QUARTERLY BUSINESS OFFICERS MEETINGJANUARY 2017

TODAY’S AGENDA

I. Introduction of New Business Officers (Selina Martin)

II. Budget Update (Terry Johnson)

III. University Shared Services Update (Debby Zumbach)

IV. Internal Control Findings (Todd Stewart)

V. FY 2018 Proposed Fringe Benefits Rates (Selina Martin)

VI. Cash Handling Training Compliance in CQ (Selina Martin)

VII.Talent@Iowa Update (Cheryl Reardon)

NEW BUSINESS OFFICERS

• F&O Facilities Management – Lynne Finn

• University Hygienic Lab – Sarah Dricken

• College of Pharmacy – Bill Wise

• VP Research – Ann Ricketts

BUDGET UPDATETERRY JOHNSON, CHIEF FINANCIAL OFFICER & TREASURER

STATE OF IOWA FY17 BUDGET REDUCTIONS ($110 MILLION)

Board of Regents Institutions, $25.60

Department of Human Services, $20.30

Department of Corrections, $15.00

Community Colleges, $8.70

Judicial Branch, $7.70

Department of Education, $5.50

Department of Public Safety, $3.80

All Other State Agencies, $23.40

Budget Cuts

EFFORTS UNDERWAY

TIER

Student Aid

Summer Hawks

5% Budget Prioritization Exercise

Full Costing Model

Committee on Academic Reorganization

Committee on Central Services Expense Reductions

FULL COSTING MODEL (BY COLLEGE)

Revenue (Appropriations, Tuition, Student Financial Aid, Indirect Cost Recoveries)

Direct Collegiate Expense

Allocated Expense (based on Tuition, Student Headcount, Building space, Research $, etc.)

o Academic Advising

o Career Center

o Honors Center

o Division of Student Life

Indirect Expense

Revenue - Expense (with Indirects)

BUDGET MEETINGS

January 30-31

Budget units present their preliminary budget prioritization plans to Sr. Leadership team in one-on-one sessions.

February 13

Meeting of the Budget Retreat Team. Update on FY17 budget prioritization discussions and FY18 base budget developments.

March 27-29

Budget Units present FY18 base budget decisions & plans to address the FY17 budget prioritization effort.

May 9

Meeting of the Budget Retreat Team. Update on recommendations for addressing the FY18 base budget & FY17 budget prioritization.

UNIVERSITY SHARED SERVICES UPDATE DEBBY ZUMBACH, ASSISTANT VP & DIRECTOR, BUSINESS SERVICES

INTERNAL CONTROL FINDINGSTODD STEWART, CHIEF AUDIT EXECUTIVE, OFFICE OF INTERNAL AUDIT

Internal Audit Findings

January 24, 2017

Todd StewartChief Audit ExecutiveOffice of Internal Audit

Internal Audit Findings

“Character is doing the right thing when nobody’s looking.”

-J.C. Watts

Internal Audit Approaches

Departmental/Unit Specific Audits

Centralized Process Audits

Centralized Process Audits

1. Workflow Paths2. Cash Handling

• UIHC Cash Handling• Cash Handling Policies

3. Human Resources• Performance Appraisals• Vacation/Sick Leave Usage• Early Retirement

Departmental Audits

1. Business Planning and Practices2. Compliance and Internal Controls3. Human Resources4. Information Technology (IT)5. Inventory and Capitalized Equipment

Business Planning and Practices

• Documented Business Continuation and Disaster Recovery Plans

• Up-to-Date Operations Manual• Charge Capture – Billing• Price Setting Methodology

– Goods or services

• Reconciling Cash Collections to Daily Revenues• Restrictive Endorsement of Checks

Compliance and Internal Controls

• Unmaintained Contracts• Segregation of Duties

– Incompatible purchasing duties

• Timely Reconciliations– Monthly Statements of Accounts– Inventories– Transaction Detail Report

Compliance and Internal Controls

• Cash Handling Procedures• Oversight of Procurement Card• Travel Vouchers – Approved by Supervisor• Trip Approvals • Gifts in Kind• Taxable Benefits

Human Resources

• Time and Leave Reporting• Human Resources Termination

– Timely restriction of user access

• Procurement Oversight– Workflow issues

• Staff Training – Various Areas– HIPPA and FERPA training– Sexual Harassment training

Information Technology

• System Access Controls• Server Vulnerability Scans• Social Security Number

Remediation from Computers• Noncompliant Password

Protocols

Information Technology

• Insecure Authentication• Machine Management• Physical and Environmental Security

– Accessible to the public– Not proper environmental placement

Inventory and Capitalized Equipment

• Capital Equipment Tracking• Equipment Disposal

– Not removed from inventory

• Inventory and Supply Management– Unused, defective, and obsolete

inventory– Inaccurate and missing inventory– Inventory procedures/inadequate monitoring

PCard Frauds on Campus

• Happening in multiple places across campus• Transactions moving through multiple levels of review• Approvals taking place at the highest levels• One person committing fraud on multiple cards• Receipts have been altered• Same receipt has been used multiple times• “Not Yet Shipped” receipts used• Shared Services processes continue to identify more fraud• Internal Audit is changing the way we test PCard transactions

High Risk Vendor?

