3.10.3 The institution exercises appropriate control over all its financial resources. (Control of finances)
The University of New Orleans exercises appropriate control over all its financial resources. Policies and procedures exist for budgetary control for purchasing, cash management, investment, capital outlay, deferred maintenance, inventory, travel, internal audit functions, and endowment. The University’s financial resources are managed by qualified staff, as documented in Comprehensive Standard 3.10.1. Further, the University’s budget and expenditures are regularly reported to the University of Louisiana System Board of Supervisors, the Louisiana Board of Regents and Office of Statewide Reporting and Accounting Policy (OSRAP), as explained in Core Requirement 2.11.1.
The University has a comprehensive budget process as part of its plan to reach the goals established by the administration. Reserves are established so that in the event of mid-year adjustments required by changes in state appropriations and/or changes in self-generated revenue, the Vice President for Business Affairs, in concert with the President and other Vice Presidents, can make changes to the budget to keep it in balance. A more detailed explanation of the budget process is contained in Core Requirement 2.11.1.
College and departmental budgets are monitored during the fiscal year to ensure that sufficient funds are available for acquisition of goods and services. Department heads have read-only access to their respective budgets and budget activity online. Nvision statements are updated nightly and available through PeopleSoft Financials.
Departments have the ability to make budget adjustments to and from object categories within their budgetary unit as corrective measures when sufficient funds are not available. Until such time that the corrective measures are taken, requests for further transactions are denied.
Institutional purchasing procedures adhere to the Rules and Regulations of the State Purchasing Office. The UNO Purchasing Department has published its Policies and Procedures, “Purchasing in a Nutshell” on the University Intranet (SharePoint) site. Forms used in the purchasing process include online purchase requisitions, online purchase orders, and check request for reimbursement of expenditures.
The University of New Orleans has entered into an agreement with the State of Louisiana and the Bank of America to participate in the state’s purchasing card program called the La Carte Purchasing Card. The card is used to manage purchasing and accounting by enabling eligible employees to purchase items with the convenience of a credit card while maintaining control over purchases. The card enables cardholders to purchase non-restricted items directly from vendors without requisition, verbal purchase order, or purchase order. Campus procedures for completing purchase requisitions in PeopleSoft are disseminated in training materials which detail the PeopleSoft controls.
The University has established cash management policy and procedures in accordance with Louisiana Revised Statue 39:371-372 under the state’s administrative code. External oversight of the cash management procedures is under the direction of the State of Louisiana’s Office of the Cash Management Review Board. Board membership includes the Legislative Auditor, the State Treasurer, and the State Commissioner of Administration.
The cashiering function is centralized in the Bursar’s Office, and there is a carefully managed procedure for the receipt, deposit, and safeguarding of institutional funds. The collection of cash and the cashiering function come under the constant review of the Internal Auditor. Approximately 85% of the cash collections are centralized in the Bursar’s Office. Only a few departments are authorized to accept cash which is limited to the Parking Auxiliary, Recreation and Intramural Sports, Lakefront Arena, Student Health and Athletics. These areas deposit funds with the Departmental Deposit on a timely basis, and their activity is constantly reviewed by the Internal Auditor. The UNO Bookstore, Copy Center and Food Services are all contracted operations. Operating procedures for the Bursar and Accounts Receivable detail protocols.
The investment program at the University of New Orleans is the responsibility of the Assistant Vice President for Business Affairs. The University subscribes to an investment policy that all funds within its control should be utilized to their maximum efficiency. The Cash Management and Investment Policy includes the following sections:
Investments: “There are to be no idle funds with the University that do not earn interest.”
Security-Cash Deposits and Certificates of Deposit: “All banking institutions having deposits for the University of New Orleans shall have adequate collateral pledged to cover such deposits…and are required to meet FIRREA regulations…”
Security – Direct United States Treasury Obligations and United States Government Agency Obligations: “Security of the instruments of investments is the responsibility of the issuing financial institution.”
Reporting: “The Assistant Vice President for Business Affairs prepares, showing type, term, yield, maturity date, and book value of investment, a monthly report on investments.”
Long-term investments are accomplished in accordance with Louisiana Revised Statute 49:327. Investments are made in the following types of investment instruments: time certificates of deposit; direct U.S. Treasury obligations; and U.S. government agency obligations. Limiting investments to these three types of instruments minimizes the risk undertaken by the University in the investment of funds.
