overning oard’s &inance and !udit ommittee Meeting Notice ... · 3/1/2019 · The Pearson partnership for online programs will reach a different student population. The FY20 outlook

'overning �oard’s &inance and !udit �ommittee Meeting Notice and Agenda*

Friday, March 1, 2019 9:00am

District Office, D225

General Matters 1. Call to Order Tracy Nuckolls

Action Items 2. Approval of Minutes from December 14, 2018 Tracy Nuckolls

3. Internal Audit - Risk Assessment and Proposed Audit Plan Kurt Weirich, Jeff Silvyn 9:05am

4. FY20 Budget Components Tracy Nuckolls a. March 4, 2019 Study Session Presentation b. Committee Recommendations to the Governing Board

on FY20 Budget Components (if applicable)

Reports and Feedback 5. Revenue Bonds David Bea

a. Update on Bond Sale b. Committee Oversight

6. CFO Update David Bea a. FY18 Comprehensive Annual Financial Report (CAFR) b. FY18 Single Audit Report c. HLC Mid-Cycle Report d. Travel Procedures Benchmarking

Effectiveness Discussion

Information Items 7. Future Agenda Items

a. Financial Aid Update b. Health Plan Self-Insurance c. Update on Local Employers d. Competency-Based Education e. Enterprise-wide Risk Management f. Athletics g. Workforce

Adjournment

Next Meeting April 12, 2019 District Office, D225

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https://www.boarddocs.com/az/pima/Board.nsf/files/B9T7EL78F18B/$file/Study%20Session%20Presentation%2003.04.19.pdf

https://www.pima.edu/about-pima/reports/finance-reports/docs-annual-financial/PCC-CAFR-FY2018.pdf

https://www.pima.edu/about-pima/reports/finance-reports/docs-audit/PCC-Single-Audit-FY2018.pdf

https://www.pima.edu/about-pima/accreditation/docs/201901-29-hlc-mid-cycle-report-to-pcc-compliance.pdf

Finance and Audit Committee Agenda 03/01/19 Page 2

*Option to recess into executive session – Pursuant to A.R.S. 38-431.03(A)(2) the Committee may vote to go into executive session for discussion or consideration of records exempt by law from public inspection, including the receipt and discussion of information or testimony that is specifically required to be maintained as confidential by state or federal law.

Pursuant to A.R.S. 38-431.03(A)(3) the Committee may vote to go into executive session for consultation with legal counsel.

**Additional Information – !dditional information about the above agenda items is available for review on the College’s website.

**The Committee reserves the right to change the order of agenda items.

**To request a reasonable accommodation for individuals with disabilities, a minimum of five (5) business days before the event is requested. Contact Phone: (520) 206-4539 Fax: (520) 206-4567.

Members of the Committee may participate by telephone, video, or internet conferencing.

2

https://www.pima.edu/about-pima/board-of-governors/board-committees/finance-audit-committee/agendas-minutes.html

Governing �oard’s Finance and !udit �ommittee

Friday, December 14, 2018

9:00am


Meeting Minutes

In Attendance:

Tracy Nuckolls (Chair), Demion Clinco, David Bea (Ex-Officio), Bert Landau, Clarence Vatne, Marie

Nemerguth, Adrianne Regrutto (Co-Chair), Daniel Soza (Ex-Officio)

Unable to Attend:

David Ortega, Sylvia Lee, Scott Odom, Jesus Manzanedo

Guests:

Scott Cabalka & John Utter (RBC), Erika Coombs & Randie Stein [by phone] (Stifel), Vice Chancellor Lisa

Brosky, Fiscal Principal Analyst Bernard Simon

General Matters

1. Call to Order Chair Tracy Nuckolls called the meeting to order at 9:04am, noting a quorum was met.

Action Items

2. Approval of Minutes from October 19, 2018 Chair Nuckolls asked if the Committee had any changes to the minutes. With no changes, a motion

was made to approve the minutes.

Motion No. 201812-01: Approve Minutes from October 19, 2018

First: Clarence Vatne

Second: Demion Clinco

Vote: Motion passed unanimously (Nuckolls, Clinco, Landau, Vatne, Nemerguth, Regrutto

voting in favor)

Motion Carried.

Reports and Feedback

3. Investments (Scott Cabalka and John Utter, RBC) Scott �abalka and John Utter joined the �ommittee to discuss the �ollege’s investment portfolio.

Mr. Cabalka began with an overview of the investment strategies utilized through the past year,

highlighting key changes and discussing performance metrics. Adrianne Regrutto inquired about

investments in energy sectors in light of the current market. The rating process, including stress

testing, is used to determine the health of each sector. Bert Landau asked about investments into

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companies with parent companies outside of the United States, and the �ollege’s investment

guidelines were reviewed with regards to this strategy and interpretation of the guidelines. The

Committee is interested in pursuing this strategy. Mr. Cabalka and Mr. Utter will draft a narrative

and provide some examples, taking into consideration the regulatory system in the country of the

parent company, and send to Dr. Bea for review by this Committee.

Dr. David Bea asked about moving approximately $20M from cash into investments; is the best

strategy a 50/50 split between short- and long-term investments? Or does this Committee have

interest in moving all of the funds into the long-term? The �ollege’s cash flow is currently in one of

four types:

● Overnight bank funds

● State Local Government Investment Pool - highly liquid, better return than overnights

● Short-Term

● Long-Term (1-3 years)

The Committee favored moving all of the funds to the long-term investment pool. The bond

issuance will provide additional flexibility in the coming months. Mr. Cabalka discussed the

potential for investing the bond proceeds with regards to the cash-flow schedule.

Lastly, Mr. Cabalka will be retiring next October; he reviewed the leadership of his team in his

succession.

Ms. Regrutto inquired as to the �ollege’s investment portfolio and adherence to the investment

guidelines for percentages in each type. Mr. Cabalka confirmed PCC is within the established

guidelines.

Chancellor Lambert stopped in to thank this Committee for their commitment to the College,

extending his gratitude for their time and efforts to affirm and further P��’s financial stability.

4. Revenue Bonds Update (David Bea; Erika Coombs & Randie Stein, Stifel) Erika �oombs began with an overview of recent activities. This week, Fitch Ratings and Moody’s Investors Service were each on-site for ratings presentations, with expectations that ratings will be issued next week. The offering documents are targeted for publication by December 21st.

Bond sale will occur the week of January 14th with the expectation for the funds to be deposited by the end of January/early February. The proceeds deposit, based on current rates, is estimated at $64.1M. Stifel will ensure the best rates. The lowest cost of issuance was the key factor in one sale versus multiple; the potential for federal rate increases was also considered. This will be a twenty-year bond.

5. Marketing (Lisa Brosky) �izTucson’s next issue will have a heavy focus on Pima, under the auspice of the 50th anniversary celebration, to provide information about the �ollege’s bond projects and the development of the Centers of Excellence. The PCC Foundation is heavily invested in the development of the issue, and

Finance and Audit Committee Minutes 2

December 14, 2018

4

the College purchased additional printed copies of the publication to distribute throughout the year. Ad generation was key. The Groundbreaking will be a large production, and hardhat tours will be provided to the community. Chair Nuckolls asked about inviting prospective students, particularly from the high schools, to the hardhat tours.

Ms. �rosky continued, noting the �ollege’s changing marketing strategies and the effects of niche marketing. Attention will be focused on returning students, adult education students, and potential students who have completed an application but did not attend.

The �ollege’s new brand platform was shared. Mr. Landau asked if the messages are targeting more towards potential students, or towards the community’s employers. New visuals will be integrated into the implementation. Messaging to students will be more about the individual, telling stories about P��’s students and their achievements. Messaging to industry will be supported by ambitious, goal-oriented decisions and discussed with industry partners in smaller conversations.

The College will have consistent messaging to support the notion that PCC is quality. External and internal messaging and images will match, and the consultant will also partner with workforce to enhance that message. Mr. Clinco spoke to a recent roundtable with industry, noting their feedback is positive because the College is listening, engaged, and responsive. PCC will be testing all branding and marketing moving forward and will be producing a viewbook, a first for the College.

