Financial Accounting and Controls

FINANCIAL CONTROLS

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Financial Controls & Accountability is charged with implementing the UC Regents' Controls Initiative on the Berkeley campus. A principal element of this initiative is the group of central and department key controls that are carried out in support of the American Institute of Certified Public Accountants (AICPA) statement on Auditing Standards No. 115 (SAS 115).

The UC Regents' Controls Initiative

In 1996 the UC Regents approved the UC Controls Initiative. Coming in the wake of high-profile control failures, the Controls Initiative was designed to strengthen accountability, responsibility, and control across the UC System. It accomplishes this by:

  • Promoting a culture of accountability and ethical decision-making
  • Helping the campus and individual units identify and mitigate risks
  • Strengthening operational effectiveness and efficiency throughout the administrative side of campus activities

The Controls Initiative established the position of Controller at each campus, and charged them with:

  • Developing and implementing campuswide internal controls
  • Establishing, evaluating, and supporting the control environment
  • Providing financial leadership for campus operations

Activities in Support of the UC Controls Initiative

The Controller's Office provides support to the Controls Initiative in the following areas:

  • Risk Assessments
  • Controls Design
  • Training / Communication
  • Monitoring

UC Berkeley's programs and activities under the Controls Initiative are designed to:

  • Support a campus environment in which ethical decision-making and financial risk assessment and mitigation are integrated into all business practices
  • Identify significant financial risks to UC Berkeley's achieving its objectives in the areas of teaching, research, and service
  • Implement appropriate process improvements and best practices to ensure significant financial risks are held to an acceptable level
  • Establish and maintain a campus communications structure and support network to improve the control environment
  • Provide management tools and core competency training to improve operational effectiveness through cost-efficient controls