!"# %&'()*+*,( -./*.0 1'2.


Westf|e|d State Un|vers|ty

1rans|t|on kev|ew keport

Cff|ce of the Comptro||er

Apr|| 4, 2014
!"# %&'()*+*,( -./*.0 1'2. 4


Lxecut|ve Summary 3

1rans|t|on kev|ew S

Areas of Iocus:

Interna| Contro|s 6

Secur|ty]S|gnature Author|zat|on]Segregat|on of Dut|es 8

Author|ty]DnSA 9

Commun|cat|ons]1ra|n|ng 10

Management 11

Management of 1rust Iunds 12

Departments w|th|n the D|v|s|on of Adm|n|strat|on and I|nance

8udget|ng and Interna| Aud|t 13

Campus-based Iunds Act|v|ty 13

Þurchas|ng 14

Accounts Þayab|e 14

8ursar 16

Meet|ngs]Interv|ews 17
Çua||ty Assurance kev|ew 1eam 17

I. WSU M|ss|on and V|s|on Statement 18
II. Documentat|on 19
III. 1ransact|ons kev|ewed 20
IV. Suggested Lducat|ona| L|nks 21
V. CCSC LkM Iramework 22
!"# %&'()*+*,( -./*.0 1'2. 5

Lxecut|ve Summary

WlLh Lhe deparLure of Lhe former WesLfleld SLaLe unlverslLy (WSu or Lhe unlverslLy) ÞresldenL,
lnLerlm ÞresldenL ur. LllzabeLh ÞresLon requesLed LhaL Lhe Cfflce of Lhe CompLroller perform a
revlew of Lhe WSu admlnlsLraLlon and flnance offlces wlLh a focus on currenL conLrol processes and
whaL changes should be lmplemenLed on a go forward basls. lL was agreed lssues relaLed Lo Lhe
pasL presldenL were under separaLe revlews and would be ouL of scope for Lhls pro[ecL. 8ased on
lnlLlal meeLlngs Lhe areas of P8 and payroll, as well as l1 and faclllLles, are ouLslde Lhe scope of Lhls

1he Cfflce of Lhe CompLroller (C18), sLaff ln coordlnaLlon wlLh kurL SLelnberg, LxecuLlve vlce
ÞresldenL from Lhe MassachuseLLs College of ArL and ueslgn, revlewed AdmlnlsLraLlon and llnance
Cfflce (A&l) funcLlons Lhrough lnLervlews wlLh managemenL and sLaff as well as Lhrough Lhe
examlnaLlon of pollcy and procedure documenLaLlon and selecLed LransacLlons of Lhe unlverslLy.

WesLfleld SLaLe unlverslLy had a neL poslLlon as of Lhe close of l?2013 of approxlmaLely $72 mllllon
(excludlng Lhe foundaLlon). 1he sLaff lnLervlewed was knowledgeable of Lhelr dally duLles and
funcLlons. 1here were few lndlcaLlons of sLaff shorLages and Lhey dld noL express deflclencles ln
compleLlng work wlLhln reasonable deadllnes. uocumenLaLlon requesLed by Lhe Leam was prompLly
provlded whlch supporL Lhese sLaLemenLs. uay-Lo-day funcLlons appear Lo be performed ln
accordance wlLh unlverslLy pollcles.

1here has been slgnlflcanL Lurnover aL Lhe execuLlve levels of Lhe organlzaLlon and speclflcally A&l
over Lhe lasL 6 years. 1hls Lurnover has negaLlvely lmpacLed Lhe career managers and employees,
Lhelr mlsslon and value Lo Lhe unlverslLy. Cenerally some lnLernal Lralnlng ls necessary ln mosL
offlce LranslLlons, buL Lhls span aL WSu ls unusual. 1here have been 6 dlfferenL vÞ's of A&l ln Lhe
lasL slx years. Lach broughL dlfferenL LalenLs and focus and mosL lacked sLrong flnanclal
backgrounds whlch Lhen would requlre lnLernal Lralnlng from reporLlng sLaff. 1he lnvesLmenL of
Llme and energy only Lo begln agaln and agaln was noLed. Also Lhere were sLaLemenLs of dlsregard
of A&l pollcles by prlor vlce ÞresldenLs weakenlng Lhese pollcles Lo users across Lhe unlverslLy and
demorallzlng sLaff Lrylng Lo malnLaln Lhem. 1urnover ln key managemenL poslLlons ls consldered a
red flag when deLermlnlng areas of focus for a revlew such as Lhls.

1he A&l sLafflng sLrucLure was ln accordance wlLh Lhe organlzaLlonal charL provlded. 8ased on
lnLervlews and our observaLlons of Lhe sLafflng model, Lhere are recommended modlflcaLlons
lncluded for conslderaLlon llke Lhe decoupllng of Lhe 8udgeLlng and lnLernal AudlL funcLlons.

1here are recommendaLlons lncluded on many Loplcs LhaL are lnLended Lo conLrlbuLe Lo WSu
buslness process lmprovemenLs for A&l and Lhe unlverslLy as a whole.
1hese recommendaLlons revolve around a few Lhemes:

• locus on bulldlng Lhe moral of Lhe A&l Leam and sendlng a sLrong leadershlp message LhaL
flnanclal lnLegrlLy and sound lnLernal conLrol wlll be a cornersLone of WSu.
!"# %&'()*+*,( -./*.0 1'2. 6

• updaLe pollcles and procedures Lo Lle ln Lhe decenLrallzed sLrucLure of procuremenLs and
purchaslng wlLh Lhe lnLernal pollcles wlLhln A&l so LhaL purchasers ln program areas
undersLand and adhere Lo WSu flscal pollcles.

• updaLed pollcles should clarlfy of how broadly ueparLmenL Pead SlgnaLure AuLhorlzaLlon
(uPSA) wlll be rolled ouL ln Lhe decenLrallzed sLrucLure of procuremenLs and purchaslng and
Lhe role of A&l ln overslghL of Lhese acLlvlLles.

