MAS NEWSLETTER
A quarterly publication distributed by UMBC Management Advisory Services
Web Site: http://www.umbc.edu/mas
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VOLUME 2, NUMBER 3 |
JAN, 2002 |
NEW AUDIT FOLLOW-UP REQUIREMENT
Recently, the Joint Audit Committee (“JAC”) of the Maryland General Assembly notified all State Agencies that they have been monitoring the rate of repeat items statewide and believe agencies are not taking sufficient efforts to resolve audit findings. Consequently, the JAC has instituted a new audit follow-up process that will require us to periodically provide them status reports identifying the actions taken to address each audit finding and the planned implementation dates if corrective efforts are still in progress. If deemed necessary, the legislative auditors will conduct onsite follow-up reviews.
UMBC has been committed to correcting audit report items for some time now. Avoiding repeat items has been a major focus of our internal follow-up efforts. In our last audit report, we had corrected over 80% of the prior report items. Repeat items negatively impact our audit rating, which is reviewed by the Maryland General Assembly, and can ultimately affect legislative
budget decisions.
To ensure we properly respond to the JAC requests for status reports, MAS will be periodically asking departments to update the status of their corrective actions. Stay tuned for more details on this new requirement.
INVENTORY ISSUES
The University’s Inventory Control Unit has recently completed the arduous task of conducting the campus wide equipment inventory. Since the equipment inventory area has been a Legislative Audit issue in the past, Management Advisory Services has been working with the Inventory Control Unit to ensure the campus adequately addresses inventory issues. We would like to remind all Departments of the following necessary elements to contribute to a successful, efficient inventory taking process:
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UNDERSTANDING – Often times it is difficult to remember just what should be inventoried. Inventoriable equipment is capital, non-capital, and sensitive equipment. These are defined as follows:
Capital equipment – Equipment that is not permanently affixed to a building has a useful life greater than one year, and an acquisition cost of $5,000 or more.
Non-capital equipment – Equipment that is not permanently affixed to a building, has a useful life greater than one year, and an acquisition cost of greater than $2,500 and less than $5,000.
Sensitive equipment – Computer equipment with an acquisition cost greater than $750 and less than $5,000 per unit, audio visual equipment with an acquisition cost greater than $1,000 but less than $5,000, firearms, and motor vehicles and vessels regardless of cost.
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TRAINING – The Inventory Control Unit has recently been working to clarify their policies and procedures and will be providing related training in the near future. Please plan to attend.
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FORM PREPARATION – Proper completion of inventory addition and disposition forms (located on the Inventory Control Unit web site) is imperative. Remember: MAS P-Card review procedures include verification that Inventory Addition Forms are completed and submitted timely for inventoriable equipment purchased via P-Card. Appropriate supporting documentation (i.e., copy of paid invoice/ receipt) must also be submitted with the form. Review results are forwarded to the Inventory Control Unit so they may follow up with departments.
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COMMUNICATION – Ensure the Inventory Control Unit is aware of each department’s designated Inventory Custodian and any changes that occur.
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COOPERATION – The timely completion of our physical inventory is a requirement for the University, not just one department. Each legislative audit will include a review of the process. We should all realize that the best way to avoid repeating this audit report item is by cooperating to take the physical inventory, maintain accurate records, and properly safeguard the University’s assets.
If there are any questions about inventory, please contact Albert Smith on extension 53044.
REVOLVING FUND REMINDER
Revolving Funds are utilized by numerous departments for a variety of reasons; however their use has been subject to Legislative Audit comment in the past. The department or individual who requested the revolving fund should ensure the fund is being utilized for its intended purpose and monitoring the fund balance. If a deficit occurs, a viable written plan addressing the deficit needs to be submitted to Financial Services.
CELL PHONE ALERT!!
A recent Legislative Audit of another University in the System, cited the University for not ensuring cellular phone charges were subject to independent supervisory review and that the phones were not used for personal use. Cellular phone bills should be thoroughly reviewed prior to approval and reimbursement for any personal usage should be made timely.
PURCHASING CARD CORNER
ALTERNATE P-CARD SUPERVISOR
Purchasing card program policy requires that both cardholders and supervisors attend a purchasing card training session. If someone who was not previously trained replaces the designated supervisor, the new supervisor must attend a training session. In addition, the Department Chair or Dean should notify Ina Caplan (Purchasing Card Program Administrator) in writing of the change in supervisor.
RESPONSE REQUIRED
If departures from purchasing card program policy are found during a department’s purchasing card review, MAS now requires a written response to it’s summary memo to the department within 30 days indicating what actions will be taken to address the recommendations made.
INTERNET PURCHASES
Purchases may be made via the web from secure (encrypted) sites that are usually denoted with a small padlock icon in the corner of the screen. Cardholders should remember to print the order page and any other information necessary to sufficiently document what was purchased, the purchase price and how it was paid. This documentation must be retained with the transaction log.
KUDOS…
…to the departments of Biological Sciences and Chemistry and
Biochemistry. Recently completed purchasing card reviews have shown these high
volume users are managing their program well. Thanks for your efforts and keep
up the good work!
MANAGEMENT ADVISORY SERVICES
Michele L. Evans, CPA
Director
Email: mevans@umbc.edu
Extension: 51354
Frances Toth, CPA
Management Analyst
Email: ftoth@umbc.edu
Extension: 56257
Sharon D. Doherty-Ritter, CPA
Management Analyst
Email: doherty@umbc.edu
Extension: 51620
Shared Fax: 51009