Standard Seven - Finance
(When reviewing this document, the reference time frame is FY2007-08.)
One of our trademarks over the years has been our conservative approach in managing financial resources. Our financial management team recognizes the following responsibilities:
- Facilitate financial planning to ensure consistency with our academic mission and goals
- Ensure continued financial viability
- Manage financial resources to maximize benefits
- Establish necessary controls and oversight to protect our financial integrity
- Provide appropriate financial information to the campus community and governing bodies
Assignment of Financial Management Responsibilities (7.C.2)
The Division of Administrative Services has central responsibility for financial management. Our chief financial officer (Vice President for Administrative Services) is responsible for monitoring fiscal operations. Financial management responsibilities are centralized when practical. In those instances where responsibilities have been delegated to other executive officers, central coordination exists. Within Administrative Services, financial responsibilities are coordinated through the Associate Vice President for Financial Services. The Vice President for Administrative Services provides oversight for all financial functions.
Sound financial practices are further realized through an organizational plan that distributes line responsibilities to all areas on the campus. Each vice president or equivalent supervisor is empowered to authorize budgets, expenditures, and budget transfers within his or her respective area or division and is responsible to ensure adherence to institutional financial policies.
Qualifications of Financial Management Team (7.C.2)
Our financial management team possesses the required educational background, extensive professional experience, and comprehensive knowledge of our operations. We have enjoyed stable staffing on the financial management team. The current Vice President for Administrative Services has extensive experience with the Utah System of Higher Education and the state legislative budgetary process. Current financial staff members are also highly qualified, many with master degrees and professional certifications in their field, and most with extensive WSU experience. For specific qualifications, please see vitas for finance department personnel on file in the Resource Room.
Financial Oversight by the University Board of Trustees (7.C.1, 7.A.1)
Monthly financial reports are reviewed with the business affairs committee (a standing committee of the Board of Trustees) and summarized to the full Board of Trustees by the Vice President for Administrative Services and the President. The reports provide a comprehensive perspective of all accounts. The status of legislatively allocated Education & General (E&G) budget is presented as well as spending patterns for all other institutional accounts. On a monthly basis, we provide a summary of our investment portfolio with a more comprehensive presentation on a quarterly basis to the Board of Trustees for review and approval.
All significant financial issues (including changes in applicable policies and procedures, updates regarding the state legislative process, and special use financial reports forwarded to the Utah System of Higher Education) are presented to the Board of Trustees for review, input, and approval.
Financial Planning (7.A.1, 7.A.2)
We have well-established financial planning linked to our established mission and goals. Financial planning and budgeting are developed under the umbrella of the Board of Trustees, the Office of the Commissioner of Higher Education, and the Utah State Board of Regents. Our mission is a guiding principle throughout all levels of planning and budgeting.
While we enjoy adequate autonomy in establishing realistic objectives, we also recognize our responsibility and accountability to the citizens of the State of Utah. This requires that we work effectively with the State of Utah Governor’s Office and the Utah State Legislature with regard to financial planning and budgeting. Being a state-supported institution, we must be responsive to limitations of state resources and to statewide initiatives. Both state government and our state’s economy heavily influence our budgeting process.
Consistent with the national economy, the State of Utah experienced a significant downturn in economic conditions beginning with last quarter of 2008. As a result of the weaker economy, we absorbed significant mid-year budget reductions for 2008-2009. These budget reductions have carried into 2009-2010. Fortunately, we have been given wide latitude in determining how to best absorb these budget cuts.
Current Planning Priorities
In the summer of 2005, the WSU Planning Council was reorganized to ensure that all sectors of the University community were represented on this panel. With the new members on the council, an appraisal of the University’s status was conducted. An environmental scan of local, regional and national trends affecting higher education was performed.
A revised “WSU Mission Statement” and “WSU Vision Statement – In 2030” were developed and shared with all institutional constituencies. From these strategic planning efforts, institutional operational initiatives were developed. Each year the initiatives are evaluated and each division of the University provides a report of accomplishments of the past year and goals for the coming year.
