UCSB Audit and Advisory Services
FY 2012-13 Mid-Year Briefing
Academic Business Officers Group
January 17, 2012
FY 2012-13 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)
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Completed Projects
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COMPLETED PROJECTS:
REPORTS ISSUED DURING FISCAL YEAR 2012-13
Project No.
Title of Report/Memo
Type
Final or Draft
Report Date
Final Reports Issued
1
08-12-0020
TIA Legal Bills Internal Controls
Advisory
July 12, 2012
2
08-12-0011
Earth Research Institute
Audit
July 13, 2012
3
08-12-0002
Materials Department
Audit
August 22, 2012
Local Report on Activities Fiscal Year 2011-12
Special
Sept. 10, 2012
Institutional Animal Care and Use Committee
Audit
Sept. 13, 2012
Internal Assessment of the Internal Audit Activity
Special
Sept. 28, 2012
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5
6
–
08-12-0005
–
7
08-13-0004
Financial System Implementation Project:
Campus Use of Shadow Systems
Audit
Oct. 5, 2012
8
08-13-0005
Travel and Entertainment
Audit
Dec. 13, 2012
9
08-13-0003
Marine Science Institute
Audit
Dec. 14, 2012
10
08-12-0008
Procurement and Contracting: Risk Assessment &
Contract Compliance Review
Audit
January 9, 2013
11
08-11-00022
Financial System Implementation: Accounts Payable
Vendor Assessment (Draft)
Audit
January 15, 2013
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COMPLETED PROJECTS:
TRAVEL AND ENTERTAINMENT
The purpose of this systemwide audit was to assess whether procedures
are in compliance with University-wide policies over travel and
entertainment. We found that campus travel and entertainment
reimbursement processes and procedures are generally in compliance
with University policies.
Management Corrective Actions
Business and Financial Services will remind the campus via email or
other appropriate means of the required approvals for all travel and
entertainment reimbursements and of the pre-approvals required for
travel expenses to be paid on behalf of others. In addition, they will
continue to work with the departments in providing guidance on how to
bring their travel expense allowance practices into compliance with
Policy G-28.
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COMPLETED PROJECTS:
MARINE SCIENCE INSTITUTE
The purpose of the audit was to assess whether business processes and
internal controls established by MSI are in compliance with University
and sponsor regulations. Based on the results of the work performed
within the scope of the audit, the institute generally has very good
processes in place for the areas reviewed. However, MSI had some
account-funds in overdraft at the time we started our audit, shortly after
the end of fiscal year 2011-12.
Management Corrective Actions
There are plans to reduce and eliminate the overdrafts, which were the
result of past budget cuts, recharge activities, and other factors. MSI has
provided a management corrective action plan for bringing all accountfunds into balance.
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COMPLETED PROJECTS:
PROCUREMENT AND CONTRACTING: RISK
ASSESSMENT AND CONTRACT COMPLIANCE REVIEW
This project included a risk assessment of procurement to inform future audit planning.
The project also included limited compliance reviews of some purchase orders and
contracts that the risk assessment suggested were good candidates for initial review.
The audit identified compliance issues that should be addressed and a number of risk
areas to be used to inform future audit planning
Management Corrective Actions
Business and Financial Services is currently assessing the additional resources needed
to continue to improve critical campus procurement processes, and will draft and
implement a corrective action plan that includes:
• Tasking the new Associate Director of Internal Controls with review and assessment of
delegated campus procurement processes.
• Reviewing and enhancing select campus-wide controls, focusing on non-centralized
purchasing systems and practices delegated to certain campus departments.
• Ensuring that department personnel with purchasing and delegated contracting
authority responsibilities receive adequate training.
• Other steps.
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In Progress
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IN PROGRESS:
SUCCESSION PLANNING
To determine whether there are adequate processes in
place to ensure that future staffing needs are met. We:
• Started this review by gaining an understanding of
current UCSB succession planning, staff development,
retention, and other similar efforts.
• Will soon be conducting a survey of select UC
campuses and other institutions to further identify best
practices in this area.
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IN PROGRESS:
IT: FINANCIAL SYSTEM REPLACEMENT
PROJECT AUDITS
In addition to the completed audit of Campus Use
of Shadow Systems, the following FSIP audits are
currently in progress:
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FSIP Project Progress
Mainframe Project: Migration of Other Systems
Accounts Payable Vendor Assessment
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AUDIT AND ADVISORY SERVICES INFO AND
CONTACTS
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AUDIT AND ADVISORY SERVICES INFO AND
CONTACTS
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AUDIT AND ADVISORY SERVICES INFO AND
CONTACTS
www.audit.ucsb.edu
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Robert Tarsia, Director
Sam Hartline, Principal Auditor
Olga Mery, Senior Auditor
Raphaëlla Nau, Staff Auditor
Jeremy Harbin, Audit Analyst
John Kushwara, Whistleblower Complaint Investigator
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