Accounting & Budgeting

Fiscal Control and Internal Auditing Act Certification

The Fiscal Control and Internal Auditing Act (FCIAA) is an annual state-mandated certification. The following survey is designed to provide the appropriate information to the University of Illinois System to assist in its response to the FCIAA requirement. It is important to note unit heads and fiscal officers are responsible for ensuring the effectiveness of the fiscal/internal controls in their respective units and for addressing any weaknesses.

The statements in this questionnaire describe a variety of fiscal and administrative controls that should be present in the current operating environment within the unit. Include details of any documented fiscal and/or administrative control weaknesses identified by internal/external auditors, consultants, or other agencies when responding to each statement:

Yes - This control is included in the normal operating practices of my unit, and is applied on a consistent basis
Partial - This control exists in my unit, but may not be applied consistently
No - This control does not exist for my unit
N/A - This control is not applicable in my unit

In completing the questionnaire, a "partial" or "no" response to a statement may indicate a weakness in fiscal and/or administrative controls, and hence an opportunity for improvement. Add comments to describe corrective actions in progress at the unit, requests for guidance/assistance, or to communicate any other information the unit believes is important to understanding the responses. Also use comments to describe the impact and details of documented weakness received from internal/external auditors, consultants, or other agencies.

Asset Management

Item 1:

Changes, transfers, and disposals of equipment assets are recorded promptly in unit equipment inventory records.

Custodial responsibilities for property control require that a unit develop a process to alert property accounting about new equipment purchases, changes to equipment location, custodian, condition, anticipated transfers and disposals.

Resource: Comply with Unit Head Property Custodial Responsibilities
Business and Finance Policies and Procedures Manual, 12.2.3 Comply with Unit Head Property Custodial Responsibilities

Item 2:

University property control labels are promptly affixed to equipment as required by University of Illinois System policies and procedures.

The State Property Control Act requires all university-owned property to display identification

Resource: Affix Property Labels
Business and Finance Policies and Procedures Manual, 12.1.6 Affix Property Labels

Item 3:

On March 31, May 31, or August 31, depending on your applicable university submission deadline, the physical biennial inventory was certified and completed as scheduled by the unit in accordance with system policy and procedures.

System and state regulations require each unit to certify and complete a physical inventory of university equipment at least once every two years.

Resource: Complete a Biennial Inventory
Business and Finance Policies and Procedures Manual, 12.2.1 Complete a Biennial Inventory

Item 4:

The unit has completed a physical inventory of its merchandise for resale and reconciled the results with its financial record in accordance with established system policies and procedures. Note: Select N/A if your unit does not sell merchandise.

University units must maintain appropriate inventory control of each item of merchandise for resale. Proper periodic inventory procedures are necessary to ensure that counts match accounting records.

Resource: Conduct a Physical Inventory to Adjust Your Merchandise Inventory Record
Business and Finance Policies and Procedures Manual, 22 Self-Supporting/Revenue Generating Activities - Conduct a Physical Inventory to Adjust Your Merchandise Inventory Record

Item 5:

Prior authorization and approval in compliance with system policies and procedures and state regulations has been received before physically removing university equipment for disposal or transfer.

No one is permitted to remove from the buildings and grounds any property belonging to the university unless all relevant policies and procedures are followed. This includes removal of property designated as recycling and applies to all unneeded equipment regardless of historical cost, tagging status, or inclusion in Banner Fixed Assets.

Resource: Transfers and Disposals for Property Accounting
Business and Finance Policies and Procedures Manual, 12 Property Accounting

Item 6:

Cash and checks under the control of the unit are managed in accordance with system policies and procedures established for cash controls. Note: Select N/A if your unit does not handle cash or checks.

In addition to establishing proper internal controls for units routinely handling cash and checks as noted in the link below, unit heads must:

Ensure their unit complies with system policies and procedures regarding cash and check handling.
Establish and maintain written procedures that provide a clear accountability process for receiving, depositing, and protecting cash and checks.
Provide supervision and training for all their staff assigned responsibility for cash and check handling.

Resource: Cash Handling
Business and Finance Policies and Procedures Manual, 10 Cash Handling

Item 7:

Funds, property, and other assets and resources (including PCards and TCards) are safeguarded against waste, loss, unauthorized use, and misappropriation.

The following are general guidelines for safeguarding assets through systems of internal control:

Assign responsibility and accountability for control of university assets to two or more employees (for example, responsibility for ordering, receiving, and inventorying assets should be separated so that the same employee does not have all these responsibilities).
Develop and distribute detailed unit operating procedures that are consistent with system policies and procedures.
Regularly verify the continued maintenance of established controls and remedy violations through prompt, effective, and fair actions.