Capital outlay allocations, particularly for equipment purchases, are made by the requesting departments. Purchases greater than $50,000 must be submitted to the Vice President for Business Affairs for review and approval before Purchasing processes the request. Amounts of these allocations are dependent on various fluctuating factors, with self-generated revenue being the main one. The distribution of these capital outlay funds is based on the recommendation of the Associate Vice President for Facility Services and approval of the President and Vice President of Business Affairs after a careful review of individual building needs as discussed with the respective college deans. The primary factor affecting prioritization for use of funds is the alignment with the institution's Mission, Strategic Plan, and Master Plan (Part I, Part II, Part III, Part IV and Part V). Equipment purchases must be made in accordance with State and University purchasing regulations.
Sources of funds for deferred maintenance have come from both special appropriations by the State and campus-based capital outlay expenditures. As explained in Comprehensive Standard 3.11.3, the University has received nearly $10 million in special appropriations for deferred maintenance since 2003. Annually the University allocates funds to a specified account for deferred maintenance; in the FY2013-2014 operating budget, the deferred maintenance allocation totaled $1.18 million. The state appropriated $1.3 million to UNO as a special allocation from the over-collections fund to assist with deferred maintenance projects.
Policies related to construction and deferred maintenance projects are posted on the Facilities Management Website and include “Architectural Guidelines,” Request for Quote, Request for Quote - Mandatory Site Visit and Request for Quote - Mandatory Pre-Bid Conference.
The University has developed a comprehensive inventory control process, which is in keeping with statutes and regulations. The Property Manager in the Office of Business Affairs is responsible for oversight and implementation of policies for the recording, tracking, and disposal of moveable physical assets. As explained in Comprehensive Standard 3.11.1, the Property Manager maintains an institutional database of moveable property, including its location, value, date of acquisition, date of disposal, and other information.
All equipment which is acquired, whether through purchase, donation, or transfer, is the property of the University (and of the State). If such equipment has a value of $1,000 or more, it is tagged with a property control tag, and all pertinent information about the item, including its description, location, acquisition date and cost, serial number, and other useful information is recorded for inventory purposes. The record is a permanent part of the University's inventory file of equipment.
In brief, each department head is responsible for the equipment assigned to his or her department. The Property Manager is responsible for conducting an annual inventory which confirms the physical location and documents the active status of each property item. Procedures for transfer or removal of equipment from campus are detailed in “Property Control Operating Procedures” on the UNO Property Control Website.
Official travel by university employees is governed by state travel regulations (PPM49). Travel funds are allocated at the department level. Faculty and staff members may apply to use travel funds by completing a “Travel Authorization” form on the University Intranet (SharePoint). The form is routed electronically to supervisors and budgetary control departments until it has been approved or rejected. Request for international travel (any travel outside contiguous 48 states) requires approval by the President. After completion of travel, the employee fills out a Travel Expense Reimbursement Form. UNO participates in the Bank of America state liability travel card program which allows authorized travelers to directly expense select items to their UNO accounts.
Internal Audit Function
University of New Orleans maintains a strong internal audit function. To provide for the independence of the internal audit activity, its personnel report to the University's Chief Audit Executive (CAE), who reports functionally to the University of Louisiana System Board through the Board's CAE and administratively to the University President. In performing their work, the CAE and other internal audit staff members have no direct authority over, nor responsibility for, any of the activities reviewed. As required by the UNO Internal Audit Charter, the Internal Auditor is responsible for creating a risk based annual audit plan which includes input from the President, Vice Presidents, and the System Internal Auditor. The Office of Internal Audit maintains documentation for all audit activities performed. These documents can be reviewed by the Legislative Auditor as part of the auditor’s annual review.
The University of New Orleans Foundation is governed by its Board of Directors, which includes as one member the President of the University. The University’s Board of Regents endowments are managed by the UNO Foundation through a Funds Management Agreement under the overall Board of Regents Statement of Investment Policy and Objectives. The Board manages its funds in accordance with several policies. These include the investment and endowment annual spending allocation policy, which delineates the investment asset allocation for general and eminent scholars endowments based on the overarching Board of Regents Endowed Chair, Endowed Professorship, and Endowed Scholarship Programs Statement of Investment Policy and Objectives.
