Office of Internal Audit

Audit Issues

In this section we have listed some of the most common observations from recent audits and recommendations on how to avoid problems in these areas. We hope that this information will assist you in assessing and improving internal controls in your function.

Developing Rates for Service Center Activities

When a unit engages in selling goods or services to internal or external customers, they must set their rates in accordance with University guidelines. These rates must be based on actual costs, applied consistently, and reviewed and adjusted as necessary at least once a year. Units must also retain documentation of how rates were determined and of yearly rate reviews for at least five years.

If you have any questions or would like assistance in developing your rate structure please contact the Controller's Department.

Computer System Access and Security

As the University becomes more and more automated, we are becoming increasingly dependent upon electronic data and less on paper records. To protect important and sensitive data from loss and access by unauthorized persons, we recommend the following:

• Use passwords and keep them secure. Do not share your password with anyone.
• Give access to only those people who need it to perform their duties.
• Be sure to include revoking access to computer systems as part of your employment termination procedures.
• Make periodic back-ups of data to avoid time-consuming data re-entry in case of data loss.
• Keep a back up in a secure, off-site location in case of disasters such as fire or flood.

For more information and assistance with these issues, please contact Information Technology.

Cash Handling and Reporting

Cash is the asset most susceptible to theft. If your unit handles cash, we recommend the following controls:

• Restrictively endorse checks as soon as they are received.
• Deposit receipts with the Treasurer's Office at least weekly if they are under $100 and within two days if they are over $100.
• Segregate duties so that the same person is not given the responsibility for custody of cash, recording cash transactions, and reconciling receipts to accounting records.

Additional information on Cash Handling Procedures is on the Treasurer's Office web site.

Retention of University Records

Record retention guidelines may be found at Record Retention.