Resource: Employee Responsibilities for University Assets
Business and Finance Policies and Procedures Manual, 9 Audits, Internal Control, and Business System Security

Financial Management

Item 8:

Financial statements are reviewed each month and appropriate actions are initiated to reconcile transactions to unit records.

Reconciliation or verification of financial transactions is a key element of internal control and is fundamental to sound business practices. All transactions should be reviewed for appropriateness, accuracy and completeness. Procedures should be in place to ensure that financial information accurately reflects the unit's activity, identifies inaccuracies through the comparison of actuals to budget, and identifies balance deficits.

Resource: Reconciliation Guidance
Reconciliation Guidance

Item 9:

In accordance with System policies and procedures, when required by the University or System Budget Office, or the Office of the Chief Financial Officer, remedial business plans for clearing deficit balances have been submitted and were subsequently approved by the requesting office. Note: Select N/A if your unit was not required to submit a plan.

Units should monitor and evaluate the financial health of their unit to ensure that University of Illinois System financial resources are managed properly.

Resource: Overdrafts and Deficits: Remedial Business Plans
Business and Finance Policies and Procedures Manual, 1.3 Unit Financial Health

Resource: University and System Office Deficit Reporting
Business and Finance Policies and Procedures Manual, 1.4 University and System Offices Deficit Reporting

Item 10:

Staff responsible for FOAPAL management understand the system policies and procedures related to the use of these funds.

Accounting reference materials are available related to the various funding sources, including allowable costs and other policies related to those funds.

Resource: Overview of University Fund Accounting
Business and Finance Policies and Procedures Manual, 13.1 Overview of University Fund Accounting

Item 11:

In the unit, transactions are reviewed through a documented process for proper FOAPAL usage to ensure appropriate and accurate reporting.

Reconciliation or verification of financial transactions is a key element of internal controls and is fundamental to sound business practices. The business manager or person who has financial responsibility must verify all financial transactions on a timely basis (monthly or on an ongoing basis during the month).

Resource: Reconciliation Guidance
Reconciliation Guidance

Resource: Monthly Reconciliation and FOAPAL String Discrepancy Reports
FOAPAL String Discrepancy Reports (Rogue FOAPAL Reports)

Item 12:

Self-supported FOAPALs have been reviewed to determine that they are used only for the purpose originally stated and that the continued use of the FOAPAL is warranted. Note: Select N/A if your unit does not have self-supporting funds.

Revenue from unit sales of goods and/or services is credited only to self-supporting accounts created for a specific purpose as authorized by the university at the time the fund was created.

Resource: Determine the Need for a Self-Supporting Fund
Business and Finance Policies and Procedures Manual, 22 Self-Supporting/Revenue Generating Activities - Determine the Need for a Self-Supporting Fund

Resource: Monitor a Self-Supporting Fund
Business and Finance Policies and Procedures Manual, 22 Self-Supporting/Revenue Generating Activities - Monitor a Self-Supporting Fund

Item 13:

Faculty and staff have been made aware of the rules and regulations for the use of sponsored project funds under their control. Note: Select N/A if your unit does not have sponsored project funds.

The unit is aware of and complies with all regulations, policies, guidelines and requirements, as they relate to the application, acceptance and use of sponsored project funds.

Resource: Grants and Sponsored Projects Administration
Sponsored Programs
UIUC: Sponsored Programs Administration
UIC: Sponsored Projects Policies & Guidance
UIS: Research & Sponsored Programs

Item 14:

Under a sponsored project agreement, all expenditures incurred, including payroll expenses, are reviewed for allowability by the principal investigator and the grant administrator or unit administrative staff with suitable means of verification. Note: Select N/A if your unit does not have project funds.

Responsible faculty should review grant expenditures on a monthly basis against Banner reports and source documents to verify all grant expenses have been properly recorded, are allowable, and have adequate supporting documentation. Responsible faculty have necessary access to financial reports to execute oversight duties.

Resource: Sponsored Projects Cost Principles
Business and Finance Policies and Procedures Manual, 16 Grant and Research Contracts, Sponsored Projects Cost Principles

Resource: Allowability and Funding of Certain Expenditures
Business and Finance Policies and Procedures Manual, 8 Payments and Reimbursements

Item 15:

On sponsored projects, the performance of subrecipients is monitored to ensure that they are meeting all terms and conditions of their subaward agreements. Note: Select N/A if your unit does not have sponsored project funds or sub-awards.

Management should ensure that project costs incurred by subrecipients are reasonable and allowable. Monitoring the activities of subrecipients ensures sponsored projects are used for authorized purposes in compliance with laws, regulations, and provisions of contracts or grant agreements and that performance goals are achieved. These internal controls include a review of invoices for allowability:

Verification that payments are consistent with the scope of work performed.
An evaluation that all required information and deliverables, such as technical reports, have been received and are consistent with reporting requirements.
Review of subrecipient invoices for consistency with sponsor requirements and terms of the agreement.