Long-Term Financial Planning Efforts
Long-term financial planning is linked closely to enrollment analysis and projections performed at WSU, the Office of the Commissioner for Higher Education, and the Governor’s Office of Planning and Budget. Given the characteristics and timing of projected enrollments, financial planning is strategically designed to accommodate projected trends. Both operational needs and capital requirements are examined.
In projecting revenues and expenditures for the next three years, we conservatively expect 3-5% increases. While the national and state economy continues to be in a challenging cycle, increased tuition collections as well as our continued commitment to fund raising and to conservative financial management should allow for this moderate increase.
Budgeting Process (7.A.3)
Our budgeting process is decentralized. E&G budgets are developed at the departmental level and reconciled by divisional and centralized officers. Clear instructions and deadlines are conveyed to all areas of the institution. Budgets are centrally input into administrative software. This process is managed effectively and results in our budget for the upcoming fiscal year being finalized in June before the beginning of the new fiscal year. Our budget plan is examined for consistency with our established mission and role throughout all steps of this process.
Determination of tuition rates is an annual process that is linked tightly to our overall budgeting process and is greatly influenced by what the legislature provides to the institution. Effective fiscal year 2001-02, we initiated a new two-tier tuition-setting process. Estimates for the first-tier tuition are determined by the State Board of Regents and are budgeted by the legislature as part of the state’s appropriation process. Taking into account the proposed first-tier tuition increase and the general assessment of the economic condition of the state, the legislature allocates state tax dollars as well. Separate from this process, we assess the need for a second-tier tuition increase to be budgeted by the institution. A public hearing is held to explain the reasons for the increase and to obtain public (more specifically student) comment. After evaluating the input, the second-tier tuition increase is finalized.
Budgeting for Non – E&G Entities
In general, budgeting for grants, gifts, auxiliary enterprises, service enterprises, and athletics closely resembles the budgeting for the E&G budget process. This process is also closely coordinated and monitored within Administrative Services. Special emphasis is placed on monitoring revenue projections throughout the year to ensure that appropriate expenditure levels are adjusted to match actual revenues.
Capital Development and Improvement (7.A.2)
The State of Utah is heavily involved in institutional capital budgeting processes via the Division of Facilities Construction and Management (DFCM). DFCM acts as the staff agency for the State Building Board, which is assigned by Utah State law the responsibility to approve all capital development and capital improvement projects over $100,000 in total value. Capital development projects are those projects with a total cost over $500,000 for new buildings or $2.5 million dollars for repair, renovation, or infrastructure improvements and are line item approved by the State Legislature. Capital improvement projects have a total value between $100,000 and $2.5 million and are line item approved by the State Building Board against a set funding amount appropriated each year by the Legislature. When either a capital development or a capital improvement project is generated by the University, DFCM will assign a project manager to each project to work directly with institutional representatives to develop the project and oversee design and construction once funding is acquired.
Capital Development (projects over $2.5 million)
The Utah State Legislature allocates funds for the construction of new physical facilities and major renovation of existing structures. We develop a list of projects and request funding for these projects each year. Our facilities master plan (a 20-year plan updated every five years; most recently updated in 2009) helps in identifying projects and long term facilities objectives. The capital development list is in priority order and is based on academic program and service needs. Once the list has been prepared, it is presented to and approved by the President’s Council and subsequently the Board of Trustees. The list is then submitted for inclusion in the State Board of Regents request to the legislature.
Once we submit capital development priorities to the State Board of Regents, they are evaluated with all other higher education projects through a “Qualification and Prioritization Model.” This model incorporates such factors as mission/role, current inventory of space, life safety issues, and extent of institutional matching funds in determining the relative priority of each project. Once this process is complete, a higher education capital development priority list is presented to the state Building Board, Governor and Legislature for further evaluation.
Capital Improvement (projects less than $2.5 million)
The same agencies described previously evaluate and fund projects costing less than $1.5 million from a different part of the state budget which is restricted for use in altering, renewing, and improving existing facilities. DFCM works in cooperation with each university or college to identify and evaluate those buildings needing attention in any given year. The list is developed, prioritized and allocated funding by the State Building Board. Since 1998, we have received approximately $2.5 to $4.7 million per year for capital improvements.
