Todays Agenda IT Compliance ( Steve Fleagle ) I. Accenture - Shared - - PowerPoint PPT Presentation

The University of Iowa

Quarterly

Budget Officers Meeting

January 2014 Organized by the Controller’s Office, Finance & Operations

Today’s Agenda

I.

IT Compliance (Steve Fleagle)

II.

Accenture - Shared Services Study (Terry Johnson)

III.

Affordable Care Act & UI Employees (Richard Saunders)

IV.

McGladrey - Cash Handling Assessment (Selina Martin)

V.

EFR Grant Reports Enhancements (Audra Haddy)

VI.

Purchasing Departmental Score Cards (John Watkins)

VII.

eVoucher System Updates (Karen Housel)

• VIII. FY2015 Proposed Fringe Benefits Rates (Selina Martin)

2

IT Compliance

Steve Fleagle

Associate Vice-President, CIO Office ITS

3

IT Security and Compliance Awareness

January 30, 2013 Steve Fleagle Associate VP and CIO

Why is IT compliance important?

• 2 reasons for policies:
• Legal, regulatory, or other mandates
• Risk avoidance
• Several high-visibility incidents
• Auditors share

noncompliance issues with the Board of Regents

• We know we aren’t fully compliant
• Security incident analysis
• Audit reports

What IT policies?

 Policies can be found at: itsecurity.uiowa.edu/policy

• Developed by Campus IT Leaders
• Includes 90-day vetting period
• Reviewed every 3 to 5 years

Key IT Policies

Acceptable use Security framework Institutional data access Social Security number Backups

Common Audit Findings

 Account controls and password strength  Disaster recovery plan and backups  Physical security of IT assets  Software licensing issues  Inadequate monitoring of systems/logs  Inadequate data protection in websites and applications

Challenges Campus IT Leaders Face

 Lack of awareness  Lack of executive-level support  Budget constraints  Approved solutions don’t always meet needs, so …

 People do whatever they think is best  Timeliness  Features/capabilities

 Non-IT experts perform IT work that isn’t compliant

Administrators’ Role in IT Compliance

 Engage with and provide support for local IT leaders in compliance issues  Make it clear who is responsible for IT compliance  Make it known that IT compliance is important to you  Provide adequate budget to ensure compliance

Questions?

Accenture - Shared Services Study

Terry Johnson

Assistant Vice President & University Controller Controller’s Office, Finance & Operations

13

Background

The University hired Accenture to perform an administrative services study

• n 3 Units: CLAS, Dentistry

and Department of Internal Medicine

14

University Objectives

After reviewing the administrative staffing and transactional volumes of 3 Units, Accenture will develop a set

• f recommendations to achieve the

following objectives:

 Improve quality of services delivered  Improve compliance with university

policies and external regulations

 Improve efficiency and effectiveness of

• perations

15

Project Status

 12/2/13 – Start data collection  Finalized “current-state” in early January  1/24/14 - Completed “deep-dive” discussions

with subject matter analysts from Accenture.

 1/29/14 - Review data and preliminary findings

with Project Leaders from 3 Units included in the study

 Early February – review draft report with 3 units  Mid-February – receive Final report

16

Affordable Care Act & UI Employees

Richard Saunders

Assistant Vice President for Human Resources Benefits Office, Human Resources

17

How will the Affordable Care Act affect the benefits of employees at the University of Iowa?

18

McGladrey - Cash Handling Assessment

Selina Martin

Associate Controller Accounting & Financial Reporting and Capital Assets Management Finance & Operations, Controllers Office

19

20

McGladrey Engagement

 November-December 2013  Project Charter/Deliverables:  To perform an assessment of

decentralized payment receipts practices (“cash handling controls”).

 To recommend immediate improvements

to strengthen controls

 To identify long term recommendations

• f additional improvements, including
• pportunities to reduce use of currency.