• uevelop and lmplemenL a comprehenslve communlcaLlon plan Lo beLLer lnLegraLe A&l wlLh
unlverslLy program areas and connecL pollcy and procedure across Lhe unlverslLy.

• Lxplore unuLlllzed or underuLlllzed componenLs of Lhe 8anner sysLem wlLh a focus on
provldlng beLLer daLa and daLa analyLlcs capablllLles Lo A&l.

1he balance of Lhe reporL lncluded speclflc observaLlons and recommendaLlons ln each focus area.
!"# %&'()*+*,( -./*.0 1'2. 7


lnlLlal meeLlngs were held wlLh ur. ÞresLon and ur. 1obln, lnLerlm vlce ÞresldenL for AdmlnlsLraLlon
and llnance, Lo dlscuss and deflne Lhe scope of a LranslLlon revlew. lL was agreed Lhe revlew would
focus on Lhe currenL sLaLe of flnanclal managemenL, lncludlng LrusL fund pollcles. lssues relaLed Lo
Lhe pasL presldenL were under separaLe revlews and would be ouL of scope for Lhls pro[ecL. 8ased
on lnlLlal meeLlngs Lhe areas of P8 and payroll, as well as l1 and faclllLles, are noL ln scope ur. 1obln
Lhen provlded exlsLlng documenLaLlon on lnLernal conLrols and pollcles and procedures. 1he speclflc
documenLs recelved are ouLllned ln Appendlx ll. An lnlLlal meeLlng was held wlLh Lhe AdmlnlsLraLlon
and llnance Leam on slLe aL WesLfleld SLaLe unlverslLy followed by lndlvldual lnLervlews wlLh each
of Lhe sLaff. Cver Lhe nexL few weeks follow up dlscusslons occurred on an ad hoc basls as needed.

llnally, a LransacLlon sample was generaLed Lo LesL sLaff observaLlons agalnsL exlsLlng
documenLaLlon. A CuallLy Assurance (CA) 1ransacLlon 8evlew wlll valldaLe, Lhrough Lhe
examlnaLlon of LransacLlons, supporLlng referenced documenLaLlon, and query resulLs, LhaL lnLernal
conLrols provlde reasonable assurance LhaL WSu adheres Lo MassachuseLLs SLaLe llnance Law and
Lhe pollcles and procedures lssued by Lhe Cfflce of Lhe CompLroller (C18).

1he revlew assessed Lhe exLenL Lo whlch WSu complles wlLh C18 pollcles and procedures ln Lhe
followlng areas:
! ÞaymenLs ln budgeLed and non-budgeLed funds
! Lncumbrances ln budgeLed and non-budgeLed funds
! Þayroll AuLhorlzaLlon
! SecurlLy/SlgnaLure AuLhorlzaLlon/SegregaLlon of uuLles
! 8evenue
8ased on Lhe LransacLlons revlewed by Lhe CA 1eam (llsLed ln Appendlx lll), flscal pracLlces aL Lhe
unlverslLy generally appeared Lo comply wlLh C18 guldance ln Lhe followlng areas:
! Crlglnal backup documenLaLlon was avallable
! lnvolce numbers ln MMA8S maLched Lhe lnvolce numbers on Lhe documenLs
! MMA8S vendors maLched Lhe vendors ldenLlfled on Lhe backup documenLaLlon, and Lhe
correcL vendors were pald
! 1he vendors were reglsLered as havlng agreed Lo Lhe approprlaLe CommonwealLh 1erms and
! 1he correcL flscal year was used
! 1he CommonwealLh SLandard ConLracL/AmendmenL forms were compleLe and accuraLe
! ConLracL packages lncluded all requlred documenLaLlon
! 1he encumbered amounLs maLched Lhe backup documenLaLlon
! 1he amounLs pald maLched Lhe backup documenLaLlon
! Cb[ecL codes used appeared Lo be approprlaLe for expendlLures
! Cash 8ecelpL LransacLlons accuraLely reflecLed Lransfers of funds from federal accounLs Lo
sLaLe approprlaLlons
!"# %&'()*+*,( -./*.0 1'2. 8

1he CA Leam's observaLlons of deflclencles ln LransacLlon processlng are lncorporaLed lnLo Lhe
approprlaLe focus areas below. Appendlx lv offers suggesLed llnks Lo pollcles and guldance Lo asslsL
ln educaLlon and correcLlve acLlons.


• Interna| Contro|s


1hese observaLlons cover Lhe lnLernal ConLrol Þlan (lCÞ) daLed uecember, 2012. lL ls acknowledged
LhaL aL LhaL Llme a leLLer from Lhe ÞresldenL was aLLached sLaLlng all dlvlslons and deparLmenLs
would be lnvolved ln updaLlng Lhe plan.

Cverall, Lhere are some paragraphs and secLlons of Lhe documenL LhaL relLeraLe whaL Lhe
CompLroller's lnLernal ConLrol Culde sLaLes as Lo whaL should be ln a plan. 1hls can be useful lf Lhe
lCÞ ls belng used as a Lralnlng Lool for LnLerprlse 8lsk ManagemenL (L8M), as recommended by Lhe
CommlLLee of Sponsorlng CrganlzaLlons (CCSC), buL can add unnecessary lengLh Lo whaL ls normally
a summary of Lhe hlghesL level unlverslLy goals, ob[ecLlves, rlsks and conLrols.

1he plan lncludes mosL of Lhe L8M and oLher elemenLs LhaL Lhe Cfflce of Lhe CompLroller looks for
when evaluaLlng an lCÞ. 1hese elemenLs are dlscussed ln more depLh below.

