FSC. When the FSC receives the signed form from the applicant, the FSC Supervisor signs as approving official and then faxes the form to the procurement service center and file the original. The PSC receives and processes the application, updating the training status for the applicant as incomplete. At this point the card applicant must complete a three part, online training course to receive the card. When the PSC confirms that the training is complete, they notify the bank of the need for issuance of a new card. The bank then issues the card and sends it to the applicant. Once the card is received, the card holder must activate the card in a manner similar to activating a personal creditt card. Then the card holder may begin making University purchases using the new card.

Employee Travel ReimbursementWhen the employee determines they need to travel out of state or by air for

University Business, they fill out an online form through the Travel Authorization Program (TAP). This authorization is forwarded by e-mail to three people: the traveller, the authority, and the contact. The authority is the person who authorizes the travel and the contact is someone the traveller selects. If the authority takes no action, then the travel is approved. If they do take action, then the traveller will not be eligible for reimbursement. The financial service center technicians prefer to be the traveller’s contact so that he/she knows in advance that the travel will take place. If the technician is not selected as the contact, then the traveller must either forward or print and turn in the e-mail to the. The procurement service center automatically receives notification of the intent to travel through TAP.

While the traveller is away, they must keep an itemized receipt and a proof of payment receipt for all items they wish to be reimbursed for. Upon return, the traveller or their program assistant completes the multi-purpose request form, attaches all receipts to the form and sends it to the FSC. This form includes which speedtypes the FSC should use for reallocation.

When the FSC receives this form and the attached receipts, the technician first determines whether the purchases are eligible for reimbursement per fiscal policy. Some of these eligible items include transportation, per diem meals, and lodging. Next the technician fills out the travel voucher. If the technicians have any uncertainties about the information they are putting on the travel voucher then they contact the traveller to obtain the needed information. Once the travel voucher form is filled out completely, the FSC technician has their supervisor review and sign as authorizing signature. The technician then forwards the voucher to the traveller who signs and returns it to the FSC. It is allowable for the traveller to sign electronically through a fax, e-mail, etc. The FSC makes a copy of the voucher and files it then forwards the original copy to the PSC. The supervisor’s/approving signature must be original on the copy that the PSC receives. The PSC then deducts the reimbursements amounts from the selected speedtypes and issues a reimbursement check to the traveller. If the traveller is setup for direct deposit with the University of Colorado, then this reimbursement will be completed through a direct deposit.

Hellems FSC As-Is Process Map

Travel and ReimbursementsThe reimbursement process as described and revised by the members of the

Hellems FSC is as follows: A department staff member will start the process by being involved in a

transaction where they spend money with the expectation of reimbursement. To do so they must be able to justify how their purchase benefits the University, and provide documentation proving the occurrence of the transactions. The documentation that is needed to do so is original Proof of Purchase and an itemized receipt. This will allow outside auditors to objectively determine how the transaction was paid for and what items were purchased. Afterwards the department member completes the FSC multi-purpose request form in order to allocate the transaction to the appropriate account, and apply for reimbursements.

After receiving the multi-purpose request form, the FSC reviews the expenditures to ensure the transaction is allowable for reimbursement. The FSC also verifies that the accounts have been properly identified with an account number and allocated with a speed-type. At this point in the process, if there are any clarifications or if the department is unaware of a speedtype deficit, the FSC will contact the department to rectify the situation. After ensuring the accuracy of the transaction and allocation, the FSC technician will file a voucher that is to be approved by their supervisor. They then file the paperwork with copies of all documentation, and send the voucher with originals to the PSC for reimbursement.

The PSC will receive the voucher, and audit it. After knowing that it is approved the PSC will cut a check, or directly deposit the reimbursement back to the staff member in the department. If there are any questions, the PSC will communicate with the FSC directly for clarification.

Old Main FSC As-Is Process Maps

Procurement CardThe transaction that starts this process is a purchase made by an A-Card

holder, within a specific department in the Arts and Science school. Shortly after, the purchase amount is deducted from the university account, corresponding to that specific A-Card, and the transaction is uploaded into the Pendragon software program. The card holder then proceeds to hand the program assistant (PA), the receipts and any other pertinent information corresponding to the purchase made. Once the PA obtains all the information he/she needs, they begin to fill out the Procurement Card Purchase Receipt Form to the best of their ability. Once that form is completed and the receipts are attached, all documentation is retrieved by an Old Main FSC technician during their daily rounds.

The FSC technician then starts the reallocation process. The information that is found on the Procurement Card Purchase Receipt Form is transferred into the Pendragon software system. Before the input of data into Pendragon, the FSC technician must verify the following information: the speedtype and account code are correct, the transaction is allowable, and all necessary documentation is included. Also, the specialist must check if any tax was charged on the purchase. In the state of Colorado all ACARD purchases are tax-exempt. If any purchase is made outside of Colorado, the tax-exempt status might or might not be validated, which should be noted on the form. Once this is all completed, the FSC technician writes the transaction ID number, the date, and their initials directly on the Procurement Card Purchase Receipt Form for verification purposes and files. This indicates that the reallocation portion of the transaction has been completed.

At the end of the cycle (25th-24th of the month), the FSC technician prints out ACARD transaction statements for each cardholder. The statements are delivered to the departments for signature. Once signed, the cardholder returns the statement to the FSC. The FSC technician then matches the filed Procurement Card Purchase Receipt Forms to the transactions listed on the statement. If the documentation matches up, the process moves along to an Old Main supervisor who serves asapproving official (AO). If the AO agrees that all the documents are complete and correct, they sign and return the statement to the FSC technician who files it internally. Daily and monthly various ACARD notifications are emailed to the following individuals: approving official, reallocator (FSC technician), and the cardholder. These emails act as reminders, as well as an accuracy checking tool.

