This manual offers basic information about retaining person responsibility in a monetary technique, and the crucial function it plays in supporting to hold a sturdy, powerful departmental economic manage surroundings. Understanding and making use of the facts supplied in this manual, at the side of having good separation of obligations and effective transaction evaluation and approval steps, will reduce the chance of mistakes, misappropriations, and fraud in departmental financial approaches.

Ensuring that every role assigned a key position in a departmental economic process is packed with the proper individual given the proper responsibility allows to make certain that the method could be nicely done.

For questions, email: controller@u.s.a..edu.​​

 

  • What is economic responsibility

    Financial accountability consequences from conserving an character accountable for effectively performing a monetary hobby, which include a key control system inside a monetary transaction manner. A well-described financial responsibility structure serves as the foundation for organising effective monetary procedures.

    • Accountability is formally delegated from a governance institution, which include the Regents, or from an character having delegated authority to a specific character
    • An character answerable for the successful of completion of a key control system may additionally, as coverage permits, assign the obligation, but now not the accountability, for completing the technique to some other certified character.



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  • University’s monetary accountability structure

    Delegations of authority offer the way to ensure monetary responsibility at every key level of a campus monetary method.

    • The Board of Regents is chargeable for the a hit operation of the strategies and sports supporting the University’s strategic challenge.
      • 2004 “Statement of Expectations of the Members of the Board of Regents – Guidelines for Discharge of Regental Duties”: “The obligation of man or woman Regents is to serve as trustees for the human beings of the State of California and as stewards for the University of California, performing to manipulate the University in achievement of its instructional, studies, and public carrier missions within the fine pastimes of the human beings of California.”
    • The Board of Regents delegate some of its government to the President of the University and different Officers of the Regents to implement and hold rules and approaches that permit the University to acquire its most important targets.
      • Standing Order of the UC Regents one hundred.four.n.three – “The President (of the University) is allowed to permit costs against contracts, presents, and gifts, or in opposition to firm commitments thereon, supplied that the contracts, offers, and gifts had been solicited or negotiated in accordance with set up Regental coverage.”
    • The President redelegates some of his or her authority to the Chancellors and other senior University officials to establish neighborhood business guidelines and procedures at their respective places.
      • 1980 UC Presidential Delegation of Authority DA 0666 from the President to the Chancellors – “I am hereby delegating to you the authority to allow fees or commitments of budget towards any approved studies, training, or improvement contract or provide whilst a fully done contract is in hand or a written notice of grant award has been acquired…”
    • Chancellors redelegate a number of their authority to campus managers and others to set up procedures and approaches for conducting the sports and approving the financial transactions had to efficiently perform the campus.
      • The Chancellor approves a UCSC Manual Signature Authorization and Approval Form (PDF) authorizing the Dean of Physical and Biological Sciences (PBSci) to approve expenses on a variety of PBSci corporation codes, such as lots of which involve contract and offers.
    • Campus managers similarly redelegate some of their authority to selected people they supervise to approve the financial transactions needed to efficiently behavior campus commercial enterprise.
      • The Dean of PBSci approves a UCSC Manual Signature Authorization and Approval Form authorizing a PBSci Principal Investigator to approve expenditures on an organisation code related to the PI’s research challenge furnish.



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  • Financial method accountability

    A delegation of authority allows an person to carry out a particular hobby, or procedure, at a key level of a monetary process.

    • Different individuals are typically delegated the authority to deal with special activities in a monetary method.
    • Each individual is accountable for efficiently finishing his or her assigned activity.
    • Most financial activities contain processing a financial transaction in conformity with the seven campus transaction control requirements.

      (Examples of economic transactions consist of purchase requisitions/requests, purchase orders, invoice payments, rate reimbursement requests (direct bills), device inventory change requests, and transfer of fees or funds.)

    (Refer to Appendix for extra records about the seven requirements.)

    Here are the important thing tiers of an average monetary transaction manner:

    Stage

    Description

    Examples

    Transaction initiation

    Accurately beginning a economic transaction via an automatic device, such as the Financial Information System (FIS) or CruzBuy.