Privately Funded Projects
Institutions may solicit funds from donors to either augment state resources or totally fund any project, including new buildings. Authorization to construct a building using donated funds follows the same approval process described earlier for capital development projects.
Adequacy of Financial Resources
We continue to be on a solid financial foundation. Evidence of our financial stability includes:
- Stability of funding base through conservative financial management
- Emphasis on private fund raising
- Strategies for supplementing existing resources for academic programs
- Results of financial ratio analysis with comparable institutions
- Maintenance of adequate institutional reserves/surplus for contingencies
- Conservative use of debt
- Minimal transfers and inter-fund borrowing
Stability of Funding Base through Conservative Financial Management (7.B.3, 7.B.5)
Over the long term, we continue to benefit from a stable funding base provided by state tax monies and tuition collections appropriated by the state legislature. Historically, the Utah legislature has allocated proportionately more tax funding for higher education than comparable states.
While we have experienced significant reductions in state tax dollars recently, our conservative financial management philosophy has allowed us to cope. Maintaining adequate reserves, utilizing conservative budget allocations, reducing costs, shifting reliance on tuition collections, identifying alternate revenue sources, and focusing on fund-raising activities will allow us to maintain a stable funding base during this challenging economic period.
Strategies for Supplementing Resources in Academic Programs (7.B.1, 7.B.5)
We have implemented other strategies to supplement existing resources for academic programs such as:
- Increased tuition rates to offset budget cuts
- Two-tier tuition schedule (first tier for general needs; second tier for program – or initiative-specific needs)
- Program differential to adequately support master’s programs and potentially other programs
- Course fees to augment specialized equipment, software, and labs
- Redistribution of student fees to finance internet-based course development and support technology infrastructure
Results of Financial Ratio Analysis with Comparable Institutions (7.B.3)
Using the financial data (2005-06, 2006-07, 2007-08) in the “Integrated Postsecondary Education Data System (IPEDS) Report” that institutions across the nation provide to the National Center for Education Statistics (U.S. Department of Education, Office of Educational Research and Improvement), key ratios were calculated and compared with our peer institutions across the nation (Master’s Colleges & Universities, Medium, Public 4-Year). Evidenced in the financial ratio analysis are:
- Emphasis on academic instruction and academic support activities (59th and 78th percentile, respectively)
- Our increasing reliance on tuition collections versus state appropriations (65th percentile)
- A growing emphasis on private gifts & grants (95th percentile)
- Our emphasis on building our endowment and endowment income (91st and 96th percentile)
- Conservative use of debt (40th percentile)
Maintenance of Adequate Institutional Reserves/Surplus for Contingencies (7.B.3, 7.B.7)
Our conservative approach to financial management has provided for reasonable financial reserves over the past 10 years. We have averaged $5 million in operating carry forward in the E&G budget. The carry forward is spread throughout WSU at the departmental and central administrative levels. From a cash management perspective, the $5 million equates to approximately one month of working capital of total state-appropriated funding. Reserves from operations have also been established for auxiliary and service enterprises over the past ten years.
Conservative Use of Debt (7.A.4, 7.B.2)
We have been very conservative regarding issuance of long-term debt. Most debt funding of capital facilities (non-revenue generating facilities) is financed by the State of Utah. Because the financing is sponsored by the legislature, any debt service is the responsibility of the state. Over the past few years, we have provided matching institutional funds (primarily generated with private gifts) on certain projects to help elevate the priority of projects and, in effect, reduce the obligation of the state.
We are responsible for debt service on any non-state supported activity. Bonding on our most recent student housing (2002) and the renovation of our student union (2007) are examples of this; it will require the bonds to be serviced with revenues of the bonded projects or student fees.
The source of funding for the debt service on the series 1997A and 1998A is student fees. The source of funding for the debt service on the series 2001A is revenues generated from the new student housing. In April 2010, there is an approximate $500,000 reduction in debt service payments on our outstanding bonded debt. This significant reduction may provide for future flexibility to finance capital projects.
We have used short-term debt sparingly over the years. Currently, we have only minimal capital leases outstanding. Funding from the State of Utah is established to allow us to make regular draw-downs of appropriated funds. This, coupled with tuition collections and closely managed drawdown’s of federal funding (e.g., Pell awards, grants, contracts), provides adequate working capital for operations. As short-term needs are identified, debt financing is generally avoided.
