AUDIT COMMITTEE BOARD OF TRUSTEES UNIVERSITY OF VERMONT AND STATE AGRICULTURAL COLLEGE

Transcription

1 AUDIT COMMITTEE BOARD OF TRUSTEES UNIVERSITY OF VERMONT AND STATE AGRICULTURAL COLLEGE A meeting f the Audit Cmmittee f the Bard f Trustees f the University f Vermnt and State Agricultural Cllege was held n Friday, in the President s Cnference Rm, 351 Waterman Building MEMBERS PRESENT: Chair Edwin Amidn, Jr., Vice Chair Bill Btzw*, Jeffrey Davis, Susan Hudsn-Wilsn, Jhn Snw, and Beth Rice MEMBERS ABSENT: Jeanette White REPRESENTATIVE ABSENT: Staff Representative Renee Berteau and Student Representative Sarah Shackett, Alumni Representative Bill Cimnetti and Faculty Representative (vacant) PERSONS ALSO PARTICIPATING: Carl Lisman*, Chair, Bard f Trustees, J. Michael Gwer, Vice President fr Finance and Administratin and University Treasurer, Charles Jefferis, Assciate Vice President fr Institutinal Risk Assessment and Audit Services, Renee Burget-Place, KPMG LLP, and Laura Yaeger, Matthew Faris and David Klipa, Hurn Cnsulting *via telecnference Chair Edwin Amidn called the meeting t rder at 12:10 p.m. Update n Management Actins fr Grant and Cntracts Administratin V.P. Michael Gwer intrduced representatives frm Hurn Cnsulting: Laura Yaeger, engagement partner fr UVM; Matt Faris, n-site engagement supervisr; and Dave Klipa, n site prject directr. Mr. Klipa reviewed prblems which had arisen with Grant & Cntract accunting since "ging live" with PepleSft in July 2006, including cnversin f data, prducing financial reprts, and existing standard perating prcedures which did nt wrk with PepleSft. As a result, reprts t spnsr, invicing, expense cntrl, award setup, and ther functins became backlgged. He then stated that significant prgress has been made in catching up and transitining UVM staff t new prcedures. He als stated that grants & cntracts data base and reprting will be current by the end f FY '08. Mr. Klipa went n t state that budgets are nw accurate in the PepleSft system, three PepleSft mdules supprting grants and cntracts are presently activated, and that the billing and accunts receivable mdule will be in peratin by February 29; hwever, a majr effrt will still be required t recncile manually-prduced reprts and

2 Audit Cmmittee Minutes Page 2 f 5 invices with the new PepleSft mdule. Anther pririty is the retraining f principal investigatrs and department administratrs in the best use f PepleSft fr grant and cntract management. Mr. Faris, wh has acted as interim leader f UVM grants and cntracts accunting since Octber 2007, circulated a Summary Status Reprt that is attached t these minutes. He nted that there is still a substantial backlg f financial reprts, but he expects all verdue and current reprts t be cmpleted by June Mre internal manpwer is needed, including a permanent leader. He als reprted that Hurn will be wrking n standardizing prcedures fr interactins with departments such as advance ntice f reprt due dates and status. Ms. Yaeger stated that she had seen and heard f much wrse situatins in her years in the federal grant accunting field including similar PepleSft implementatin prblems and the federal investigatin at Stanfrd. She indicated that sme institutins have avided this type f prblem by substantially delaying grant and cntract cnversin t PepleSft. Trustee Snw and Trustee Rice asked hw the prblem culd have gtten s bad withut earlier strng actin. Vice President Gwer respnded that it was a "perfect strm" f nt having enugh staff with needed cmpetence plus existing prcedures and culture which did nt blend well with the PepleSft system. He was nt sure what culd have been dne differently except t delay the cnversin. Trustee Davis raised the issue f urgency in recruiting a new internal leader and staff as needed. Ms. Yaeger stated that Hurn is helping t draft a jb descriptin but recruiting a manager can be a challenge. Mr. Gwer nted that he has selected a search firm that specializes in these kinds f recruitments Trustee Hudsn-Wilsn asked the Hurn representatives and Vice President Gwer whether UVM is n schedule t put ur grant and accunting huse in rder by June 30. Ms. Yaeger cnfirmed that Hurn's wrk is n track t have PepleSft fully implemented and grant and cntract accunting current by the end f FY '08. There are still sme questin marks such as the recnciliatin f manual billing entries nted befre. The retraining effrts in new prcesses and reprting are als key tasks. Mre manpwer might increase the chances f success, but that is uncertain. She nted that Hurn was prepared t bring in resurces shuld unfreseen issues arise, but she is cmfrtable with the staffing in place at this time. Trustee Hudsn-Wilsn asked Ms. Burget-Place f KPMG (external auditrs) if prgress was sufficient t avid a material weakness finding fr FY '08. Ms. Burget- Place said she wuld nt knw until KPMG starts interim testing wrk in April. Trustee Hudsn-Wilsn asked if KPMG wuld cnsider cming earlier t mnitr prgress and reprt back t the Cmmittee. Ms. Burget-Place said KPMG wuld cnsider the request and wuld let the Chair knw whether a prpsal wuld be submitted.