Travel VoucherFor the travel voucher narrative, please see the meeting minutes for the Old Main FSC from March 4th 2009.

04/01/09

Pre-Meeting Preliminary Recommendations:

Biweekly meeting of FSC employees to create further standardization. To

allow for cross training and diffusion of process ideas. (As an incentive, have

the University buy them lunch for these meetings).

Design a new standardized training manual which includes at the beginning all

necessary process maps with narratives.

Have an online link on the FSC web page to examples of filled out forms with

a narrative explaining the steps.

Standardize training for all new employees which includes a cross training

component.

Assess penalties to people who are not following procedure in regards to

filling in forms correctly, keeping receipts and records, etc.

Look into options for new cards that don’t actually pull from University funds,

but still allow for reimbursement to take place.

Do not accept incomplete Procurement Card Purchase Receipt Forms and FSC

Multi-Purpose Request Forms.

Allocate times during the week for drop-in hours to answer any questions

departments might have or help them fill out forms.

An interim form for professors that is easier for them to follow with a

checklist format. Form must be completed and receipts MUST be attached to

this form before being handed to the PA.

Make sure there is a drop boxes (in box, out box) at each department for all

FSC material.

Purchase a scanner and a server to reduce paper load; adhere to campus green

initiatives. Scan all documents and send originals to storage center.

Explain/reiterate to departments what value the FSC adds. Clarify roles and

responsibilities of the FSC’s and departments.

Department heads sign-off to verify information.

04/01/09

Post-Meeting Preliminary Recommendations:

1. An interim form for professors that is easier for them to follow in a checklist

format. Form must be completed and receipts MUST be attached to this form

before being handed to the PA.

2. Explain/reiterate to departments what value the FSC adds. Clarify roles

and responsibilities of the FSC’s and departments.

Department New Hire packet addition

3. Biweekly meeting of FSC supervisors and manager to create further

standardization. To allow for cross training and diffusion of process ideas.

Quarterly meetings of all FSC employees for the same purpose

4. Design a new standardized training manual which includes at the beginning all

necessary process maps with narratives.

5. A standardize training for all new employees which includes a cross training

component.

6. Have an online link on the FSC web page to examples of filled out forms

with a narrative explaining the steps.

7. Allocate times during the week for drop-in hours to answer any questions

departments might have or help them fill out forms.

8. Purchase scanners and a server to reduce paper load; adhere to campus green

initiatives. Keep electronic copies rather than paper copies and file only

originals. In addition, encourage departments to do the same. Possibly give

PA’s limited access to the stored copies.

Budget and policy restraints make this a future recommendation,

something to keep in mind as things progress

9. Track who and when mistakes/incomplete information is turned into the FSC

in order to retrain or address the issue with the customer

Audit Recommendation and Conclusion

Recommendation #1: Update FSC WebpageProblem:

Currently there is an Arts and Science FSC Web page which anyone can go to if they are in need of information about the FSC’s. However, this webpage is unfortunately formatted in an inefficient way. Only the most vital and frequently asked questions are found as links one can go to, with answers attached. Other important information, such as FSC’s processes and forms, is not found on-line. Because of this the departments do not have a complete and efficient on-line tool to answer their questions. Furthermore, the departments as well as new FSC employees do not have access to an on-line training manual that they can consult in order to know how to correctly complete forms or any pertinent documentation needed. Thus one of the main risks we came across is the lack standardization. Recommendation:

As an audit team our recommendation to target this risk is to update the FSC webpage, adding user-friendly form completion narratives. The idea is to create a standardized on-line training tool that will answer all questions that arise and be used by all new employees upon hiring. This will accomplish three main goals: efficiency, standardization, and time saving.

First efficiency will be accomplished because everyone who needs to fill out forms or turn-in any documentation will have an online flow chart to go to, that will not only visually explain how to correctly fill out the form but will also be accompanied by a written narrative that will explain the process in depth. Efficiency can be achieved when holes and gaps are filled, and we believe this on-line tool will help reduces those errors. Second standardization will be achieved. Currently all three FSC’s do things a little differently, and this is due to different training techniques being used on new hires. We propose one training manual for all three FSC’s, which will combine the best practices of all three. If this occurs every single FSC employee will be subject to the same rules and techniques allowing for the overall standardization among all three FSC’s. Processes among all the FSC’s will begin to mirror each other, hopefully leading to a decrease in inconsistencies. Lastly, this updated webpage would result in a huge time saving for FSC employees. The FSC’s open door possible had allowed teachers, and program assistants to stop in at anytime with questions or concerns regarding the documentation that must be completed in order for reimbursement to occur. When individuals stop by FSC employees must drop what they are doing and turn their attention elsewhere; which leads to more work, later on for the FSC’s. Time will hopefully be saved when these individuals have a place to turn to that explains the forms and documentation the exact same way an FSC employee would, in person, in their office.

Recommendation #2: Purchase Scanners and ServersAs of right now, the FSCs produce paper copies of all purchase documentation

and file them into boxes. These boxes remain in the FSC offices for 3 years; after that, they are transported to an off-campus storage site. It is clear that there are two major problems with this current system. One is the inefficiency of the process. It takes a lot more manual work to do the process as-is, through copying, filing, and storing. The storage aspect is also inefficient because of the multitude of papers that are stored, thus if it ever was necessary to find purchase documentation after this final step, locating it could potentially take some time. The other problem of this current process is how wasteful making all these paper copies is, especially when energy conservation is such an important aspect in today’s society.