1he plan lncludes a mlsslon sLaLemenL as well as a summary of sLraLeglc deparLmenL goals and
ob[ecLlves. 1he head of an organlzaLlon seLs Lhe expecLaLlons for lLs Interna| Contro| Lnv|ronment
(key CCSC elemenLs are ln bo|d, see Appendlx v as well). 1hls º1one aL Lhe 1op" could be
evldenced by replaclng Lhe currenL ÞresldenL's leLLer wlLh one LhaL communlcaLes Lhe Lone LhaL
ÞresldenL ÞresLon has sLarLed Lo communlcaLe.

Whlle ChapLer 647 of Lhe AcLs of 1989 (Lhe enabllng leglslaLlon for CommonwealLh lnLernal
conLrols) ls menLloned, a sLaLemenL of unlverslLy compllance wlLh ChapLer 647 for reporLlng all
unaccounLed for varlances, losses, shorLages, and LhefLs of funds or properLy Lo Lhe Cfflce of Lhe
SLaLe AudlLor (CSA) should be added. ln addlLlon, Lhe poslLlon responslble for Lhls reporLlng should
be ldenLlfled.

Goa|s and Cb[ect|ves LhaL allgn wlLh Lhe unlverslLy's sLraLeglc plan are lncluded. Powever, k|sk
Lvents LhaL could prevenL WSu from achlevlng lLs ob[ecLlves are noL ldenLlfled. 1hls ls usually parL
of Lhe rlsk assessmenL process and Lhose evenLs may have been accumulaLed. lf so, any LhaL are
appllcable should be llnked Lo speclflc ob[ecLlves.

!"# %&'()*+*,( -./*.0 1'2. 9

AddlLlonally, Contro| Act|v|t|es (procedures/responses) LhaL would be used Lo mlLlgaLe rlsk should
be llnked Lo Lhe correspondlng rlsk evenLs.

k|sk Assessment ls lncluded buL should be sLaLed ln Lerms of how lL was performed versus how lL
should be performed. lL correcLly advlses unlverslLy deparLmenLs Lo use Lhe same raLlng scale for
rlsk (hlgh, medlum and low). 1he plan should emphaslze LhaL raLlngs for boLh slgnlflcance of lmpacL
and llkellhood of occurrence are requlred.

1he Interna| Commun|cat|on secLlon ls good. ÞosLlng Lo Lhe unlverslLy webslLe for ease of access ls
deslrable, assumlng lL ls Lhe WSu lnLraneL. lf Lhe lCÞ ls covered ln employee orlenLaLlons (p.29) Lhls
should be made clear.

Lxterna| Commun|cat|on conslders ºexLernal forces" (p.23 under ConLrol LnvlronmenL). 1hese
forces should be ldenLlfled, as well as how Lhey are communlcaLed. Also, WSu should add Lo Lhe
lCÞ any professlonal groups Lo whlch lL belongs, or any subscrlpLlons lL has LhaL help Lo gaLher
lnformaLlon on besL pracLlces, or new lnfluences/lmpacLs on hlgher educaLlon.

1he lCÞ should ldenLlfy Lhe exLernal enLlLles and/or lnLernal sysLems LhaL provlde |nformat|on
affecLlng WSu's sLraLeglc goals, ob[ecLlves and lnLernal conLrol acLlvlLles.

Mon|tor|ng dlscusses lnLernal conLrols. 1hls secLlon should be expanded Lo lnclude Lhe exLenL Lo
whlch WSu personnel monlLor all elemenLs of Lhe lCÞ so LhaL, when any plan elemenL ls lmpacLed
(changes Lo goals, ob[ecLlves, rlsks, eLc.), Lhe plan ls updaLed accordlngly.

CLher lCÞ observaLlons
• Appendlx l, 8oard of 1rusLees 8y-Laws: lL ls noL necessary Lo lnclude Lhls ln Lhe plan.
• Appendlx lll: ok Lo lnclude.
• Appendlces ll, lnLernal ConLrol Summary lorms and lv, ueparLmenL lnLernal ConLrol
CheckllsLs are very good addlLlons Lo WSu's plan. 1hese help all parLlclpanLs Lo gaLher and
reporL lnformaLlon conslsLenLly.

ln addlLlon Lo Lhe lnLernal ConLrol Þlan assessed above, Lhe ulvlslon of CraduaLe and ConLlnulng
LducaLlon (uCCL) lnLernal ConLrol Þlan was also provlded wlLh Lhe unlverslLy documenLaLlon.
1here are examples of deparLmenLs wlLh dlvlslons LhaL creaLe lnLernal conLrol plans LhaL supporL Lhe
ueparLmenL's full plan. 1hls documenL ls well-LhoughL ouL and generally appears Lo be parL of Lhe
overall efforL Lo complle a unlverslLy-wlde lnLernal ConLrol Þlan, buL lacklng a coordlnaLlng
sLaLemenL lL could be meanL as a sLand-alone lCÞ.


WhaL follows are recommendaLlons on lmprovlng Lhe lnLernal ConLrol Þlan LhaL Lhe unlverslLy
should conslder durlng lLs updaLlng process.
o 1he lCÞ should be refreshed and re-clrculaLed wlLhln Lhe nexL 4 monLhs.
o lnclude speclflc 8lsk LvenLs and llnk ConLrol AcLlvlLles Lo mlLlgaLe each evenL.
o 8lsk AssessmenL AcLlons should be sLaLed ln Lhe acLlve Lense.
!"# %&'()*+*,( -./*.0 1'2. :

o ldenLlfy speclflc exLernal forces and how communlcaLlons are made.
o ldenLlfy speclflc professlonal groups, subscrlpLlons, and/or educaLlonal opporLunlLles
Lo be leveraged whlch wlll lmpacL sLraLeglc goals, ob[ecLlves and lnLernal conLrol
o Lxpand MonlLorlng SecLlon Lo provlde Llmely revlslons or amendmenLs when Lhe plan
ls lmpacLed.
o Conslder some lnLernal conLrol Lralnlng wlLh Lhe flnance Leams and Lhe ÞresldenL's
leadershlp Leam Lo relnforce Lhe message LhaL conLrols and procedures are prlorlLy

lor Lhe uCCL lCÞ Lhere are dlfferenL areas of sLrengLh and posslble updaLlng needed.
o LlsLs 3 ma[or funcLlons wlLhln uCCL - slmllar Lo enLlLy goals.
o Lach funcLlon llsLs rlsks and mlLlgaLlng sLeps Lo address Lhe rlsks, alLhough noL all
funcLlons are formaLLed Lhe same.

