SUBJECT:

Mandatory Department Key Controls Documentation

To effectively document the review and follow-up activities in key control areas within a department, the Controller's office has created the UCSD Department Key Controls Documentation document. The use of this document is required for all departments in order to assure that the proper checks and balances are performed and documented on a regular and periodic basis, and that documentation noting the exercise of these controls is maintained and available for auditors, if requested.

In order to fulfill our fiduciary responsibilities, all of us must ensure that key internal controls are in place, that they are effectively operating, and that the review of the controls that validates their effectiveness is regularly documented. In light of these requirements, it is necessary for each department to:

* Implement departmental key controls and ensure the control is working

* Document evidence of review for all levels (signature, e-mail, and/or signed checklist)

* Fix and follow up when a control deficiency or weakness is identified

* Document corrective action

The department business officer in each department must ensure that each applicable area of control covered by the departmental control documentation has been regularly evaluated. These control areas are:

* Fiscal Operation Review

* Ledger Transaction Verification

* Overdraft Funds Review

* Payroll Expense Verification

* Permanent Staffing Reconciliation

* Credit Card Activity Review

* Physical Inventory

* Security of Assets and Personal Information

* Effort Reporting

* Balance Sheet Certifications

* Petty Cash and Change Funds

A copy of the Department Key Controls Documentation is available for downloading at http://blink.ucsd.edu/go/SAS112. Please feel free to contact Debbie Rico at (858) 822-2797 or email drico@ucsd.edu if you have any questions or concerns.

Don Larson Assistant Vice Chancellor - Business Affairs Controller