'R Audit Focus ...

A quarterly newsletter from the Office of
Audit & Compliance Review

Nur Erenguc, Chief Audit Executive
February 2006

University Payroll

Inid thi issue

*Payol Aui

Cashiring uditI

DirectSuppor

Departments are reminded that sepa-
ration of payroll duties is an impor-
tant control for ensuring payroll in-
tegrity. For example, employees who
approve job actions and time worked
should not have access to pay checks.

A University of Florida ID and signa-
ture are both required when picking
up payroll checks from central pay-
roll.

FL I

Tedn 7Mn

20065412-0684

Our audit of University Payroll, the
University's largest operational dis-
bursement at $1,053,495,000 in
2004-2005, found internal controls
were designed adequately and oper-
ating effectively to ensure that pay-
roll is calculated, recorded and dis-
bursed accurately for services per-
formed.

Our review found that payroll inaccu-
racies could be reduced if depart-
ments ensure that job actions are
processed timely. Additionally, ap-
proving time and reviewing the pre-
liminary paylist prior to finalizing
payroll will reduce the volume of in-
correct payments to employees.

Cashiering

We audited University Cashiering and
found it had adequately designed
and implemented controls.

University Cashiering, the point of
receipt for all University collections,
including student fees, accounts re-
ceivable and loan collections, col-
lected approximately $670 million in
2004-2005. Although University di-
rectives require that credit and
debit/ATM card transactions be de-

posited by the next business day, we
found that some departments did not
deposit these transactions timely.
Also, some departments failed to use
locked bags when transporting cash
between buildings.

For complete guidelines on handling
cash, collections and receivables, see
Finance and Accounting's online di-
rectives and procedures at http://
fa.ufl.edu/uco/handbook.

rl- t\] I1']

Audits of Direct Support Organizations

OACR Address:
Office of Audit &
Compliance Review
341 Tigert Hall,
P.O. Box 113025,
Gainesville,
FL 32611

Tel: (352) 392-1391
Fax: (352) 392-3149

Editors
Brecka Anderson
andersb@)ufl.edu
Suzanne Newman
suzmcd@)ufl.edu

We're on the Web
at:
OACR.UFL.EDU

The Office of Audit and Compliance
Review performs audits of the Uni-
versity's direct support organiza-
tions, including the University Ath-
letic Association and University of
Florida Foundation.

We recently audited university units
that had collected gifts for deposit
with the University of Florida Foun-
dation. All gifts solicited in the name
of and received for the benefit of the
University of Florida must be depos-
ited with the Foundation in one of
over 5,800 funds administered by the
Foundation.

Role Security Administration

The Auditor General, in their recent
audits of University financial state-
ments and information technology,
commented that in some cases role
assignments in myUFL did not pro-
vide for proper segregation of duties
in the accounting, purchasing,
voucher processing, and cash man-

agement functions, increasing the
risk of erroneous or fraudulent trans-
actions being processed.

We remind management to review
role security assignments with the
assistance of their departmental secu-
rity administrator (DSA).

Office of Audit & Compliance Review
341 Tigert Hall
P.O. Box 113025
Gainesville, FL 32611

We found that written policies and
procedures were not clearly commu-
nicated regarding gift processing.
University units processing Founda-
tion gifts should follow the University
Controller's directives and proce-
dures regarding collections and re-
ceivables.

We also noted that some university
units were not making timely depos-
its or reconciling deposits to Founda-
tion records. Any questions about
gift collection procedures should be
directed to the UF Foundation or your
development officer.

IT (RII ,I1