uocumenLaLlon provlded Lo Lhe Leam regardlng Lhe uCCL lndlcaLes separaLe back offlce processlng
unlLs for uCCL operaLlons. lf LhaL ls correcL Lhere may be redundancles LhaL should be reconsldered
durlng Lhls revlew process. 1he uCCL does requlre separaLe accounLlng wlLhln Lhe general ledger
buL noL separaLe operaLlng deparLmenLs.

• Secur|ty]Segregat|on of Dut|es


1hrough Lhe lnLervlews sLaff expressed sLrong knowledge, compllance and undersLandlng of Lhe
lmporLance of segregaLlng flnanclal operaLlons aL WSu across all areas of lnLervlews held. 1he
duLles of sLaff demonsLraLed approprlaLe conLrols and Llmely revlew of reconclllaLlons.

SLafflng levels were deemed sufflclenL for Lhe dally, ongolng Lasks of each deparLmenL. 1here were
known peak perlods and sLraLegles Lo handle acLlvlLles Lhrough cross-Lralnlng of A&l sLaff wlLh
conslsLenL conLrols ln place.

8anner was descrlbed as offerlng robusL and flexlble workflow processlng wlLh lndlvldual asslgned
securlLy whlch provldes access wlLh approprlaLe audlL Lable funcLlonallLy Lo manage and verlfy
acLlons Laken. 1here were no lndependenL LesLs made by Lhe Leam.

1he transact|on rev|ew conf|rmed segregat|on of dut|es |s |n p|ace


1he unlverslLy should conLlnue Lo uphold sLandards as presenLed for segregaLlon of duLles across all
funcLlonal areas.

!"# %&'()*+*,( -./*.0 1'2. ;

1here was a poLenLlal confllcL of lnLeresL noLed durlng an lnLervlew, a subordlnaLe has been
asslgned Lhe Lask of preparlng Lhe bank reconclllaLlon, whlch lncludes revlewlng LransacLlons
enLered by Lhe lmmedlaLe supervlsor. lL ls suggesLed LhaL an alLernaLe revlewer be asslgned.

1he flnanclal sysLem should be assessed Lo deLermlne lf producL upgrade wlll provlde lnLegraLed
soluLlon and daLa analyLlcs and robusL managemenL Lools or lf Lhere are dlfferenL/beLLer soluLlons

• Author|ty]DnSA


Codlfled flnanclal pollcles were known and avallable Lo employees, buL Lhe overarchlng pollcy whlch
called for annual revlew of each pollcy has noL been done aL all for several years. A serlous concern
ls LhaL Lhe pollcles are noL vlewed as deparLmenL-wlde buL LreaLed more llke A&l only pollcles.
Lach educaLlonal deparLmenL wlLhln WSu malnLalns Lhelr own chalns of command and buslness
processes Lo obLaln goods and servlces needed. 8udgeLs are adhered Lo wlLh Lhe supporL of Lhe
accounLlng sysLem, 8anner. ueadllnes are casually observed when convenlenL. ºlavors" are
rouLlnely requesLed when deadllnes are noL convenlenL.

1he CommonwealLh's ueparLmenL Pead SlgnaLure AuLhorlzaLlon (uPSA) pollcy ls noL wldely
undersLood aL WSu. 8ased on observaLlons, expendlLure declslons are decenLrallzed beyond Lhe
formal delegaLlon requlred by Lhe uPSA and allowed by SLaLe llnance Law (SlL).

Lach CommonwealLh ueparLmenL ls leglslaLlvely mandaLed Lo perform duLles as ouLllned ln
enabllng leglslaLlon and Lhe Ceneral ApproprlaLlon AcL. Lach CommonwealLh deparLmenL head (Lhe
unlverslLy ÞresldenL) has Lhe responslblllLy Lo ensure LhaL Lhe deparLmenL conducLs all flscal
buslness ln accordance wlLh sLaLe flnance law, lncludlng buL noL llmlLed Lo MassachuseLLs Ceneral
Laws ChapLer 29 and ChapLer 7A and laws, regulaLlons, pollcles and procedures of C18.

1he LransacLlon revlew conflrmed LhaL LransacLlons were processed wlLhouL auLhorlzed or currenL
ueparLmenL Pead SlgnaLure AuLhorlzaLlon (uPSA).
! MMA8S LransacLlons revlewed were submlLLed or approved by sysLem users
whose auLhorlzaLlon was delegaLed by Lhe former head of Lhe deparLmenL.
! Coples of payroll expendlLure auLhorlzaLlon forms provlded were noL slgned
by a ueparLmenL Pead SlgnaLory AuLhorlLy (uPSA).
! All SLandard ConLracL lorms (SCl) revlewed were slgned by employees
wlLhouL uPSA.


1he WSu should lmmedlaLely adopL and fully lmplemenL Lhe uPSA pollcy. 1hls should esLabllsh
conslsLenL enLlLy-wlde procedures and pracLlces for procurlng and approval of all purchases.