In 2002, the University of Colorado kicked off their Energy Conservation Campaign, so “going green” has been a part of the college’s desired lifestyle since the FSCs formation. If scanners and servers were purchased, the use of paper would decrease dramatically; the FSCs would scan the original purchase documentation and save it to a designated file on the server. Then, they could file just the original purchase documents, as to adhere to the University policy. Since the documents would then be electronically saved, locating one in “electronic storage” would be more quick and efficient. This also relieves space in the FSC offices; boxes with the documents would no longer take up any space there. Finally, this recommendation would adhere to the school’s newly adopted expense system.

When meeting with specific department employees, we had some feedback regarding this recommendation. An ALTEC employee suggested this electronic copying and storing, as they felt it would increase efficiency in the FSC, and also contribute to the going green incentive.

There are a few aspects to take into consideration if this recommendation is implemented. We are fully aware of the tight budget the FSCs are given, therefore purchasing scanners and servers seem like an expensive investment. Although this is true, it is only true in the short term. Moving towards electronic methods would be cost effective in the long run. Documentation loss is another negative aspect to take into consideration, as the only hard copy would be the original. But if the process of scanning and filing electronically is taught effectively to whomever would do this step, this risk can easily be eliminated. Finally, due to University policy, it is unachievable to be 100% electronic; therefore eliminating all paper copies is, currently, out of the question.

Recommendation #3: Complete Updated Training ManualAll three FSCs will stand to gain many benefits from completing the updated

training manual and posting it as a quick link on the FSC main webpage. It is important to note that by having the manual as a resource on the website, the effects of constant updating will be minimized due to electronic storage versus constantly reprinting paper copies. This is just one way that the FSC can do their part to contribute to the campus-wide efficiency initiative. The most beneficial advantage is that by having all the processes in one place, new hires and even existing employees would have a readily available resource that they could turn to without having to consume the time of their colleagues or supervisors. Also, as a complete and comprehensive manual, every member of the FSC team has access to the most up to date processes for every department and situation. By keeping the training manual complete and up to date, the FSC can reduce the overall impact of employee turnover and organizational knowledge loss. This conglomeration of information will increase the effectiveness of the standardization processes at each FSC as well. Since the ease of employee cross-training would be drastically improved because all every employee has access to the same resources which are now standard across all three FSCs, supervisors can now more effectively rotate FSC technicians without too much hindrance to overall productivity.

Now this proposal comes with a few drawbacks that need to be addressed in order to mitigate the cons. The first drawback to this suggestion is that it will require a large time investment to compile all the information needed to create an all-encompassing training manual. It should go without saying that the time spent on improving the quality of training resources is time saved from having to take the time to explain to a new employee the correct processes. As per conversations with the Old Main FSC, this is not a new idea. In the past, one person tried to create an entire training manual which proved to be too time consuming and have too many complications to be compiled effectively. That being said, updating the training manual should be an FSC-wide initiative where all employees of the FSC should help in creating this manual. Since each FSC has a departmentalized specialist, it makes sense to have that expert compile information on their departments. By placing the power in the employee’s hands, the overall time investment is spread across all members and thus creates collusion amongst employees. A side-effect of this joint venture between all three FSCs is the increase of cross-communication between the three FSCs.

Recommendation #4: Explain/Reiterate the FSCs’ Roles and ValueIntroduction:

Moving forward the FSCs must increase the levels of understanding surrounding FSC functions and the importance of their existence. To start, the FSCs should re-define their roles and responsibilities in written form. This ensures all FSC employees have a shared awareness of the goals of the FSC. Re-establishing a clear identity internally will enhance the FSCs’ ability to effectively communicate their purpose to outsiders. By taking this step the FSCs can present a more unified image to the departments making it easier to define their role in the University’s procurement processes.Add Section to Department New Hire Packet:

Write up a condensed and simple introduction to the FSC and have the departments add it to the information that they give to newly hired employees. This early introduction to the FSC and what they do will serve to set up the new employee and the FSC for success because the new hire will know what the FSC expects of them from the beginning. This familiarity will minimize deviations from procedure for the FSC. The new employee will know that the FSC offers assistance and answers questions about procurement but the employee will be less likely to default to asking the FSC to do the work for them because they will know what the FSC’s role is meant to be. This will require the FSC to spend time on creating the tool and updating the information as it changes. An initial time commitment will allow the FSC to benefit in the future because the customer will have a more clear understanding of the FSC roles and responsibilities.Annual (Semi-annual) Program Assistant Meetings:

Call a meeting with all program assistants and the FSC on an annual basis. This could also be done semi-annually on a semester based time frame. The purpose would be to remind all PAs what role the FSC is meant to have in the procurement process. This will offer an opportunity for the FSC to receive feedback from the PAs in order to improve their processes. The PAs will be encouraged to voice any concerns that they may feel uncomfortable about bringing up on a day-to-day basis. Through sharing ideas, the FSC and PAs will create a greater understanding of how the procurement process should function. This shared knowledge will limit digression from ideal procedures because the department will not expect the FSC to do more than what they are responsible for. In addition, the yearly refresher meeting will help PAs remember procedure so mistakes will be fewer and time waste will be lessened because work will be finished correctly the first time more often. PAs may believe a meeting like this will be a waste for them. To ensure the PAs see the value of spending their time in these meetings, the FSC should make sure to clarify the purpose of the meeting as being an effort to make the procurement process easier and clearer for everyone.

Coach Inconsistent Customers:FSC technicians should keep track of department customers who consistently

forward forms to the FSC that contain mistakes or are incomplete or unclear. By keeping track of this, the FSC will have the opportunity to address the problem with that customer individually. A simple meeting should be held between that customer and an FSC employee to find out whether there is confusion about the customer’s responsibility or a lack of interest. Simple vocal clarification, a tutorial session, or a motivating conversation could solve the problem in order to reduce wasted time spent by the FSC on correcting errors and support the standardization efforts.

