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Georgia State University --- Expenditure Review Executive Summary -- Online Training

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Online TrainingOnline Training

for Georgia State Universityfor Georgia State University

Expenditure Review

Executive Summary


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About this Online Training…

1. You may progress through the presentation by using the mouse to click on the NEXT

button. 2. All Spectrum-specific Forms and Information

may be obtained from Web site. (http://www.gsu.edu/spectrum)

3. To EXIT the training at any time, press ESC.


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Expenditure Review Online TrainingExecutive Summary

Training Highlights

This summary was designed to aid Vice Presidents and Deans who have budgetary authority in understanding the

expenditure review process.

VPs and Deans will be aware of………. 1.) ……how to ensure segregation of duties.

2.) …. how to ensure the business integrity of their budgets/ budgetary transactions.

3.) ……their budgetary responsibilities.


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Expenditure Review

Ultimate responsibility for internal controls resides with VPs and

Deans, and CANNOT be delegated.

Approval and review activities may be delegated to appropriate

individuals.


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Expenditure Review Online TrainingExecutive Summary

OVERVIEW

– Section 1: Expenditure Review Defined

– Section 2: Roles and Responsibilities– Section 3: Job Description Updates– Section 4: Departmental Processes– Section 5: Summary


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Section 1:Expenditure Review Defined


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What is an Expenditure Review?

Expenditure Review…

• is an after-the-fact review of financial transactions that have been posted on Spectrum.

• includes personal (i.e., payroll) and non-personal (i.e. supplies, equipment, travel, etc.) expenditures.

• is necessary to ensure expenditures are authorized.

Section 1: Expenditure Review Process Defined


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What is Expenditure Review?

Expenditure Review checks for

• Purpose: All charges pertain to the purpose of the unit or sponsored project.

• Accuracy: Charges are familiar and are accurate: in payee, amount and account.

• Completeness: – Everything that should be there, is there.

– Everything that is there, should be there.



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Authorization

Click here to view the documentNOTE: Exiting the secondary application will return you to this training


The Expenditure Review Process was initiated in response to

President Patton’s Internal Control Memo addressed to the Vice Presidents and Deans,

dated June 2, 2003


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Section 2:Roles and Responsibilities


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Roles and Responsibilities

Several steps are performed when processing an expenditure, with

several assigned individuals taking on specific roles within the process.

Section 2: Roles and Responsibilities

Prepares a transaction for approval either on Spectrum or hardcopy

Approves financial transaction on Spectrum or hardcopy

Initiator

Approver

ReviewerReviews financial transactions after they

have posted to Spectrum to ensure appropriate use of funds


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Segregation of Duties

Good Accounting Practices recommend that at least two

individuals be involved in the duties of initiating, approving, and reviewing transactions. Both must be able to verify the business integrity of the transactions.

For each individual speedtype, the following relationships are a proper or improper segregation of duties as indicated.

Initiator = Reviewer

Initiator = Approver

Approver = Reviewer



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Compliance

• Audits– To ensure compliance, University Auditing and

Advisory Services periodically performs compliance audits, the results of which are forwarded to the Board of Regents.

– Also performing compliance checks might be auditors from:

• the State,• the Board of Regents, or • the Sponsoring Agencies (including the federal government)



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Section 3: Job Description Updates


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It is YOUR responsibility to see that expenditure review is an official part of

the job descriptions/ job duties of ALL persons you have authorized to have

budgetary responsibilities.

As the Person with AUTHORITY over a budget

Resources & References


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Every Faculty and Staff member with budgetary responsibilities is to adhere to

these internal control policies.

To assist you in ensuring that your budget is being properly managed, the following

guideline has been established…


As the Person with AUTHORITY over a budget


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• Please pay close attention to the sections on- Payroll / Personnel Practices: Explicit Job Descriptions - Payroll / Personnel Practices: Employment Screening

Job Expectations for Persons with Budgetary Responsibility


Click here to view the document*

NOTE: Exiting the secondary application will return you to this training*Created jointly by Human Resources and University Auditing and Advisory Services.


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• Principal Investigators Please Note…..

Ultimate responsibility cannot be delegated; as the Principal Investigator, you are responsible for all expenditures made from your budget. The best way to accomplish this is hands-on involvement in the management of your expenditures.

Job Expectations for Employees Engaged in Management

of Sponsored Projects



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Section 4: Overview of Expenditure

Review Process


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Close of Month

Expenditure Review Performed

Certification

of the Review

End

Office of the VP/Dean monitors for completeness/ inclusion of all

budgetary areas

Discussed in this section

Section 4: Overview of Expenditure Review Process


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Expenditure Review Performed

Each designated Reviewer will review expenditure details. Two specialized Spectrum reports were created to facilitate this process.

• GL Drill Down Report• Project Drill [down] Report

NOTE: Reviewers are assigned by speedtype. Each speedtype has a single reviewer, but a single reviewer may

be responsible for multiple speedtypes.



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Certification

Putting the following steps in place helps ensure that you are in compliance with Internal Controls…

- Each Reviewer certifies that the monthly expenditure review has taken place.

- Certification documentation is retained for 12 months.



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Certification

Format

The VP/Dean prescribes the processes and procedures for their units to ensure internal

controls.

In the next few slides, a “Best Practices” example

is provided as guidance.



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What is acceptable Certification Documentation?

• Certification documentation may be:– a standardized form, – an email or – other notation as prescribed by the VP/Dean

• Recommended Documentation data:- Name of person completing the review- Date(s) reviews were performed- Speedtype/accounts included in the review- Unit/department reviewed



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Sample Certification FormSection 4: Overview of Expenditure Review Process

Click for downloadable version. Exit secondary application to return to this

slide.


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Monitoring/Review done by the Office of the VP/Dean

• Ensure segregation of duties is maintained.

• Ensure that all appropriate speedcodes are reviewed on a monthly basis.

• Ensure certification documentation is retained for 12 months.



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Section 5:Summary


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Section 5: Summary

KEY POINTS

• Ultimate responsibility cannot be delegated.

• Maintain Segregation of duties.

• Document the performance of review.

• Include all appropriate speedtypes in reviews.

• Retain certification for 12 months.


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Thank you for reviewing and participating in the

Expenditure Review

Executive Summary

Section 5: Summary

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