Auxiliary Standard Operating Procedures


SUBJECT:

Auxiliary Voucher Approval & Review Process

SOURCE:

Auxiliary Accounting, Financial Management Services

DATE ISSUED:

July 1, 2017

DATE OF LAST REVISION:

N/A

ASOP NO:

26.0 

RATIONALE:

 

ASOP:

Auxiliary Vouchers Require Two Approvals

 

In order to mitigate the risk of material misstatement to the University Financial Statements, Auxiliary Vouchers must be approved by two individuals who are familiar with the accounting entries for a given unit. Given that each unit is organized differently, the types of roles that the two approvers have may be different for each organization.

 

The first approver will typically be the initiator of the document. In the event that the fiscal officer (or their delegate) is not the initiator of document, the fiscal officer (or their delegate) can act as the second approver.

 

In the case where the fiscal officer (or their delegate) is the initiator of the document, we would recommend that the RC fiscal officer (or their delegate) act as the second approver. However, other options could include the account manager, account supervisor, another employee within the unit or someone from the campus that is familiar with the accounting entries.

 

The organization, RC and Campus are responsible for determining which individual is the best to fulfill the second approver for each unit. If a determination is not made, Auxiliary Accounting will update the org review hierarchy with the RC fiscal officer.

 

Ensuring Each AV Has Two Approvers:

 

While we have requested that a systematic/technical change be made to KFS to automate the second approval for those that do not already have something established, we do not have an estimate on when this could be incorporated into KFS. In the meantime, Auxiliary Accounting will be monitoring that each reporting and non-reporting auxiliary and service unit have two individuals approving each Auxiliary Voucher

 

Instructions for Creating Org Review Routing:

 

Instructions for the Creation of Org Review

 

University Administration Oversight:

 

Auxiliary Accounting will continue to approve all AV documents over $500,000. (This will not serve as the second approver of the document.) Please be sure that Auxiliary Vouchers have received approval and routed to the Auxiliary Accounting action list by 5:00pm. If you need vouchers approved after 5:00pm or on the weekend, please send a request to auxacct@iu.edu before the end of the normal work day.

 

AV documents equal to or under $500,000 will no longer be approved by Auxiliary Accounting as of July 25, 2017 (after FY17 final close).

 

Auxiliary Accounting will also add after the fact reporting to monitor the AV document. Auxiliary Accounting is planning to use data analytics to provide additional oversight for the AVs.

DEFINITIONS:

 

CROSS REFERENCE:

 

RESPONSIBLE

ORGANIZATION:

 

Auxiliary Accounting, Financial Management Services