1. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Online Training for Georgia State University Expenditure Review Executive Summary

2. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training About this Online Training… 1.You may progress through the presentation by using the mouse to click on the NEXT button. 2.All Spectrum-specific Forms and Information may be obtained from Web site. (http://www.gsu.edu/spectrum) 3.To EXIT the training at any time, press ESC.

3. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Expenditure Review Online Training Executive Summary Training Highlights This summary was designed to aid Vice Presidents and Deans who have budgetary authority in understanding the expenditure review process. VPs and Deans will be aware of………. 1.) ……how to ensure segregation of duties. 2.) …. how to ensure the business integrity of their budgets/ budgetary transactions. 3.) ……their budgetary responsibilities.

4. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Expenditure Review Ultimate responsibility for internal controls resides with VPs and Deans, and CANNOT be delegated. Approval and review activities may be delegated to appropriate individuals.

5. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Expenditure Review Online Training Executive Summary OVERVIEW –Section 1: Expenditure Review Defined –Section 2: Roles and Responsibilities –Section 3: Job Description Updates –Section 4: Departmental Processes –Section 5: Summary

6. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Section 1: Expenditure Review Defined

7. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training What is an Expenditure Review? Expenditure Review… is an after-the-fact review of financial transactions that have been posted on Spectrum. includes personal ( i.e., payroll) and non-personal (i.e. supplies, equipment, travel, etc.) expenditures. is necessary to ensure expenditures are authorized. Section 1: Expenditure Review Process Defined

8. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training What is Expenditure Review? Expenditure Review checks for Purpose : All charges pertain to the purpose of the unit or sponsored project. Accuracy: Charges are familiar and are accurate: in payee, amount and account. Completeness : –Everything that should be there, is there. –Everything that is there, should be there. Section 1: Expenditure Review Process Defined

9. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Authorization Click here to view the document NOTE: Exiting the secondary application will return you to this training Section 1: Expenditure Review Process Defined The Expenditure Review Process was initiated in response to President Patton’s Internal Control Memo addressed to the Vice Presidents and Deans, dated June 2, 2003

10. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Section 2: Roles and Responsibilities

11. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Roles and Responsibilities Several steps are performed when processing an expenditure, with several assigned individuals taking on specific roles within the process. Section 2: Roles and Responsibilities Prepares a transaction for approval either on Spectrum or hardcopy Approves financial transaction on Spectrum or hardcopy Initiator Approver Reviewer Reviews financial transactions after they have posted to Spectrum to ensure appropriate use of funds

12. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Segregation of Duties Good Accounting Practices recommend that at least two individuals be involved in the duties of initiating, approving, and reviewing transactions. Both must be able to verify the business integrity of the transactions. For each individual speedtype, the following relationships are a proper or improper segregation of duties as indicated. Initiator = Reviewer Initiator = Approver Approver = Reviewer Section 2: Roles and Responsibilities

13. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Compliance Audits –To ensure compliance, University Auditing and Advisory Services periodically performs compliance audits, the results of which are forwarded to the Board of Regents. –Also performing compliance checks might be auditors from: the State, the Board of Regents, or the Sponsoring Agencies (including the federal government) Section 2: Roles and Responsibilities

14. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Section 3: Job Description Updates

15. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Section 3: Job Description Updates It is YOUR responsibility to see that expenditure review is an official part of the job descriptions/ job duties of ALL persons you have authorized to have budgetary responsibilities. As the Person with AUTHORITY over a budget Resources & References

16. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Every Faculty and Staff member with budgetary responsibilities is to adhere to these internal control policies. To assist you in ensuring that your budget is being properly managed, the following guideline has been established… Section 3: Job Description Updates As the Person with AUTHORITY over a budget

17. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Please pay close attention to the sections on - Payroll / Personnel Practices: Explicit Job Descriptions - Payroll / Personnel Practices: Employment Screening Job Expectations for Persons with Budgetary Responsibility Section 3: Job Description Updates Click here to view the document* NOTE: Exiting the secondary application will return you to this training *Created jointly by Human Resources and University Auditing and Advisory Services.

18. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Principal Investigators Please Note….. Ultimate responsibility cannot be delegated; as the Principal Investigator, you are responsible for all expenditures made from your budget. The best way to accomplish this is hands-on involvement in the management of your expenditures. Job Expectations for Employees Engaged in Management of Sponsored Projects Section 3: Job Description Updates

19. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Section 4: Overview of Expenditure Review Process

20. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Close of Month Expenditure Review Performed Certification of the Review End Office of the VP/Dean monitors for completeness/ inclusion of all budgetary areas Discussed in this section Section 4: Overview of Expenditure Review Process

21. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Expenditure Review Performed Each designated Reviewer will review expenditure details. Two specialized Spectrum reports were created to facilitate this process. GL Drill Down Report Project Drill [down] Report NOTE: Reviewers are assigned by speedtype. Each speedtype has a single reviewer, but a single reviewer may be responsible for multiple speedtypes. Section 4: Overview of Expenditure Review Process

22. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Certification Putting the following steps in place helps ensure that you are in compliance with Internal Controls… -Each Reviewer certifies that the monthly expenditure review has taken place. -Certification documentation is retained for 12 months. Section 4: Overview of Expenditure Review Process

23. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Certification Format The VP/Dean prescribes the processes and procedures for their units to ensure internal controls. In the next few slides, a “Best Practices” example is provided as guidance. Section 4: Overview of Expenditure Review Process

24. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training What is acceptable Certification Documentation? Certification documentation may be: –a standardized form, –an email or –other notation as prescribed by the VP/Dean Recommended Documentation data: - Name of person completing the review -Date(s) reviews were performed -Speedtype/accounts included in the review -Unit/department reviewed Section 4: Overview of Expenditure Review Process

25. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Sample Certification Form Section 4: Overview of Expenditure Review Process Click for downloadable version. Exit secondary application to return to this slide.

26. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Monitoring/Review done by the Office of the VP/Dean Ensure segregation of duties is maintained. Ensure that all appropriate speedcodes are reviewed on a monthly basis. Ensure certification documentation is retained for 12 months. Section 4: Overview of Expenditure Review Process

27. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Section 5: Summary

28. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Section 5: Summary KEY POINTS Ultimate responsibility cannot be delegated. Maintain Segregation of duties. Document the performance of review. Include all appropriate speedtypes in reviews. Retain certification for 12 months.

29. BACKNEXT Georgia State University --- Expenditure Review Executive Summary -- Online Training Thank you for reviewing and participating in the Expenditure Review Executive Summary Section 5: Summary