Resource: Sponsored Projects Subawards
Business and Finance Policies and Procedures Manual, 16 Grant and Research Contracts, Sponsored Projects Subawards

Item 16:

Gift funds receive proper management oversight to ensure that gift funds under the control of the unit are used in accordance with the intent of the donor. Note: Select N/A if your unit does not have gift funds.

University department and unit heads are responsible for ensuring the proper expenditure of gift funds in accordance with the intent of the donor. To help ensure that gift funds are used according to donor intent, it is important to have a copy of the donor agreement or other related documentation associated with the gift on hand as a reference.

Resource: Expenditure of Gift Funds
Business and Finance Policies and Procedures Manual, 11.10 Expenditure of Gift Funds

Item 17:

Faculty and Staff responsible for University P-Card and T-Card use and management understand the System policies and procedures related to the use of these purchasing instruments.

All employees who have a role in the purchasing process using a P-Card or TCard, must complete an online certification course prior to being assigned their role(s) in the appropriate software. Additionally, individuals with a role in the Chrome River system are encouraged to complete the Tcard training and quiz. All transactions are reviewed and reconciled in a timely manner in accordance with system policies and procedures with the original detailed itemized receipt, including the accounting FOAPAL used for each purpose. The unit head provides budgetary and compliance oversight for the unit's PCard and TCard.

Resource: The University PCard
Business and Finance Policies and Procedures Manual, 7.6 The University Purchasing Card (PCard)

Resource: Travel Card (TCard)
Travel Card (T-Card)

Resource: Reconcile TCard Charges in Chrome River
Business and Finance Policies and Procedures Manual, 15.2.4 Reconcile TCard Charges in Chrome River

Item 18:

Accounts receivable (and appropriate allowance for doubtful accounts) are promptly recorded when services are rendered or merchandise is sold, and unit accounts receivable records are reconciled to the general ledger on a monthly basis. Note: Select N/A if your unit does not have accounts receivable.

The revenue, income, receivable functions, and their associated operations consist of those business processes concerned with recording and controlling of amounts due to and received by the University from the sale of goods and services.

Resource: Revenue, Income, and Receivables
Business and Finance Policies and Procedures Manual, 5 Receivables

Item 19:

Encumbrances and costs incurred by the unit and resources available to the unit are utilized efficiently, effectively, and in compliance with system policies and procedures.

The unit's business practices must promote appropriate use and safeguarding of system resources. Sound practices include a continuous review or internal check of routine transactions. There should be a division of duties and responsibilities, so one person does not have complete control over all aspects of a financial transaction. Internal control procedures promote effective and efficient use of unit resources.

Resource: Internal Control
Business and Finance Policies and Procedures Manual, 9 Audits, Internal Control, and Business System Security

Item 20:

Revenues, expenditures, and transfers of assets, resources, or funds applicable to operations are properly recorded and accounted for in Banner.

Resource: Overview of University Fund Accounting
Business and Finance Policies and Procedures Manual, 13.1 Overview of University Fund Accounting

Transactions and General

Item 21:

Select No if an internal control weakness has been identified by an internal audit, an external audit or another party such as consulting firm. Then, include notes in the additional comments to describe the internal control weakness identified and the status of corrective action. Note: Select N/A if your unit has not received notification of fiscal/administrative control weaknesses.

Resource: Comply with Unit Head Responsibilities for Internal Control
Business and Finance Policies and Procedures Manual, 9.1.1 Unit Head Responsibilities for Internal Controls

Item 22:

The unit has reviewed systems access and approval profiles for each employee to determine if they are appropriate. Accordingly, the unit has modified or removed an employee’s system access due to responsibility changes, job changes, or employment termination.

Timely removal of access due to changes in responsibilities, change in units, and termination is necessary to the safeguarding of university assets and maintaining system integrity. USCs and other relevant unit staff are required to annually review employee job responsibilities in relation to system access.

University units must follow the standard access approval process that includes Unit Security Contacts (USC), Access Manager for My-UI-Financials, PI Portal access, and Administrative Information Technology Services (AITS).

Resource: Business Systems Access and Security
Business and Finance Policies and Procedures Manual, 9.4 Business Financial Information

Item 23:

Access to sensitive or confidential information is restricted to faculty and staff who need the information to peform their duties.

Anyone accessing university business information assumes a legal and ethical relationship (fiduciary responsibility) regarding that information. Access to such information should be used appropriately and restricted to conducting university business. Unit heads are responsible for the security of university data used by their unit.

Resource: Comply with Unit Head Responsibilities for Data Control
Business and Finance Policies and Procedures Manual, 9.4 Business Financial Information

Item 24:

Faculty and staff who have financial security and approval authority are aware of and accept the responsibility inherent in this authority.

