Finance Forum
October 2008

The October 2007 Finance Forum was held on the 18th and 19th and included presentations from the Cash and Investments Office on Departmental Audits and University & Affiliated Business.

>p> Shannon Huffman, Cash and Investments, presented on the Departmental Reconciliation Audit process and what a department can expect when an audit request is received. This topic satisfied AACP Module 9.8. Among those items covered include:

• University Policy 1108 governs Internal Controls.
• Examples of internal controls include Accounts Payable SPCC audits, Plant Fund Accounting’s annual fixed assets inventory, and Cash and Investments’ usage of questionnaires, random audits, and on–site audits.
• On–site audits are new for FY2008 and will include those on campus who accept cash payments and/or Payment Cards. Departments will receive a 2&n dash;3 day advance notice that Cast and Investments staff will pay a visit.
• The purpose of the random audits is for JMU to exercise internal control with its departments. This is mandated by the Commonwealth of Virginia’s Comptroller’s Directive 1–07 or ARMICS (Agency Risk Management & Internal Control Standards). JMU’s compliance with ARMICS is not optional!
• All departments, whether state–funded or locals, are subject to an audit.
• Audit requests are sent to the Fiscal Contact of the department as listed on the Signature Authority document. If the Fiscal Contact is not the reconciler of the department, it is the Fiscal Contact’s responsibility to forward the request letter to the appropriate person.
• Documents that are to be included with the audit are the Summary Financial Report, Monthly Detail Report, all ATVs (excluding Telecom, Postal, and Facilities Management), accounting vouchers, travel reimbursements, SPCC Cover sheet and transaction listing, deposits, Duke Card Monthly Usage Log, and Aramark Meal Voucher Monthly Usage Log. A good rule of thumb: if there is either a debit or credit on your Monthly Detail Report, a paper document should be present to back it up.
• Food and Beverages can only be served to University Personnel when one or more of the following applies:
  • Official Business Function,
  • Internal Training Function,
  • Student Academic Function, or
  • Student Programming/Club Function
• Sensitive data was also discussed. All newly created documents that are stored in the department, from this point forward, should NOT contain any sensitive data! Sensitive data includes personal Social Security numbers, Payment Card numbers (including SPCC numbers), banking account numbers, among others.
• In order for a department to continue to maintain sensitive data on documents or computers, the data must be secured.
• Further information regarding sensitive data can be found at: https://secureweb.jmu.edu/computing/it/sensitivedata/strategy.shtml
• Shannon can be contacted at huffmasc@jmu.edu or x87908.

Tish Leeth, Manager Cash and Investments, presented on University & Affiliated Business, AACP Module 9.9.

• The University and its affiliates are governed by University Policy 4501, which ensures that JMU’s business activities are conducted in conformity with federal income tax legislation.
• A business activity is defined as the sale of goods and services.
• A Business Activity Synopsis and any other related paperwork are to be submitted to the Assistant Vice President for Finance by the department who wishes to conduct a business activity of any kind (i.e. sell tickets to a musical).
• A Business Activity Synopsis and any other related paperwork are to be submitted to the Assistant Vice President for Finance by the department who wishes to change any type of their existing business (i.e. making a new good or service available to customers).
• If the Assistant Vice President for Finance has determined a business activity to be unrelated to the department’s core mission, a revised Cost Benefit Analysis (CBA) must be prepared by the department reflecting tax expenses.
• Once the department has been approved to conduct a business, they must abide by all applicable University and Financial Procedures Manual Policies.
• The department will need to collect and deposit sales tax if applicable.
• The Financial Procedures Manual Section 4105 governs deposits made by departments.
• All receipts must be deposited daily or no later than the next business day. Exceptions are to be in writing by the Assistant Vice President for Finance.
• Deposits may only be made if authorization to collect payments by the Assistant Vice President for Finance has been made.
• Deposits are to be made directly to the University Cashiers in the University Business Office.
• All employees making deposits containing $1,000 cash or more MUST have a police escort.
• Departments must comply with Virginia Retail Sales and Use Tax Collection requirement, if applicable.
• University Policy 1210 governs any E–Commerce activity on campus. This involves any financial transactions involving sale of merchandise or receipt of contributions over the internet.
  • All new or revised E-Commerce activity must have first been approved by the Assistant Vice President for Finance.
  • If sale of merchandise contains the University’s name or logo, it must be approved by the Assistant Vice President for Business Services, in addition to the Assistant Vice President for Finance.
  • If fundraising in the name of the University, including contributions, it must also be approved by the Senior Vice President for University Advancement.
• The Financial Procedures Manual Section 4125 governs the acceptance of Payment Card on campus. More information can be found at http://www.jmu.edu/acctgserv/pay_card_acceptance.shtml.
• Tish can be contacted at leethtc@jmu.edu or x83205.

Announcements:

Departments were reminded that they are not authorized to buy paint for their department’s walls or make any type of structural changes within their department without first contacting Facilities Management. This ensures all changes to University buildings are in compliance with all University, state, and federal standards/regulations. This is governed by University Policy 4302: Facility Modification/Maintenance.