From an overall institutional perspective, debt for capital projects is at a minimum and is controlled adequately by the Board of Trustees and the Board of Regents, which must approve and authorize all major debt commitments.
Minimal Transfers and Inter-Fund Borrowing (7.B.4)
Transfers between funds are made within established guidelines of the institution, State Board of Regents, and the State of Utah. All transfers are subject to review in the annual financial audit. We generally avoid inter-fund borrowing. Appropriate approval for the inter-fund loan was obtained from President’s Council.
Auxiliary Management (7.B.8)
Overall auxiliary financial results have been positive over the past 10 years. While the bookstore is the stabilizing net income source, the operations in the union building, student housing, and athletics have achieved more stable financial results. Auxiliaries as a whole generated a net increase in fund balance totaling $156,258 and $1,220,131 respectively, for fiscal years 2006-07 and 2007-08. When possible, reserves from operations have been established for each auxiliary. These reserves have been set up to help stabilize revenue fluctuations and finance capital expenditures. Continued positive financial results are expected for the future. The policies of the State Board of Regents require that the auxiliaries as a whole be self-supporting. We manage these operations closely to ensure that auxiliaries do not jeopardize our other operations.
Financial Accounting Systems
Financial Statements (7.B3, 7.C.5)
Independent auditor examinations have verified that our financial statements have been prepared based upon generally accepted accounting principles.
Implementation of New Administrative Enterprise Systems
In coordination with the Utah System of Higher Education (USHE), we conducted a comprehensive evaluation of our administrative enterprise systems (including the Financial System, Human Resources System, and Student Information System) during 2001 and 2002. In the second quarter of 2002, USHE selected the SCT Banner system as the standard software for institutions. Once this decision was made, we immediately initiated plans to implement the software. Banner Finance went live July 1, 2003, Human Resources went live January 1, 2004, Alumni Development went live February 1, 2004, and Student Information Systems went live the fall of 2005. The magnitude of these changes has required the Institution to reevaluate business practices and implement appropriate changes. The Banner software is now operating in a stable and effective manner.
Budgetary Control (7.C.3)
Budgetary control is initially established through the overall budget process and is monitored and reported through the financial accounting system.
Our E&G budget is managed and monitored closely by Administrative Services. Adjustments to the budget are coordinated centrally with specific budgetary impact determined at the vice-presidential level. The two major components of the E&G budget are general operating expenses and compensation expenses.
Monitoring general operating expenses (e.g., current expense, travel, capital equipment) has generally been decentralized to our operating units. Units are expected to manage their operating budgets in a fiscally responsible manner with surpluses/deficits carrying forward.
With salaries and benefits at approximately 85% of the state-appropriated budget, budgetary control is extremely critical. Any deviations from the original budgeted amount must be approved by the departmental head, the dean/director, the human resources department, and the supervising vice president. Budgetary control of benefits is performed in the budget office. A standard benefit rate is charged on all contract salary payments. This standard rate is determined based upon the prior year’s actual expenses and any projected increase for the year. Use of a standard rate stabilizes benefit costs at the department level.
There are similar and well-established budgetary control procedures established for non-E&G entities. Auxiliary enterprises, service enterprises, grants and contracts, gifts, and intercollegiate athletics are examples of subsidiary budgetary control.
Internal Control Systems (7.C.3)
Our overall internal control systems have consistently been judged effective by the results of auditor examinations (both external and internal). While existing systems have been developed to promote sound financial and management practices, we respond to and implement all legitimate internal control recommendations. Since 1994, independent auditors’ management reports provided a minimal number of recommendations. Appropriate internal controls are in place, well established, and subject to review, both internally and externally, for all types of expenditures.