Recommendation #5: Biweekly Meetings of FSC StaffHow do the 3 FSC’s, in 3 different locations, maintain long term

standardization? After deciding on a standardize process that will be acceptable to all FSC management it is important not to allow updated information to cause deviance from the process. In order to grow and be able to provide the best support possible a system will need to be in place to communicate with all 3 FSC’s. We also noticed that high turnover rates have caused the process to change over the years. To amend high turnover management would need to complete new incentives for employees; since this is out of the audit scope the attention was focused on how to create an organization that can communicate the same facts in 3 different locations. In the business FSC the problem did not occur because the staff was able to update their colleagues by turning around and sharing the new knowledge with them. To simulate this it seems that lunch, or a biweekly meeting that the FSC staff attend would provide a platform to communicate personally with each other. This provides the benefit of shared information and universal accounting practices. It means when unique situation occur and one staff member puts in the leg work to find a solution that the other staff can benefit from their findings. This will also ensure that when any staff trains a new employee that they will do so similarly to any other staff. The biweekly meetings are low cost and will not be a major issue if scheduled. If something as simple as lunch is devoted to talking accounting than a social atmosphere can be used to provide the same effect. Please consider this low cost solution that decreases the overall workload of the staff, and ensures the long term goal of standardization.

Recommendation #6: Weekly Drop in Hours

Problem: Currently the FSC’s have an open door policy which allows the departments to

stop by at any given time during standard operating hours to receive assistance with needed tasks. When the employees form the departments arrive, the FSC is responsible to directly help, and train them on following proper procedure with the given task. This prevents efficient completion of task work as the FSC must spasmodically stop their current work to assist the department employee. Given the specific work responsibilities of the FSC, this greatly affects the level of work that the FSC can complete in a given day.

Also, as the FSC’s must continually leave the office to visit their given departments for various work related reasons. This is also a problem because if department employees need assistance from the FSC, there is not a guarantee that the correct technician will be in the office. This is also a problem as it affects the standard of customer service honored by the FSC. The FSC’s make a strong effort to help and support the departments as much as possible, and to build a strong, friendly relationship with the departments to effectively meet the fiscal roles of the University. This relationship is broken when the departments come to the FSC for assistance and the FSC is not available. This generally results as more work for the FSC’s because the specific department employee will not get trained, or they will incorrectly follow the process for the given task. In the end, this will lead to more work for FSC as they will have to review the work by the department and make the appropriate corrections. Recommendation:

Weekly Drop-In hours by the FSC would easily and conveniently mitigate these problems. Essentially, there would be a given time in which the FSC’s would be strictly available to assist and train the departments for any given circumstance. These drop in hours would operate in a similar fashion as a professors office hours. Ideally, there would be two different times in the week in which the FSC’s would be strictly available to assist their departments with any difficulties or procedures. The FSC’s would keep their open door policy, but would also have a preferred time set aside that would be able to offer any assistance to the departments. Solution:

These times that would be set aside would greatly help the FSC’s for a variety of reasons. First, as the department needed help, they would be expected to stop by the FSC during the given office hours, and this would allow time for the FSC’s to focus on certain tasks without interruption. If the FSC’s only contacted the FSC’s during the drop in hours, the FSC’s would be able to work much thoroughly and more efficiently because they would not be constantly distracted. Eventually, as the FSC could complete all of their tasks at a quicker rate, they could begin to focus on customer service towards the departments.

Weekly drop in hours will also help the department because they will have a guaranteed time in which the FSC’s will be at their office available to help. This will increase the level of customer service offered by the FSC because it will be a mutual time in which both parties are available. The departments will know that they may stop by during a given time, and that a technician will be ready and able to help.

Although this may take away valuable time to the FSC, it will assist in the long run as they will ready to teach the departments the correct procedures and fix any potential problems early in the process. This will save valuable time in the long run as it will effectively reduce future errors. Also, this will increase the level of customer service for the FSC, because the department will always be able to find someone that is ready and able to help during the given time. The department will not have to worry if their FSC technician is at the office. Ideally, the department may come in walk in to the drop-in hours, get their question answered and leave satisfied. In the end, weekly drop in hours will help the FSC’s get work done more effectively and reduce tension between the FSC’s and departments.

Project Summary:

Throughout the past 5 years, the FSC’s have been slowly segregated from each other regarding the use of the same processes. This has had detrimental effects as given documents are not always consistent and many discrepancies have risen. The first step for standardizing the three different FSC’s will begin with three different elements that include teaching, communicating, and training. Although these elements are currently present, a higher emphasis must be given for the FSC’s to effectively, efficiently, and quickly complete their duties.

TeachingFirst it is necessary for the FSC to teach all of the departments not only the proper techniques, but also to teach them of the value they bring to the University of Colorado. To maintain the consistent standards of customer service, the departments must know the value the FSC bring s to the University. For if the departments question the services of the FSC, they have no incentive to trust or assist the FSC with their functions. CommunicatingCommunicating is the primary element that will help standardize the FSC’s. Currently the FSC’s are highly autonomous and are being separated due to the vast variations of the departments. As long as the three FSC’s keep in close contact they can solve problems on a consistent basis. Also, as the FSC’s communicate they will be assured that they all follow the same processes. Even though their departments are extremely different they may still be able to streamline their processes in a consistent manner. TrainingAnother essentially element is the training process for new employees. For the three FSC’s to maintain consistent processes, they must all be trained in the same manner. They must have a similar manual that will demonstrate the correct processes in an efficiently correct manner. This also includes updating the current website to a user friendly format that will explain the necessary processes in detail.