!"# %&'()*+*,( -./*.0 1'2. 3<

1he delegaLlon of slgnaLure auLhorlLy for flscal purposes has been descrlbed as sub-delegaLed, noL
delegaLed dlrecLly from Lhe ÞresldenL. lL ls recommended LhaL Lhe number of employees wlLh
spendlng auLhorlLy be reduced from currenL pracLlce. 1here ls no ºrlghL or exacL" number Lo
recommend buL Lhe compleLlon of Lhe rlsk assessmenL should supporL buslness declslons for
reducLlons golng forward.

AfLer Lhe compleLlon of a full revlew of Lhe 8anner workflow deslgnees, an aL leasL annual revlew
should also be done Lo assure conslsLenL appllcaLlon of Lhe pollcy.

• Commun|cat|ons]1ra|n|ng


Whlle all areas of focus conLalned ln Lhls reporL are lmporLanL conLrlbuLors Lo Lhe flscal operaLlons
and lnLegrlLy of Lhe unlverslLy, Lhe lmprovemenLs LhaL can be made ln lnLernal communlcaLlons and
Lralnlng wlll lead Lo a more conslsLenL and effecLlve flnanclal managemenL of WSu resources.

CommunlcaLlons, as presenLed, LhroughouL Lhe campus for mosL flnanclal acLlons appear Lo be
LransacLlon or need-speclflc vla e-mall, phone calls and 8anner workflow. 1hese do geL Lhe [ob done
buL ln reallLy conLrlbuLe Lo a lack of undersLandlng, awareness and/or compllance by unlverslLy
employees for Lhe A&l procedures and deadllnes esLabllshed.

1he A&l managemenL and sLaff lndlcaLed LhaL Lhere are sufflclenL resources cross-Lralned Lo
supporL Lhe perlods durlng Lhe year when processlng splkes, or Lo cover on-golng work when an
employee ls ouL of Lhe offlce.

Also durlng Lhe lnLervlews opporLunlLles for Lralnlngs were dlscussed. 1here were many sLaLemenLs
of recenL educaLlonal opporLunlLles, a poslLlve beneflL Lo all employees, buL Lhe offerlngs dld noL
appear Lo exLend Lo besL pracLlces ln Lhe areas of flnanclal operaLlons, lnLernal conLrols, rlsk
assessmenLs or Lechnology lmprovemenLs or oLher [ob speclflc Lralnlngs.

Cn-llne access of unlverslLy flscal pollcles and supporLlng documenLaLlon ls noL undersLood Lo be
Lhe resource llbrary for all employees across Lhe campus. Cn-llne documenLaLlon ls noL kepL
currenL whlch conLrlbuLes Lo lack of use.


8ouLlne (monLhly, bl-monLhly) A&l communlcaLlons should be lssued Lo all unlverslLy sLaff
LhroughouL Lhe year. 1he webslLe page for A&l should be updaLed regularly as a reposlLory for all
communlcaLlons: calendar, deadllnes, forms, pollcles, procedures, Lralnlngs.

LxecuLlve managemenL musL seL Lhe Lone LhaL golng forward procedures and deadllnes wlll be
adhered Lo and excepLlons wlll noL be made rouLlnely.

!"# %&'()*+*,( -./*.0 1'2. 33

CpporLunlLles for remedlal and advanced Lralnlng for employees ln all funcLlonal areas should be
offered and recorded ln annual performance revlew.

8efresher courses for Lhe cusLodlans of LrusL funds should be made mandaLory.

• Management


Whlle Lhls revlew ls forward-looklng, lL cannoL be overlooked LhaL Lhe senlor managemenL level of
A&l has been perpeLually ln LranslLlon slnce Lhe deparLure of Lhe vÞ for AdmlnlsLraLlon and llnance
of 20 years, slx years ago. Many of Lhe sLaff have held poslLlons ln A&l for 8 - 10 or more years
whlle Lhere have been 6 vÞs for AdmlnlsLraLlon and llnance ln Lhe lasL 6 years, lncludlng Lhe currenL
lnLerlm vÞ. 1hls has had an adverse lmpacL on Lhe reporLlng managers and sLaff.

Þosslbly due Lo Lhe hlgh raLe of Lurnover lL was observed LhaL A&l, Lhe back offlce for all unlverslLy
buslness, ls seen as less Lhan equal of oLher unlverslLy offlces and deparLmenLs, when ln facL lL's
sLaLus should be malnLalned as a leader among equals. 1he Lone from Lhe Lop should clearly call for
Lhe quallLles of lnLegrlLy and excellence ln performance of duLles for Lhe unlverslLy as a whole whlch
are Lhe expecLaLlons of performance for flnanclal operaLlons.

We dld noL observe daLa analysls capablllLles for any of Lhe funcLlons of Lhe A&l deparLmenL.
ÞracLlces are ln place Lo successfully perform Lasks buL Lhere were noL measuremenLs avallable or
generally consldered by managemenL. 1here were references Lo Lhe llmlLaLlons of Lhe 8anner
sysLem when general performance and workload quesLlons were dlscussed.

1he A&l deparLmenL ls physlcally seL aparL from many of Lhe unlverslLy educaLlonal deparLmenLs
whlch ls seen as a conLrlbuLlng facLor Lo Lhe dlmlnlshed proflle A&l malnLalns among lLs peers.


8egln Lo bulld sLablllLy for Lhe crlLlcal back offlce funcLlons and hlre a permanenL vÞ for
AdmlnlsLraLlon and llnance.

LxecuLlve managemenL and Lhe 8oard should expecL, and recelve, general meLrlcs for Lhe
performance of A&l Lasks.
lor example,
• Whlle lL was generally sLaLed LhaL A&l purchaslng was aL Lhe whlm of Lhe varlous
faculLy/deparLmenLs' acLlons, Lhere were no lnLervlews ln scope beyond A&l Lo beLLer
undersLand Lhe needs of Lhe faculLy/purchasers or wheLher Lhe A&l deadllnes were
unnecessarlly resLrlcLlve when ln acLuallLy ºlaLe" purchaslng was accompllshed and
LransacLlons compleLed wlLhln M.C.L. and regulaLlons.
!"# %&'()*+*,( -./*.0 1'2. 34

• MosL employees sLaLed LhaL sLafflng ls sufflclenL for workload excepL llmlLed peak perlods,
buL Lhere were no sLaLlsLlcs avallable for Lhe volume of processlng accompllshed dally:
procuremenLs and purchaslng volumes, # vendors reglsLered or updaLed, or paymenLs made.