21

Site Visits

 Visited 16 decentralized payment receipts

locations, including areas in the following

• rgs:

 Business Services  Athletics  College of Dentistry  College of Medicine  College of Engineering  VP Student Life  UIHC 22

Results – FY15 Changes Affecting all Cash Handling Units

23

 A separate local cash handling procedure

for each payment receipt location.

 A specific employee name for each

required cash handling role (maintained in the Institutional Roles application).

 New role - Cash Handling Control Manager  Org-level Budget Officers in approval path  Update every 3 years or as changes occur  Other controls

Results – Future improvements made by Finance & Operations

24

 AFR will conduct a monthly review of policy

submission compliance.

 AFR will conduct spot checks/visits to units.  Treasury Operations will ensure eDeposit

access allowed only for departments with approved procedures.

 We will work with L&D to build a

tool/report to allow managers to efficiently check for training compliance.

 We will evaluate creating mini-course for

each cash handling role.

EFR Grant Reports Enhancements

Audra Haddy

Associate Controller & Director of Grant Accounting Finance & Operations, Controllers Office

25

EFR – Grant Reports

Demo of new reports & enhancements

26

Departmental Purchasing Dashboard

Debby Zumbach

Director of Purchasing & Associate Director of Business Services Finance & Operations/Purchasing

27

Dashboard At a Glance

• Creates a collaborative conversation with departmental staff that highlights both

success and areas of opportunity for current departmental procurement processes.

• Provides an in-depth look at the procurement patterns from vendor spend,

method of procurement, cost savings and policy compliance for a department as a whole.

• Enhances communication to develop a proactive form of procurement that allows

for a streamlined and efficient flow of orders through the various buying channels.

• Dashboards are being prepared now and meetings with campus departments to

review the information will begin soon.

28

Building a Strategic Partnership

Providing Your Department with Spend Visibility

Goals of Discussion

• The University’s Purchasing team is meeting with departments on campus to

ensure we are providing a high level of service.

• During these meetings we hope to provide you with detailed spending visibility to

ensure that your purchasing patterns align with your departmental priorities.

• Specifically, we hope to discuss with you:
• How much you are spending on goods and services
• Which vendors your department is using and methods of ordering
• Ways in which our office can assist with adding value to the procurement

process

• Ways to save time and money
• We welcome any and all feedback throughout the discussion to improve the data

that we are providing and to continue the development of our partnership.

29

Department Spend

Spend by Department Code

July 1, 2012-June 30, 2013

30

Department Name Department Number Purchase Order Spend CS/CT Purchase Order Spend eBuy Purchase Order Spend Procurement Card Spend Total Spend Department One 0001 $6,694 $0 $458 $65,951 $73,103 Department Two 0002 $3,515,567 $0 $4,724 $338,217 $3,858,508 Department Three 0003 $5,580,994 $109,739 $271,929 $5,968,793 $11,931,455

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Monthly Spend Summary

In Thousands

Purchase Order eBuy Procurement Card

Total Spend = $15,753,329* *Total spend remaining through report does not reflect CS/CT Purchase Order spend.

Department Spend

Spend by General Education Fund 050

July 1, 2012-June 30, 2013

Department Name Department Number Purchase Order Spend (Non Flood) Purchase Order Spend (Flood) CS/CT Purchase Order Spend eBuy Purchase Order Spend Procurement Card Spend Total 050 Spend Department One (050) 0001 $19,600 $0 $0 $4,000 $3,300 $26,900 Department Two (050) 0002 $15,425 $0 $0 $7,100 $2,000 $24,525 Department Three (050) 0003 $20,575 $0 $0 $4,200 $500 $25,275 Total Fund 050 $76,700

31

Vendor Contracted Bid Total 050 Spend Johnson County Ambulance Service Yes SSJ $23,200 Search Incorporated Yes RFP 14370 $18,300 John Deere No No $9,250 Modern Piping Yes RFP 14126 $7,500 Dell Computer Corp Yes RFP 13787 $6,750 ServiceMaster Five Seasons Janitorial Yes No $5,000 Powers Manufacturing Company

No No $900

Fund 050 Purchase Order Spend by Top Vendors Fund 050 Procurement Card Spend by Top Vendors

Vendor Contracted Total 050 Spend HyVee No $3,500 OfficeMax Yes $1,225 AeroRental Yes $700 Menards No $375

Top Contracted Vendors

Contracted By Bid Award

(Top Twenty P.O.)

