University Business Policies and Procedures Manual

2000
RESPONSIBILITY AND ACCOUNTABILITY FOR UNIVERSITY INFORMATION AND TRANSACTIONS
Effective Date: July 1, 2004
Subject to Change Without Notice

1. General

University administrative processes, systems, and forms provide electronic and manual mechanisms for business and administrative functions such as finance, student, student financial aid, human resources, and development. Use of University information and systems is restricted to authorized University business and administrative users. Deans, directors, and department heads will define departmental approval processes and designate individuals in their organizations who are authorized to process business and administrative transactions. This policy defines the specific responsibilities of individuals who request, initiate, approve, and/or review business and administrative transactions and reports. These individuals are accountable for fulfilling the responsibilities defined in this policy.

2. Deans, Directors, and Department Heads

Deans, directors, and department heads are responsible for ensuring designated individuals have attended the necessary training required to effectively and efficiently complete authorized business and/or administrative processes and transactions. Deans, directors, and department heads are accountable for exercising good judgment, upholding ethical standards, and should have internal procedures in place to ensure periodic review of designations and related training.

2.1. Authorizing and Processing Transactions

Each of these two functions, authorizing transactions and processing transactions, carry distinct responsibilities listed below. If the functions are performed by the same person, that individual is accountable for both sets of responsibilities.

2.1.1. Requesters

The requester is the individual who identifies the need for the transaction and authorizes the request to be processed. The requester is responsible for:

• determining the validity and appropriateness of the transaction; and
• evaluating the transaction for compliance with contractual requirements.

This individual will be accountable for fulfilling the above responsibilities, exercising good judgment, and upholding ethical standards.

 2.1.2. Initiators

Initiators are individuals who have been authorized by a dean, director, or department head to enter transactions into electronic business or administrative systems and/or prepare paper forms. If the initiator is not the requester of the transaction, the initiator should make sure he or she has a signed authorization to initiate a transaction. In such cases, departments should develop procedures for documenting requests. Initiators are also responsible for:

• ensuring the electronic transaction and/or form is complete and accurate;
• verifying all backup documentation; and
• notifying approvers and requester if a transaction will cause an account to go over budget.

Initiators are accountable for fulfilling the above responsibilities, exercising good judgment, and upholding ethical standards.

2.2. Departmental Approvers

Approvers are individuals designated by deans, directors, or department heads to review and approve electronic transactions and/or forms before they are released for processing. Depending on the type of transaction and the level of risk, there may be more than one individual required to approve a transaction. However, the first-level approver is responsible for:

• conformity with budget;
• verifying the appropriateness of the transaction;and
• compliance with University policies and procedures.

Subsequent approvers are primarily responsible for acceptance of the added risk associated with high dollar and/or risk transactions. Approvers will be accountable for fulfilling the above responsibilities, exercising good judgment, and upholding ethical standards.

3. Central Office Approvers

3.1. Finance

Central finance office approvers are responsible for:

• verifying proper accounting and transaction processing; and
• ensuring compliance with administrative, accounting, and/or purchasing policies and regulations.

Approvers are accountable for fulfilling the above responsibilities, exercising good judgment, and upholding ethical standards.

4. Post Transaction Review

4.1. Finance

It is critical for the financial integrity of the University that administrators and principal investigators responsible for University resources review the cumulative financial picture for each of their respective funds. Reviewers include financial managers and principal investigators in departments and staff in central administration offices. These individuals are responsible for oversight of transactions.

4.1.2. Financial Managers and Principal Investigators

Each department designates organization financial managers which are recorded in the finance system. Financial managers or designees are responsible for a monthly review of the transactions affecting their funds to ensure allowability and appropriateness of transactions, conformity with approved budget, and financial integrity of the fund. If this responsibility is delegated, the delegation must be signed by the cognizant financial manager and kept on file in the department.

4.2. Controller's Office

The Controller's Office is responsible for a periodic review of transactions including trend analysis, internal controls, and review of departmental approval processes.

Reviewers will be accountable for fulfilling the above responsibilities, exercising good judgment, and upholding ethical standards.

5. University Information

All individuals authorized to process, approve, and/or review transactions and reports are responsible for the proper use of any information they view.

6. Sanctions

Individuals who do not demonstrate due care and good judgment in the administration of their duties may be subject to disciplinary action, up to and including, discharge.

Comments may be sent to UBPPM@UNM.edu
http://www.unm.edu/~ubppm