22.11 Internal Control and Risk Assessment for the State Fiscal Stabilization Fund Worksheet
(Last Modified on November 5, 2010)
The Office of Fiscal Affairs, in consultation with the institutions, has developed an Internal Control and Risk Assessment for the State Fiscal Stabilization Fund worksheet for each objective under the stabilization funds for all USG institutions. This worksheet, shown on the following pages, incorporates the objectives of the stabilization funds and for each objective, outlines the risk factors, and details the controls to mitigate risk. It will be used by all institutions to satisfy the requirements of the Georgia Department of Audits and Accounts for stabilization funds.
Note: Institutions that receive Federal Stimulus funds through the federal grant process must also complete a separate Internal Control and Risk Assessment for the State Fiscal Stabilization Fund worksheet related to these funds.
正版bbin平台下载 of Regents of the University System of Georgia
State Fiscal Stabilization Fund – CFDA 84.394
Internal Control and Risk Assessment
| Objective | Risks | Mitigating Controls | Risk | Risk Mitigation Action |
|---|---|---|---|---|
| 1. Funds are awarded and distributed in a prompt, fair, and reasonable manner | Program goals not met | • Funds will be distributed within 2 business days of draw down from Treasury. • Each institution designated uses for the stabilization funds through the budgeting process. |
Low | Quarterly actual spend compared to budget monitored at the System Office level. |
| 2. The recipients and uses of all funds are transparent to the public, and the public benefits of these funds are reported clearly, accurately, and in a timely manner | a) Stabilization funds are comingled with other fund sources. | • Fund 10900 has been added to track only Education Stabilization funds. • Class code FS0xx has been added, further designating Stabilization funds as an ARRA funding source. |
Low | Monitoring at the institution level to ensure correct and consistent use of new chart fields. |
| b) Reporting for Stabilization awards and expenditures will be inaccurate. | • Tone from the Top has been set. Institution Presidents have signed off in an application letter to the Governor: 1) the planned use of the funds; 2) the unallowable expenditures as stated in Section 1512; 3) the method of tracking and internal control. • Template provided for institutions to document the transfer of FY2009 personal services to spend against FY2009 Stabilization funds. • New section added in the Business Procedures Manual for Federal Stimulus Funds that contains tracking and reporting requirements for reference. |
Low | • Reporting accuracy of awards will be monitored at the System Office level through review of the ARRA web application. • Reporting accuracy for revenues and expenditures will be monitored at the institution level by responsible designate on at least a quarterly basis, reconciling amounts reported on the ARRA web application to the institution’s financial records. |
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| c) Reporting for Stabilization funds will not meet State and Federal due dates. | Training session, conducted by Dept. of Audits, was provided to USG institutions on May 11, 2009 on the ARRA Web application. The session included how to create an account, what information needs to be reported and the monthly deadline for reporting. | System Office will monitor that institutions have submitted to the ARRA web application by the monthly deadline. | ||
| 3. Funds are used for authorized purposes and instances of fraud, waste, error, and abuse are mitigated | a) Stabilization funds will be spent on unallowable costs. | • Federal Stimulus Funds section added to BPM outlining allowable/ unallowable expenditures and instructions on how to minimize risk when spending Stabilization funds. • Stabilization funds will only be used for Staff and Faculty Personal Services. |
Low | Institution level monitoring by responsible designate to ensure personal services expenditures are appropriate (e.g. contains no registered lobbyists; contains no Research positions; appropriate amount of split-funded positions are charged to Stabilization funds, etc.) |
| b) Stabilization funds will be misused or wasted. | • State of Georgia purchasing guidelines already in place also apply to ARRA funds. This ensures use of statewide contracts for proven vendors and competitive bidding for goods and services. • Stabilization funds will only be used for Staff and Faculty Personal Services. |
Low | Institution level monitoring by responsible designate to ensure personal services expenditures are appropriate. | |
| c) Audit findings related to Federal funding sources are not corrected, possibly resulting in fraud, waste, error, and abuse. | Quarterly reporting system in place for all findings, including action plans and implementation status. | Medium | • BOR Internal Audit incorporates the quarterly findings database of open findings into its audit plan for the year. • System Office will monitor uncorrected findings and assist with accelerating resolution if needed. |
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| d) Qualified personnel are not in place, which could result in fraud, waste, error and abuse. | &bulls Stabilization funds are an additional funding source for programs already in place. Impact on current staffing levels is considered marginal. • Overall quality of staffing at USG institutions is high, as evidenced by FY2008 unqualified opinions on all USG audits and overall accuracy of consolidated USG financials. |
Low | System Office will continue to monitor and assist those institutions with staffing challenges. | |
| 4. Projects funded under this Act avoid unnecessary delays and cost overruns | Not applicable for Stabilization funds. | N/A | N/A | N/A |
| 5. Program goals are achieved, including specific program outcomes and improved results on broader economic indicators | a) Positions Retained number will not be reported consistently or accurately by institutions. | • Positions Retained clearly defined in BPM, including calculation methodology. • Positions Retained calculated by the USG System Office to ensure consistency across all institutions. |
Low | N/A |
| b) Positions Added number will not be reported consistently or accurately by institutions. | Stabilization funds are used to cover payrolls for existing employees. | Low | N/A | |
| c) Tuition and fees will increase due to inadequate funding. | • State of Georgia agreed in its application for Stabilization funds that it will maintain funding for public Higher Education at the level of FY2006 funding, at a minimum. • Furloughing staff and faculty is an option to assist in bridging any gaps. |
Medium | System Office will develop contingency plans for lower levels of State funding, down to the FY2006 level. |