Vendor Contract Bid Total Spend # of Payment Transactions

Search Incorporated Yes RFP 14370 $947,850 38 Whelan Security of Illinois Incorporated Yes RFP 14282 $413,405 96 ASI Signage N/A RFP 14803 $371,611 108 IMG College Seating LLC Yes RFP 13689 $347,162 1 Dell Computer Corporation Yes RFP 13787 $212,537 89 Modern Piping Incorporated Yes RFQ 14126 $205,199 99 Air International Yes RFP 14311 $200,843 6 Sound Concepts Incorporated Yes RFP 14523 $186,518 145 Coca Cola Refreshments Yes RFP 12794 $125,620 115 Best Buy For Business N/A RFP 14786 $111,160 25

Vendor Contract Bid Total Spend # of Payment Transactions

Bus Services Incorporated N/A RFP 14421 $107,568 46 Patterson Medical Supply Incorporated Yes RFQ 14178 $94,831 145 Monticello Incorporated Yes RFP 13043 $92,096 43 Winebrenner Red Carpet Travel Yes RFP 13917 $90,000 1 D And K Products Partial RFQ- 14884 Other- $40,874 $46,795 49 Air Incorporated Yes RFP 14608 $84,903 4 Aero Incorporated Yes RFP 14235 $70,832 4 Technical Specialty Systems N/A RFP 14764 $62,730 1 Port O Jonny Incorporated Yes RFQ 13853 $54,250 30 Aegis Sciences Corporation Yes RFP 14754 $44,225 9

Top Contracted Vendors

Contracted Without Bid Award

(P.O.)

Vendor Contract Bid Total Spend # of Payment Transactions

Apparel Incorporated Yes No $571,603 360 Membership Corporation N/A No $495,149 17 Paciolan Systems Incorporated Yes No $372,988 10 Triple Crown Incorporated Yes No $213,130 3 XOS Digital Yes No $167,541 6 Bluechip Solutions LLC Yes No $161,750 6 ServiceMaster Five Seasons Janitorial Yes No $158,678 97 Productions Incorporated Yes No $129,133 58 Travel Services Yes No $67,500 2 Johnson County Ambulance Service Yes No $60,438 78

Vendor Contract Bid Total Spend # of Payment Transactions

Level 3 Communications N/A No $48,000 12 Transportation Services Yes No $45,000 1 Assistant Systems LLC Yes No $40,875 2 Agile Technologies Yes No $25,000 1 Parts and Service Inc. Yes No $24,995 1 Clear Channel Outdoor Yes No $24,190 5 dcSteam Inc. Yes No $21,416 7 West Des Moines Community School N/A No $21,098 1 Travelers Incorporated Yes No $20,100 1

Top Vendors

Off Contract

Top Twenty – P.O.

Vendor Total Spend # of Payment Transactions Equipment Incorporated $159,021

32

D And K Products $87,669

49

Shorts Management $56,238

1

Iowa Book And Supply Company $54,339

6

MBA Concrete Incorporated $50,523

5

Lighting Corporation $48,313

2

University of Wisconsin $48,285

2

Ad Venture Promotions $38,965

63

John Deere $38,900

3

Sign Productions Incorporated $38,304

12

Vendor Total Spend # of Payment Transactions CodeWorks Software Factory $35,825

26

Productions Incorporated $34,998

8

Innovative Sports Strategies LLC $31,800

4

Landscaping Inc. $30,476

12

Daktronics Incorporated $30,270

37

Cedar Rapids Company $27,500

12

Promotional LLC $27,484

17

Dave Long Protective Prod Incorporated $26,616

4

Kroll Ontrack Incorporated $26,500

2

Powers Manufacturing Company $25,574

5

Procurement Card Summary

Notable Vendors

Vendor Spend

Hy Vee $149,974 OfficeMax $63,859 Taylor Incorporated $51,831 AeroRental $44,649 Graphic Printing and Design $36,951 Stella $36,240 Menards $34,571 Red Pepper Deli & Grill $32,558 Master Incorporated $32,506 Imprint Incorporated $31,332