LvaluaLe Lhe unlverslLy execuLlve organlzaLlon model. Assess unlverslLy-wlde pollcles, execuLlve
level meeLlngs and agendas as well as lmpacLs of Lhe proxlmlLy of faclllLles for Lhe varlous dlvlslons
of Lhe unlverslLy.

• Management of 1rust Iunds


1he laLesL verslon of Lhe 8oard of Plgh LducaLlon 1rusL lund Culdellnes ls parL of Lhe unlverslLy
pollcles and procedures. 1he 1rusLees and mld-level buslness offlce employees may need Lo be
formally educaLed abouL Lhe guldellnes and whaL Lhey cover versus ChapLer 29 and oLher

8eporLlng on ÞresldenLlal expenses and geLLlng 1rusLee approval for speclflc expenses made by Lhe
ÞresldenL and Lhe ÞresldenL's Cfflce are parL of Lhe LrusL fund guldellnes. CurrenL pracLlce seems Lo
be ln llne wlLh Lhe guldellnes.

lnsLablllLy ln Lhe vlce ÞresldenL A&l poslLlon over Lhe pasL 6 years has led Lo some amblgulLy
around Lhe lmplemenLaLlon of Lhe guldellnes ln a conslsLenL manner. 1he non-flnanclal
backgrounds of some of Lhe pasL vlce ÞresldenLs of A&l also conLrlbuLed Lo Lhls amblgulLy.


An educaLlon program for Lhe 1rusLees, Senlor Leadershlp and mld-level buslness offlce managers
should be lnsLlLuLed golng forward regardlng Lhe 1rusL lund Culdellnes. 1hey are speclflc Lo
MassachuseLLs and should be presenLed along wlLh ChapLer 29 and oLher compllance regulaLlons.

1he 8oard of 1rusLees should expecL and be provlded reporLs and analyLlcal lnformaLlon on Lhe
acLlvlLles of Lhe unlverslLy.

An assessmenL on pasL versus currenL pracLlce regardlng reporLlng and approval of ÞresldenLlal
expenses under Lhe guldellnes should be underLaken ln order Lo ensure compllance.

As lmprovemenLs are deflned and lmplemenLed for Lhe unlverslLy communlLy, lL ls lmporLanL Lo flnd
Lhe balance of sLrong lnLernal conLrols and Lhe conLlnued ablllLy of employees Lo manage buslness
effecLlvely and efflclenLly.

!"# %&'()*+*,( -./*.0 1'2. 35

• Departments w|th|n the D|v|s|on of Adm|n|strat|on and I|nance

8udget|ng and Interna| Aud|t


uurlng our lnLervlews lL seemed clear LhaL Lhe lnLernal AudlL funcLlon was noL fully funcLlonal. 1he
funcLlon ls comblned wlLh Lhe funcLlon of 8udgeLlng. Lach funcLlon was undersLood by Lhe Leam Lo
be much more Lhan a half-Llme poslLlon. 1he budgeLlng funcLlon responslblllLles are more clearly
deflned wlLh dlscernable deadllnes. 1he lnLernal AudlL duLles are glven lesser prlorlLy ln Lerms of
deadllne adherence and allocaLlon of resources. 1he ulrecLor of lnLernal AudlL reporLs Lo Lhe vlce
ÞresldenL of A&l.


We recommend Lhe decoupllng of Lhe 8udgeLlng and lnLernal AudlL funcLlons.

1he lnLernal AudlL funcLlon should be resLrucLured as a poslLlon LhaL has some dlrecL reporLlng
relaLlonshlp Lo Lhe 8oard of 1rusLees or lLs audlL commlLLee.

CompleLe Lhe rlsk assessmenL underway aL Lhe unlverslLy.

Campus-based Iunds Act|v|ty: Non-Appropr|ated Iunds


Cenerally aL Lhe SLaLe unlverslLles sLaLe approprlaLed funds are used Lo supporL Lhe deparLmenL's
payroll and WSu ls no excepLlon. CperaLlng expendlLures Lhrough MMA8S were llmlLed, mosL
spendlng ls processed Lhrough 8anner. WSu dld noL reporL acLlvlLy from non-approprlaLed funds
monLhly on MMA8S as requlred by MassachuseLLs Ceneral Laws.

SecLlon 13C of ChapLer 13A of Lhe MassachuseLLs Ceneral Laws requlres CommonwealLh Colleges
and unlverslLles Lo reporL Lhe acLlvlLy of campus based funds Lo Lhe CompLroller of Lhe
CommonwealLh on Lhe CommonwealLh's SLaLewlde AccounLlng SysLem, MMA8S. lL ls
recommended LhaL WSu reporL monLhly all expendlLures and revenues from all approprlaLed and
non-approprlaLed funds on Lhe MassachuseLLs managemenL and accounLlng reporLlng sysLem.

!"# %&'()*+*,( -./*.0 1'2. 36



1he ÞrocuremenL Þrocedures LhaL were provlded appear Lo cover Lhe componenLs of bld, conLracL
and small purchase requlremenLs. 1he unlverslLy does have a cenLrallzed area responslble for all
8ld openlngs and revlew. Powever, Lhere was a conslsLenL message LhaL Lhere ls a lack of
accounLablllLy Lo be able Lo enforce compllance wlLh Lhose procedures. SLaff work wlLh any sLaff
person LhaL ls lnvolved ln Lhe purchase. Þurchaslng ls decenLrallzed whlch was reporLed Lo make lL
dlfflculL geLLlng slgnoffs of recelpL and/or accepLance from hlgher level sLaff.

