To: University Business Managers
From: Dennis Press
University Controller
Date: January 31, 2012
Along with the other campuses in the UNC System, our campus has been participating in a project led by UNC General Administration, the UNC Finance Improvement and Transformation initiative, also known as UNC FIT. UNC FIT seeks to strengthen the control environment and align UNC people, processes, and technology by implementing short-term process improvements and laying the groundwork for centralization of certain back office financial operations.
These goals are to be accomplished through implementation of a series of process improvements in key areas that will involve documentation of minimum baseline process standards; creation of standard templates, checklists, and forms; and tracking of key performance indicators. UNC FIT initiatives that have been undertaken are in the following areas:
- Contracts and Grants
- General Accounting and Financial Reporting
- Financial Aid
- Capital Assets
- Student Accounts
One standard in the General Accounting area pertains to the importance of monitoring cash balances in trust fund accounts and avoiding negative cash balances. Specifically, the UNC FIT standard states:
Quarterly, a report should be generated that provides cash balances of all trust funds for review by the University Controller or as designated. The report should be used to determine funds carrying negative cash balances. Appropriate action should be taken to address significant negative cash balance positions that are not approved by the CFO or designee. Negative cash balance positions should never exceed the universities available unrestricted cash balances.
My purpose in writing is to request that your department take action to ensure this General Accounting standard is properly addressed by reviewing the cash balances of your trust fund accounts and processing appropriate transactions to help ensure trust fund accounts have a positive cash balance. Your department may have existing reports to perform this monitoring activity, or you may wish to use the cash monitoring reports from Finance Central. Log into Finance Central at https://itsapps.unc.edu/frs/, select Other Services, then select Reports, and then select Cash Monitoring Reports.
As indicated in the UNC FIT standard, my office will periodically review trust fund accounts for negative cash balances to help address significant negative cash balances. Thank you for your help in addressing this UNC FIT standard