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Using Metrics to Inform, Enforce and Prepare. Julie Cole, Duke University Todd Leovic , Duke University Panda Powell, UNCW Sarah Smith, UNCGA. Learning Objectives. Present examples of formalized performance and monitoring programs implemented at the: System-level Campus-level

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using metrics to inform enforce and prepare

Using Metrics to Inform, Enforce and Prepare

Julie Cole, Duke University

Todd Leovic, Duke University

Panda Powell, UNCW

Sarah Smith, UNCGA

learning objectives

Learning Objectives

Present examples of formalized performance and monitoring programs implemented at the:

System-level

Campus-level

Department-level

Present example of how performance and monitoring results can be used to determine and train to needed competencies

setting the stage

Setting the Stage

The UNC System and Duke have developed programs for monitoring performance using data – both have evolved. Commonalities include:

Management support

Campus/unit-level ownership

Regular data collection and management review

Individual campuses and departments are utilizing this information to build more compliant structures

The confluence of operational data and informed training helps the institutions become even more prepared, informed and compliant

unc fit history

UNC FIT History

Presidential and Board of Governors Priority

Operational Risk Assessment

Strengthen the control environment

Improve operational efficiencies

General Accounting, Financial Aid, Contracts and Grants, Student Accounts, Capital Assets

Inform

unc fit organization design

UNC FIT Organization/Design

UNC Project Management Officer

Executive Steering Committee/BOG Audit Committee

Campus-based Project Managers

Process Leads and Advisory Teams

Baseline Standards

Performance Indicators

Monitoring

Inform

c g standards

C&G Standards

Standards ≠ Policy

Dynamic and reviewed regularly

Identify critical elements of the grant life cycle and best practices

Document Operating Standards

Account set-up

Time and effort

Grant Management

Billings/drawdowns

Reporting

Closeout

Inform

key performance indicators

Key Performance Indicators

Indicators for Each Operating Standard

Establish Performance Targets

Report Indicators Monthly

Management Review (campus and BOG)

Below Target/Negative Trending

Remediation plan

Inform

key performance indicators1

Key Performance Indicators

Number of days to fund set up

Number/percent of T/E reports outstanding

Number/percent of late salary transfers (>90 days old)

Number of A-133 certification letters outstanding

Dollar/percent of accounts receivable >60, >90, >120 days

Number/percent of funds with end date >120 days old and fund is still active

Inform

monitoring

Monitoring

Compliance Checklist/Assessment of Internal Controls

On-site Monitoring Visit

Risk-based, Informed by KPI Results

Document Review

Report to Management

Inform

unc fit performance funding model

UNC FITPerformance Funding Model

Adopted FY13

10 Measures to Determine Eligibility for Funds

Performance linked to enrollment growth projections

UNC FIT Composite Score

Audit, Internal Control Assessment, Compliance with Standards, KPIs and Monitoring

Inform

financial assessment management
Financial Assessment Management

Senior Leadership

Audit Committee for Board of Trustees

(Institutional Risk)

Management

Centers

(Management

Oversight)

Department

(Mitigation)

Inform

slide13

RCC Metrics:

  • Very similar to UNC – GA
  • Focus on Financial Assessment Management (FAM)
  • Provide useful reporting to better understand risk at all levels
  • Utilize sufficiently detailed analysis to fully understand underlying root causes in specific units/schools/colleges
    • Example: 5 projects in Period 7 were responsible for 93% of the $ in untimely NSCT moved on to federal awards
    • Example: 76% of all untimely transfers aggregated to 2 PIs
    • Example: trend analysis indicates 80% of all untimely transfers occurred in 6 departments over an annual period
  • Provides insight into policy and process adjustments
    • Example: Adjusting metrics if necessary (other examples: adjusting definitions of cost transfers to exclude parent/sub, etc.)
  • Provides a consistent reporting and assessment platform for all levels of the university

Inform

uncw campus perspective

UNCW – Campus Perspective

Compilation of data for reporting

Systems used

RAMSeS

Banner

Departments involved

Sponsored Programs

Controller’s office/billing

Enforce

slide16

New fund establishment

    • Average number of days
      • Cause of “yellow” or “red”
    • Risk of consistent “red” section
  • Time & Effort Certifications
    • Timeliness of certifications
    • Banner T&E system
      • Training needs?
      • Any system issues?