Without doubt, as the University is growing at a consistent rate, the FSC’s are beginning to feel the pressure. As opposed to further divergence of processes as a result of their unique departments, they must begin to teach, communicate, and train to remain consistent among the three FSC’s. A long term commitment and strong resolve to adhere to the new standardization will carry the FSC’s forward as a single unit to best protect University funds and better serve the community.

Supplementary Materials

Meeting MinutesDate: January 28th, 2009 Time: 12:00PMLocation: Kobl 320Meeting Purpose: To explore the charter with the assistance of Stephanie Plumberg from Statera in order to gain initial information. An initial assessment of the audit scope was planned, and revised.

Defining our scopeo Understanding the objectives of the 3 FSC’s. This includes knowing

the process of the FSC’s, and the technological tools they have in order to do their work.

o Observe the differences between the 3 FSCs, and determine which are necessary.

o Learn about the rules and regulations that our recommendations will need to adhere to.

o Through the literature of the charter a major risk to be aware of is the risk that the departments will not conform to a new process. Also, the FSC’s must maintain their “soft skills”, personable.

o The group decided to observe all 3 FSC’s operate and create process maps to visually represent their process.

o The group desires to label the checks and balances within the system.o End goal is to standardize and improve the process of the 3 FSC’s.

Suggestions from Saterao Explore the ability to cross train employees through the process of

standardization.o We were advised to determine which systems that the University

currently owned, and if they are using them.o If we do come to a recommendation make sure it is long term solution,

and not a quick fix.

Date: February 4th, 2009 Time: 12:00PMLocation: Old Main Conference Center/RoomMeeting Purpose: To meet the FSC employees, get a tour of all three FSC’s, and get some preliminary questions answered. We also discussed the situation under which we were entering the FSC, and a game plan for the direction desired by our client for audit.

We came to the conclusion with the approval of the FSC’s that we would focus our efforts on procurement cards, and reimbursements.

Views and desires from the FSC managemento The FSC’s are proud of their high level of customer service. They

understand that the majority of the departments are not as concerned with the financial aspect of higher education compared to the teaching, and wish to support that ideology.

o The thread that connected the 3 FSC’s has been torn by turnover rates. It has made it impossible to maintain or recreate a universal process throughout the FSC’s.

Major goals of the FSC’so The most important key to success will be to standardize the process in

which the FSC’s operate.o The FSC wishes to streamline the process around procurement cards,

and reimbursements.o To make sure that the FSC’s are providing segregation of duties.o Increase their training effectiveness

The FSC employees informed us of resistance.o Long-term staff will challenge changes to the system.o More work will not be appreciated by anybody.

FSC’s extraso Monthly newsletters containing necessary information about regulation

updates for the departments. This service was discontinued with the loss of a certain employee.

o The information that the FSC must sort through is overwhelming, and would be a full-time job in itself.

One-on-One training.

Date: February 4th, 2009 Time: 12:00PMLocation: Old Main Conference Center/RoomMeeting Purpose: To meet the FSC employees, get a tour of all three FSC’s, and get some preliminary questions answered.Met with Cynthia Husek (Director of Budget and Finance), Stephanie Weber (FSC Manager), Megill Stewart (FSC Supervisor), Debra Enevoldsen (FSC Supervisor), and Leisa Hesebeck (FSC Supervisor). Also present was our entire group: Katie Baltera, Jacob Malson, Kimberly Smith, Mariana Mejias, Stephen Newcomb, and Alexander Krantz.An agenda and questionnaire was sent beforehand.

Confidential dataplease use discretion on this matter. Can’t take original documents, but work with FSC’s supervisors to make

copies. Major Goals:

o Standardizationo Ability to do separate duties (Segregation of Duties)o Getting people on board

Departments with employees who have been around for a long time could resist change more severely.

FSC’s are the same; it’s the departments and the way they handle things that are different.

o Different personalitieso Departments are the customers

Regulations and Ruleso New ones come out frequentlyo FSC’s supervisors try to let department employees know, either

through emails or face-to-face depending on the situation/person. Not a process we can standardize.

Old Main FSC o Started working on a new training manual. To streamline, not to

train new employees. Accounting Tech III – highest level before being a supervisor. Accounting Tech IV – supervisor level. New hires

o They sit one-on-one with a senior employee One way to train people.

System allows people to a specific task many different ways. Would prefer cross-training. President Benson

o Working on steps to better the “environment” because of complaints.

Date: February 11th, 2009Time: 12:00PMLocation: KOBL 320Meeting Purpose: Discuss our IT audit with KPMG IT advisors.Met with Maggie Cheney, Alex Salem, and Jeff Funderburk.

Emphasiso Reimbursementso A/P

Keep three years worth of documents on siteo Iron Mountain document storage facilityo How long information should be retained on site?

Always start with what they are already doingo Less resistanceo Less costlyo Could we get all the information to come in the same way?o Need original receipto It is up to the department to either send the receipts to them, contact

them via email or come in and directly speak to the FSC employees. Question for FSC: How do you get/receive your information from all the

departments? Stay away from payroll. Procurement and accounts payable

o Sub-categories: traveling and purchasing Document

o Scope sectiono Purpose sectiono Approach section

Interview FSC’s Interview professors

Research who we should interview, since we can’t get to everyone.

o Deliverables Process Maps

o This is the value added! Challenges – make sure to record them and work with correct people to

overcome them. Signature lines?? ASAP -dates to deliverable!!!!

o 3 process maps- draftso 4th/final process map – condensed=executive summary

Risk assessment

Meeting Minutes – Ketchum FSCNote: These minutes have been condensed for the purposes of providing relevant information regarding the scope of our audit and our conclusions. Much more was discovered, but for practical application purposes they have been edited and shortened.