Trustee Audit Review Committee
The Utah Board of Regents revised policy R565 on audit committees in 2003. The new policy establishes a Board of Trustee audit review committee. As a result of this action, we approved a new policy (5-10c) on August 7, 2003, to establish our audit committee and define the reporting process. Our audit committee consists of at least four and not more than six members, at least three of whom must be members of the Board of Trustees. They meet at least three times a year and perform the following functions:
- Approve annual audit schedule with the advice of the president
- Review and close all internal audits
- Review all regent-required audits
- Review primary external audits
- Interact with external auditors
- Assess internal control environment
- Assess process for receiving anonymous complaints
- Assess compliance with applicable laws
- Review audit function organization
- Concur in the appointment and replacement of audit director
- Review and approve minutes
- Report to the regents annually
- Report to the trustees quarterly
General Expenditure Controls
General expenditure controls begin at the department level. The department head is responsible for verifying that funds are available and the expenditure has an appropriate purpose. All requisitions must be approved electronically. Departments are required to review their monthly reports of expenditures to verify the listed transactions.
All requisitions are examined by the purchasing department prior to processing to assure general policy compliance. The buyers evaluate the need to competitively bid requested items or combine similar orders to achieve quantity discounts. There are specific bid guidelines at different expenditures levels. All operational expenses with an estimated purchase price of $20,000 or more ($30,000 or more for construction services) are formally bid consistent with our policy and the State of Utah Procurement Code.
Accounting Services inspects all requisitions for direct-check payment for federal and state law compliance, policy compliance, correct coding, sufficient budget balance availability, and adequate supporting documentation. All requests for direct payment by check must have two signatures.
The internal audit department provides an additional general control over expenditures. All departments are audited on a periodic basis to evaluate internal controls and expenditure compliance with established laws, regulations, and policies.
Specific Expenditure Controls
In addition to general expenditure controls, there are specific controls by type of expenditure and the fund source of expenditure. The expenditure categories that have additional specific controls include payments for personal services (e.g., payroll), grants and contracts, scholarships, grants in aid, and purchasing card transactions.
All payments for personal services must have at least two signatures including the department head and the dean/director. Contract salary payments are budgeted at the beginning of each year and monitored monthly by the payroll office. Any deviations from the original budgeted amount must be approved by the departmental head, the dean/director, the human resources department, and the supervising vice president. Hourly employees (including students and non-students) must initially register with the Career Services Office. Once hired, hourly employees use the automated time and attendance system to record their work hours. For federal work study hourly employees, the Financial Aid Office establishes an award limit. Once this award limit is reached, the time and attendance system automatically recognizes the need to establish the employee as a regular hourly employee.
Requests for expenditures on grant and contract accounts must be signed by the principal investigator, the appropriate department head, and the accountant responsible for grant and contracts. The Office of Sponsored Projects also reviews and approves expenditures to ensure compliance with requirements of the grant/contract.
In 2003 we implemented a new automated scholarship management system. Under this new system all students awarded a scholarship must accept on the University’s designated web site. Once accepted, the Scholarship Office inputs the award into the student information system as a source of revenue for the student to pay tuition and fees. Throughout the awarding period the Scholarship Office monitors the scholarships for applicable requirements of the award (i.e., minimum grade point average and minimum credit hours).
We fully control the administration of federal student financial aid. Awards are made based upon a federal formula that is used to establish a student’s need for financial assistance. Federal Pell grants are awarded using the federal Pell grant payment schedule provided by the U.S. Department of Education and factoring in the student’s enrollment level and cost of attendance. For additional control the financial aid office authorizes payment, while the business office makes the payment to eligible students. In conjunction with our annual financial audit, the independent auditors review the financial aid program on an annual basis to ensure compliance with general and state guidelines. Since 1994, only a minimal number of recommendations have been proposed.
During 1997, the purchasing department implemented a purchasing-card (P-Card) system to more effectively and efficiently process small dollar purchases. A comprehensive P-Card system was established with automated expenditure controls (e.g., amount and type) with mandatory training for all P-Card holders, mandatory departmental supervisory review and approval, monthly expenditure review in the purchasing department, and periodic examination by the internal audit department. The current limit of P-Card purchases is generally $1,000.
Cash Receipting/Revenue Controls
Our largest funding source is state-appropriated tax dollars. Once the appropriated amount is established, a “drawdown” schedule is developed with the state. This schedule attempts to align our working capital needs taking into account projected tuition and fee collections throughout the year. The state electronically transfers the funds into our investment account with the Utah State Treasurer’s Office. Monies are transferred to our operating account to meet financial obligations. These procedures are well established and monitored closely by the university and the state.
