Financial Management

In order to carry out the University's mission of learning, discovery and engagement, administrative officials must manage financial resources in an efficient and cost-effective manner. An administrative official cannot delegate his or her responsibility for assuring that proper controls and monitoring procedures are in place and are being applied accordingly. Financial management responsibility includes budgeting and monitoring expenditures, maintaining an appropriate internal control structure, and safeguarding University assets.

Specific fiscal responsibilities, many of which can be delegated under the oversight of the administrative official, include:

Ensuring that fiscal support staff receive all necessary training that they need to effectively perform their duties;
Developing and adhering to procedures to ensure compliance with ethical practices, applicable laws and regulations, University policies and procedures, and the terms and conditions of gifts, grants, and contracts;
Establishing departmental procedures to ensure that expenditures are appropriately classified in accordance with fund restrictions, and that transfers of funds are appropriate and in compliance with relevant regulations;
Establishing and monitoring controls that prevent one individual from exercising control over all key processing functions for financial transactions;
Ensuring that employees who prepare financial transactions provide adequate explanations and documentation sufficient to support post authorization review and audit;
Identifying unauthorized transactions, and informing central departments (such as Audit and Advisory Services and UC Police Department) if a loss of University assets or any material irregularity occurs; and
Providing adequate safeguards to protect against the loss or unauthorized use of University assets, including data.

The primary administrative resource available to administrative officials in academic departments is their dean's office. In addition, there are several campuswide resources available to help navigate UC Berkeley's administrative processes, offering a variety of approaches to problem solving. Because departmental issues are often complex, they will frequently work in teams with the administrative official, the dean, and each other to resolve not only the symptoms, but also the underlying problem.

The Controller (controller@berkeley.edu) interprets financial policy and procedure, consults with departments to establish workable and effective controls, and partners with departmental financial administrators to improve operational effectiveness and efficiency. The Office of the Controller is available to answer specific policy questions, facilitate workshops designed to address strategic issues, and design efficient practices to mitigate business risks.

The Office of the Controller's web site at http://controller.berkeley.edu/ includes a selected list of common control weaknesses that have been found in prior audits on the campus. Being aware of these risks and related controls can help an administrative official to carry out his or her responsibilities for financial management.

The Campus Budget Office (http://budget.berkeley.edu/) manages the budgetary resources of UC Berkeley and ensures that budget policy is followed. It provides analysis for budgetary decision support to campus administration. The office works with departments in the EVCP control unit on matters of budget, faculty FTE recruitment and management, budget allocations, and administration.

Budget and Finance "Tiger" Teams (bfsbairs@uclink.berkeley.edu) are experienced campus problem solvers who provide practical solutions for managing changes to business processes within the context of the Berkeley Financial System (BFS). Based on requests from departments, teams meet with departmental administrators, determine the scope of the project, analyze current operations, and work with the department to improve operations. Typical projects include identifying financial reporting solutions, establishing simplified reconciliation methodologies, and streamlining "front-end" business processes.

COrE, the Center for Organizational Effectiveness (ucbcore@berkeley.edu), provides consultation and facilitation in the areas of problem identification, self-assessment, process improvement, meeting effectiveness, and strategic planning. COrE consultants work with leaders in both academic and administrative departments, encouraging collaboration across organizational lines to improve all parts of a system or process. Based on individual needs, COrE's involvement can range from a one-hour meeting to a long-term process improvement project.

Audit and Advisory Services (http://www.audit.berkeley.edu/) independently reviews departmental financial activities to evaluate the effectiveness of internal controls. Audit engagements range from limited management surveys of specific policies to comprehensive departmental reviews. In addition, Audit conducts investigations regarding allegations of fraud or misuse of University assets. They provide recommendations to address findings arising from their audits.