1. Gap Analysis & Sub-Certification
Internal Controls Overview
FY2013

2. 2013 Annual Certification Process
Gap Analysis
Identify individuals who should be performing the gap analysis (FMT members to complete the overview spreadsheet).
Complete the M-Reports online gap analysis.
Document procedures / update existing procedures to include key controls noted in gap analysis.
Department Sub-Certification
Identify individuals who should be sub-certifying (both input and approval).
Complete the on-line sub-certification.
Management Oversight Reporting is an important part of the sub- Certification process.
Identify individuals who are running and reviewing the required reports.

3. Gap Analysis:
Should be completed with individuals involved in the process (i.e. handling cash, processing journal entries, hiring employees, etc.)
As of March 2013, all DSA units will be using the on-line tools in MReports, which is explained in detail in this document.

4. How to get to the Gap Analysis on-line tool?
If you wish to look at the gap analysis tool, the instructions (quick version) below should get you there.
However, if you want detail instructions, the ITS instructions can be useful.
select Wolverine Access
go to the Faculty and Staff tab
select M-Reports (under the Reporting section)
choose the Compliance tab
select Internal Controls Other Reports / Tools, then Gap Analysis
select your dept. ID or put your dept. ID in the search box
in your department's row, click on the status link / "not started" to review and/or start filling out the questionnaire

5. Gap Analysis On-Line tool in M-Reports

6. What is written procedure documentation?
Documented procedures = key control
Clarify roles and responsibilities
Ensure process is happening as intended
Help with employee turnover (expected/unexpected)
Note: The Office of Internal Controls website: provides some guidance and sample documents to assist with documentation.

7. Management Oversight Reporting
Monitoring/oversight = key control
Helps to highlight if operating controls are working
Identifies trends/exceptions
High level summaries (by month/year, comparing to prior years, etc.)
Has time been entered timely and properly approved?
Are overtime, temp and retro pay reasonable?
Employment
Are P-Card holders appropriate?
Are credit limits appropriate compared to spend levels?
P-Card
Cash & Credit Card Handling
Have proper individuals taken cash handling training?
Are credit card merchants PCI compliant?
Are proper individuals approving expenses?
Are spending levels and patterns appropriate?
Concur

8. Management Reporting
Listed in the matrix below are the (4) areas of Internal Controls - Management Reporting which are required ( and signed off on as part of the annual certification ) by all areas to review, and follow up, on a periodic basis in a timely manner, preferably monthly or quarterly.
Source: Internal Control site (
Internal Controls - Management Reporting ( included in annual certification )
Addl Comments
Employment
Depa rtment Employee Compens a tion
Thes e reports a re loca ted in MREPORTS i n the COMPLIANCE tab under the
Interna l Control s menu.
The Depa rtment Employee Compens a tion report provides a s umma ry of
compens a tion i n forma tion for a n a dmi ni s tra tive depa rtment. The report i s
orga ni zed by va ri ous types of pa y (e.g., regul a r pa y, overtime pa y, other pa y ).
The Overtime Pa y, Temp Pa y a nd Retro Pa y a re trending reports a nd s how da ta for
a funding depa rtment vi a gra phs a nd hi gh-l evel cha rts.
Fa cul ty Pa y
Review overtime, a ddl
pa y...and fol l ow up
a ccordi ngl y. (Monthl y /
Qua rterl y)
Staff Pa y
Overtime Pa y
Temp Pa y
Retro Pa y
P-Card
Tra vel & Expens e P-Ca rd
Hol der & Li mi ts by DeptID, Dept Grp or Empl ID
Report is loca ted in BUSINESS OBJECTS a t: UM-Ma i ntai ned -> Fi na nci a l s
-> FN06 Procurement
Lis ts a ll P-Ca rd holders , limits , a nd ma x, a vera ge a nd monthly s pend a mounts.
Highlights potentia l underutilized ca rds.
Review P-Ca rd limits ...
a nd a djus t a ccordi ngl y.
Cash Handling (Cash/Checks)
Ca s h Depos i t Control s
Report is loca ted in MREPORTS i n the COMPLIANCE tab under the Interna l Control s menu.
Summa rized by depos it a mount, depos it count a nd dis crepa ncy count for ea ch depos itory location.

9. Management Reporting
Internal Controls - Management Reporting ( included in annual certification ) - continued
Addl Comments
Cash Handling (Credit Cards)
For unusually high refunds ($ or %)
and follow up accordingly.
Follow up on any PCI non-compliance and / or dates close to expiration.
Review approvers are appropiate
Follow up re: approvers training
status if training was not
completed or about to expire.
Review and follow up on any
unusual items noted.
Credit Card Controls • Report is located in MREPORTS in the COMPLIANCE tab under the Internal Controls menu.
Summarized by net sales amount, sales count, refund amount and PCI compliance status for
each credit card merchant account.
Travel & Expense (Concur)
Travel & Expense Approver Report
by EmplID, DeptID or DeptGrp
Report is located in BUSINESS OBJECTS at: UM-Maintained -> Financials -> FN06 Procurement
Provides a listing of Concur approvers and the scope of what they have approved
Notes approvers training completion status.
Travel & Expense Spend Report by
EmplID, DeptID or DeptGrp
Highlights spend (both P-Card & out-of-pocket) by Employee for a specified date range.