Date: February 11th, 2009 Time: 12:00PMLocation: Ketchum FSCMeeting Purpose: The first meeting served two different functions:

1. Understand and see visually how the Ketchum FSC operated2. Receive a basic understanding of the 3 processes regarding our scope

a. Procurement cardsb. Procurement card application processc. Travel reimbursement

Met with Leisa Hesebeck (FSC Supervisor). Those present were: Kimberly Smith and Stephen Newcomb.An agenda and questionnaire was sent beforehand regarding the basic functions and processes within the scope of our audit

Basic functions of the FSCo Assist departments with financial transactionso Attempt to keep a high level of customer serviceo Attempt to cater to each individual departments needs

Several different departments Each department operates a little bit different The size of the department contributes to their financial

accuracy of following the correct procedures Whether or not a department has a PA also greatly affects how

the FSC interact with the departments

Basic functions of ACARDACARDs (procurement cards)o The FSC’s relation to the departments as approving and allocating

officials o FSC’s relation to the PSC regarding ACARDACARDso For specific and detailed information regarding this process, see the

process maps and narratives developed by Kimberly Smith and Stephen Newcomb

Basic functions of the ACARDACARD application processo The FSC assures the correct information is filled out on the application o The FSC submits the application to the PSCo For specific and detailed information regarding this process, see the


Basic functions for Travel reimbursemento The FSC is constantly in contact with the traveller, and the FSC

o The paperwork is in depth as several processes must be followedo For specific and detailed information regarding this process, see the


Speak with other technicians within the FSCo Observed the use of Pendragono Each technician is the controller of a few different departmentso Each technician is responsible for their department and Leisa approves

their worko The technician tends to treat every department differently depending

on several different factors

Date: February 18th, 2009 Time: 12:00PMLocation: Ketchum FSCMeeting Purpose: In time for our second meeting, we had a much more broad understanding of the basic processes but we had many specific questions regarding the basic functions of the FSCMet with Leisa Hesebeck (FSC Supervisor). Those present were: Kimberly Smith and Stephen Newcomb.

By the time of the second meeting, we had created process maps of our interpretation of the processes regarding the scope of our audit

o Our first order of business was to have Leisa review our maps and make any corrections

o As several discrepancies were discovered, we had more questions regarding the specific processes of travel reimbursement and procurement card use

Travel Reimbursemento We watched a technician step by step go through a travel

reimbursemento Several questions regarding specifics to travel reimbursement were

answered and is appropriately explained in the process maps and narratives

Procuremento Kimberley and I sat down with two different technicians as we began

view the Pendragon process through several different transactionso Many of our questions regarding details of the process were answered

and are reflected in the process maps and narratives Value added purpose of the FSC

o As we sat down to eat lunch with the employees of the FSC a technician joined us explaining the purpose and the formation of the FSC

5 years ago, a fraud was uncovered through the University Before the fraud, each department was solely responsible for

their financial and HR transactions This segregation of duties is expected to not only prevent

further fraud, but to streamline financial information in a correct and timely manner

Date: February 25th, 2009 Time: 12:00PMLocation: Ketchum FSCMeeting Purpose: Before our third meeting, we revised our process maps and planned to walk with one of the technicians to their various departments. As we believed to have a pretty strong understanding of the processes, we also planned to converse with the FSC employees about reasonable recommendationsMet with Leisa Hesebeck (FSC Supervisor) and the other technicians within the FSC. Those present were: Kimberly Smith and Stephen Newcomb.

Through a final review of our process maps, Leisa gave us a few corrections as to the appropriate methods

o Corrections on process maps have been incorporated into our final process maps and narratives

Walk to the departmentso One of the technicians took Kimberly and me on a walk to her

departments to deliver and pick up various work related paperwork Each technician oversee the anywhere between 4-8 departments Each department is highly individualized

This depends on the size of the department This depends on if the department has a PA (program

assistant) This depends on the professors Depends on other minor factors

o The technicians highly value their customer service especially when they meet the departments in person

Every department is especially different The technicians make every effort to accommodate for the

differenceso The technicians visit their department on a daily basis, and whenever

necessaryo The departments tend to be in the near vicinity of the FSCo The smaller departments tend to follow procedure more frequently

than the large departmentso Conclusions: The 3 FCS have become remotely segregated due to the

vast difference in the departments The departments specific needs seems to force the FSC’s in

different directions as the FSC’s must accommodate these individual needs

One of the best ways to standardize the FSC’s may involve standardizing each department

Date: March 4th, 2009 Time: 12:00PMLocation: Ketchum FSCMeeting Purpose: For our fourth meeting, we planned meetings with 3 of the individual departments. One of the goals was to have the PA describe in detail each of our 3 processes to assure they all follow the same stepsMet with Leisa Hesebeck (FSC Specialist) and the PA’s from 3 different departments. Those present were: Kimberly Smith and Stephen Newcomb.