Error Count by Type

Error Type Count Error Type Count

Receipt Missing 71 Hotel Expense 3 Sales Tax under 10.00 34 Technology Policy 3 Unallowable Expense 33 Alcohol 2 Travel Information 19 Gasoline 2 Business Meals 14 Airfare Upgrade 1 Personal 14 Credit information 1 Sales Tax 10.00 or more 14 Total Errors 211

Top Requesters & Cardholders by Spend

July 1, 2012-June 30, 2013 Purchase Order Spend by Top Requesters Procurement Card Spend by Top Cardholder

Requisitioner Purchase Order Spend % of Total Spend Requisitioner One $3,302,538 20.96% Requisitioner Two $1,188,791 7.55% Requisitioner Three $886,768 5.63% Requisitioner Four $716,997 4.55% Requisitioner Five $569,507 3.62% Requisitioner Six $519,355 3.30% Requisitioner Seven $388,564 2.47% Requisitioner Eight $375,750 2.39% Requisitioner Nine $301,159 1.91% Requisitioner Ten $189,209 1.20% Cardholder Procurement Card Spend % of Total Spend Cardholder One $274,827 1.74% Cardholder Two $253,431 1.61% Cardholder Three $241,975 1.54% Cardholder Four $218,589 1.39% Cardholder Five $197,850 1.26% Cardholder Six $183,129 1.16% Cardholder Seven $168,397 1.07% Cardholder Eight $167,118 1.06% Cardholder Nine $166,747 1.06% Cardholder Ten $148,968 0.95%

Opportunities

Contracted Business

Vendor Name Contract Expiration Contract Number (s) Spend Discussion Notes

Sound Concepts 09/01/2014 2488 $186,518 ServiceMaster 06/01/2013 5898 $158,678 Level 3 Communications 08/24/2013 N/A $48,000 Clear Channel Various 7104, 7103, 7101, 6140, 4147, 5394 $24,190

Opportunities

Bids

Current Vendor/Service Type Spend Possibilities

HyVee, Chef Mickey’s, IMU & Various/Catering Bid $429,144+ ASI & Sign Productions/Signage Bid $409,915+ Rausch Productions, Productions Incorporated, dcSteam & Various/ Video Services $185,547+ Graphic Printing and Designs, Imprinted Incorporated/Promotional Apparel $89,916+ Johnson County Ambulance/ Ambulance Service $60,438 Various/Promotional Items $27,484+ ASAP/Transcription Services $23,585

Opportunities

Training and Development

Opportunity Type Vendors Impacted/Notes Discussion Notes

Confirming Orders Windstar, Synergy, ServiceMaster, Productions Incorporated, Whelan Security, etc. Ordering Methods

• OfficeMax/Grainger Etc. – Order via eBuy
• Apple Products – Order through IMU

Blanket Orders

• Utilization of blanket orders when in place.

(Avoid confirming orders-Various Vendors)

• Blanket order management
• Alternate methods of ordering

Contracts on Requisitions Travel Services and new contracts Contract Utilization MBA Concrete used-Contracted vendor Williams Sewell. Plumbing Plumb Supply Contracted Vendors:

• Plumbers Supply Company, Ferguson

Enterprises Incorporated, First Supply, and Schimberg Company Procurement Card Usage

• Discuss training opportunities and best practices

with applicable card holders.

Current Projects Underway

Current Vendor/ Service Type Spend Project Notes

Apparel Incorporated, Monticello/Misc. Apparel $251,117+ RFP 14891 awarded to Monticello Modern Piping/Plumbing Service & Repair $205,199 RFP being drafted D and K & Landscaping Incorporated/Chemicals $118,145+ RFP 15078 evaluations completed, contracting underway Recognition Items $34,950 RFP 14960 evaluations completed and contracting underway North Liberty Painters/ Paint $20,272 RFP 15050 has closed, pending evaluations

Building a Strategic Partnership

How can we serve you better?