Enforce

slide17

Salary Transfer Requests

    • >90 days – why?
    • Transfers affect Time & Effort – Banner system
    • Risk mitigation
  • A-133 Audit Certifications
    • Critical for Sub-recipient monitoring
    • Review of sub-award entities
      • Vendor versus true Sub-award

Enforce

slide18

Accounts Receivable

    • Age of receivables
    • Reasons for slow or non-payment
      • Final reports not submitted
      • Submitted invoice lost or misplaced
    • Note number/type of invoicing required
    • Sponsored Programs and Billing work together

Enforce

slide19

Management Review

At a glance” areas of concern

GREEN – everything OK

Yellow – Which areas? What causing issue?

Red – closer review

Why red? Is there reasonable explanation?

Look for Trends

Enforce

internal control types

Internal Control Types

  • Operational
  • Promotes operational effectiveness and efficiency as well as adherence to policies and procedures.
  • Financial
  • Designed to safeguard assets and ensure completeness, accuracy and reliability of financial records.
  • Compliance
  • Ensures compliance with applicable laws and regulations.

Enforce

financial assessment management fam

Financial Assessment Management, FAM

-Establishes guidelines for Cost Object activity oversight and fiscal responsibility. Including assessment, verification and substantiation for account level transactions.

-FAM considers the Internal Control structure of a business unit and the preventative controls gained with the implementation of new technologies and allows flexibility based on funding source and risk level.

- FAM is a process to detect corrections necessary for the accuracy, integrity and reliability of reported financial reports.

Enforce

internal control environment ice

Internal Control Environment ( ICE )

Scope

The Internal Control Environment (ICE) Assessment document focuses on the financial analysis and oversight, risk assessment, internal controls, proper training and documentation for all aspects of the department’s revenue, expenditures, and balance sheet accounts. Each ICE covers all object codes owned or managed by a unit.

Enforce

internal control environment ice1

Internal Control Environment ( ICE )

Roles and Responsibilities

The individual completing the ICE document must ensure compliance with Duke Policy, GAP, and other external reporting agencies. Individuals performing FAM reviews must have appropriate knowledge of the transactions, delegated responsibility for fund oversight and proper training. Management Centers are responsible for approving the ICE document.

Enforce

internal control environment ice2

Internal Control Environment ( ICE )

Procedures

Risk Assessment:

Each transaction category documents the Institutional risk level. The Business Unit is expected to document the internal controls in their unit that differ from the institutional overview. The Business Unit risk assessment is used for the basis for transaction sampling.

Enforce

internal control environment ice3

Internal Control Environment ( ICE )

Procedures

Sampling:

Preventative controls enable responsible financial persons to use sampling quality assurance reviews. In general, higher risk will result in a larger sample size, whereas, lower risk may produce smaller sample sizes. Besides risk, key deciding factors are funding source, internal controls and historical performance.

Enforce

internal control environment ice4

Internal Control Environment ( ICE )

Procedures

Transaction Review and Assessment:

A transaction review and assessment for selected sample transactions should consider reasonableness and accuracy of funding for the transaction and general ledger account. Sponsored funds should also assess the allowability and allocability of the goods, services and wages/effort charged to the fund.

Enforce

internal control environment ice5

Internal Control Environment ( ICE )

Procedures

Analytical Assessment:

Compares actual performance to budgeted expectations and /or to projected performance, in total , by cost and general ledger line item. Analysis should identify variances requiring explanation and discussion, including overdraft status. Types of assessment include: Supporting documentation, Noting errors and corrections, Documenting Completed assessment.