1. Meeting with the Environmental Studies (ENVS) departmenta. Travel Reimbursement matched with the process mapsb. Procurement matched with our process mapsc. Procurement card application matched our process mapsd. Other

i. Each Professor has their own ACARDACARD due to small number of professors within the department

ii. ENVS has a good rapport with the FSCiii. As a smaller department they have very few complicated

transactionsiv. They rarely have difficulty working through or with the FSC

2. Meeting with the Program for Writing and Rhetoric (PWR) departmenta. Travel Reimbursement matched the process maps although this

department rarely travelsb. Procurement also matched the process maps

i. Some difficulties may occur regarding the items purchased by the department and if the items are approved through an approved University vendor

ii. Procurement card application matched our process mapsc. Other

i. Comparatively to ENVS, PWR is a little bigger and has a few more discrepancies regarding the overall process

ii. Have a good rapport with the FSC’s, and enjoy interacting with the FSC

iii. Whenever a problem arises, the problem gets accurately fixed while working with the FSC

3. Meeting with Political Science Departmenta. Our third meeting proved to be ineffective due to difficulties interviewing

the PA4. Conclusions

a. According to the departments the FSC appear to be accurately and efficiently doing their job

b. Overall, the departments seemed to be very pleased with the work of the FSC

c. According to the FSC, they are struggling to keep up with the departments

d. One of the main problems is the fact that the departments continue to grow, but the FSC remains the same size

e. This makes the FSC’s job difficult as they do not have the resources to keep up with the departments

f. The FSC’s either need another employee or a way to allocate more time to their work without being interrupted by the departments

Meeting Minutes – Old Main FSCDate: March 4th, 2009Time: 12:15PMLocation: Old Main FSC officeMeeting Purpose: To get a quick and condensed training session on ACARD transactions and the travel reimbursement process. Mariana Mejias met with Janelle Carlisle (FSC Specialist). Alex Krantz met with Philip Bradley (FSC Specialist).

ACARD transactions: Pendragon – system to re-allocate ACARDs

o Can generate reportso Get emails with amounts to date for each department – daily

transactions Professors make a transaction with their ACARD, then that transaction gets

sent to the ACARD system, and an email about the transaction gets sent to the professor, the FSC employees, and to the approving official.

o All three sets of eyes look at the email to make sure the information is legitimate.

Most important is purpose (business purpose) Things they can’t purchase with their ACARD:

o No alcohol purchases (though can purchase meals that include alcohol if given prior approval)

o You must go through approved vendor for travelling expenses – cannot use ACARD for travel

Look to make sure receipt is there:o No tax – only in Colorado and certain states that validate their tax

exempt status. Fill-in expense code if it is not already there.

o Janelle (one of the Old Main FSC employees) has a spreadsheet with all the codes for easier access.

Do other people have this? Go to Pendragon after checking all the procurement card purchase receipt

forms. Steps for using Pendragon reallocation system:

o Log ino go to #1: Transactiono Go to quick reallocationo Then enter in the card holder’s last name in caps.o Find professor.

In Pendragon the transaction has a default speedtype and expense account number. FSC employees have to reallocate to match the correct speedtype and expense code on the Procurement Card Purchase Receipt Form. Once the reallocation is done they write the transaction ID number, their initials and the date at the bottom of the Procurement Card Purchase Receipt Form.

Usually each FSC employee does their own assigned departments’ reallocations.

Pendragon prompts you and asks you if all the information you have entered is correct then hit FIfinished.

Reallocation part of Pendragon is user friendly, but finding information within the system is not intuitive.

If the transaction ID number is not written down on the Procurement Card Purchase Receipt Form when the reallocator has completed the reallocation transaction, a mistake has been made. However there is a way to track down that specific transaction and retrieve the ID number.

You always have to go back to the main menu before doing anything new on the system. It is frustrating to move around the system.

Transaction that needs to be divided between two speedtypes, or within the same speed type but between different expense accounts:

o Steps Quick reallocation Professor look-up Multi account transaction entry

Go to #4 Pick appropriate individual Enter the transaction ID number Fix default numbers We want to change the status from “N” to “A”

Any time they need to make a change to an ACARD transaction it must be done on the ACARD system.

o Go to #5 editing option, hit “R” for revise, tell the system again which line you would like to edit, and then enter correct information (speed type, expense code, or description). Then hit “X” to exit, and finally “FI” to finish and “S” to save it. The system will ask you again if you are finished, and if are choose “FI”, which means yes.

o These changes can be made any time during the year, especially if you are running out of money on one expense account. FSC employees can move around transactions to free up money in that specific expense account.

o Maybe one special speedtype is not set up yet, so FSC employees must place the transaction in another speedtype for the mean time. Once the special speedtype appears on the system they move the transaction to its correct place.

A month runs from the 25th-24th.o At the end of the “month” they will get statements. They print them out

and check them to make sure transactions actually went through. “N” means it has not been re-allocated “A” means it has been re-allocated.

o They give the information they have to the departments, and ask that the cardholder verify that the transactions match what the card holder thought he/she spent. Then it is signed and returned to the FSC, and the FSC employees take all previous paper work (i.e. Procurement Card Purchase Receipt Form) and staple everything together and turn it in to the Approving Official.

Date: March 4th, 2009Time: 12:15PMLocation: Old Main FSC office

Meeting Purpose: To get a quick and condensed training session on ACARD transactions and the travel reimbursement (vouchers) process. Mariana Mejias met with Janelle Carlisle (FSC Specialist). Alex Krantz met with Philip Bradley (FSC Specialist).

Travel Vouchers:

Travellers are not just professors of CU but also professors who come to CU for a conference or speakers that a professor has brought in to present to a class.

Often times, travellers use the state approved travel agencies to book their flight. More often, travellers go online to make their own plans through bargain websites, purchase these deals themselves and then wait for a reimbursement.

Once documentation is received from department or individual traveller:1. Check documentation and receipts for flight, hotel, dining to verify all

from the same trip and valid receipts for actual events2. Open Travel Voucher spreadsheet file in excel and begin filling out the

document with TA number (last name, first letter of first name, six number date. Ex: KrantzA030409), name, dates, reason for travel, speed-type, and expense code.

