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3.10.4

Financial Resources: Control of finances
The institution exercises appropriate control over all its financial resources.

Judgment
  Compliant      Non-Compliant      Not Applicable

Narrative

Morehouse College maintains appropriate control over financial and physical resources through multiple strategies, which begin with its budget process. The budget process, utilization of property, and the expenditures of funds are conducted in accordance with college policies, procedures, and controls stated in the following documents:


Additionally, formulation of the capital budget is performed by the Office of Business and Finance in conjunction with the Office of Campus Operations and the Physical Plant Committee of the Board of Trustees.


Level One Controls

First, the annual budget and planning processes are conducted openly and with full participation of the college community. Budgets are built and administered through vice presidential areas after taking into account strategic and other priorities. Budget needs and plans are informed by a bottom-up process based upon institutional effectiveness reports, the strategic plan and resource requests from individual academic and administrative units. These requests are then aggregated into division and vice presidential area budget plans. The process is coordinated by the Office of Financial Planning, Analysis, and Budget. Budget allocation decisions ultimately rest with the president in consultation with the vice presidents and deans. All budgets are compiled into an annual operating and capital budget plans. These plans are reviewed by the Finance Committee of the Board of Trustees and, ultimately, the full Board of Trustees for final review and approval.

Morehouse College maintains financial accounting records on the SCT Banner system. The system includes purchasing, accounts payable, payroll, student accounting, fixed asset accounting, and financial accounting. The college’s donations and gifts programs are maintained on Raiser’s Edge software. The SCT Banner financial accounting system provides accountability of funds and monitoring of budget performance.


Level Two Controls

The second level of budgetary and financial control is to monitor progress during the year. The administrative monitoring of accounts for budget management and control is assigned to each responsible administrative unit. The Office of Campus Operations and the Office of Business and Finance are responsible for monitoring all capital projects and major facilities maintenance project accounts. The Office of Financial Planning, Budget, and Analysis monitors all other operating accounts including grants and contracts, donations, sponsored programs, fund balances, cash balances, and all other operating accounts.

Responsible department personnel have online access to financial account information in SCT Banner. The Office of Financial Planning, Budget, and Analysis provides month end account level status reports of financial activity. The reports are available on line shortly after the end of the accounting period.

All fiscal administrators have online access to budgeting information and College policies and procedures.

The college records all assets costing at least $1,000 and having a useful life of at least three years into the Property Control System. The Controller’s Office within the Office of Business and Finance is responsible for entering assets purchased into the system and for conducting periodic physical asset inventories. The controller is also responsible for monitoring the disposition of assets policies.

The Office of Campus Operations is responsible for maintenance of the condition and safety of buildings and other facilities. Its facilities use document describes the processes in place to ensure that the physical facility operation and maintenance is adequate to serve the College’s educational programs, support services and mission-related activities.


Level Three Controls

The third component for appropriate control of financial and physical resources is through internal and external evaluation and reinforcement of the College’s key internal controls. This is accomplished through implementation of the Internal Audit Plan by the College’s internal auditor. The internal audits are based on an internal audit risk assessment as well as announced and unscheduled reviews of the internal controls at the department, division, and executive levels. Special attention is given to the high risk controls identified by the Office of Business and Finance. These controls are tested regularly by the College’s internal auditor and recommendations to strengthen the controls are submitted. Policies and procedures governing the internal audit activities are contained in the:


External evaluations of internal controls are accomplished through annual reports from the College’s independent auditor and governmental audit agencies. Consultants are utilized to evaluate specific internal controls within a unit, as needed. Policies and procedures relating to the Audit Committee’s role in conducting external evaluations of internal controls are contained in the Audit Committee’s Charter.

 
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