3 Audit Cmmittee Minutes Page 3 f 5 Trustee Snw raised the previusly discussed questin f whether rganizatinal issues cntributed t the backlg and PepleSft cnversin prblems and asked that this be an agenda item fr a future meeting. Adjurnment There being n further business, the meeting was adjurned at 2:20 p.m. Respectfully submitted, Edwin Amidn, Jr. Chair

4 Audit Cmmittee Minutes Page 4 f 5 Summary Status Reprt Grant and Cntract Administrative Services Reprting Perid: Nvember 1, 2007 January 18, 2008 FINANCIAL REPORTING Prcess Majr Highlights/Activities Cmpleted 526 Financial Reprts with due dates thrugh December Financial Reprts cmpleted t date 167 f these reprts are n the initial list f reprts due thrugh December 2007, the remaining reprts represent ad-hc immediate requests 606 reprts prjected t be cmpleted thrugh June 2007 Held Kick-ff Meeting with 6 Clleges and have established cmmunicatins with remaining departments Prvided departments with the listing f their utstanding financial reprts t allw them t priritize rder f cmpletin Initiated cntact with departments t discuss apprach fr cmpleting reprts In mst cases, there is a teaming effrt where GCA and departmental staff are wrking in parallel n reviewing awards t facilitate reprt cmpletin Develped Prject Clseut Reprt Jb Aid fr departments Develped spreadsheet mdel and prcess t ensure financial reprts are prepared in a cnsistent manner Hld fllw-up departmental meetings t address reprting questins Practively cntacting spnsrs Established Friday Help Desk in the Cllege f Medicine INVOICING AND CASH MANGEMENT 72 Interim Invices prepared t date $3.9M Ttal amunt f Invices prepared t date $2.5M Ttal amunt f Cash-Checks received t date $11M Ttal amunt f Cash- Wires received in December 2007 Develped interim invicing and tracking prcess Have increased the mnthly drawdwns by apprximately $1M - $4M per mnth, prir t Nvember 2007 drawdwns Established practice t pst cash and wire depsits int PepleSft n a daily basis Established practice t get checks t the cashier n a daily basis Develped apprach and currently wrking n psting all PHS wire amunts by prject int PepleSft. Currently, this cash is un-psted Attended numerus meetings t discuss GCA Rle in AR/Billing system testing and ging-frward prcesses

5 Audit Cmmittee Minutes Page 5 f 5 Majr Highlights/Activities Cmpleted AWARD SET-UP 603 Awards received fr setup in FY08 Apprximately 540 Award Setups cmpleted 63 Awards Setups t be prcessed Develped apprach t clearing backlg. Targeting tw mnth perid t eliminate all utstanding setups Currently interviewing fr 1-2 staff psitins Established mnthly meetings with the Office f Spnsred Prgrams t discuss peratinal issues in rder t make the end-t-end prcess mre efficient Establish future gal f a 5 business day award setup time PEOPLESOFT PROCESSING TASKS 200 Jurnal entries awaiting apprval 555 Budget checking errrs t be cleared Prepared mem t re-iterate UVM plicy fr preparing jurnal entries Prcess fr review f PepleSft Prcess Tasks is in place t address backlg by FY end ORGANIZATIONAL Establishment f a bi-weekly meeting with GCA team and individual meetings with GCA Directrs and Managers Initiated review f rganizatinal structure t better assess hiring needs