    • Requisition request
    • CruzBuy requisition input
    • FIS direct price enter
    • Request for ledger adjustment

    Transaction approval

    Reviewing and approving a transaction for appropriateness, validity, reasonableness, adequate investment, accurate accounting coding, and suitable supporting documentation.

    • CruzBuy requisition approval
    • Travel compensation approval
    • FIS direct fee approval
    • Ledger adjustment approval

    Transaction verification

    Certifying that the approval provided on a transaction shape is that of an authorized approver.

    • FAST Office “Second Tier” approval

    Post-transaction evaluate

    Certifying that a processed economic transaction performing in an authentic campus economic record is suitable, valid, reasonable, competently funded, and correctly coded.

    • Monthly ledger overview certification
    • Biennial gadget stock certification



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  • Delegating authority

    A University business coverage usually specifies the location(s) chargeable for sporting out the coverage’s requirements and the volume to which the duty can be redelegated to other people.

    • A delegation of authority must be formally recorded and accredited.
    • The individual delegating authority is anticipated to:
      • Not delegate extra authority than what he or she possesses, or is formally given the authority to delegate.
      • Periodically overview delegations of authority for persisted relevancy and proper functioning.
    • An person receiving a delegation of authority must be:
      • Capable and certified.
      • Properly educated to effectively perform the feature that he or she is accountable for handling.
      • In a role to perform the function with out fear of being countermanded.



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  • Ways of creating a delegation of authority



    Type of authority(characteristic) being delegated

    Form used to delegate authority

    Limitations on delegation of authority

    Standard monetary tactics

    • Procure goods and services
    • Expend finances
    • Approve ledger adjustments

    UCSC Manual Signature Authorization and Approval

    UCSC Usually constrained to certain accounting organization codes and to a greenback restriction

    Specialized financial procedures

    • Purchasing card
    • Corporate Travel System card

    Process-particular person software shape

    Usually confined to sure accounting company codes and to a greenback restrict

    Financial structures get admission to

    • Financial Information System
    • Payroll Personnel System
    • CruzBuy

    System-precise consumer application shape

    Usually restrained to sure accounting company codes and to a greenback restrict

    Approver verification techniques

    • Expense reimbursements
    • Vendor payments

    FAST Divisional / Department Accountability Agreement

    None

    Temporary delegation

    • Vacation or unwell depart
    • Leave of absence

    Memorandum from supervisor to man or woman receiving delegation

    Usually restrained to positive accounting agency codes, to a dollar restrict, and/or to specific economic management features



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  • Documenting responsibility

    Each monetary transaction should have an audit trail, allowing the identification of the particular person handling the transaction at distinct stages of the technique.

    • Each transaction must be traceable from its appearance in reputable campus information again to source files, paper or digital, originating the transaction.
    • The character responsible for processing the transaction at every key stage of the system need to be identifiable.
    • Individual accountability must be documented. Here are some examples of ways duty might be documented:


    Stage

    Typical Documentation

    Examples

    Transaction initiation

    • Initiator’s system user identification related to the initiation of a transaction

    • Requisition request
    • Cruzbuy requisition input
    • FIS direct payment enter
    • Request for ledger adjustment

    Transaction approval

    • Approver’s signature on a paper shape indicating approval of transaction
    • Approver’s machine consumer identity associated with an online approval of the transaction

    • Cruzbuy requisition approval
    • Travel compensation approval
    • FIS direct charge approval
    • Ledger adjustment approval

    Transaction verification

    • Verifier’s signature on a price request shape

    • FAST Office “Second Tier” approver process

    Post-transaction overview

    • Certifier’s signature on a log, report web page, or form
    • Certifier’s device user identification associated with getting access to on-line campus records

    • Ledger evaluate certification in review log
    • Purchasing card certification on shape
    • Equipment inventory certification on shape



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  • Where to get assist

    Assistance with your economic duty questions is to be had from the Campus Controller’s Office.



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  • Relevant Appendices

    The Seven Financial Transaction Control Standards



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