Enforce

slide29

Accounts Payable Check Request (APCR) including: Petty cash, check requests, Experimental Subject Payments and Short-Term Research Funds

Institutional Risk Level: Medium ( reliance on preventative and detective controls)

Institutional Internal Control Environment Overview:

Accounts Payable Check Requests (APCRs) receive at least one approval signature prior to processing for payment. Accounts Payable manually inputs payment information from the hard-copy form provided. Posting errors may occur for cost object, general ledger account and payment amount fields.

Recommended FAM Review Procedures: On a sample basis, compare transactions to supporting documentation. The FAM reviewer should perform analytical procedures to assess reasonableness.

Example of ICE transaction category

Accounts Payable Check Request (APCR) including: Petty cash, check requests, Experimental Subject Payments and Short-Term Research Funds

Institutional Risk Level: Medium ( reliance on preventative and detective controls)

Institutional Internal Control Environment Overview:

Accounts Payable Check Requests (APCRs) receive at least one approval signature prior to processing for payment. Accounts Payable manually inputs payment information from the hard-copy form provided. Posting errors may occur for cost object, general ledger account and payment amount fields.

Recommended FAM Review Procedures: On a sample basis, compare transactions to supporting documentation. The FAM reviewer should perform analytical procedures to assess reasonableness.PCR) including: Petty cash, check requests, Experimental Subject Payments and Short-Term Research Funds

Enforce

slide31

Business Unit FAM Review Procedures:

Business Unit Internal Control Environment Overview:

Document the business unit internal control environment overview if different from the Institutional overview (i.e., additional internal controls or segregation of duty issues that may result in a business unit risk level that differs from the institutional risk level above).

Business unit risk level is inherently the Institutional risk level of Medium unless the business unit Internal Control Environment Assessment above indicates additional internal controls that mitigate risks further or recommended internal controls are not in place in the business unit.

Click here to enter text.

Office Of Internal Audits

Enforce

technical advances

Technical Advances

Role assignments and tracking

Procurement tool, (Buy@Duke)

Travel reimbursement

Effort Certification

Cost Transfer workflow and approval

Sampling tool

Re-budgeting workflow

Reporting capabilities

Office Of Internal Audits

Enforce

outcomes

Outcomes

Improved communication and targeted training

Cost savings and efficient ordering

Faster reimbursement

Improved tracking of effort and cost sharing

Less ticking and tying

Overall better internal controls

Enforce

a lesson learned

A Lesson Learned

Adoption of promising new technology, Buy@Duke

Extensive training on use of system

Focus on front-end controls

Objective to reduce cost transfers, ensure allowability and improve order

efficiency.

Road Block at Institutional level – General guidance needed.

Discovered that A/A/R assessment was being assigned to individuals who

lacked training/understanding of AAR.

Grant managers not able to make allocability decisions as well as those closer to the

science.

Uncovered a fundamental issue which needed to be addressed for improving decision

making, (A/A/R) in a decentralized environment.

Enabled Duke to implement directed training, and enforce with internal controls and metrics

Enforce

new rcc training in support of fam
New RCC Training in Support of FAM
  • Historic RCC Training Program Changed, based on several factors:
    • Functional analysis of individual’s pre and post-award duties
    • FAM/ICE identification of training needs
    • New technologies: Teaching the “Why” and not just the “How”
    • Reclassification of grant managers from multiple job descriptions and partial grant responsibilities (1200 individuals) to consolidated groups, with REQUIRED TRAINING CERTIFICATION
    • University LMS manages enrollment (Saba)
    • Content informedby RCC Monitoring team (Risk Assessment Metrics, Department ICE feedback, etc.)

Prepare

philosophy change
Philosophy Change
  • Moving from “the sage on the stage” to the “guide on the side”
    • Hands on, practical training and experiences
  • Providing supervisors and practitioners with meaningful evidence of learning/knowledge/practical skills – Test results and Metrics
  • Supported by Multi-Media resources

Prepare

slide40

Core Competency Driven: HR

Function and Metrics Driven: FAM

Prepare