CFO Roundtable December 11, 2012

Welcome & Introductions Mike McKee Assistant Vice President and University Controller

Stuart Hoskins, Sr. Associate Controller University Bursar & Treasury Management

 In June –  A committee was created to “recommend enterprise wide payment card policies, standards, and priorities that ensure privacy and security”.  This committee’s findings would be reported to the Information Security and Compliance Advisory Committee.  I was appointed Chair the Committee. Members included representatives from: UF Chief Information Security Officer Privacy Officer University of Florida Physicians UF&Shands Jacksonville Continued Education Office of the General Counsel Office of Internal Audit Control IFAS Extension Bookstore University Athletic Association University of Florida Foundation Credit Card Governance

UF Area Dollars (millions)Transactions (thousands) UF Core Offices $ UF Athletic Association$ UF Foundation $5.033 UF Physicians - Gainesville$ UF Physicians - Jacksonville$4.797 Total FY12$

Committee Findings and Recommendations to the ISCAC included: Payment card environment at UF is growing and becoming increasingly complex as electronic payment systems grow. Currently there are no enterprise wide policies and standards at UF for the payment card environment. Additionally, each of the areas establishes their own business relationships with third party vendors. The Committee recommended the creation of an enterprise wide Payment Card Acceptance Committee. Responsible for providing recommendations and information to the University Chief Fiscal Officer (CFO) for establishing and maintaining payment card policies and standards. The scope of this committee should be the entire UF enterprise as it is defined in the UF Annual Report. Credit Card Governance

Policies and standards to be developed should include: Oversight and Authority Terms of Use Agreement for Merchants Credit Card Number Storage/Retention Processing Methods E-Commerce Contracts with Third Parties Payment Card Industry Data Security Standards (PCI DSS) The Payment Card Governance committee will be the official body to discuss UF’s payment card requirements and to create enterprise wide payment card policies and standards. Credit Card Governance

The Committee should include permanent representatives from: Treasury Management The Privacy Office The Office of Information Security and Compliance The Office of Audit and Compliance Review (ex-officio) The Office of the VP and General Counsel (ex-officio) The Committee should include rotating representatives from: Three large UF merchants (e.g. UAA, UFF, Shands) Two smaller UF merchants (e.g. Stephen C. O’Connell Center, Performing Arts Center, J. Wayne Reitz Union, Harn Museum Store) Currently we are waiting on the ISCAC to finalize our recommendations. Credit Card Governance

Linda Orfield, Associate Controller Payroll & Tax Services

 HR/PR Upgrade Status  Prior Year Refunds/Retro’s

University Payroll and Tax Services Brian J. Kuhl, Assistant Controller

Provide your consent to retrieve your W-2 electronically in myUFL My Self Service > Payroll and Compensation > W-2/W-2c Consent Receive your electronic W-2 earlier in January Access previous W-2s dating back to 2005 View and print your W-2 from any computer with myUFL access Support UF’s sustainability efforts Electronic W-2 Consent

Keep your Local and Permanent Home Addresses in myUFL current My Account>Update My Directory Profile Inactive employees will be mailed their W-2s, since they no longer have security to consent or to retrieve them electronically. Electronic W-2 Consent

Per mileMove Occurring 23.0 centsJan. 1, 2012-Dec. 31, centsJan. 1, 2013-Dec. 31, 2013 Standard Mileage Rate for Moving Expenses

The 2013 Social Security (FICA) wage base will increase to $113,700 Represents a $3,600 increase over the 2012 wage base of $110,100. The maximum Social Security tax employees and employers will each pay in 2013 is $7, ($113,700 x 6.2%). Social Security Taxable Wage Base for 2013

For 2013, wages paid in excess of $200,000 will be subject to an extra 0.9% Medicare payroll tax that will be withheld only from the employee’s wages. The employer portion of the Medicare tax will remain unchanged at 1.45%. Additional 0.9% Medicare Payroll Tax