6. CFO Update (David Bea) A Study Session was held on the Monday, December 10th, which provided an update on FY18 financial statements, FY19 progress, and FY20 outlook. The College is on track to meet reductions in full time equivalent employees, with approximately 200 eliminated by the end of FY19. The reductions have primarily been through attrition, minimizing the impact on people; less than 20 personnel were directly affected.

The Comprehensive Annual Financial Report was published today. Net assets are up $16.0M over the prior year; a brief update will be provided to the Board in January, with a full overview to this �ommittee in February. The FY18 results were emphasized during this week’s ratings presentations. The trend will continue into the future.

Fall enrollment was down, and Spring is currently flat. Age cohorts looking forward will increase at a slow rate. The Pearson partnership for online programs will reach a different student population.

The FY20 outlook includes benefits projection increases that are better than national trends; self-funding has save the College approximately $20.0M, and the Wellness program has mitigated risk. The College has reserves on hand, as well as stop-loss insurance.

The Governing Board has asked for a lift of salary schedules (that is not insignificant), which would include making the 2.5% lift (temporarily approved in FY18) permanent as well as an additional increase, while not raising tuition. The two new Board members will have orientation in January.

As far as revenues, a tax levy potentially has support of the Board. Differential tuition for high-cost programs is another avenue that will be explored. Mr. Landau asked about the potential for employer subsidies- this is more likely to come from contracts or from the P�� Foundation’s $300M, 10-year capital campaign.


December 14, 2018

5

Ms. Nemerguth inquired about the Athletics budget. The big cut this year will come from elimination of the football program. The additional reductions to the budget will come in the next year. Right-sizing the program will be based on revenues generated through the Student Services Fee, as originally intended. Sponsorships are another avenue to explore.

With regards to personnel, Dr. Bea reviewed notable vacancies in Finance, HR, and IT. He will share updates as positions are filled. The new Internal Auditor position is posted, and the Director of Compliance is out for recruitment.

The Higher Learning Commission (HLC) visited the first week of December, including the visit as part of year 4 of the accreditation cycle and a multicampus visit at DC, NW, and CC. While no official feedback has been received, the College will likely have follow-up on Pathways, Student Learning Outcomes, and Compliance. There continue to be challenges with Financial Aid related to the Clearinghouse. Governance may also require follow-up to the HLC, including the Governing Board and the �oard’s �ommittees.

On behalf of Sylvia Lee and himself, Mr. Clinco extended his gratitude to the rest of this Committee for their work in support of the College.

Information Items

7. Future Agenda Items a. Financial Aid Update b. Health Plan Self-Insurance c. Update on Local Employers d. Competency-Based Education e. Enterprise-wide Risk Management f. Athletics g. Workforce

Adjournment

The meeting concluded at 11:03am.

Next Meeting:

March 1, 2019



December 14, 2018

6

*****Confidential – Do Not Distribute*****

2018 College Risk Assessment Final Report

December 21, 2018

DISTRIBUTION: Lee Lambert, Chancellor Governing Board Finance and Audit Committee Dolores Duran-Cerda, Executive Vice Chancellor and Provost Dave Bea, Executive Vice Chancellor, Finance and Administration Bill Ward, Executive Vice Chancellor, Facilities & Police David Dore, President, Downtown Campus, Northwest Campus and Community Campus Morgan Phillips, President, West Campus, Desert Vista Campus and East Campus Jeff Silvyn, General Counsel Bruce Moses, Associate Provost Jeffrey Lanuez, Director, Talent Management, Acting Executive Director, Human Resources Rachel Schaming, Interim Transition Officer

Completed by: Kurt Weirich Director, Office of the Internal Auditor

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Office of the Internal Auditor 2018 College Risk Assessment Final Report December 21, 2018

TABLE OF CONTENTS

I. Introduction

II. 2018RiskAssessmentResultsSummary

III. RiskDefinitions

IV. RiskProcessFlow

V. ScopeandMethodology

VI. Top10RiskSurveyResults

VII. DetailedRiskSurveyResults

VIII. OverallHighestRiskCategories

IX. Engagement Planning &RiskAssessment

X. RiskMatrix

XI. EngagementPlanDetails

XII. Resource& NextSteps

XIII. Appendix A: DetailedRiskSurveyQuestionsand SummaryResults

XIV. AppendixB:RiskResearch

XV. AppendixC:PCCCoreThemes andObjectives

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EXECUTIVE SUMMARY

InternalAuditexpresses appreciation totheCollegeadministration,management andstaff,andFinanceandAudit Committee members, and GoverningBoardmembers,fortheir timeandcooperationduring the 2018CollegeRiskAssessment.

II. 2018 RESULTS SUMMARYOverall,there are numeroussignificantriskscurrentlyfacing PimaCommunityCollegethatwereidentified duringthe 2018RiskAssessment. The top fivehighestriskcategories are: Compliance andRegulatory, Cybersecurity/Data Security/InformationTechnology, OrganizationalCulture, Advisingand AcademicSupport,and HumanResources.

Itishelpfulto notethatseniorCollegeleadership, management,staffandfacultyhave made sustained effortstoaddressmanyoftheidentified risk categorieslistedinthisreport;howeveradditionalworkremainstobe completed.Internal Auditisplanningtoperformadditionalriskanalysisandinterviewstohelpdetermineadetailedauditscopewithinthese highestriskareas priortostartinganaudit engagement.AnimportantriskremediationefforttheCollegehasinitiatedincludesdevelopingaCollege‐wideEnterpriseRiskManagement(ERM)core committeeofkeypersonneltocontinue monitoring theserisksandhelping ensureresourcesare providedtoaddressrisksinaprioritizedrisk‐basedmanner. In addition,theOffice oftheInternalAuditor(OIA)recentlyreceivedseniormanagement approvalto hireone staffInternalAuditorreportingtotheDirector,OIA,thatwillhelpmonitorandidentifyrisksandprovide recommendationsto remediate them in thefutureaswell.Overall,demonstrated progresshas been made toaddressrisksattheCollege,butfurtherworkremainsto becompleted.

III. RISK DEFINITIONS

WHAT IS A RISKAriskisan event or an exposurethatcouldprevent theCollege from,ornegativelyimpact theCollegein,meetingitsgoalsandobjectives;riskismeasuredinterms of probabilityandsignificance.Riskcan bedefined asthe potentialharmthat may occur fromsome currentprocess orfromsome future event.It isoften tiedtotheprobabilityof some undesirable event.

I. INTRODUCTION The Office ofthe Internal Auditor(InternalAudit) hascompleted the 2018 College RiskAssessment.The InstituteofInternal Auditors(IIA) International Standards for the Professional Practice of Internal Auditing (Standards) requiresthat Internal Auditperforms ariskassessmenttoaid inidentificationof risksfacingthe organization toassistinthedevelopmentof the AuditPlan.

WHAT IS A RISK ASSESSMENTAriskassessment isnot anaudit; itistheidentificationand analysisofrelevantriskstothe achievementofan organization’sobjectivesinorderto determinehowthoserisks shouldbe managed.In otherwords,itisan analysis of whatcould go wrong.

Notallrisksareequal.Somearemorelikelythanotherstooccur,andsome willhave a greatimpactthan othersifthey occur.So oncerisksare identified,theirprobabilityandsignificancemustbeassessed.

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Asagood businesspractice,theriskassessment processisan ongoingone;thesurvey isonepartoftheongoing risk assessment process.Internal and externalthreats constantly develop,presenting newexposures tothe College.

CollegeStrategic

Objectives, e.g.StudentSuccess

Risks

Risks

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IV. RISK PROCESS FLOW ‐RISKS, RESPONSES AND RESULTS

Organizationalriskscanbeviewedasaprocessflow.Risksthat are proactivelyidentifiedinthe RiskAssessmentReporthelpprovidean opportunityforseniormanagement todeveloparesponse(amanagement actionplan) thatwillleadtodesiredpositiveresults andoutcomes.Forexample,compliance andregulatoryrisksmaybereducedbyprovidingregularemployeetrainingon specific compliance requirementsanddeveloping stronginternalcontrolstolimitriskstotheCollege.