3. Need 1 out of 3 for ID process [Vendor(can set up frequent travellers as vendors), Federal/State(SSM, Driver License #, SID#), Employee ID#]

4. Organize Items by date5. Fill out description line with reason for travel, location, last day of travel6. Calculate total cost 7. Print out and attach supporting documentation8. AO signs off after review9. Need traveller to sign and return10. Once returned, a copy is kept on site and the original is sent to the PSC11. PSC rechecks documents, then upon approval cuts a check or direct

deposit to reimburse traveller12. Copy filed away once the check is deposited into travellers account

Date: March 18th, 2009Time: 1:25PM

Location: McKenna Languages Building, room 129Meeting Purpose: To receive feedback on the Old Main FSC.Met with Karen Hawley (Program Assistant for the German & Slavic departments)

Likes that people do not have to use their own money.o Would like to be able to use the ACARDs for travel expenses.

Smooth transition with professors.

Date: March 18th, 2009Time: 1:45PM

Location: McKenna Languages Building, room 126 Meeting purpose: To receive feedback on the Old Main FSC.Met with Doreen Williams (Program Assistant for the Spanish and Portuguese departments).

She doesn’t think the system with the FSC’s works well. Takes a long time to do the paper work. She is doing extra work to get all the

information to the FSC’s. *This department tries to complete most transactions on their own*

FSC keeps original copies, so if she needs them for any reason it is a complicated process to locate them. *FSC submits originals to PSC as required*

When they are busy the extra documents/paper work takes too much time from her busy schedule it’s really time consuming. *This department does not fully utilize the FSC*

Why does it have to go to the FSC for reallocation and approval? Why can’t they reallocate it themselves (without the FSC) and then just have

an approving official approve it afterwards? *Compensating controls and separation of duty are best practice*

PSC – is asking her why it has not been reallocated, even though she and the FSC have done it; they know they have.

Emails:1) Print out your monthly statements2) A reminder email is sent out that lets you know it’s time to

reallocate. Layers keep getting added to the reallocation process FSC is yet another

layer. FSC is asking her for information that she has already given them in the past.

They have the originals stored at the FSC, but ask her for the documents again.

Doesn’t mind being kept accountable, as long as it’s making her job efficient. She buys everything that the department needs. The professors in the Spanish

and Portuguese departments do not buy anything themselves; none of them have their own ACARD. *this is the department policy*

She has added a signature to the forms the chair’s signature. She did this so the chair knows what he/she is spending.

They handle travel as well for all professors. *this is the department policy* Only she and Marilyn (her assistant) have ACARDs.

Date: March 18th, 2009Time: 2:00PMLocation: Center for Service LearningMeeting purpose: To receive feedback on the Old Main FSC.Met with Jesse Bedirian (Assistant Director & AmeriCorps Program Coordinator- Center for Service Learning).

Differences between state and corporate procedures. A way to keep up with the changes of the processes:

o They don’t hear/know about the changes until they are going through the actual procedure, and then they hit a road block because the process/part of the procedure has changed.

o She thinks it’s just bureaucratic constant changes.o She likes the informal element of the FSC; that she can just show up at

their office and ask them questions/talk to them for an hour. Love the open environment the FSC provides. Relax, down to earth atmosphere.

Inter-office cooperation is good; communal environment. Works with Julie Carmen (one of the Old Main FSC Specialist); has been

through three turnovers of FSC employees. Too much customer service is a clutch, which had been the case in the past.

Julie asked her, “Do you know how to do this yourself?” accountability Prefers the FSC system the way it is currently. She is the only one with an A-Card

o Efficient that she is the only one that can buy everything. *very small department with 4 employees*

o Thinks this is an advantage (that she is the only one with control) Would like to get updates of changes to procedures.

Meeting Minutes – Hellems FSCDate: March 4th, 2009Time: 12:15PMLocation: Hellems FSCMeeting Purpose: To understand the process of reimbursements, travel expenditures, and Procurements. Our goal was to be able to take the information and formulate it into a process map and supporting narrative.

We went over the processes for reimbursements, procurement cards, and travel.

o Program Assistant sends in the proper forms with the correct documentation.

Proof of purchase, and itemized receipt (original copies). There are extra forms if the proper documentation is not

available, unless the total is less that $25 in which case no documentation is needed-Risk.

The FSC staff made it clear that they provide more of a customer service center than a policing agency.

The FSC’s run fairly smoothly until there is a unique scenario in which they do not know how to account for the situation.

o Other countries moneyo Changes in rules and regulations that did not get noticed/ retained by

the FSC. FSC supervisor, Debra, commented again on the usefulness of the monthly

news-letter.o There is too much information to sort through otherwise.o Creates email overload with keeping up on changes in regulations.

Date: March 18th, 2009Time: 1:25PMLocation: Baker, History, and Altec DepartmentsMeeting Purpose: We wanted to meet with different departments to understand their various needs, and beliefs. We met with a large, medium, and small department to interview them about the process and ways in which to improve the process. Baker

o Believed that the FSC were an extra level of work.o Does believe that Violet, FSC worker, is watching her back.o ACARDs are great thingso She clearly understood her role and responsibilities within the process.o Questions about the process or regulations are easy to have answer by

the FSC. If they do not know the answer off-hand then they will find out the answer.

Hates the website of codes and regulations History

o Agrees that turnover has hurt the effectiveness of the FSC’s. 6-8 weeks of back lag Caught up now and running smoothly

o Feels that the FSC is a fiscal authority. Altec

o The Program Assistant operates at a high level.o He recommends that the process uses less paper

Going digital will a huge help Going green, back up on servers, utilize e-signatures Scanning receipts, avoid losing them.

Complete use of ACARDs. He doesn’t understand why ACARDs cannot be used

for travel.

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