1. Authority and Responsibility
Major responsibilities that cannot be delegated:
Accountability for ensuring that proper controls and monitoring procedures are in place and are being applied accordingly.
Accountability for ensuring that reports are accurate and meaningful.
- Direct responsibility for delegated financial resources.
Staff may be responsible for implementing the Administrative Official’s decisions and for reviewing departmental compliance with university policies and procedures, but cannot be responsible for financial decisions for which the Administrative Official is accountable.
Major responsibilities that can be delegated:
- Establishing and maintaining sound financial plans for all departmental fund sources, which requires maintaining positive fund balances and assuring transactions are posted to correct funds.
- Implementing monitoring and reporting procedures that measure progress in reaching programmatic goals and avoid overdrafts for all funds.
- Operating the department in compliance with ethical practices, applicable laws and regulations, university policies and procedures, and the terms and conditions of gifts, grants, and contracts.
- Establishing and maintaining a system of internal controls to ensure efficient and effective operations; reliable financial reporting; safeguarding resources against waste, loss and misuse; and compliance with policies, regulations and laws. This includes methods and procedures for separation of duties, proper approvals, security of assets and records, and review and validation of ledger entries.
- Establishing department policies and procedures to ensure that:
- Costs charged to each fund will provide benefit to the project for which the fund was established.
- Transfers of funds or expenses involving restricted dollars are proper.
- Establishing and monitoring controls that prevent one individual from exercising control over all key processing functions for financial transactions. Such functions include:
- Requiring that the work for policy compliance, accuracy and timeliness be performed by a second person if the lack of staffing within the unit requires that one person perform all of these functions.
- Recording transactions into the Kuali Financial System (KFS) directly or through an interfacing system.
- Approving transactions.
- Receiving or disbursing funds.
- Performing the monthly review of the ledgers certifying the validity of charges and credits.
- Recording corrections or adjustments.
- Ensuring that financial transactions include adequate explanations and sufficient documentation to support post authorization review and audit.
- Identifying unauthorized transactions and informing management of any material irregularity or loss of university assets.
- Ensuring that fiscal support personnel receive the core systems training needed to effectively complete assignments.
3. Requirements to Reduce Potential Risks
The following is a list of requirements for Administrative Officials to reduce potential risks.
- Approving Authority
- Employees signing any document as the approving authority must sign their own name or use their own electronic signature or user ID (e.g. KFS approval) where appropriate.
Staff must be adequately trained to ensure transactions are appropriate, accurate and in compliance with relevant policies, regulations, laws, funding source restrictions, and contractual terms and conditions. Only certain UC Davis staff are authorized to execute business contracts and agreements with outside entities. Any Administrative Official contemplating a business arrangement with an outside entity should contact the appropriate office (see Resources list) for consultation and support.
- A bank account for either an activity supported by or for funds disbursed by the university is not to be opened without prior approval by the Treasurer’s Office. Approval must be coordinated with the Associate Vice Chancellor - Finance (see Resources).
Cash and checks received for the university must be endorsed and deposited in accordance with the UCD PPM Sections 330-55.
- Contracts and standard purchases
- The Director of Materiel Management and designee have the highest delegation for the execution of purchase contracts and standard purchase orders for materials, goods and services, and the execution of contracts for lease or lease/purchase of equipment. No university staff or faculty member may commit university funds without specific delegation of purchase authority granted from policy, the Vice Chancellor of Administrative Resource Management or the Director of Materiel Management.
- Complete records of equipment, as addressed in the UCD PPM Section 350-55, must be kept in the department. University-owned equipment used in homes or other locations remains the property of the University of California and must be returned when no longer used for university business. University equipment can only be given to vendors if it is documented on the Purchase Requisition, indicating that the university will be compensated for the equipment. For instance, a department may want a vendor delivering a new copier to take the old copier away.
- Per UCD PPM 380-55 - Acceptance or Offering of Gifts and Gratuities by University Employees, to avoid the appearance of favoritism, no officer or employee should accept any gift or gratuity from any source that is offered or reasonably appears to be offered because of the university position held by the officer or employee, nor should an officer or employee extend an offer of a gift on a similar basis.
- Income and Expenditures
- Expense reimbursements and payments must follow special limits and approvals as outlined in the appropriate section of the UC Davis Policy and Procedure Manual.
Income and expenses recorded in departmental financial subsystems must be reconciled to the general ledger in Decision Support (the official record for UC Davis financial transactions) on a monthly basis.
Expenditure adjustments (cost transfers) must be made in accordance with UCD PPM Section 330-63, which permits expenditure adjustments only to correct errors, record a change in decisions originally made in the use of goods or services, or redistribute certain high numerical but small individual and/or minor charges.
The establishment of a new service activity and new or revised recharge rates must be approved as outlined in the UC Davis PPM Sections 340-25.
The funds of the university cannot be used for personal gain. This includes the purchase of products for personal use or the purchase of products or services from oneself, a relative, or other department employee or their relatives, unless allowed under the provision of the conflict of interest policy.
The university cannot make charitable or political contributions. The Chancellor may grant an exception if charitable contributions are consistent with the mission of the university.
- Employees should not approve payroll or other disbursements to themselves or someone to whom they report. Administrative Officials have the responsibility to ensure a system of separation of duties in which this does not occur.
All payments to or for the benefit of UC Davis employees must be made in accordance with the UCD PPM and compensation plans.
The payment of compensation or expense reimbursement to foreign visitors is restricted in many situations by Immigration and Naturalization Services (INS) regulations. Contact the Payroll Division of Accounting & Financial Services for help before a visitor arrives at UC Davis.
All loans to UC Davis employees must be in accordance with approved university loan programs.
It is illegal to pay individuals as independent contractors or consultants when they should be paid as employees, and doing so renders the department liable to pay required taxes and/or penalties as outlined in UCD PPM Section 380-70.
- Risk Management
- Risk Management Services is to be consulted in decisions involving potential liability, accidental loss, insurance and indemnification requirements and litigation issues. Claims for loss of or damage to property are submitted to Risk Management Services as they are incurred.