Risksthatare not adequatelyaddressedby management maylead to undesirableconsequences for theCollege. Forexample, theCollege may not beableto effectively orfullyreachallofitsplanned strategicobjectivesifcomplianceandregulatoryrequirementsare notmet.Externalfederalregulators,such asthe UnitedStates Department ofEducation(DOE),havenumerousfederal requirementsfor management anddisbursementofstudentfinancialaid(TitleIV financialaid).Themajorityof Pimastudents relyupon financial aidto attend Pima andif Title IV financialaidwas not available students mightnotbeabletocontinuewiththeirstudiesand thereforenegativelyimpactingthe College’sstudentenrollment strategicgoals.Another example of anexternalregulatoristheHigherLearningCommission(HLC),the College’saccreditingorganization,andithasa detailedframework of criteriathat mustbecompliedwith. Meeting HLC requirementsisimportantbecauseaccreditationoftheCollegeis thefoundationforofferingvalidacademicdegreesandcertificatesthatarerecognizedandacceptedbyother highereducationalinstitutionsandemployers.The College recentlyparticipatedinaregularlyscheduledHLCon‐sitevisittoassesstheCollege’sactivities. HLCassessmentresultswillbeforthcoming in early2019.

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CATEGORIES OF RISKS FACING PIMA IN 2018The College facesmanydifferentcategoriesand levelsofrisks that areinter‐related.Forexample,compliance andregulatoryrisksexist thatpotentiallycouldresultinlarge financial penaltiesfrom outsideregulatorsif appropriateproceduresarenot alwaysfollowed.Examplesofcategoriesofrisksarelistedbelow thatarecurrentlyfacingtheCollege.

V. SCOPE AND METHODOLOGYTodetermine the current highestrisksfacingPima Community College in 2018 InternalAudit: surveyed allDirectorlevel andaboveemployeesvia anexpanded andmoredetailed2018riskassessment questionnaire.100% participationwasachievedin thesurvey with71 Directorlevelandaboveemployeesparticipating.

interviewedaselectedbroadgroupingof Collegepersonnelfrom acomprehensivecross‐sectionof functions and activities,includingselectedsenioradministration,Directors ofkeydepartments,Governing

Cybersecurity

Compliance&

Regulatory

StudentAffairs

Safety &Security

OrganizationCulture

StudentEnrollmentManagement

Board members, and Finance and Audit Committee members. 27 interviewsconducted. coordinated andworked closelywith theCollege Office of InstitutionalResearch,Planning,andEffectivenessstaff.Resultedin65pageriskassessmentreportdetails.

consultedwithDirectors,senior administrationandFinanceand AuditCommittee membersondevelopmentofexpandedRiskAssessmentquestionsandprocesses.

collaboratedwithMarketingandCommunications,theOfficeoftheChancellorandGeneralCounselregardingcommunicationsofRiskAssessmentandprocess.

performedrisktrendanalysisfor2018Collegeriskassessment.

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Risk Analysis

Risk Interviews

Risk Surveys


examinedpriorriskassessmentreports. researchedcurrentrisktrendsforotherorganizationsandindustries, reviewedotherCommunityCollegeInternalAuditdepartments RiskAssessment processes. created a 2018RiskRegisterof the highestriskscurrently facing the College. craftedanengagement planforfutureInternalAudits,i.e.an AuditPlan,for theCollege.

SENSITIVE RISK ASSESSMENT INFORMATION AND RESULTSPleasenotethatsensitiveriskassessment informationcontainedwithinthisRiskAssessmentReportshouldberestricted/limitedto thoseindividualswithabusinessneedto knowonlyto limitpotentialadditionalliability risks to theCollege.

2018 Risk Assessment Results

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VI. TOP 10 RISK SURVEY RESULTSDirectorlevel and above employeesparticipatedin a detailedRiskAssessmentSurveyandsubmitted responses. Thetop 10risk surveyresponsesare thefollowing:

1. AdvisingandAcademicSupport.2. ComplianceandRegulatory.3. HumanResources.4. Enrollment Management.5. Purchasing&Contracting.6. Marketing &Communications.7. Strategy.8. EmployeeRecruitment andRetention. 9. SafetyandSecurity.10. InformationTechnology.

16 15

14 13

12

9 9 9 8 8

Top 2018 Risks Categories ‐ Survey Results

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Answer % Count Advising and Academic Support 7.7% 16 Compliance and Regulatory 7.2% 15 Human Resources 6.7% 14 Enrollment Management 6.3% 13 Purchasing & Contracting 5.8% 12 Marketing and Communications 4.3% 9 Strategy (i.e. planning and resource allocation, major initiatives, etc.) 4.3% 9 Employee Recruitment & Retention 4.3% 9 Safety and Security 3.8% 8 Information Technology 3.8% 8 Student Affairs 3.4% 7 Governance 3.4% 7 Facilities Management 3.4% 7 Disaster Recovery/Business Continuity 2.9% 6 Accounting, Budgeting, and Financial Reporting 2.9% 6 Diversity and Multicultural Services 2.4% 5 Risk Management 2.4% 5 Data Access and Security 2.4% 5 Other (please specify): 1.9% 4 Employee Development 1.4% 3 Student Code of Conduct 1.4% 3 Campus Public Safety 1.4% 3 Provost 1.4% 3 Employee Classification and Pay Administration 1.0% 2 Veterans 1.0% 2 Data Privacy/Integrity 1.0% 2 Equipment/Resources (i.e. maintenance, inventory, usage, etc.) 1.0% 2 Legal Counsel 0.5% 1 Records Management/Records Retention 0.5% 1 Institutional Research, Planning and Effectiveness 0.5% 1 Distance Education 0.5% 1 Occupational Programs 0.5% 1 Foundation & Alumni Services 0.5% 1 Environmental Health and Safety 0.5% 1 *Other 0.0% 16 Total

“100% 208


VII. DETAILED RISK SURVEY RESULTSThe following resultswereobtainedfromthedetailed2018 Risk Assessmentsurvey. The topthree riskarea categoriesidentifiedby all Directorleveland above employees arethefollowing:

riskareas identified as Other” byrespondentsthatincludedavarietyof *There was anassortmentofadditionaldifferent riskareas.

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2018 College Highest Risk Categories

Overall,the highestrisk categoriesidentifiedduringthe Risk Assessmentanalysisinclude thefollowingareas.PleaseseetheRISK MATRIXforfurtherdetailsregardingriskimpact, probabilityandvelocity.

Compliance& Regulatory

Cybersecurity/Data Security/InformationTechnology

Organizational Culture

AdvisingandAcademicSupport

HumanResources

Safety & Security(Campus&Personnel)

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StudentAffairs

Purchasing &Contracting

Marketing&Communications

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bility. The key objective of s the effective and efficient resource


VIII. ENGAGEMENT PLAN AND RISK ASSESSMENT

INTERNAL AUDITING STANDARD ‐PLANNING The Director, Office of the Internal Auditor, is responsible for developing a risk‐based engagement plan, taking into account the organization’s risk management framework. If a framework does not exist, the Director uses his/her own judgment of risks after consideration of input from senior management and the board. The D i r ec tor must review and adjust the plan, as necessary, in response to changes in the organization’s business, risks, operations, programs, systems, and controls.

OBJECTIVEA comprehensive, data‐driven, and objective risk‐based audit plan based on critical College risks that follows a business focused approach and allows flexithe annual plan (and resulting engagements) imanagement linkedwith a soundbusiness approach.

RISK ASSESSMENT PROCESS OVERVIEW

IdentifyObjectives

IdentifyRisks

MeasureRisks

PrioritizeRisks

SelectAuditsandDevelopPlan

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&


PRIORITIZING RISKS AND PLAN DEVELOPMENT

Factors used to prioritize risks and build the engagement plan include: CollegeStrategic Direction PCCSpecific Risk& Concerns rated as:

- Major or Catastrophic Impact - Likely or Almost Certain Probability - Rapid Velocity

Additional auditplanning considerations include: Internal Auditresources Hiringprocesses for new staffInternal Auditor to assist Director Current or upcomingoperationalandsystem changes Specialrequests

InternalAuditResources,OperationalSystemChanges

PCCSpecificRisks&Concerns

CollegeStrategicPlan

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IX. RISK MATRIX

MEASURING RISKS

The significance of risks is assessed based on impact, probability, and velocity. Impact (I): The effect on the College, and stakeholders, if a risk event occurs or if the area is not

functioning as intended. Impact can include lost revenue, increased expenses, declining enrollment, fines, adverse publicity, sanctions, reputational damage, and reduced employee morale.