Student tuition and fees are the second largest revenue source of the institution. The billing and collection of tuition and fees are managed centrally within the Bursar’s Office. Once statements have been distributed, students have the option to pay on the internet, through the mail, or in person at the cashier’s office. Students also have the option of registering for an Institutional sponsored payment plan. Outstanding balances are monitored closely and actively collected on throughout the semester. All unpaid students at the end of a semester are restricted from registering for another semester until the outstanding balance is paid.
Grants and contracts (including federal, state, and local) are the third largest revenue source. Because generally these are established on a cost reimbursement basis, this area is managed closely within Accounting Services. Reimbursements are processed according to requirement of the grant or contact. Periodic billings (i.e., monthly or quarterly) are prepared and processed through our accounts receivable system. Pell federal financial aid is the largest single component within grants and contracts. At the beginning and through the first few weeks of each semester, a daily evaluation is made to determine the authorized drawdown amount from the U.S. Department of Education. We are knowledgeable of and sensitive to federal guidelines regarding drawdown procedures. These procedures are examined each year by our independent financial auditors; no exceptions have been noted. Draw-downs are monitored in Accounting Services, the Financial Aid Office, and the U.S. Department of Education to ensure that only authorized amounts are processed.
Revenues generated in auxiliary enterprises are another major component of our revenues. Each auxiliary is responsible for preparing deposit reports that agree with supporting documentation. All revenues are required to be deposited within three working days of receipt. Once the deposit reports are prepared, they are deposited with the cashier’s office where they are reconciled to the cash report. All auxiliaries are required to match their supporting documentation with the data that are entered into the accounting system.
Gift Processing and Receipting (7.D.1)
University Development complies with Internal Revenue Service regulations in the receipting of gifts and follows guidelines established by the Council for Advancement and Support of Education (CASE), as outlined in the Case reporting standards and management guidelines.
The gift processing area in University Development records all gifts to WSU, including cash, in kind, real property and stock. Donations are accepted through the U.S. mail, in person, through campus mail, and online. All gifts are opened by two people, as required by the internal auditor and listed on a form. The gift processing staff enters each gift into the constituent’s gift record in Banner. Banner produces a report that is verified by a third staff member in the development office. The report is verified against the donations form and checked for errors. After the verification of accuracy is complete, University Development feeds the gifts to Accounting Services through a Banner process. The money donation form, Banner report, and a calculator tape of all checks are taken by the WSU police to the cashier’s office.
The Development Office then produces individual donor receipts which are sent to the donor. Accounting Services receives copies of the donor receipts and verifies them against the original Banner report.
Employees are able to make gifts to WSU through payroll deduction. Using a delivered Banner process, deductions are processed for each employee by Payroll and forwarded to Accounting Services. The Development Office determines the correct designation and forwards that information to Accounting Services which then reconciles the two transmittals. Each employee who has made gifts through deduction receives one receipt in January of the next calendar year. That receipt lists each gift fund to which the employee gave through payroll deduction and the total amount designated to each fund. Employees who make other types of gifts through the year receive receipts through the regular process described in the preceding paragraph. Those receipts are sent at the time the gift is made.
The Department of Athletics solicits gifts for student-athlete scholarships though the Wildcat Club. That department deposits gifts with a WSU cashier and sends a report to University Development detailing the donor name, date of the gift, and amount. The gifts are entered in Banner and donor receipts are produced.
Treasury Management (7.C.4, 7.D.2)
Our treasurer, in partnership with the University Investment Committee, is responsible for cash management and investments (including endowments). These areas are managed and governed by the Board Regents policies and procedures, our Board of Trustees’ approved investment policy and the State of Utah Money Management Act. These investment policies provide general and specific provisions in the management of funds. The investment committee has broad representation that includes:
- Business affairs committee of the Board of Trustees representative
- Foundation Board of Directors representative
- Community members with investment management experience
- Other key institutional officers
This active committee meets once a quarter and reviews current economic conditions and current strategies. Based upon this broad-based input, the committee formulates future strategies.
