MAS NEWSLETTER

A quarterly publication distributed by UMBC Management Advisory Services

Web Site: http://www.umbc.edu/mas

 

VOLUME 3, NUMBER 4

APR, 2003

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MESSAGE FROM MAS DIRECTOR

I will be back from maternity leave by the time this newsletter is released. Please feel free to contact me with questions concerning audit requirements, internal controls or other MAS related issues.

 

USM IRS AUDIT UPDATE

In December we notified the campus that a USM wide IRS Audit was under way. The following is an update on the status of the audit:

• Initial Information Document Requests (IDR’s) related to scholarships, fellowships, grants, and non-resident alien reporting were issued to four institutions including UMCP, Towson, Coppin and Bowie.

• After sample selections are made at the four schools, in compliance with the Family Educational Right to Privacy Act (FERPA), students will be contacted prior to personal identifiable information being released.

• UMBC Financial Services is doing an assessment of activities on campus that may present potential risks for the campus should the IRS come here.

Even though UMBC has not yet been selected for review by the IRS auditors, everyone  on campus should still be aware of the audit. Since the results of this audit could impact the University’s tax liability, please ensure any requests for information from the IRS are coordinated through Financial Services. Contact Tom Vogler on extension 51720.

 

WHAT DOES A LEGISLATIVE AUDIT MEAN TO YOU???

Periodically, UMBC is audited by the Office of Legislative Audits (OLA). OLA is the audit, evaluation, and investigative arm of the Maryland General Assembly. OLA examines the use of public funds, evaluates programs and activities, and provides analyses, options, recommendations, and other assistance to help the General Assembly make effective oversight, policy, and funding decisions. State agencies and their employees who fail to cooperate with the legislative audit process can put the reputation of their agency as well as their funding in danger. Following the lead of President Hrabowski, the campus

takes audit report items seriously. During these difficult economic times we should work towards preventing audit report items that could jeopardize UMBC funding. The UMBC community has been doing a great job in addressing the legislative audit recommendations. Your cooperation shows your concern for the challenges we face.

 

CELL PHONE USAGE

The Office of Legislative Audit recently completed a performance audit on State Cell Phone Usage. UMBC Cell Phone Policy is in draft form. In the interim, MAS suggests departments consider the following Legislative Auditors’ recommendations pertaining to cell phone usage. Not only are the recommendations good business practices, they could identify departmental savings in this time of leaner budgets.

• Review the vendor invoices for prohibited charges and taxes.

• Monitor the assignment and usage of cell phones.

• Phones not actively used should be deactivated.

• High volume user invoices should be reviewed.

• Ensure that employees had the most appropriate monthly access based on actual phone usage.

• Ensure that all cell phone users reimburse the Department for calls which management determines to be personal calls based on good judgment.

 

REMINDER OF MAS WEB SITE – FAQ AND CURRENT

TOPICS

We would like to remind you the MAS web site includes Frequently Asked Questions (FAQ) and a Current Topics section. In the FAQ you will find information on internal control issues and purchasing card policy to help you better administer your department. The Current Topics will keep you informed of current issues involving MAS, including audits on campus.

 

P-CARD CORNER

Effect of inadequate supervisory review.

In conducting department P-card reviews, we have found on several occasions, that there is inadequate supervisory review. As a result of noncompliance with Purchasing Card Program policies MAS may make a recommendation for a change in supervisors. This change can have significant consequences:

• Reflects badly on department.
• Interrupts work flow.
• Causes reorganization of staff duties.
• Causes inefficient use of human resources.
• Shows lack of concern for current departmental and UMBC economic challenges.

Lack of appropriate supervisory review was a repeat report item in the last Legislative Audit. President Hrabowski and MAS are committed to ensuring this will not be a report item in the next audit. If purchasing card supervisory review is

a concern in your department, please notify MAS so that we can make recommendations to ensure compliance with Purchasing Card Program policy.

 

Successful P-Card Refresher Training

The Department of Procurement and MAS recently provided refresher P-Card training to cardholders and supervisors in training sessions held in February and March 2003. We were pleased with the number of participants and appreciate

their concern for following Purchasing Card Program policy. We hope those in attendance obtained a better understanding of the policies and gained new information that has been added since their initial training.

 

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