Probability (P): The likelihood that a risk event could occur or that the area is not functioning as intended. Probability factors can include prior audit results, turnover, management and staff concerns, lack of internal monitoring and/or governance, operational and control weaknesses, and lack of training.

Velocity (V): The pace the organization is expected to experience the impact of risk. The speed of regulatory enforcement action is an example of velocity.

Area/Function/Risk

Probability

Almost Certain

Likely

Possible

ADVISING & ACADEMIC SUPPORT STUDENT AFFAIRS Human Resources Safety & Security

Purchasing & Contracting ENROLLMENT MANAGEMENT Grants

Marketing & Communications

COMPLIANCE & REGULATORY CYBER SECURITY/DATA SECURITY

ORGANIZATIONAL CULTURE

VELOCITY1 Insignificant Minor Moderate Major Catastrophic Impact

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1 Only areas of rapid velocity were included; areas of rapid velocity are in bold and all capitals.

X. ENGAGEMENT PLAN DETAILSTheproposed Audit Plan isincludedbelow forInternal Auditactivities.

PIMA COMMUNITY COLLEGE ENGAGEMENT PLAN

****DRAFT – AUDIT PLAN****

ENGAGEMENT TYPE

DESCRIPTION STATUS NOTES/COMMENTS

AUDIT PROJECTS 2018 College wideRiskAssessment

In‐Progress CollegeWideRiskAssessment, including detailed results andexpandedrisksurveyquestions.

Culture Audit Planned Scope to include assessment of current organizational culture and morale, utilization ofemployeesurveys, analysis of key culture indicatorsturnover %,absenteeism,and research of bestpractices related toorganizationalculture.

FinancialAid/Scholarships

Planned Repeat audit findings in Financial Aid compliancearea.Somestudentscholarshipprocessesarerecently transferredto FA department. Meeting planned with Associate Provostto discussscope inJanuary 2019.

Grants Planned Scope to include grants administrationpractices,reviewsandorganizationstructure.

StudentAffairs Planned Scopeto includestudent advisingand academic supporttostudents.

Human Resources Planned Internal AuditwillmeetwithHR todiscuss possiblescopefor HRaudit.

CONTINUOUSAUDITINGPROJECTS

InformationTechnology: Data Privacy/Cybersecurity

On‐going Internal Auditmonitors IT auditfindings,includingthoseissuedby the Arizona Office oftheAuditor General.

HealthInsurancePortabilityandAccountabilityAct

On‐going Scopeto includeidentificationof new HIPAAPrivacy Officer needed,i.e.,ESC Directorhasrecently departed the College.

CLERY Act On‐going

FOLLOW‐UPAUDITS

IntercollegiateAthletics

In‐Progress

Plantocompleteend of2nd Qtr.2019. Management request. New Acting AthleticDirectorrecently placed inAthletic Director position.

Purchasing andContracting

Planned Planned for endof 2nd Qtr.2019 targetstartdate. New Directors not yet hired. New Directorswill need time to implement their new financial processes prior toassessment.

InternationalStudents

Planned Planned start date late Qtr.1, 2019. Staffturnoverindepartment,potentialrisk forcompliance issues.

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Planned


Governance Follow‐upscopeincludes:EthicsProgram,ComplianceFunction,and RiskManagement.

Aviation ControlsFollow‐Up

Planned Revised FAA testingfees administration byAviationFacultyandbuildingsecurityenhancements.

OTHERPOTENTIALAUDITS

InformationTechnology HardwareInventoryControls

Potential Scopeto includeITinventoryinternal controls,includingProperty ControlandITprocesses andinventorymanagement systemsintegration,e.g. TeamDynamix.

Purchasing Card Audit

Potential Auditoftravel& entertainment expensesonCollegeTravelCards.Utilizedataanalyticsspecial dataminingauditsoftware(IDEAAudimationServices) forspecial auditprojects, e.g.CollegeTravelCard expense compliance.

EnrollmentManagement

Potential May beincluded,dependent upon furtherrisk analysis.

Marketing &Communications

Potential May beincluded,dependent upon furtherrisk analysis. Scopeto include; Collegerebranding efforts.

INVESTIGATIONS Completed asneeded. On‐going

ADDITIONALSPECIALPROJECTS

College‐wideSafety&Security

On‐going InternalAuditorparticipateson College‐wideSecurity&AccessControlworkinggroupoverseeing College metal and electronickey controls& campus safety issues.

Hiringnew Internal Auditor (full‐timestaffauditor)

In‐Progress New Internal Auditor approvedNovember 14,2018. Planned hiring late February2019 orMarch2019.

InternalAuditDistrictOffice Logistics

In‐Progress Exploring adding newoffice space location for new staffInternalAuditor position. Facilitiesiscurrentlyevaluatingspaceoptions,e.g.addingmore wallsfora new office.

Enterprise RiskManagement Core Committee

In‐Progress EnterpriseRisk Management (ERM) CoreCommittee,includes Provost,EVPFinance&Administration,GeneralCounsel,ChiefStrategist,and Internal Auditor.

Communication In‐Progress InformationgraphicforInternal AuditbeingdevelopedforOfficeof theInternal AuditorbyMarketing Department. Willbeutilizedinnewemployee on‐boarding andCollege informationactivities.

HiringComplianceProgram Director

In‐Progress ComplianceDirectorposition descriptioncurrently beingrevised.Planned postingofpositionin late January2019. Internal Audit willparticipateonthehiringcommittee.

Note 1: Due tothe dynamicenvironmentofthe Collegeandrisk environment, the plan will be reviewed and updated as necessary. Anychanges or updates to theplan will bereviewed withthe Finance and Audit CommitteeandtheBoard.Note 2: The hiring of onestaff Internal Auditorwillprovide additionalon‐siteInternalAuditresourcesafter employee onboarding and required training is completed.

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helpallocateresourcestoremediate highestrisks areas, asneeded.


XI. INTERNAL AUDIT IS A COLLEGE RESOURCE & NEXT STEPSInternalAuditisavailableto provideassistance,guidanceor to answerquestionsfrom seniormanagement andothersregardingremediationofrisksidentifiedandisalsoavailable as an on‐siteresource,asneeded.

NEXT STEPSTheRiskAssessmentresultswill beutilizedby the Office oftheInternalAuditorindevelopingtheCollege AuditPlan,in closecoordinationwith the Finance andAudit Committee.Inaddition,theRiskAssessment resultsmaybeutilizedbysenioradministration, management, staffand the Governing Boardasareferenceto

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XIII: Appendix A: Detailed Risk Assessment Survey Questions & Results

Numerousinternalcontrolprocesses werereviewed.The Risk Assessmentsurveyquestionandassociated summaryresultsareprovided.The Collegehasopportunitiesforinternalcontrolimprovement,e.g.23.9% orrespondentsreportednot havingpoliciesandproceduresinplace.

O1. Does the College have policies and procedures that support the key functions and processes in your area?

Yes 76.1% 54

No 23.9% 17

Unsure 0.0% 0

100% 71

Answer % Count

Total

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O2. Have policies, procedures, or operating manuals in your area been reviewed and/or updated within the past two years?

All Some None Unsure Total

Reviewed 25.7% 18 62.9% 44 5.7% 4 5.7% 4 70

Updated 14.9% 10 70.1% 47 7.5% 5 7.5% 5 67

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O3. What are the annual continuing education requirements for staff in your area?