SLaff use and llke Lhelr 8anner sysLem, whlch Lracks all auLhorlzaLlons and approvals Lhrough
workflow. 1here were sLaLemenLs of llmlLaLlons of daLa once enLered so one of Lhe sLaff ls
uslng/relylng on separaLe spreadsheeLs for Lracklng Lhe sLaLus of lncompleLe or drafL orders.
8anner Lracks requlslLlons numerlcally by recelpL. As explalned, once enLered lnLo Lhe 8anner
LransacLlon caLalog, Lhe orders vlew ls llmlLed. A separaLe spreadsheeL ls used Lo Lrack ouLsLandlng
requlslLlons and when ready for A&l processlng ls Lhen used Lo locaLe ln 8anner.


lormallze procedures for ÞrocuremenL SelecLlon CommlLLees when a bld ls necessary Lo assure key
buslness and Lechnlcal resources are lncluded ln Lhe declslon or recommendaLlon for vendor

8ecommend deslgnaLlng one conLacL LhaL ls accounLable Lo coordlnaLe documenLaLlon aL each
locaLlon (llalson).

ueslgnaLe one cenLral locaLlon Lo posL all pollcles and procedures accesslble Lo all.

A&l should explore Lhe capablllLles of Lhe banner sysLem Lo generaLe varlous sLaLus reporLs.

Accounts Þayab|e


Cenerally, rouLlne paymenL buslness meeLs sLaLed pollcles.

ÞaymenLs are lssued from Lhe 8anner sysLem afLer conflrmaLlon of recelpL of goods or servlces.

Manual checks are noL supporLed.

lnvolces were sLaLed Lo be Llme-sLamped upon recelpL aL Lhe accounLs payable deparLmenL buL Lhe
LransacLlons revlewed dld noL provlde supporLlng evldence of daLe sLamplng acLlons.

!"# %&'()*+*,( -./*.0 1'2. 37

Check slgnaLorles are noL paymenL processors. 1wo slgnaLures are requlred on checks greaLer Lhan

lour ouL of flve paymenL LransacLlons revlewed used a !"#$%&'$ )*+,$-. %*.$ LhaL was noL
calculaLed by MMA8S. 1hese LransacLlons used scheduled paymenL daLes dlfferenL from Lhe daLes
LhaL Lhe sysLem would have selecLed.

1he sysLem should be updaLed Lo offer Lhe opLlon of elecLronlc paymenLs.

When Lhe lnvolce arrlves on CommonwealLh properLy, lL should be daLe sLamped. 1hls daLe should
be used as Lhe vendor lnvolce daLe ln MMA8S. 1he vendor lnvolce daLe ls crlLlcal because lL ls one
of Lhe daLes LhaL Lrlgger Lhe paymenL process and faclllLaLes Lhe Laklng of prompL paymenL
lL ls recommended LhaL WSu ensure LhaL Lhe vendor lnvolce daLe ln MMA8S or lLs local 8anner
sysLem maLches Lhe daLe sLamp on Lhe lnvolce. lf an lnvolce ls daLe sLamped Lwlce, Lhe lncorrecL
daLe should be crossed ouL and lnlLlaled.

1he Lhreshold for dual slgnaLures cannoL be assessed wlLhouL some meLrlcs on volume wlLh Llers of

1he scheduled paymenL daLe ls lmporLanL for conLrolllng dlsbursemenLs, managlng deparLmenLal
cash flow, paylng ln a Llmely manner Lo avold penalLles and lnLeresL, and Laklng advanLage of
dlscounLs. As a baslc rule, users should leave Lhe !"#$%&'$ )*+,$-. %*.$ fleld blank, allowlng Lhe
sysLem Lo calculaLe Lhe daLe. LxcepLlons Lo Lhls rule are as follows:
• When maklng paymenLs for subscrlpLlons, membershlps, and class enrollmenLs, enLer a !"#$%&'$
)*+,$-. %*.$ LhaL ls 28 days afLer Lhe lnvolce daLe, or sooner, lf Lhe CommonwealLh recelves an
addlLlonal beneflL.
• lf a conLracL requlres paymenL on a speclflc daLe, LhaL daLe should be enLered ln Lhe !"#$%&'$
)*+,$-. %*.$ fleld.
lL ls recommended LhaL WSu leave Lhe !"#$%&'$ )*+,$-. %*.$ fleld blank unless lL meeLs one of Lhe

!"# %&'()*+*,( -./*.0 1'2. 38



Þrocedures descrlbed for revenue collecLlons and processlng offer good segregaLlon of duLles and
lnLernal conLrols.

CollecLlons for clubs or speclflc deparLmenLs are managed and bagged by LhaL group Lhen senL Lo
Lhe 8ursar's Cfflce wlLh a deposlL LlckeL whlch ls recorded by a Leller ln 8anner as Lhe deposlL ls

1he uCCL ls managed separaLe and aparL from Lhe balance of unlverslLy buslness. 8ased on
lnformaLlon revlewed, Lhe uCCL ls approxlmaLely $7 mllllon of Lhe $72 mllllon operaLlons.

8agged recelpLs are broughL Lo Lhe bank dally by an offlcer from Þubllc SafeLy.

1he 8ursar's Cfflce Lhen reconclles wlLh Lhe bank deposlLs.


1he uCCL ls handled separaLely and noL revlewed by Lhe Leam. 1he pracLlces as presenLed are
supporLed by procedure documenLaLlon wlLh good segregaLlon of duLles. lL ls noL clear why Lhe
unlverslLy malnLalns Lwo back offlce operaLlons.