Independent Audits (7.B.3, 7.C.3, 7.C.9, 7.C.10, 7.C.12, 7.c.13)
The State Auditor’s Office conducts or contracts our annual financial audit, which covers all aspects of operations, including the Weber State University Foundation. As part of the financial audit, a management letter is prepared outlining any recommendations. We have received “unqualified audit opinions” from our independent financial auditors over the last 10 years. The positive results of these audits are an indication of our overall financial health. The examinations also provide a level of assurance to our governing boards that management and accounting controls are operating effectively.
Over the last 10 years, there have been a minimal number of recommendations that can all be classified as minor in nature. All recommendations are examined closely and are implemented when internal controls can be improved.
In conjunction with its financial audit, the State Auditor’s Office also conducts the Single Audit of federal financial assistance. This audit is conducted in accordance with the requirements of the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profits Organizations. Given the size of our federal financial aid, specific audit work is performed on these programs. Over the last 10 years, there have been a minimal number of recommendations that can all be classified as minor in nature.
The State Auditor’s Office also annually conducts our NCAA athletics audit. Again, over the last 10 years, there have been a minimal number of recommendations that were all minor in nature.
Reports of these independent audits are available for review.
Internal Audit Department (7.C.3, 7.C.11, 7.C.12, 7.C.13)
We maintain an effective internal audit department staffed with experienced and qualified auditors. Long-term and annual internal audit schedules are maintained and approved by our Board of Trustees. Financial examinations, internal control reviews, compliance audits, and procedural reviews comprise the majority of activities in the department. The internal audit department is considered an integral component of the financial and management control system. The department reports directly to the president and has reporting responsibilities to the Board of Trustees Audit Committee, Board of Trustees, and the Utah State Board of Regents to ensure appropriate levels of independence and objectivity exist.
Reports of internal audits are available for review.
Fund Raising and Development (7.D.1, 7D.3)
The Office of University Development is responsible for coordinating our fundraising activities and for receiving and acknowledging all private gifts of cash, real property, securities, and in-kind items. Policies and procedures relating to University Development’s role and responsibilities are found in our Policies and Procedures Manual at the following web sites: https://documents.weber.edu/ppm/2-01.htm and https://documents.weber.edu/ppm/2-02.htm.
Any organized development program to seek financial support from outside sources is closely coordinated with academic planning and reflects the mission and goals of the institution. All college/university fundraising activities are governed by institutional policies, comply with governmental requirements, and are conducted in a professional and ethical manner.
Fund-Raising Activities (7.D.1)
University Development is organized on a constituency-based fund-raising model. Each of our seven colleges has a fund raiser liaison who works with the dean on academic priorities. Additionally, development directors support the Division of Student Affairs, athletics department and the Stewart Library. One development director oversees the annual fund program, which includes direct mail, phoning, and electronic solicitation components. Each year annual fund priorities are determined in consultation with the Vice President for University Advancement.
We are an institutional member of CASE, and all WSU fund raisers are members under the institutional umbrella. (The CASE Statement of Ethics, which we abide by, can be found at https://www.case.org/Content/AboutCASE/Display.cfm?contentItemID=2570)
Weber State University Foundation (7.D.3)
The Weber State University Foundation is incorporated under the laws of the State of Utah and acts and operates exclusively for our benefit, as described in the provisions of Section 501(c)(3) of the Internal Revenue Code. The foundation has no employees and operates from the Office of University Development with the Vice President for University Advancement acting as executive director and as secretary by right of office. The Vice President of Administrative Services serves as foundation treasurer by right of office. The members of the Board of Directors are appointed by our president.
At the donor’s direction, any gift may be accepted by the foundation. Foundation gifts are processed and receipted through the university system. All charitable gift annuities are accepted through the foundation.
The institution has a clearly defined relationship with any foundation bearing its name or which has as its major purpose the raising of funds for the intuition.
Copies of the Weber State University Foundation Articles of Incorporation and By-Laws are available for review.
Independent, Proprietary Institution Requirements (7.C.6, 7.C.7, 7.C.8)
We are neither independent nor proprietary.