Under current law, the 2012 Social Security (FICA) tax rate is 4.2% for employees and 6.2% for employers. Unless the federal government acts to extend or change the rate, it is scheduled to return to 6.2% for both employees and employers for FICA Tax Rate To Be Determined

33 Tigert Hall PO Box Phone: (352) Fax: (352) Thank you! University Payroll and Tax Services

Brad Staats, Assistant Vice President, Contracts and Grants

 myInvestigator, Financial Reporting Tool  CAS

Brenda Harrell, Assistant Controller Cost Analysis & Construction Accounting

Developed Reports for the effort system

Reports Developed  There have been many helpful reports developed for your convenience.  From the myUFL menu, navigate to:  Enterprise Reporting > Access Reporting  A pop up window will appear. Then navigate to:  Human Resources Information > Workforce Information > Effort Reporting

Reports Developed  There are three folders with reports:

Reports Developed  In the Faculty Assignment Report Folder Contains:

Reports Developed  In the Effort Commitments Folder Contains:

Reports Developed  In the Effort Certification Folder Contains:

Reports Developed  Reports to Point Out  The Max Effort Percentage Reports  These reports will give you how much effort is the max amount that is expected or would be reported to the state.  However, always report actual effort!

Reports Developed  Reports to Point Out  Certified Audit Report by UFID  Need a report for your tenure packages, or response to audits?  This report was designed to give the effort allocated without doing a screen shot, who certified the report, and when it was certified.

Reports Developed  Reports to Point Out  Outstanding Certifications  Want to know what is outstanding for your department and who still needs to certify?  When there is more than one certifier, report only lists those who have not completed the process.

Summer 2012 Term Deadlines Friday, December 14 th All effort errors corrected and submitted to Employees for Certification. Friday, January 11 th Effort Certified by Employees

Open Lab Date Thursday, December 13 th – at HR Room 119, From 1:30 – 4:30

Training Courses Available RSH200 – Effort Reporting (Required to Have Access) RSH220 – Effort Fundamentals for RAs RSH230 – Effort Management for RAs

Contracts and Grants Commitment Entry and Adjustments Your Research Administrator for C&G Or, Office of Institutional Planning and Research Instruction/Course Related Questions and Cost Analysis All Other Effort Questions Who To Contact?

Questions and Feedback

Karen Frank, Assistant Director Purchasing Services

 Managed Print

Randy Staples, Associate Controller Disbursement Services

 AP Automation

Cheryl Bell, Associate Controller Treasury Management

 Research Participant Project Update

Sheela Moudgil, Associate Controller General Accounting & Financial Reporting

 Account Code descriptions and definitions have been updated to reflect the $5,000 capitalization threshold  Additional Account Codes added to CAS tree  Updated Account Code definitions can be found at: accounting/chartfields/ accounting/chartfields/ Non-Payroll Operating Expense Account Code Changes

AccountOld Description New DescriptionAdded to CAS Tree CELLULAR CELLULAR PHONES & SERVICE PLAN PAGERS Yes FAX MACHINESINACTIVATED IN myUF MARKET ATTRACT - COMM FAX/PHONE<1,000FAX/PHONE EQUIPMENT <5000Yes Summary of Updated Account Code Changes Utilities and Communications

AccountOld Description New DescriptionAdded to CAS Tree ANIMAL FOR RESEARCH ANIMAL FOR RESEARCH < AUDIO/VISUAL EQUIPMENTAUDIO/VISUAL SUPPLIES Yes MEDICAL EQUIPMENT <1000MEDICAL EQUIPMENT < ATTRACT - AUD/VIS EQUIP <1 000AUDIO/VISUAL EQUIPMENT <5000Yes ATTRACT - LAB EQUIP <1 000LAB EQUIPMENT < ATTRACT-OFFICE EQUIP (NOT CAP)OFFICE EQUIPMENT <5000Yes COMPUTER SOFTWARECOMP SOFTWARE GENERAL COMPUTER SOFTWARE TECHCOMP SOFTWARE SPECIALIZED ATTRACT-COMP EQUIP (NOT CAP)COMPUTER EQUIPMENT <5000 Yes ATTRACT - COMP PERIPHERAL<1000COMPUTER PERIPHERALS <5000Yes EQUIPMENT > 1000 & < 5000INACTIVATED IN myUF MARKET ATTRACT - SMALL HANDTOOLS<1000SMALL HANDTOOLS < ATTRACT - MUSICAL EQUIP <1 000MUSICAL EQUIPMENT < ATTRACT - FIREARMS <1 000FIREARMS <5000 Summary of Updated Account Code Changes Materials and Supplies

