3.10.4 Control of finances
The institution exercises appropriate control over all its financial resources.
Judgement of Compliance:
Compliance
Narrative:
The University of Tennessee at Chattanooga (UTC) exercises appropriate control over its financial resources. The Vice Chancellor for Finance, Operations and IT is the chief financial officer and has primary control over the university’s financial resources. The Vice Chancellor enforces the University of Tennessee established policies and procedures that ensure appropriate levels of control over financial resources. The Vice Chancellor is responsible for establishing appropriate campus policies and procedures to supplement the University of Tennessee policy and procedures. The departments reporting to the Vice Chancellor and sharing in the responsibility of monitoring controls include Accounting, Budgeting, Bursar, Contracts, Grants Accounting, Procurement Management (Purchasing, Accounts Payable, Receiving, Travel, Property, and Mail Services), Human Resources Management (Human Resources and Payroll), Housing, and Auxiliaries. These departments all safeguard the financial resources of the university.
The University of Tennessee fiscal policy FI0010 outlines the policy and procedures regarding budgetary control. Responsibility for control of expenditures within budgetary limits rests with the Dean or administrative head of each division or unit: however, the details of carrying out this responsibility may be delegated to the department head or other supervisory personnel. The SAP financial system requires approval of department heads/Dean for expenditures through the workflow approval process.
Section 8 of the fiscal policy under Departmental records details the process of taking the monthly budget and expenditure reports and checking them against the departmental records. Any discrepancies must be reported to the Treasurer’s office. The discrepancies for UTC accounts would be reported to the UTC Business and Financial Affairs office to determine the cause and the appropriate action to clear up the discrepancies.
The University of Tennessee Business Management Guide was prepared to supplement the fiscal, human-resources, and other policies and procedures. It provides a single source of information and guidance for those serving as head of an academic unit or manager of a program. Section 1 (Departmental Financial Management) details the department head’s responsibilities for budgeting, financial accounting, and reporting and includes a section that discusses ledger reconciliation and review.
The annual budget begins at the grassroots level by the organizational managers and is submitted to the respective area managers and then to the appropriate divisional Vice Chancellor. The University Planning Resources and Advisory Council (UPRAC) with members of the Executive Team holds budget hearings to formally review requests and set institutional priorities. A proposed budget containing revenue and expenditures is submitted to the Chancellor for final review and approval. The Chancellor then authorizes the Vice Chancellor for Finance and Operations to prepare a final budget for submission to the University of Tennessee-University Wide Administration and the Chief Financial Officer of the University of Tennessee. The Chief Financial Officer consolidates all budget requests for the University System and submits them to the Board of Trustees for review and action.
The University of Tennessee at Chattanooga is audited on an annual basis as part of the University of Tennessee system audit. The University of Tennessee Internal Audit department conducts regular audits of key operating and financial areas, information technology, university operations, compliance, and other areas requested by management. The audit reports and related findings and recommendations are reported to the UT audit committee.