47 64.6% 42 58.8% 40

50hoursperyear 1to 23.4% 15 30.8% 20 38.2% 26

hoursperyear 100 51to 3.1% 2 4.6% 3 2.9% 2

lTota 99.9% 64 100.0% 65 99.9% 68

Mandatedby license Mandatedby certification Requiredbypolicy

None 73.4%

20 | P a g e 26


O4. Do you complete any regular "self‐audits" or internal assessments in your area?

Answer % Count

Yes 74.6% 53

No 15.5% 11

Unsure 9.9% 7

Total 100% 71

21 | P a g e 27


L1. To what extent do regulations, affect or have impact on operations? Description / Purpose: Assess how government regulations (federal, state, or local) impact your department’s operations and exposure to sanctions and potential penalties for noncompliance. Please be sure to factor in the complexity, volume, and change in regulations, including ordinances, municipal codes, administrative regulations, IGAs, federal and state laws and regulations, contract conditions, and grant provisions that pertain to your department.

Answer % Count

Noregulationsandnopenalties 0.0% 0

Fewregulationsandlittleriskofnoncompliance 15.5% 11

46.5% 33

38.0% 27

100% 71

Riskof either icantpenalties fsubstantial regulations orsigni

Complex,voluminous,or frequently changing regulationswithsignificantpenalties;heavilyregulatedwithseriousconsequencesfornoncompliance Total

22 | P a g e 28


L2. Are department personnel sufficiently informed about important federal, state and local regulations that govern activities they perform within the department? Description / Purpose: Assess how departments keep their employees informed through regular on‐the‐job training, departmental newsletters, webinars or formal training sessions on changes to or the implementation of new federal, state and local regulations that affect how they perform their jobs.

Answer % Count

Periodicmandatorytrainingisavailabletoallemployees 45.7% 32

Periodictrainingisavailable forallemployeesbutattendance isnotmandatory 31.4% 22

Periodictrainingisavailableonlythroughnewslettersandperiodicals 4.3% 3

Onlynew employees are trainedonfederal,stateandlocalregulations 8.6% 6

Notrainingis provided 10.0% 7

Total 100% 70

23 | P a g e 29


L3. Do departmental procedures and policies, available for personnel, sufficiently detail the activities they perform with the department? Description / Purpose: Assess if the department maintains policies and procedures for the functions performed by its employees.

Count Answer %

Currentpoliciesandproceduresexistand arereadilyavailable to allemployees 51.4% 36

Currentpoliciesandproceduresexistbut are not readilyavailabletoallemployees

’

8.6% 6

Thepoliciesandproceduresdo not accurately reflect the department scurrentprocessand procedures

28.6% 20

Thepoliciesandproceduresare outdatedasthey referencesystemsandapplicationsnolonger inuse

4.3% 3

There areno policiesandproceduresavailable 7.1% 5

Total 100% 70

24 | P a g e 30


L4. Have there been instances of fraud, computer abuse, or data loss for this department? Description / Purpose: Assess if the department is aware or notified of fraud, computer abuse, or data loss.

Count Answer %

Noinstancesof“known” fraud,computerabuseorlossofdatahaveoccurred duringthelasttwoyears;internalcontrolsareinplace andeffective

91.4% 64

Instancesof “known”fraud,computer abuse orlossofdatahave occurred duringthelasttwo years; internalcontrolsthatwere lackinghave beeninstalled andarebeingmonitored for effectiveness

4.3% 3

Instancesof “known”fraud,computer abuse orlossofdatahave occurred withinthe lasttwo years

4.3% 3

Total 100% 70

25 | P a g e 31


CH1. To what extent does our department handle cash? Description / Purpose: Assess the risk associated with cash transactions. Be sure to factor in the amount of cash collected as compared to business transacted by other means (credit card, electronic funds transfer, invoice, journal entry, etc.), as well as risks associated with the volume, type and nature of existing assets that are susceptible to theft such as equipment, supplies and inventories.

Answer % Count

Nocashhandling 73.2% 52

Minimalamountofcash,checksorcreditcardreceiptsorpotentialaccesstothem 19.7% 14

Natureofoperationsis receipt of cash, checkor creditcardreceipts 7.0% 5

Total 100% 71

26 | P a g e 32


CH2. Does adequate segregation of duties exist within you department between staff members responsible for receiving, depositing and reconciling cash and checks. Description / Purpose: Determine if there are proper segregation of duties for cash transactions. One employee should not be responsible for receiving, depositing and reconciling cash and checks

Answer % Count

There isnoevidenceofproper segregationof duties 5.3% 1

There arenot enough employeestoproperlysegregateallfunctions;thedepartmenthasdeveloped,documented andimplementeda monitoringprocesstomitigatetherisk

21.1% 4

Alldutiesare properly segregated 73.7% 14

Total 100% 19

27 | P a g e 33


PII1. Does the department have systems and applications in place to store Personally Identifiable Information (PII)? Description / Purpose: Information systems and applications that store PII must be controlled as To what information is stored, who can access the information and its retention standards.

Answer % Count

Nosystems andapplicationsin placetostorePII 7.1% 5

Onlymanualformsofcollectionandstorageused 4.3% 3

Acombinationof manual and electroniccollectionandstoragemethodsareuse 75.7% 53

Onlyelectronicmethodsofcollectionandstorage areused 12.9% 9

Total 100% 70

28 | P a g e 34


PII2. Does the department have documented policies, procedures and a data/records file plan in place that address the safeguarding of PII? Description / Purpose: Departments should develop, document and implement policies and procedures for the identification, collection, storage, retention and disposal of PII.

Nopoliciesandproceduresexist 18.6% 13

updated Policiesandprocedures,data/recordsfileplan existbuthave notbeen 14.3% 10

stbuthavenot been implemented iPoliciesandproceduresdata/recordsfileplanex 2.9% 2

beenimplemented Policiesandproceduresdata/recordsfileplanexist and have 64.3% 45

lTota 100% 70

Answer % Count

29 | P a g e 35


PII3. Has the department attended PCC’s records and information management general training within the past 2 years? Description / Purpose: Departments should attend PCC’s records and information management general training. After the training is completed a better understanding of PII concepts will include such items as the definition of PII; applicable privacy laws, regulations and policies; and repercussions for the misuse of PII.

Answer % Count

Yes 53.5% 38

No 12.7% 9

No,not aware PCC recordsandinformationtraining exists 7.0% 5

Unsure 26.8% 19

Total 100% 71

30 | P a g e 36


DC1. In the last 3 years, has there been significant employee and management turnover in your department? Description / Purpose: Determine if there is employee and management turnover in critical functions.

32.9% 23

lTota 100% 70

Answer % Count

Noturnover inkey management orstaff 17.1% 12

Limitedturnoverinkeymanagement orstaff 50.0% 35

Majorturnoverin keymanagementorstaff

31 | P a g e 37


DC2. Have there been significant changes in staff size, funding, functions, systems, key positions and/or responsibilities of the department that might create problems? Description / Purpose: Determine if the department has experienced significant changes in its mission, funding or staffing.

changesin thelast 3 years 20.0% 14

last 3 the Funding,staffing,andor responsibilitieshavechangedmoderatelyduring 35.7% 25

department themadeto Continuousandlarge‐scalechangeshave been 44.3% 31

lTota 100% 70

Answer % Count

Nosignificant

years

32 | P a g e 38


DC3. What level of impact does Information Technology (IT) have on your department? Description / Purpose: Determine if there has been significant changes to the department’s IT infrastructure to include new hardware or software installed that changed how the department performed and accomplished its mission.

Count Answer %

There have been no new IT changesduringthepast 12 months and/orIThaslittleimpactonthe department

14.1% 10

Some changeshavebeen madeto the ITenvironmentand/orITsignificantlyaffectssomeofthesefunctions

46.5% 33

The ITenvironmenthaschangedorbeen replaced; the ITenvironmentaffectsnearlyallaspects ofthisfunction

39.4% 28

Total 100% 71

33 | P a g e 39


PI1. To what extent does your department interact with the external public? Description / Purpose: Assess how frequently your department works/interacts directly with the public. Little to no interaction is not a negative indicator, but rather an indicator that your department serves internal customers – internal customer interaction is addressed in question PI2.

