Controllership at BYU

1
Controllership at BYU

• Challenges and Recommendations for Improvement

2
The Current Status

• Five significant defalcations in 18 mos.
• Significant ability for University personnel to
  carry out transactions alone
• Concern from CAD, DT, Internal Audit, CES Audit
  Committee, Trustees
• Increase in self-service applications that
  require local supervision
• Greater risk of legal and regulatory
  non-compliance

3
A Few Critical Facts

• Since 1997, faculty FTE are up 20.4 while
  administrative and staff FTE are up 5.7
• Self service is just beginning (P-Card, STAR,
  BOb, Extensity, E-procurement)
• 60 of controllers believe they will have to
  handle the increased workload personally
• Increased time pressures are causing transactions
  to be processed without two sets of eyes
• Many autonomous units operate without adequate
  segregation of duties

4
Controllership Core Issues

• Controllership and accountability are poorly
  defined and understood
• Large number of autonomous units on campus - less
  qualified personnel filling the controller role
• Management oversight of financial matters is
  inconsistent
• Growth in faculty and self service are straining
  the limits of support personnel

5
Guiding Principles

• Clear reporting lines for all controllers and
  financial assistants
• Clear expectations and responsibilities
• Controllers are part of the financial management
  team of the University - a more seamless
  financial operation
• Two sets of eyes on every transaction

6
Definitions - Controller

• Trained personnel whose primary responsibilities
  are financial in nature
• Responsible for all financial matters within
  his/her organization (policy compliance, internal
  control, transaction review, etc.)

7
Definitions Financial Assistant

• Personnel who are responsible for financial
  matters in a smaller unit or who report to a
  controller in a larger unit
• Have limited, specific and authority and
  responsibility for financial matters
• May include individuals who spend the majority of
  their time on other than financial matters

8
Management Responsibilities

• Management includes responsibility for financial
  oversight
• Financial planning
• Review of financial results and understanding
  material variances
• Approval of significant transactions
• Support for University policy and appropriate
  discipline when policy is violated

9
Responsibilities - Examples
10
Questions?