UCSB Audit and Advisory Services Facilitating Change in FY Academic Business Officers Group October 18, 2012

2 FY Audit Plan Highlights Information Technology Financial System Implementation Project (FSIP): Campus Use of Shadow Systems FSIP Project Progress Mainframe Project: Migration of Other Systems Student Information Systems Replacement: Project Progress Procurement Gateway: Facilitation Implementation (Advisory Service)

3 FY Audit Plan Highlights Change and Transition: Succession Planning

4 Financial System Implementation Project: Campus Use Of Shadow Systems Purpose Scope and Objectives Audit Results

5 Financial System Implementation Project: Campus Use of Shadow Systems Purpose To identify how shadow systems are used on campus and help ensure that their capabilities are taken into consideration during the implementation of the new financial system planned for campus.

6 Financial System Implementation Project: Campus Use of Shadow Systems Scope & Objectives The scope of the audit included current shadow system use on campus. The objectives of this audit were to assess shadow systems use on campus, including determining which shadow systems are in use, the extent of their use, and the functions the systems are used for.

7 Financial System Implementation Project: Campus Use of Shadow Systems Survey 1: Shadow Systems on Campus Inventory of shadow systems at UCSB. Areas in which shadow systems are being used. Survey 2: Shadow System Capabilities Detailed understanding of functions for which shadow systems are being used. Identifying key shadow system capabilities not available in the current systems.

8 Financial System Implementation Project Campus Use of Shadow Systems Shadow Systems In Use On Campus Survey sent to 129 individuals representing approximately 83 departments. This includes the ABOG, GUS Executive Committee, and other individuals from the campus org charts. We received 61 responses.

9 Financial System Implementation Project: Campus Use of Shadow Systems

10 Financial System Implementation Project: Campus Use of Shadow Systems Payroll Asset Management Reconciliation Contracts and Grants Shadow Systems In Use On Campus Areas of Use Purchasing General Ledger Posting Specialized Reporting

11 Financial System Implementation Project: Campus Use of Shadow Systems Shadow System Uses and Capabilities Used an existing listing of processes and transactions, obtained from Business and Financial Services. Collaborated with the GUS Executive Committee to refine and consolidate the listing. Survey sent to the 61 respondents of the first survey on shadow system use. Received 49 responses, from 40 departments.

12 Financial System Implementation Project: Campus Use of Shadow Systems Shadow System Uses and Capabilities Sponsored Projects Budgeting Purchasing Accounts Payable Accounts Receivable Inventorial Property and Equipment Recharge/Transfer of Fund/Transfer of Expenses Personnel General Ledger

13 Financial System Implementation Project: Campus Use of Shadow Systems Shadow System Uses and Capabilities Sponsored Projects – Track cost shares, matching, in-kind contributions. Budgeting – Develop and forecast budgets. Purchasing – Validate critical data (e.g., acct number, fund availability, etc.) Accounts Payable – Track payments and detect duplicates. Accounts Receivable – Apply payments. Personnel – Generate payroll projections for PI and account managers. General Ledger – Track general ledger data during the month. (Real time data)

14 Gateway Implementation Facilitation Brief Overview Gateway is the new e-procurement system at UCSB. Audit and Advisory Services will be meeting with departments to discuss their workflow or other concerns, providing feedback to the Gateway Team on identified issues.

15 Audit and Advisory Services Info and Contacts

16 Audit and Advisory Services Info and Contacts

17 Audit and Advisory Services Info and Contacts Robert Tarsia, Director Sam Hartline, Principal Auditor Vacant, Senior Auditor (Recruitment in progress.) Raphaëlla Nau, Staff Auditor Jeremy Harbin, Audit Analyst John Kushwara, Whistleblower Complaint Investigator