Answer % Count

Noexternalpublicinteraction 4.2% 3

Rarelyor infrequently(i.e.annual) 12.7% 9

Monthlyto quarterly(i.e.periodic) 19.7% 14

Weekly(i.e.regular) 15.5% 11

Continual(i.e.ongoing)interactionwiththepublicseveraltimesdailyormore 47.9% 34

Total 100% 71

34 | P a g e 40


PI2. To what extent does your department support internal operations including those considered critical to achieving the objectives of other department’s mission/goals? Description / Purpose: Determine the level of support and role your department plays in helping other departments achieve their overall mission.

Answer % Count

Nosupportprovidedtootherdepartments 0.0% 0

Infrequent(i.e.annual)supportprovidedtoother departments 2.8% 2

Periodic(i.e.monthly) supportprovidedtootherdepartments 12.7% 9

Regular (i.e.weekly)supportprovidedtootherdepartments 15.5% 11

Continual(i.e.ongoing)supportprovidedtootherdepartments everyday 69.0% 49

Total 100% 71

35 | P a g e 41


PI3. To what extent would failure to achieve your department’s mission or goals impact its public image? Description / Purpose: Assess how the department’s public visibility, public interest, and media interest in the department’s activities would lead to loss of public image if the department did not perform its mission or goals. This could also be called the newspaper test – how much negative press or public disapproval would a failure cause?

Noriskorloss 0.0% 0

Lowriskor loss 2.8% 2

oflossModeraterisk 15.5% 11

Significantriskofloss 32.4% 23

Veryhighriskofloss 49.3% 35

lTota 100% 71

Answer % Count

36 | P a g e 42

Office of the Internal Auditor 2018 College Risk Assessment Final Report December 31, 2018 Page 53

XIV: Appendix B. RISK RESEARCHInternalAuditresearchandactivities consideredintheRiskAssessmentReportincludedthefollowing:

AttendanceattheInstituteofInternal AuditorsAllStarConferencepresentationsrelatedtoriskanalysisinOctober,2018.

AttendanceattheAssociationof College andUniversityAuditorsAnnualConference presentationsrelatedto riskassessmentandanalysisinSeptember, 2018.

ReviewofthePimaCommunityCollege 2017‐2021 StrategicPlan. Review ofprevious InternalAuditReports. Review ofState ofArizona,OfficeoftheAuditorGeneralAudit Reports,PimaCommunity College.

BoardPerspectivespublication,“BoardOversight ofOrganizationalCulture”,Protiviti,Issue 107,2018.

ExecutivePerspectivesonTOP RISKS 2019,ResearchConductedby NorthCarolinaState University’sERMinitiativeandProtiviti.

HowYourAttitudeToward ComplianceShapesCOMPANY CULTURE.BambooHR, December,2018.

PimaCommunityCollegeMission, Vision andCollege Values. PCCCore Themes from theMission Fulfillment Framework. PCIData SecurityStandards(PCIDSS)v.2.0publishedby the PCISecurityStandards Council.

ToxicCultureTurnarounds,HarvardBusinessReview,November‐December2018.

37 | P a g e

43

Pima Community College Core Themes and Objectives The risk areas identified impact the College’s ability to meet its core themes and objectives if not adequately addressed. The Core Themes and Objectives for the College are listed below:

Student Success

Support and increase student goal achievement

Support student progress toward goals


XV. Appendix C: PCC Core Themes and Objectives

Enhance course, program and general education assessment to improve learning

Access

Provide educational pathways and resources that meet student and community needs

Increase enrollment across the College

Teaching and Program Excellence

Provide excellent teaching that utilizes best practices to support student success

Offer relevant and quality programs that provide positive contributions to the economy of the region

38 | P a g e 44


Student Services

Provide quality and appropriate student support services at the campuses

Provide student-centered admissions and financial aid processes that support student success

Community Engagement

Promote initiatives that provide opportunities for the development of our students and community

Engage with national, state and local authorities on initiatives that support the mission of the College

Develop and enhance partnerships that identify and respond to the educational needs of the community

Engage with industry and increase the skilled workforce within Pima County

Diversity, Inclusion and Global Education

Expand and support the diversity of the College’s student population

Close the achievement gap

Expand and support the diversity of the College’s workforce

Develop and increase the student population through global education

Institutional Effectiveness

Ensure effective and ethical use of the College’s financial resources, technology and infrastructure

Enhance an evidence-based approach to decision-making that is based on continuous improvement processes

39 | P a g e 45

2/27/2019

1

COMPREHENSIVE ANNUAL FINANCIAL REPORTFISCAL YEAR ENDED JUNE 30, 2018

MARCH 1, 2019 FINANCE AND AUDIT COMMITTEE MEETING

PRESENTED BY: DR. DAVID BEA

REVENUES BY SOURCE

FY 2018 FY 2017 $ Change % ChangeOperating Revenues

Tuition and Fees (net of allowances) $ 28,532,331 $ 28,834,580 $ (302,249) ‐1.0%

Contracts 2,766,925 2,660,348 106,577 4.0%

Commissions and Rents 1,067,161 1,720,067 (652,906) ‐38.0%

Other Operating Revenues 1,008,383 924,054 84,329 9.1%

Total Operating Revenues 33,374,800 34,139,049 (764,249) ‐2.2%

Nonoperating Revenues

Property Taxes 111,324,689 106,823,980 4,500,709 4.2%

Federal Grants 42,048,279 39,352,391 2,695,888 6.9%

State and Local Grants 1,323,106 1,544,239 (221,133) ‐14.3%

Share of State Sales Tax 2,418,985 2,341,003 77,982 3.3%

Gifts 706,141 711,223 (5,082) ‐0.7%

Investment Income 626,296 323,910 302,386 93.4%

Other Nonoperating Revenues, net 7,789 4,850 2,939 60.6%

Total Nonoperating Revenues 158,455,285 151,101,596 7,353,689 4.9%

Capital Gifts and Grants 80,650 39,520 41,130 104.1%

Total Revenues $ 191,910,735 $ 185,280,165 $ 6,630,570 3.6%

46

2/27/2019

2

EXPENSES BY CATEGORY

FY 2018 FY 2017 $ Change % Change

Operating Expenses

Educational and General

Instruction $ 51,138,005 $ 52,009,785 $ (871,780) -1.7%

Academic Support 24,914,373 25,221,536 (307,163) -1.2%

Student Services 27,188,490 28,146,761 (958,271) -3.4%

Institutional Support 32,910,008 33,893,651 (983,643) -2.9%

Operation and Maintenance of Plant 14,767,795 16,299,388 (1,531,593) -9.4%

Student Financial Aid 16,557,909 15,449,569 1,108,340 7.2%

Auxiliary Enterprises 877,258 931,331 (54,073) -5.8%

Depreciation 7,117,410 7,701,083 (583,673) -7.6%

Total Operating Expenses 175,471,248 179,653,104 (4,181,856) -2.3%

Nonoperating Expenses

Loss on Capital Asset Disposal 54,672 22,066 32,606 147.8%

Interest on Capital Asset Related Debt 32,493 0 32,493 100.0%

Total Nonoperating Expenses 87,165 22,066 65,099 295.0%

-

Total Expenses $ 175,558,413 $ 179,675,170 $ (4,116,757) -2.3%

OPERATING EXPENSES BY TYPE

Expense Type FY 2018 FY 2017 $ Change

Employee Compensation and Benefits $ 116,106,384 $ 120,424,857 $ (4,318,473)

Communication and Utilities 5,469,192 5,048,989 420,203

Travel 2,015,353 1,775,905 239,448

Contractual Services 16,303,721 17,451,598 (1,147,877)

Supplies and Materials 7,718,640 6,964,803 753,837

Student Financial Aid 16,557,910 15,449,439 1,108,471

Other Expenses 4,182,638 4,836,430 (653,792)

Depreciation 7,117,410 7,701,083 (583,673)

Total Operating Expenses $ 175,471,248 $ 179,653,104 $ (4,181,856)

