As a result of the State Auditor's Performance Audit, the University needs to improve its processes related to gift transfers to
reduce the risk that expenditures of gift funds will not be consistent with donor wishes. To accomplish this, the University needs to:
- Streamline the process that organizational units use to receive funds from the CU Foundation
- Redirect resources to understanding and monitoring compliance with donor restrictions
- Maximize University cash flow by minimizing cash deficits caused by untimely transfers requests
- Identify gifts received through the CU Foundation versus other sources and create a one-to-one relationship between the CU Foundation gift funds and the University's FOPPS (Speedtype)
- Ensure that all CU gift accounts have sufficient information for the organizational units to understand their gift purposes
- Restrict the ability of the organizational unit to move money from gift FOPPS (Speedtype) to other FOPPS (Speedtype) to only those FOPPS (SpeedTypes) having similar donor restrictions
- Ensure that the approver of non-routine transactions (or journal entries) are the individuals with assigned responsibility for such gift funds or a higher authority level (such as campus controller)
These objectives will be accomplished through four initiatives, including three modifications to the Finance System:
Each of these four initiatives is explained in more detail in the attachments to this document.
- Addition of Gift Attributes to Speedtypes - An additional attribute page for Speedtypes in Fund 34 will be added to the Finance System.
The information on this page will specify whether or not the gift is from the CU Foundation, and will display other important information about the gift.
- Automatic Transfer Process for CU Foundation Funds - The paper-based method used to request a fund transfer from a CU Foundation fund to a university Fund 34 FOPPS (SpeedType) will be replaced by an automated one.
A process has been developed whereby the amount of the transfer will be automatically calculated based upon the actual expenditures recorded in the university's Fund 34 FOPPS (SpeedType),
and the necessary funds will be automatically drawn from the associated CU Foundation fund, transmitted to the university by wire transfer, and recorded in the university's Finance System.
- Restrictions on Gift Fund Journal Entries - System edits will provide reasonable assurance that journals: created outside of normal purchasing (procurement) or payroll processes are approved by individuals with
assigned responsibility for such gift funds (to be called gift approver) or a higher authority level (such as campus controller office); restricted to gift FOPPS (Speedtypes) that have identical gift restrictions as evidenced by the gift purpose codes (or require campus controller office approval);
and does not include any inappropriate accounting relations (in attempt to bypass controls).
- Gift Fund Management Training - Campus-based training in the new gift fund management process will be offered at the time of implementation.
In addition, ongoing training opportunities will be available for new university employees to help them understand the gift fund management process and their related individual fiscal roles and responsibilities.
The majority of the changes will be implemented by a team of System and CU Foundation employees.
However, fiscal managers of the organizational units having gift FOPPS (Speedtypes) will be required to interface with the Office of University Controller to establish/confirm the Gift Attributes for each of their gift FOPPS (Speedtypes).
In addition, all fiscal principals, fiscal managers, and fiscal staff will be required to attend the Gift Fund Management Training
Please note, because this change is driven by an audit which identified a higher than acceptable risk of non-compliance with gift fund restrictions, the University must implement this change promptly.
The implementation date for this project is February 28, 2006.
Gift training non-completions list as of ~4:45 pm 12-01-06. This chart lists employee ids and an org attached to a gift SpeedType for which the employee holds a fiscal role. (Duplicate values of employee ids have been eliminated in the case where roles are on multiple gift Speedtypes in different orgs.).
Gift training completions list* as of ~4:45 pm 12-01-06. This chart lists employee ids and an org attached to a gift SpeedType for which the employee holds a fiscal role who have completed the training. *As of 12/01/06, an additional 333 employees and/or affiliate fiscal staff have also completed the training although it was not required as they do not currently hold fiscal roles on gift speedtypes.
Gift training required participants list (rev. 12-1-06) This chart lists employee ids (and an org attached to a gift SpeedType for which the employee holds a fiscal role) who are required to complete the Gift Fund Management training by December 1, 2006.
Direct your questions about the spreadsheets above to financial compliance services
Detail Gift Journal Entry Rules
Gift Fund/Speedtype Setup Form
Direct your questions about this project to firstname.lastname@example.org