Campus Key Controls

Internal controls are divided into key and non-key controls. Key controls are the primary procedures relied upon to mitigate a risk or prevent fraud. Non-key controls are considered secondary or back up controls. All controls can be grouped into one of the five components of internal control:

  1. Control environment
  2. Risk assessment
  3. Control activities
  4. Information and communication and monitoring

Responsibilities

Central departments are responsible to identify, review and validate their key controls in the areas of procurement, disbursements, payroll, sponsored projects, capital assets and fiscal year-end close. These controls are documented and updated at least annually. Internal and external auditors rely upon key controls when performing audit and review procedures.

25 Key Controls Impacting Campus

Financial Controls

Key Code Description

01

Bank deposits tracking and review to ensure that all deposits are made timely and recorded timely and accurately

03

Invoices greater than $2,500 must be approved by the department responsible for the purchase.

04

DP-Delegated Department (DP) Reports are used every month by the Purchasing Department to track information on spending amounts, invoice splitting and large expenditures.

11

Supplemental housing loan approval: UCSF provides Supplemental Loans for principal residences. Ensures loans are properly authorized, approved and issued.

13

General Ledger Verification (Sponsored and Non-Sponsored Funds): Ensures expenditures are accurately reported and no misstatements are reflected.

14

Capital Project Budget and Expenditures: Ensures capital expenditures are properly authorized and recorded accurately.

18

Physical Inventory-Physical Inventory is conducted by the department custodian/PI every two years. Campus Asset Management ensures the inventory is conducted every two years. Records are reconciled to the physical inventory results.

23

Grants Federal Cash Transaction Report-Review and reconciliation of Federal Cash Transaction report.

24

Contracts Revenue Billing-Monthly review and reconciliation of contracts revenue billed to expense.

25

Post-audit of non-payroll cost transfers using a sampling process, allows CGA to correct cost transfer errors made by departments and provide additional training to those departments to reduce the risk of future errors.

26

Overdraft Funds Review to monitor and follow-up with Control Points on excessive overdrafts to prevent departments and PI’s from continuing and extending the overdraft amount on an award

27

Sponsored Project Accounts Receivable Reconciliation. CGA reviews outstanding accounts receivable items to ensure that the general ledger and PS are in agreement and accurately reflect UCSF's true AR; revenue recognition is current, review of outstanding balances to prevent write-offs for uncollectible balances.

28

Payroll Expense Distribution Report Review and Reconciliation. Ensure payroll expenditures are recorded accurately.

33

Quarterly Balance Sheet Account Reconciliation Review to ensure balance sheet accounts are reconciled, reviewed timely and corrective actions are completed to reflect accurate balances

36

Periodic Review of Systems Access to PeopleSoft Systems to ensure that security access for employees is appropriate and timely for activation

41

Leave report reconciliation to ensure accurate reporting for vacation, sick and compensatory time

A-133 Controls

Key Code Description

A1

Recorded transactions and activities that are expended only for allowable activities

B1

Only allowable and allocable costs are charged as direct and indirect costs to federal awards

C1

Provide reasonable assurance that the time between the transfer of funds from the treasury and their disbursement are minimized for both prime and subrecipient

F1

Equipment Physical Inventory is conducted every two years and equipment assets are accurately reflected and detailed in the asset management system and comply with federal requirements (similar to KC 18)

G1

Ensure committed amount of cost sharing was provided and committed level of effort were maintained and expenses adhere to budget category restrictions

H1

Only obligations incurred during the funding period are charged to the award

J1

Provide reasonable assurance that the program income is earned and recorded in a separate fund is liquidated on a periodic basis and is reported accurately to the federal awarding agency

L1

Provide reasonable assurance that the financial and/or performance technical reports include only allowable activity and submitted in accordance with the program requirements if federal awarding agency

M1

Provide reasonable assurance that federal award information and compliance requirements are identified to subrecipients, subrecipient activities are monitored, and subrecipient noncompliance is evaluated and addressed