47

2/27/2019

3

NET POSITION

Item FY 2018 FY 2017 $ Change

Cash and Cash Equivalents $ 73,008,446 $ 54,863,646 $ 18,144,800

Short + Long-term Investments 56,874,331 56,396,686 477,645

Other Current + Non-Current Assets 104,672,670 112,426,125 (7,753,455)

Total Assets $ 234,555,447 $ 223,686,457 $ 10,868,990

Total Liabilities 147,207,659 159,632,724 (12,425,065)

Total Net Position $ 88,408,939 $ 71,892,281 $ 16,516,658

Net Position

Invested in Capital Assets (net of related debt) 96,772,449 100,330,570 (3,558,121)

Restricted Net Position 12,451,846 11,339,876 1,111,970

Unrestricted Net Position (20,815,356) (39,778,165) 18,962,809

Total Net Position $ 88,408,939 $ 71,892,281 $ 16,516,658

REVENUES, EXPENSES, AND CHANGES IN NET POSITION

Item FY 2018 FY 2017

Total Operating Revenues $ 33,374,800 $ 34,139,049

Total Operating Expenses 175,471,248 179,653,104

Operating Loss (142,096,448) (145,514,055)

Net Nonoperating Revenues 158,368,120 151,079,530

Income before Capital Appropriations, Gifts and Grants 16,271,672 5,565,475

Capital Gifts and Grants 80,650 39,520

Increase in Net Position $ 16,352,322 $ 5,604,995

48

2/27/2019

4

SUMMARY

• Unmodified opinion from the Arizona Office of the Auditor General indicating the College’s financial statements are reliable, fairly presented, and prepared according to accepted accounting principles

• Financial Statements demonstrate progress towards the three-year budget plan in preparation for the projected FY21 Expenditure Limit• Decrease in total expenditures• Significant increase in net position indicates strong financial standing as

the College prepares to issue debt for Revenue Bonds

FINDINGS AND ACTION PLANS

• Financial Aid

• Grants

• Information Technology

• Payroll

49

2/27/2019

5

A SPECIAL THANK YOU TO FINANCIAL SERVICES FOR THEIR WORK ON THE CAFR

Daniel Soza, Carl Englander, Aurora Juarez,

Marisa Mandal, Tim Rapoza, & Bernard Simon

50

erns p approve an.

Institution University/College

Related Travel/Scope

Foreign/International

travel

Duty of Care/Travel

Warnings/Travel

Restrictions

Approval Flow Reporting Internal Audit Federal Export Control Criteria for

International

Recruitment

Criteria for

International

Exceptional

Opportunities

Criteria for Student

Travel

Separate Travel Policy

for Chancellor?

Definitions

University of

Texas

All travelers follow the

same travel policy.

Foreign travel must be

approved in advance

by the Chairman of the

Board of Regents for

the Chancellor and by

appropriate Executive

Vice Chancellor for

presidents. Must

include a specific

business purpose and

an estimate of funds.

All employees must

submit a International

Travel Authorization

prior to traveling. All

students must

complete an

application to study

abroad.

Some foreign

destinations are

considered restricted

regions and travel must

be approved by the

International Oversight

Committee.

Chancellor Travel and

entertainment

expenses must be

reviewed and

approved by general

counsel to the Board of

Regents to assure

compliance with

applicable laws, rules,

and policies. President

travel and

entertainment

expenses must be

reviewed and

approved by the

institution's chief

business officer to

assure compliance with

applicable laws, rules,

and policies.

Each chief

administrator shall

prepare annual

reports, based on fiscal

year, of travel and

entertainment in a

standard format. The

Chancellor shall file the

report with the

General Counsel to the

Board of Regents for

review by the

Chairman of the Board.

Each president shall file

the report with the

institution's chief

business officer.

Reports are due in

October and must be

reviewed by the chief

business officer for

compliance. Reports

must include each

expense that exceeds

$1000. Report must

include the payee, the

date and amount, the

type, and if applicable,

the location of the

Internal Audit shall

audit the travel and

entertainment

expenses for the chief

admininstrators at

least every two years.


submit the results of

the audit of the

Chancellor to the

Chairman of the Board,

the Chancellor, and to

General Counsel.


submit the results of

the audit of the

presidents to the

president and the

appropriate executive

vice chancellor

Participation in

research, conferences,

teaching endeavors

Conducting research,

internships, field

studies, service

learning, conferences,

official study abroad

programs, recognized

student organization

trips abroad, class field

trips,

All employees follow

the same travel policy

Foreign Travel-Travel

to, in, or from a

destination that is

neither in the USA nor

a possession of the

USA. Chief

Administrator-the

Chancellor or the

president at each

campus.

University of

Michigan

Necessary expense

which there is a clear

business purpose and

is within university

expense policy

limitations. The busines

purpose must support

or advance the goals,

objectives and mission

of the university. A

faculty or staff member

traveling to a

professional

conference. A Faculty

leading a group of

students traveling. A

history faculty

participating in an

archeological dig. A

doctoral student in

African studies doing

research in the Paris

library. A student

participating on a

paleological dig for

pleasure is not on

UMRT. A student or

staff participating in an

int hi

Travel abroad refers to

destinations outside of

the fifty states of the

USA. Travel to US

Territories (including

American Samoa,

Guam, Northern

Mariana Islands,

Puerto Rico, the US

Virgin Islands and the

US Minor Outlying

Islands) and journeys

on the High Seas are

also considered travel

abroad. If primary

purpose is University

related then they are

on a EMRT. Every

Travel must enroll in

the University Travel

Registry. The Provost

and Executive VP of

Academic Affairs is

responsible for the UTR

The University will

conduct ongoing

reviews and designate

locations that present

particular risk. The Vice

Provost designated as

the Senior Inernational

Officer, on behalf of

the Office of the

Provost, is responsible

for determining which

destinations are under

a University Travel

Warning or Restriction.

This decision will be

informed by

recommendations

from the International

Travel Oversight

Committee (ITOC).

Students cannot be

required to travel to a

location that is on the

University Travel

Warning. All student

UMRT to these

destinations must

occur under an ITOC

d safetly pl

Provost Office is

responsible for

international approval

that is outside of the

USA. All other

international approvals

follow the same

approval as domestic

travel.

International

Experience-A trip

where a U-M unit,

faculty or staff member

is involved in creating,

funding, or approving

the experience, or

coordinating the

applications and

selection of

participants. UMRT-

University of Michigan

Related Travel. UTR-

University Travel

Registry.

51

or un ces ser es a pro oco ,




travel

Duty of Care/Travel

Warnings/Travel

Restrictions


International

Recruitment

Criteria for

International

Exceptional

Opportunities


Travel


for Chancellor?

Definitions

Northeastern

University

University of

Colorado

All tavelers follow the

same policy.

Study abroad

programs, faculty-led

study tours, faculty

research, attendance

at conferences and

other meetings,

recruiting, semester at

sea, independent study

and internships.


the same policy. Trips

are authorized by an

immediate supervisor

in advance of the trip.

All student, staff,

faculty are require to

enter their travel

plans/information in

the Travel Registry in

advance of any

planned travel.

All international travel

must be approved

using Concur Request

prior to booking a trip.

This applies to faculty

and staff, regardless of

whether the trip is

funded by CU or by an

outside entity. Types of

International Travel:

University-sponsored

programs-oganized,

financed, operated,

and maintained by the

university with minimal

or no third party

assistance; Third-Party

Programs-contracted

third party vendors

through the university

(e.g. tour companies).

Travelers follow all

university and campus

international policies,

and the third-party

requirements; Elective

Travel (non-sponsored)-

Travel is not endorsed

der the auspi

All travelers requesting

to travel to a "High

Risk" or to US

Sanctioned Territories

must submit a proposal

trip to ISAAC and

provide the

appropriate US

Government approval

document. All travelers

proceeding to "high

Risk" destinations must

register with the

University Travel

Registry, enroll with

the State Department

and register, install,

and dowload teh apps

and software from the

university's global

travel support

provider. All student

travelers are required

to submit the

assumption of risk and

general release from

liability form.