!"# %&'()*+*,( -./*.0 1'2. 39

klck-off meeLlng for C18 CuallLy 8evlew LngagemenL

Cn-SlLe Cvervlew and lnLervlews:
ÞresldenL - ur. LllzabeLh ÞresLon
vÞ AdmlnlsLraLlon and llnance - ur. klmberly 1obln
8udgeL ulrecLor & lnLernal ConLrol Cfflcer - !ohn Wesolowskl
AssoclaLe vÞ / ClC - Llsa lreeman
ÞrocuremenL SLaff AssoclaLe - Chrls 8aymond
ÞrocuremenL - Senga uensmore
ÞrocuremenL - !ane uesorcy
A/Þ - ueborah Adams
A/Þ - uoreen llfleld
AdmlnlsLraLlve AsslsLanL - Madellne SanLos
AssL ulrecLor llnanclal AccounLlng - Marla 8runelle
SLaff AsslsLanL - uonna vlvler
SLaff AsslsLanL - Ann Marle ?ager

Several follow-up meeLlngs:

Conference calls
Cn-slLe vlslL - lncludlng C/A LransacLlons revlew
ueborah 8rodle, ulrecLor of SLudenL AccounLs
uonna vlvler

Cfflce of Lhe CompLroller - CA Leam
MarLln 8enlson, CompLroller of Lhe CommonwealLh
kaLhy Sheppard, uepuLy CompLroller
ÞeLer ScavoLLo, ulrecLor, CA8
uonna 8oux, ulrecLor, AÞ8
8lruk Cebreamlak, CA8
MassachuseLLs College of ArL and ueslgn - kurL SLelnberg, LxecuLlve vlce ÞresldenL

!"# %&'()*+*,( -./*.0 1'2. 3:

Appendix !

WSU Mission Statement
Westfield State University fosters intellectual curiosity, encourages critical thinking, inspires civic
engagement, and promotes a global perspective. A public teaching institution offering quality
programs in the liberal arts and sciences with complementing professional studies curricula, we are
grounded in our founding principles of academic excellence and educating all in a diverse and
welcoming community. Westfield State develops the knowledge, skills, and character essential for
students to reach their full potential and become responsible leaders in society. We contribute to the
economic, social, and cultural vitality of the region.
We commit ourselves to…
1. Treating all members of our community with dignity and respect.
2. Building community by being inclusive, supporting the personal development of all community
members, and embracing multiple perspectives.
3. Maintaining excellence and integrity in all that we do.
4. Supporting civic engagement in local, regional and global initiatives.
5. Making decisions in a transparent and collaborative manner.
6. Providing affordable public higher education.
Westfield State University will be recognized for its academic excellence and engaged
scholarship. The University will graduate well–rounded and creative leaders able to embrace the
challenges and opportunities ahead, contribute to their fields, and improve their communities.
Students will gain and create knowledge through multiple forms of learning, including experiential
education and faculty-led scholarship. Our globally engaged community will include student,
faculty/librarians, and staff international exchanges and active explorations of critical world issues.
The programs and functions of the University will be supported with modern facilities, library, and
information technology, adequate staffing, and funding to support student and program
needs. Westfield State will stand out as an institution operating sustainably, growing responsibly,
and maintaining a cohesive, functional, and aesthetically pleasing campus.
Westfield State University will be an inclusive place where decision making reflects the concerns and
voices of all parts of the campus community. The University will exemplify how to value diversity
and benefit from collaborative decision making. The strong bond among the campus community will
make it a place where students, faculty/librarians, and staff want to learn, teach, and work.

!"# %&'()*+*,( -./*.0 1'2. 3;

Appendix !I

Documentat|on Þrov|ded:

• SLraLeglc Þlan w/ Coals
• lnLernal ConLrol Þlan 2012
• lnLernal ConLrol Þlan ulvlslon of CraduaLe & ConLlnulng LducaLlon (uCCL) - no fooLer for
pages or daLes buL daLa currenL wlLh fall 2013.
• SLandards for Lhe LxpendlLure of 1rusL lunds (revlsed !une 19, 2001)
SLaLed Þurpose: A generally shared ob[ecLlve of Lhe CommonwealLh of
MassachuseLLs ls Lo lmprove Lhe quallLy and effecLlveness of lLs publlc hlgher
educaLlon sysLem and Lo ralse lL Lo a poslLlon of leadershlp ln Lhe unlLed SLaLes. lL ls
lmporLanL LhaL Lhe developmenL, uLlllzaLlon, and managemenL of LrusL funds be
conducLed ln a manner LhaL meeLs wlLh general approval.
• ÞCl Self-AssessmenL CuesLlonnalre C and ALLesLaLlon of Compllance - CcLober 2010
• Sub-SelecLlon of AdmlnlsLraLlve Þollcles perLalnlng Lo AÞ
• CerLaln Þrocedures and narraLlves

!"# %&'()*+*,( -./*.0 1'2. 4<

1. WSC 01221400000000102248
2. WSC 09301300000000039213
3. WSC 10171300000000047397
4. WSC 11081300000000039248
3. WSC 12231300000000083083
6. C1 WSC 02031400000000002631
7. WSC 02031400000000002632
8. WSC 03311300000000004087
9. WSC 11201300000000001727
10. WSC 01241400000000063821
11. WSC 07171300000000003171
12. WSC 09171300000000023043
13. WSC 12131300000000033006
14. WSC 12131300000000033129
13. WSC 08211300000000000161
16. WSC 08221300000000000163
17. WSC 08281300000000000191
18. WSC 08211300000000000161

!"# %&'()*+*,( -./*.0 1'2. 43

Appendix !V
Suggested Links

+),-./)##%/ 0%1 2(.%

Internal Control Guide

Key State Finance Law Compliance Responsibilities

Expenditure Classification Handbook

Bill Paying Policy

State Finance Law and General Contract Requirements

Payroll Expenditure Approval

MMARS Security Request Form

!"# %&'()*+*,( -./*.0 1'2. 44


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