Amazon! Primary Schemes:• Purchase multiples of the item requested, (ex: three world

maps) return two, and put the credit on a gift card• Create order – print the “Not Yet Shipped” receipt – cancel

that order and then purchase the fraudulent item• Fraudsters are using a personal Amazon account for

university business – requiring a subpoena to gain access to their Amazon account to determine a “ship to” address

How Can You Prevent This Fraud?

• Look at all receipts with professional skepticism• Look at the transaction detail for those vendors that

provide it• Pay particular attention to vendors like Amazon • Tell your staff exactly what you’re looking for when you

approve or have a PCard reconciled• Ensure the reconciliation is completed timely• Use eBuy as much as possible

What to do if You Suspect Fraud

• Don’t panic• Don’t confront the person you suspect of fraud• Be discreet• Lock down relevant data• Contact one the of the following:

• Todd Stewart, Chief Audit Executive• Terry Johnson, Chief Financial Officer and Treasurer• Human Resources or your College Dean

Ethicspoint

• The University of Iowa recognizes its obligation to maintain the highest ethical standards

• Policy compliance is a shared responsibility that depends on individuals voicing their concerns

Ethicspoint

• The Ethicspoint site provides an anonymous, confidential way to report potential issues

• The university will address reports promptly and discreetly, sharing facts only with personnel needed to investigate and resolve the matter

Ethicspoint

Go to uiowa.edu/ethics for more information

Thank You!

For more information on the Department of Internal Audit, please

visit our website at www.uiowa.edu/audit/

FY18 PROPOSED FRINGE RATESSELINA MARTIN, ASSOCIATE CONTROLLER

FY18 PROPOSED FRINGE RATES

MERIT POOL

FY18 Charge Rate = 60.00%

STANDARD FRINGE RATE TREND – 5 MAJOR POOLS

STANDARD FRINGE RATE TREND – 6 MINOR POOLS

COMPLIANCE & QUALIFICATION SYSTEM (CQ)MONITORING CASH HANDLING TRAINING COMPLIANCESELINA MARTIN, ASSOCIATE CONTROLLER

WHICH ROLES ARE REQUIRED TO COMPLETE ANNUAL TRAINING?

COMPLIANCE & QUALIFICATION SYSTEM

Includes My Training One place/one stop for all requirements Automation of population assignment Dashboard/quick reporting tools Available to all who have a compliance

DEADLINE INDICATORS

NOTIFICATIONS

Upon Assignment

30 Days from deadline (goes to yellow)

5 days from Deadline

Past Due

“MY COMPLIANCE”……. EMPLOYEE VIEW

OPTIONS FOR MEETING COMPLIANCE

RECORD ACTION COMPLETION (HR REPS RESPONSIBILITY)

“MY COMPLIANCE”……. EMPLOYEE VIEW

“ACTIONS & REPORTS” ……SUPERVISOR VIEW

“ACTIONS & REPORTS” ……SUPERVISOR VIEW

HR REPS & COMPLIANCE MANAGER’S VIEW

Reports have the features to drill down to the Department.

University Human Recourses Presentation – Business Officers

January 24, 2017

Charge: To assess and make

recommendations for the strategic direction and priorities

of the centralized human resource functions and services

supporting the University of Iowa and UI Health Care

Central HR

Services

Faculty HR

Health Care HR

University HR

Compliance & EOD

To remain competitive in today’s knowledge-based economy, the UI must:

Attract and retain world-class talent Address the aging workforce Adapt to technologies driving change (e.g. social networks) Utilize HR metrics and analytics for data driven decisions Maintain and enhance compliance with federal regulations Overcome challenges to diversify the workforce in a rural state Recognize differing generational cohorts’ expectations around

work life balance

People are the University’s Most Valuable Resource

$2B per Year54% of all University funds - salary/fringe

65% of GEF Funds

Integrated Strategies for Centralized HR Recommendations

Strategic Partnerships

Agility & Flexibility

Talent & Engagement

HR IT Systems

Data

“Fundamentally, the task force advocates a change in thinking about human resources, shifting our emphasis from a transactional to a strategic resource and a full business partner with university leadership.”

An integrated approach to grow Human Resources as a strategic partner

Talent@Iowa Governance Council

20 members from UI Community

Phas

e 2

-Feb • Benchmark

• Data• Diversity• Talent • Train &

Onboard Phas

e 3

-May • Policy

• Succession Planning

• Class & Comp

Phase 1 Progress

9 Month Roadmap (September 2017)

Balance

• Lead the implementation of Talent@Iowa• Develop integrated strategic vision with input

from the HR leaders & HR community • Search & onboard -Talent Acquisition Director• Preliminary Talent Strategy• Maintain HR Operational & Service Excellence• Finalize UHR organizational structure • Strengthening partnerships:

• Health Care • Alumni Association• HR community & Senior HR Leaders• Campus leaders (SIT, OT and budget)

• Working@Iowa action plans• Year of HR Innovation - 2017

Talent@Iowa

Working@Iowa

University Strategic Priorities

Operations

Strategy

Questions

Next Meeting:

March 24th

10:00-12:00 @ RemboltConference Room (CDD)