Concur Request

module allows the

University to asses the

risk and benfit of

university-related

international trips. If

Request includes travel

to a high risk

destination, it will

route to the

appropriate

chancellor/president

for approval. Only the

traveler can submit

their international

travel request. If

someone else prepared

it on their behalf they

will have to b notified

that they need to

submit. Risk

Management

committees assess the

university's

international risk,

recommend policies,

develop international

risk management

vic nd t ls

Approval of all

international travel is

first approved by your

supervisor and then to

th designated

international travel

approver (officer) for

your HR organizational

unit.


the same travel policy.

Concur Request is used

for international travel.

Chief administrators

must submit their

Request in Concur prior

to travel just like

everyone else.

International Travel-

Travel outside of the

50 United States, U.S.

Territories or

Possessions. High risk

destinations-counrties

that are high risk 4 or

severe risk 5 on the US

Department of State

Travel Warnings.

Sanctioned Countries

and Entities-Countries

and entities subject to

US trade or economic

restrictions. These are

listed by the US

Treasury Department's

Office of Foreign Assets

Control OFAC.

International Safety

and Security

Assessment

Committee (ISSAC)-

The University's

standing committee

that is responsible for :

assessing international

travel-related risk;

review and

52

unc orm r w m a propos r venu are course




travel

Duty of Care/Travel

Warnings/Travel

Restrictions


International

Recruitment

Criteria for

International

Exceptional

Opportunities


Travel


for Chancellor?

Definitions

University of

Arizona

Maricopa

Community

College

Study, research,

conferences,

partnerships,

collaborations,

presentations,

trainings, recruitment,

tours, and experiential

learninig. Applies to

faculty, staff, students,

program participants,

and designated

campus colleagues

(including volunteers)

regardless of funding

source. Official travel

includes: in the course

and scope of UA

employment,

authorization, or

representation; on

bahalf of a UA

sponsored project,

research grant, or

contract; financed

through UA by funding,

scholarship,

sponsorship, or

financial aid; directed,

coordinated, or Applies to all employee

groups and to

expenses paid from

any source of MCCCD

funds. Official function

means any activity or

item that: Does not

appear to be, without

explanation, an

ordinary and necessary

function of MCCCD as a

public educational

institution; and

provides a tangible

benefit and links

directly to MCCCD's

educational mission;

and is reeasonable and

commensurate in value

to the tangible benefit

that MCCCD will

receive. Before the

expense is made, the

Chancellor, president,

or vice chancellor must

approve any expense

for an official function

on the "Official

F tion F ". The

All persons traveling to

an international

destination mut

register their itinerary

and receive approval

within the Travel

Registry. International

travel is all travel

outside of the USA or

its territories. Travel to

Mexico follows the

same rules as other

international travel;

however, UA

recommends that

travelers register with

the US Department of

State Smart Traveler

Enrollment Program

(STEP). This free system

provides timely alerts

to travelers and allows

Embassy staff to

rapidly locate and

contact travelers in the

event of an emergency

situation in the area

being visited.

Travel outside of the

parameters of the USA

or its possessions or

territories. Travel

funded by an outside

source required full

compliance with the

International Travel

Policy, inlcuding

completion of an

International Travel

Proposal. International

travel is generally

prohibited in instances

where either the

learning or professional

growth opportunity

exists in the USA or its

territories. Every

traveler (including

groups) must complete

an International Travel

Proposal prior to

travel.

If person is traveling to

a sanctioned country,

the traveler must

contact Rist

Management in

advance. The ITSOC

must review all travel

to countries with

Travel Warning (or

Alert) issued by the US

Department of State or

CDC. Travel to Cuba,

Iran, North Korea,

Syria, Sudan or Libya

requires a university

license. Foreign Access

Control (OFAC)

regulations apply to

travelers to these

countries. The purpose

of OFAC regulations is

to enforce varying

embargoes and

economic sanctions

imposed upon

countries that have

been designated by the

federal government.

Depending on the Travel approval is

delegated to each

College President and

each Vice Chancellor,

or their designees, for

all employees under

their jurisdiction.

Travel approval for the

Governing Board,

college presidents, vice

chancellors shall be by

the Chancellor or his or

her designee. A VC will

countersign for the

Chancellor's travel. The

Chancellor has final

approval of all

international travel,

regardless or funding

source or destination.

When an individual is

to remain in approved

travel status for longer

than 30 days, the

Governing Board must

approve the claim of

lodging and M&IE.

Each College president

and each vice

chancellor shall submit

a detailed quarterly

report to the

Chancellor of all

international travel

including name of

traveler, destination,

dates of travel, amount

of funding, source of

funding, purpose and

benefit to the

institution, achieved

outcomes, and plan to

disseminate

information learned or

resulting products. The

Chancellor shall submit

a summary report to

the Governing Board

on all international

travel.

Internal Audit may

annually audit the

"Official Function

Form" to ensure

compliance.

When presenting

research at a

conference, Federal

export control

regulations and

embargoes/economic

sanctions are in effect

for: Laptops, PDAs,

software, and other

equipment and must

be vetted prior to

travel for possible

export licensing issues.

Presentations to be

given at a conference

or meeting should be

vetted for possible

export control issues,

including any

accompanying

materials or handouts.

Recruitment proposals

must include the

following: The cost

effectiveness of te

proposal (projected

financial return in

relation to funds

expended); The

College's commitment

and ability to provide

the requisite student

services; How this

effort fits into the

larger vision of

international

recruitment by the

college, including

marketing efforts

already used to draw

students (social media

and other "arm chair"

recruitment tools);

How the college will

assess the success of

the effort over a three-

year period. Upond

returnning o the

college/district, the

t aveler ill sub it

Exceptional

Opportunities include:

conference, seminars,

institutes, or board

meetings sponsored by

a professional

organization or

association. The event

must present a unique

opportunity for the

individual and the

institution and the

learning or professional

opportunity does not

exist in the USA or its

territories, or if the

individual has a

commitment to

participate as a

representative of

Maricopa on a board,

council, or committee

of a professional

association or

organization. The

following must be

addressed in a

proposal: How the

ed t avel is

Academic and skills

competitions,

academic field trips,

scholarship and other

award events, student

government or

leadership activities by

student reps., student

club activities by

college sanctioned

student organizations

that directly related to

the educational

mission of MCCCD,

professional

organization meetings

or conferences for

presentation or

participation, honors

program activities that

link directly to the

educational mission of

the MCCCD,

competitions and

events for NJCAA

sports, de minimus

entrance fees no

greater than $50 to

es that

No

ITSOC-International

Travel Safety Oversight

Committee (appointed

by Provost or

designee).

53




travel

Duty of Care/Travel

Warnings/Travel

Restrictions


International

Recruitment

Criteria for

International

Exceptional

Opportunities


Travel


for Chancellor?

Definitions

Arizona State

University

Travel to an at-risk

destination requires

additional approval

from University Risk

Management. Provost

may authorize or

restrict travel to

specific regions within

a Travel Warning area.

ITAC, established by

office of the president,

serves as the review

body for travel

proposals to at-risk

destinations and

recommends whether

the travel should be

approved.

Routed to Trip

Approver (authorized

signer on account),

ATO (Authorizing

Travel Agent), Dean or

V/P approval is

required for any trip

over $5000 or to an at-

risk destination and for

any exception to ASU

policy.

American Heart

Association

International travel

must be approved in

advance by the Chief

Admin Office. Approval

must be provided to

the Travel Desk prior to

making the

reservation. Exception

to this approval

process is granted if

your position within

AHA is focused on

international business

and/or senior

management.

University of

Tulsa

Center for Global

Engagement is in

charge of international

travel.

Tenured faculty are

allowed one

conference per year

and up to $1000/year

or $1500 for

international travel.

Adjuncts are ineligible.

Their contract dictates

if there is a separate

policy for Chancellor or

Chief Admins. If not,

they follow the same

policy as other

employees (e.g.

inclusion of spouse,

dependents, class of

travel, etc)

Penn State

University

University operates

under one travel

policy.

TAMU Concur Request is used

only for international

travel.

University operates

under one travel

policy. However, the

Foundation can

reimburse the

President for other

travel related expenses

that the University

cannot.

Princeton

University

The same travel policy

applies to all members

for the Princeton

community.

54

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