berkeley stories: lessons learned from audit and advisory ......construction (landscaping, interior...

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Berkeley Stories: Lessons Learned from Audit and Advisory Services Audit and Advisory Services Staff October 20, 2016

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Page 1: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Berkeley Stories: Lessons Learned from Audit and Advisory Services

Audit and Advisory Services Sta ff October 20 , 2016

Page 2: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Former Employee Sentenced to 18 Months in Prison for

Embezzlement

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Chad Edwards

Page 3: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Median loss $150 ,000 • Asset misappropria tion was the most common form, 83% of a ll

cases • Median dura tion was 18 months • 94 .5% of the cases, the perpetra tor tried to concea l the fraud • The most common concea lment methods were crea ting and

a ltering physica l documents • Losses were lower when fraud uncovered through monitoring Source: Associate of Certified Fraud Examiners 2016 Report to the Nations on Occupational Fraud and Abuse

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Asset Misappropriation

Page 4: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Schemes • Prevention and

Detection Methods

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Asset Misappropriation

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Page 5: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Administra tive Support for Research Conducted Abroad

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Jennifer Jones

Page 6: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Country Index Rank Visit Count

South Sudan 186 of 189 3

Democra tic Republic of Congo 184 2

Venezuela 182 1

Bangladesh 173 24

Zimbabwe 171 3

Nigeria 170 2 1 The World Bank – 2014 “Ease of Doing Business Index”

Cast and Setting

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Page 7: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Wide ranging needs and problems to solve in order to get there and to do work once on- the- ground

–Visas and permits –Equipment –Loca l labor laws/ customs –Unbudgeted expenses –Research da ta / samples –Cash handling

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Intrigue

Page 8: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Contact [email protected] or Dragana .Nikola [email protected] to join systemwide interna tiona l listserv

• http:/ / ucgo.org/ for UCSF- hosted website providing

information and resources in support of globa l hea lth research across the UC system. UCOP managed project underway to expand website to address broader research audience and needs

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Epilogue

Page 9: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Interna tiona l Visiting Schola rs

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Robert Asa to

Page 10: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Setting

J- 1 Internat ional Scholars at UC Berkeley in the past 10 years

Source: Annual Report of International Visit ing Scholars, Berkeley International Office, 2016

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Page 11: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Fe d s D e p o r t Un i v e r s i t y Of W a s h i n g t o n I n t e r n a t i o n a l S t u d e n t W h o M a d e S o c i a l M e d i a

T h r e a t s

International Students Deported For Working At Walmart Moorhead Landlord Feels Violated By International Student Tenants

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Headlines

Page 12: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Monitoring

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Intrigue

Page 13: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Monitoring of Interna tiona l Visitors

- Sta te Department, 22 CFR 62 .10 Sponsors a re required to monitor their participants' welfa re and progress to the extent appropria te for the ca tegory, and ensure tha t their activities a re consistent with the ca tegory indica ted on the Form DS- 2019 .

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Intrigue

Page 14: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Monitor

• Ensure activities a re consistent with the purpose of the visit • Know the physica l loca tion (site of activity) and progress

• Report changes in telephone numbers, email addresses,

current U.S. address (i.e. physica l residence) • Report email address for each accompanying spouse and

dependent 14

Intrigue

Page 15: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

GLACIER

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Intrigue

Foreign Nat ional Tax Obligat ion

Page 16: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

GLACIER

What is it? • U.S. Tax laws require UC Berkeley to collect information from

non- U.S. citizens to determine their tax sta tus.

• GLACIER tax compliance software helps foreign individua ls and UC Berkeley collect, store, and print forms required by law.

• GLACIER will a ssist the user determine tax residency, tax trea ty eligibility for the foreign individua l, and their tax withholding ra tes.

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Intrigue

Page 17: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

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Page 18: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Important!

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Page 19: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Communicat ion

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Intrigue

Page 20: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Berkeley Interna tiona l Office (BIO) - http:/ / interna tiona loffice.berkeley.edu/ - BIO Schola r Information Meeting

• Visiting Schola r and Postdoc Affa irs (VSPA)

- http:/ / vspa .berkeley.edu/ - VSPA Postdoc and Visiting Schola r Orienta tion

• Campus Payroll Office - GLACIER Information • UC Learning Center - GLACIER tra ining

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Epilogue

Page 21: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Donor- Built Facilities

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Dorothy Lipari (as told by Wanda Lynn Riley)

Page 22: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Berkeley has undertaken a few donor- built facilities projects, including the Ky Ebright Boa thouse, Blum Hall, the Haas Academic Building, and the Ca l Aqua tics Center.

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Just to Name a Few

Page 23: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Roles and responsibilities of

both centra l units and individua l units should be defined and formalized, within a business process, to ensure consistency in execution across the project life cycle and from project to project.

• Activities actua lly performed by campus units may put a t risk the structure of the donor-developer agreement and the gift in kind transaction.

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You Should Know

Page 24: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Direct fundra ising for a donor’s 501(c)3 entity is not

a llowed. • Fundra ising for items tha t a re not part of the facility under

construction (landscaping, interior furniture and decora tions, etc.) may be performed, however, check with campus counsel before engaging.

• Elimina te or limit the amount of support provided to the donor or the donor’s 501(c)3 entity, to include soliciting interest for the project from new and prior donors, accepting pledges on beha lf of the donor, preparing and issuing donor commitment letters, and using the 501(c)3 letterhead.

• Accepting actua l dona tions on beha lf of the donor is not a llowed.

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You Should Know

Page 25: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Combining Financia l and Opera tiona l Information to Tell

Your Story and Plan for the Future

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Chad Edwards

Page 26: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Process • Communica tion • Development • People • Teamwork

• Solution • Finance • Revenue • Marketing

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Business Planning

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St rategy

Page 27: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

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Management Reporting and Analysis

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Page 28: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Collaboration and Partnering

s

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Page 29: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Rate Development

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Jennifer Jones

Page 30: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Recharge units • Third- party contracts • Self- supporting degree programs

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Cast and Setting

Page 31: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• First - “ to be, or not to be…” • Rate development - a few tips

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Resolution

Page 32: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Purchasing from Foreign Vendors

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Jennifer Jones

Page 33: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

~$15 million in purchases from foreign vendors FY2015

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Shopping Around the World

Page 34: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Authorized vendor • Non- sanctioned country • Contract terms and conditions • Payment • Customs and shippings

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What Do You Need to Know?

Page 35: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

• Key tips for end- users –Use University- contracted

freight forwarders –Allow ample lead- time when

buying from foreign suppliers for due diligence requirements

–Goods / services received and used / performed entirely outside of the US

–Enforceability of terms and conditions

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What Else Do You Need to Know?

Page 36: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Audit Staff

• Wanda Lynn Riley, Chief Audit Executive |

[email protected] | 642- 8293 • Ja ime Jue, Associa te Director | [email protected] |

642- 20 64 • Chad Edwards, Principa l IT Auditor |

[email protected] | 642- 2123 • Jennifer Jones, Principa l Auditor | [email protected]

| 642- 2141 • Dorothy Lipari, Principa l Auditor | dlipa [email protected]

| 642- 2286 • Robert Asa to, Senior Auditor | rkasa [email protected] |

642- 2200 36

Page 37: Berkeley Stories: Lessons Learned from Audit and Advisory ......construction (landscaping, interior furniture and decorations, etc.) may be performed, however, check with campus counsel

Other Resources

Visit us in person or mail us a t Audit and Advisory Services 611 University Ha ll MC 1170

Visit our website a t http:/ / audit.berkeley.edu

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