AccountOld Description New DescriptionAdded to CAS Tree EQUIPMENT – GENERALFURNITURE & EQUIPMENT > COMPUTER SOFTWARE – GENERALCOMPUTER SOFTWARE =>4,000, VEHICLES AND TRANSPORTATION VEHICL & TRANSP > ARTWORK AND MUSEUM ARTIFACTSART & MUSEUM ARTIFACTS > LIVESTOCKLIVESTOCK >4999 Summary of Updated Account Code Changes Capital Asset Purchases

Kim Simpson Sr. Associate Controller Operational Controls and Efficiencies

Office of Internal Audit Control Environment Review  Audit conducted by Office of Internal Audit (formerly OACR)  Self assessment sent out to campus departments in March, 2012 (94% response rate)  Follow-up site visits with 40 departments to validate survey responses

Office of Internal Audit Control Environment Review  Areas of review:  Control Environment  Budgeting, Accounting and Financial Reporting  Asset Management  Payroll  HR Management  Purchasing and Disbursements  Research Management and Support (covered elsewhere)  Information Technology (covered elsewhere)

Office of Internal Audit Control Environment Review  Control Environment establishes the foundation for the internal control system by providing fundamental discipline and structure.  Documentation of operating procedures was lacking in 45% of units  Mission statements/goals were not documented in 20% of units  Benchmarking not conducted in 30% of units  Formal risk assessments not conducted in 73% of units  Business continuity plans were not documented in 78% of units

Office of Internal Audit Control Environment Review  Budgeting, Accounting and Financial Reporting  Timely and appropriate reconciliation of ledgers was not in place in 28% of the units. Sometimes ledgers were reviewed for unusual entries but not compared to supporting documentation for accuracy  In 48% of units the employee who had the ability to enter vouchers also reconciled the ledgers  In 55% of the units, Management did not review the reconciled ledgers or, when reviewed, didn’t document the review.

Office of Internal Audit Control Environment Review  Collections, Deposits and Cash Funds  In 15% of the units, employees who collected moneys or prepared deposits also performed the reconciliation functions  Checks were not always restrictively endorsed upon receipt in 20% of the units  Collections were not reconciled to the general ledger or supporting documents in 18% of the units  Deposits were not deposited in the timeframe required by University directives in 20% of the units.

Office of Internal Audit Control Environment Review  Payroll  28% of the units did not review the final paylists  25% of the units did not have procedures to document advanced approval of overtime or compensatory time  18% of the units did not have procedures in place to ensure that leave taken was properly approved and recorded against time records

Office of Internal Audit Control Environment Review  Purchasing and Disbursements  When purchases are made through unencumbered vouchers or pre-approved myUF Market vendors, 25% of units didn’t have compensating controls in place.  68% of units did not periodically review purchasing card limits and document such review.

Office of Internal Audit Control Environment Review  Summary  It is difficult to accomplish all the “ideal” internal controls in the real world given limited staff sizes, budget cuts, etc.  Just try to do your best and consider the control issues mentioned here and in general  Controller’s Office will be working with the OIA to give some general guidance on risk assessment and business continuity plans.  Contact Kim Simpson in the Controller’s Office is you have any questions –

Kathleen Tillett, Sr. Associate Controller Payroll & Tax Services, General Accounting & Financial Reporting

 Financial Audit Update

Mike McKee Assistant Vice President and University Controller Finance & Accounting

 Florida Polytechnic University  GBAS Update  Shared Service Center Update

Questions? Contact Dannielle Godwin