Fiscal Control and Internal Auditing Act (FCIAA): Importance and Impact to University Units

What is the Fiscal Control and Internal Auditing Act (FCIAA)? FCIAA is a State-mandated program developed to aid Illinois State agencies in conducting reviews of their fiscal and administrative systems of internal control. Requires agencies to report material control weaknesses to the State.

How does my unit benefit from having strong fiscal and administrative controls? Demonstrates good stewardship to state, granting agencies, donors and taxpayers. Helps ensure efficient/effective use of your unit resources. Helps protect against misuse of resources, adverse audit findings and negative media coverage.

Who’s Responsible? University Policy establishes some responsibility for the internal control system to all University employees. Deans, Department Heads & Administrative Unit Heads are ultimately responsible for Fiscal Transactions. Fiscal Officers and Business Managers are responsible for ensuring the effectiveness of internal controls and addressing weaknesses.

What are administrative and fiscal systems of internal controls? Processes within an organization designed to provide reasonable assurance that: Information is reliable, accurate, and timely Policies, plans, procedures, laws, regulations, and contracts are followed Assets (including people) are safeguarded. Resources are used in an economical/efficient manner Established objectives and goals are met

Administrative and Fiscal Systems of Internal Controls - Examples Cash Receipts Control Departmental Accounts Receivable Control Sponsored Program Control Budget Control Information Technology Control Inventory Control Purchasing Control P-Card Issues Personnel and Payroll Control

Annual Evaluation Process Questionnaire distributed to all colleges and administrative units to determine the strength of each unit’s fiscal and administrative controls. Deans and Administrative Unit Heads are responsible for the accuracy and completeness of their organization’s responses. Identifying and reporting potential deficiencies helps units to improve their controls – protecting unit resources and reputations. Typically, reported items will not generate a need for the University to report to the State under FCIAA.

FCIAA Pilot Units for Online Form Distribution and Submission Chicago Campus College of Medicine College of Engineering College of Architecture and Arts Urbana-Champaign Campus College of Education College of Liberal Arts and Sciences Springfield Campus Chancellor Student Affairs

Questions?

Annual Evaluation Timeline Late Nov. - Early Dec. – Questionnaires distributed to Deans and Administrative Unit Heads. Mid Jan. – Units complete questionnaires and return to Provost (UIC and UIS campuses), AVP (UIUC campus) and University Controller (UA). Mid Jan. to Feb. 15 - Provosts and Chancellors and Controller review responses, and document deficiencies (or absence of deficiencies) in a letter. Letters are routed to the respective EAVP/AVP (campuses) and the SAVP (UA).

Annual Evaluation Timeline (Cont’d) Mid Feb to March 15 - Campus EAVPs/AVP and SAVP review responses and provide letter to Executive Director of University Audits. April 12 - Chief Financial Officer, SAVP and Executive Director of University Audits document the University's actions for compliance in a recommended certification letter to the President. April 22 - President certifies University's compliance with FCIAA by signing the certification letter and transmitting to Office of the Auditor General before the May 1 deadline.

Your role in the process… Take a critical look at your fiscal and administrative controls. View the questionnaire as a useful tool to help you inventory the condition/effectiveness of your unit’s control environment. Be candid in your questionnaire responses. If you find a weakness, you can include a note that you are addressing it or need assistance. By regularly addressing and improving our control environments, everyone benefits! Let’s work together to foster a culture of strong fiscal and administrative controls.

Resource Tools Office of University Audits Website Internal Control Tools – access tools to assist you in ensuring internal controls are in place http://www.audits.uillinois.edu/internal_control_tools Internal Control Training Classes http://www.audits.uillinois.edu/internal_control_tools/request_internal_control_training OBFS/Accounting and Financial Reports/FCIAA http://www.obfs.uillinois.edu/accounting-financial-reporting/fciaa

OBFS Available to Assist Your Unit University Accounting and Financial Reporting - Accounting Consulting Group Provides individual analysis and consultation to assist in the successful management of your business operations. An added resource for resolving accounting and financial issues and problems. Provides specialized training for individual units on accounting and reporting issues. Contact Ron Miner at 217-265-5315 or Mike Godsell at 217-244-6464

Questions?