The University of New Orleans' finances are audited annually by the Louisiana Legislative Auditor as part of the system-wide audit for the University of Louisiana System. Attached are the management letters for the past five years (2009; 2010; 2011; 2012; 2013). Corrective actions were taken for a 2009 finding with regard to immovable equipment and in 2013 with regard to inaccurate annual fiscal reporting.
|AP_BA_19_2_Cash_Man_Invest||University of New Orleans Cash Management Policy|
|BOR_Endow_Chair_Pol||Board of Regents Endowed Chairs for Eminent Scholars Program Policy|
|BOR_Endow_Pro_Pol||Board of Regents Endowed Professorships Program Policy|
|BOR_Endow_Sch_Pol||Board of Regents Endowed Scholarship Program Policy|
|Check_Request_Form||Check Request Form for Reimbursement of Expenditures|
|La_BOR_Endow_Pro_Inv||Louisiana Board of Regents Endowed Chair, Endowed Professorship, and Endowed Scholarship Programs - Investment Policy and Objectives|
|La_Lacarte_Policy||Louisiana Corporate Liability "LaCarte" Purchasing Card Policy|
|La_Leg_Aud_Man_Let_2009||Louisiana Legislative Auditor’s Management Letter for Period ending June 30, 2009|
|La_Leg_Aud_Man_Let_2010||Louisiana Legislative Auditor’s Management Letter for Period ending June 30, 2010|
|La_Leg_Aud_Man_Let_2011||Louisiana Legislative Auditor’s Management Letter for Period ending June 30, 2011|
|La_Leg_Aud_Man_Let_2012||Louisiana Legislative Auditor’s Management Letter for Period ending June 30, 2012|
|La_Leg_Aud_Man_Let_2013||Louisiana Legislative Auditor’s Management Letter for Period ending June 30, 2013|
|La_Travel_Reg||Louisiana Travel Regulations|
|Nvision_Statement||Example of Nvision Budget Statement|
|Online_Purchase_Order||Online Purchase Order|
|Online_Purchase_Req||Online Purchase Requisition|
|Over_Collections_Fund||State Appropriation from Over-Collections Fund|
|Purchase_Req_Peoplesoft||Purchase Requisitions Peoplesoft Trainning Mannual|
|Purchasing_Nutshell||University of New Orleans Purchasing in a Nutshell Guidelines|
|RS_39_371_372||Louisiana Revised Statute Statewide Reporting Accounting Policy - Collection Policy and Procedure|
|RS_49_327||Louisiana Revised Statute Authorized Investments; Maturity; Interest Rates|
|Staff_Qualif_Bus_Affairs||Descriptions of Qualifications of Key Personnel in Office of Business Affairs|
|State_Purchasing_Rules_Regs||State Purchasing Office Procurement Handbook|
|State_Travel_Card_Policy||State Liability Travel Card and CBA Policy|
|UNO_Acct_Rec_Pro||University of New Orleans Accounts Receivable Procedures and Guidelines|
|UNO_Arch_Guide||University of New Orleans Architectural and Landscape Design Guidelines|
|UNO_Audit_Plan||University of New Orleans Audit Plan 2013-14|
|UNO_Bursar_Operating_Pro||University of New Orleans Bursar Operating Procedures|
|UNO_Deferred_Main||University of New Orleans Deferred Maintenance Fund|
|UNO_Found_Funds_Mgt||University of New Orleans Foundation Funds Management Agreement|
|UNO_Found_Inv_Endow_Pol||University of New Orleans Foundation Investment and Endowment Annual Spending Activities Policy|
|UNO_Int_Audit_Charter||University of New Orleans Internal Audit Activity Charter|
|UNO_Master_Plan_Part_1||University of New Orleans Master Plan - Part 1|
|UNO_Master_Plan_Part_2||University of New Orleans Master Plan - Part 2|
|UNO_Master_Plan_Part_3||University of New Orleans Master Plan - Part 3|
|UNO_Master_Plan_Part_4||University of New Orleans Master Plan - Part 4|
|UNO_Master_Plan_Part_5||University of New Orleans Master Plan - Part 5|
|UNO_Prop_Control||University of New Orleans Property Control Operating Procedures|
|UNO_Purchasing_Card||University of New Orleans Purchasing Card Policies and Procedures|
|UNO_Request_Quote||Request for Quote|
|UNO_Request_Quote_Conf||Request for Quote-Mandatory Pre-Bid Conference|
|UNO_Request_Quote_Site_Visit||Request for Quote - Mandatory Prequote Site Visit|
|UNO_Strategic_Plan_2015-2020||University of New Orleans Strategic Plan: UNO 2020|
|UNO_Travel_Author_Form||University of New Orleans Travel Authorization Form|
|UNO_Travel_Reim_Form||University of New Orleans Travel Reimbursement Form|
|UNO_Website_Mission||Mission statement published on website|