Concluding Thoughts

• Training sessions for ordering methods.
• New project next step scheduling.
• What are some upcoming projects and/or purchases for your area?
• What else can purchasing do to serve you better?
• Is there additional data that would be useful?

Purchasing Action Items Department Action Items

eVoucher System Updates

Karen Housel Accounts Payable, Travel and Purchasing

42

Type of Expense

Refunds and Reimbursements will now be separate Types of Expenses

 When Reimbursements is selected users will

be asked to provide additional information regarding specific types of reimbursements A new field called “Type of Reimbursement” will display and the initiator will be required to choose

• ne of the following:

 Food  Food and Alcohol  Computer(Desktop, laptop or printer)  Other

43

Type of Reimbursement- Food

• r Food and Alcohol

Departments will now be required to provide the following information:

 What was the event  Why was food required for the event  Provide the names and affiliations of the

individuals who attended the event

These questions will also be applied to all eVouchers with an expense type of Food or Food and Alcohol

44

Type of Reimbursement- Computer(Desktop, laptop or printer)

Departments will now be required to provide the following information:

 Who is the end User  Location for the equipment  Explanation for why the purchase was not

made using the University’s campus-wide vendor contracts

 Total Merchandise Amount  Total Sales Tax Amount

45

FY 2015 Proposed Fringe Benefits Rates

Selina Martin

Associate Controller Accounting & Financial Reporting and Capital Assets Management Finance & Operations, Controllers Office

46

Fringe Rate Projections

• 1. Charge rate versus actual rate
• 2. Variables – salary base & fringe costs
• 3. Odd year / even year basis
• 4. Surpluses & deficits

FY2015 rates are proposed rates & not final until negotiations with feds has taken place.

47

Fringe Rate Trend 2010-2015

(rates charged to campus)

48

24.00% 22.40% 30.30% 29.20% 38.50% 35.70% 40.50% 36.90% 53.00% 46.50%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 2010 2011 2012 2013 2014 2015P

Fringe Charge Rate Trend (2010-2015)

C Faculty NC Faculty P&S SEIU* Merit Fellows Post Graduate House Staff* Temporary Students* Miscellaneous C Faculty NC Faculty P&S SEIU* Merit Fellows Post Graduate House Staff*

Fringe Rate Trend 2012-2015 (rates charged to campus)

49 Fringe Pool FY12 Charge Rate FY13 Charge Rate FY14 Charge Rate FY15 Charge Rate

(Proj ec ect ed ed)

Comments

Clinical Faculty 23.10% 22.60% 21.40% 22.40%

Increase in health costs, vacation/sick payout due to retirement of employees, lower prior year surplus;

• ffset by decrease due to exclusion of OPEB costs.

NC Faculty 28.40% 27.70% 27.80% 29.20% P&S 38.50% 38.00% 34.50% 35.70% SEIU 39.30% 38.00% 36.00% 36.90%

Increase in health costs, lower prior year surplus;

• ffset by decrease due to exclusion of OPEB costs.

Merit 55.00% 57.00% 51.00% 46.50%

Decrease due to exclusion of OPEB costs and prior year’s surplus

Post Grad 21.00% 19.50% 15.80% 12.50%

Decrease in rate due to prior year’s surplus

Fellowship 10.50% 11.00% 10.00% 6.00%

Decrease in rate due to prior year’s surplus

House Staff 20.00% 30.00% 32.00% 39.00%

Increase in health costs as transition continues to University health plan.

Temporary 11.00% 11.50% 11.70% 11.70%

Relatively stable rate in the long term

Students 9.00% 9.00% 8.50% 9.20%

Relatively stable rate in the long term

Misc 4.20% 3.80% 4.40% 4.80%

Relatively stable rate in the long term

50