Employees shall manage university assets so they are used only for authorized purposes, in accordance with all system policies and procedures.

Resource: Employee Responsibilities for University Assets
Business and Finance Policies and Procedures Manual, 9 Audits, Internal Control, and Business System Security

Item 25:

Professional service contracts are fully executed prior to services being rendered.

Professional Services are services provided under contract to the university by a business firm or individual acting as an independent contractor and qualified by education, experience and/or technical ability. Work must not begin in advance of the final and full execution of the contract.

Resource: Consultants and Other Contractors for Professional and Artistic Services
Business and Finance Policies and Procedures Manual, 17.1 Consultants and Other Contractors for Services

Item 26:

University PCard and TCard transactions are reconciled and reviewed by appropriate staffing in accordance with system policies and procedures.

Authorized and timely review of PCard and TCard transactions is a required internal control procedure.

Resource: The University Purchasing Card (PCard)
Business and Finance Policies and Procedures Manual, 7.6 PCard Roles and Responsibilities

Resource: Travel Card (TCard)
Travel Card (TCard)

Item 27:

Documentation for departmental PCard and TCard transactions is properly maintained in accordance with policy and available to support the business purpose and to meet audit requirements.

Each PCard and TCard transaction must have supporting documentation detailing cost, business purpose, and unit approvals in accordance with system procurement policies, as well as with all applicable state and federal statutes.

Resource: University PCard
Business and Finance Policies and Procedures Manual, 7.6 The University Purchasing Card (PCard)

Resource: Keeping Travel Records
Business and Finance Policies and Procedures Manual, 15 Travel - Keeping Travel Records

Item 28:

Duties, responsibilities, and system access, within the unit, are properly segregated so there is appropriate review and approval of all transactions. (Adequate segregation of duties translates to no one person performing, having system access, to all the critical elements of initiating, processing, recording, and reconciling financial transactions.)

The business practices of the unit must promote appropriate use and safeguarding of university resources. Sound practices include a continuous review or internal check of routine transactions. There should be a division of duties, responsibilities, and system access so no person has complete control over all aspects of a financial transaction. For example, a single employee should not initiate purchases, perform the receiving function, and maintain the unit’s equipment records.

Resource: Internal Control
Business and Finance Policies and Procedures Manual, 9 Audits, Internal Control, and Business System Security

Item 29:

Unit heads or their designee possess an awareness of the relevant statutes, rules, and guidelines governing their unit financial activities. A department/unit head has the overall managerial and fiscal responsibility for the unit.

A strong awareness by unit head of policies and statutes governing their unit's financial activities is an important internal control that helps ensure appropriate use and safeguarding of University resources.

Resource: Business and Finance Policies and Procedures
Policies & Guidance

Resource: Comply with Unit Head Responsibilities for Internal Control
Business and Finance Policies and Procedures Manual, 9.1.1 Unit Head Responsibilities for Internal Controls

Item 30:

Unit head participates in key decision-making functions including budgets, purchases of expensive goods and services, and the hiring and firing of key employees.

Unit head coordinates and supervises the administrative functions of the academic department, college, or administrative unit. Management involvement/oversight is essential to making informed decisions regarding the use of unit resources.

Resource: University Accounting and Financial Reporting
University Accounting & Financial Reporting

Item 31:

Lines of authority and responsibility are clearly understood throughout the unit and should promote segregation of duties. Clear lines of authority facilitate operations and provided accountability.

Clear lines of authority are established when the roles and responsibilities of each person in the organization are defined and documented. Lines of authority should be designed to ensure proper checks and balances.

Resource: University Accounting and Financial Reporting
University Accounting & Financial Reporting

Item 32:

System, university, and unit policy and procedure manuals are available to employees, and outline the appropriate methods to be followed to support the goals, objectives, and missions of the university system.

It is important that unit employees know how to access all applicable policies and procedures.

Resource: Business and Finance Policies and Procedures
Policies and Procedures

Item 33:

Unit employees have appropriate access to reports needed to execute oversight duties. Reports are reviewed by unit head or their designee on a regular basis to monitor business activities, transaction, and financial health.

Review of management reports is an essential internal control as it safeguards unit resources, provides data necessary for informed decision-making, and ensures successful operations.

Resource: University Accounting and Financial Reporting
University Accounting & Financial Reporting

Item 34:

Unit head is provided with explanations of significant variances between budgeted and actual revenues and expenses.

Performing variance analysis is a principal function of management. It is an important tool that can result in discovery of errors in recording transactions. It also can alert management to changing trends within their unit and/or alert them to operational issues that require immediate attention.

Resource: University Accounting and Financial Reporting
University Accounting & Financial Reporting