Skip to main content
University of Washington
UW Finance

Financial Risk Summary of Internal Controls - Self-Sustaining Roles and Responsibilities

Self-Sustaining Unit Oversight Controls

Chancellors, Deans, Vice Presidents, Vice Provosts, Vice Chancellors and Director Responsibilities

  • Ultimately responsible for financial performance of all self-sustaining units within their organization and approval of new units to be established.
  • Review financial positions and material changes from original budget and related qualitative issues of the units with Administrator or Financial Director. An annual budget should be reviewed, and subsequent updates of actual to budget should occur.
  • Participation in annual P&B/FM discussions is appropriate for Deans/VP's or their administrators who oversee "large" units (currently those units exceeding $10M in annual revenues).
  • Responsible for reviewing and approving recharge and cost center rates
  • Review recharge and cost center quarterly reports.

School Administration Roles & Responsibilities

  • Responsible for reviewing all self sustaining units within the organization, consolidating information as necessary, and presenting summary financial information to Dean / VP on periodic basis.
  • Consolidate / review reports on a periodic basis.
  • Raise issues as appropriate to Dean/VP: ex: deficits that will extend beyond the fiscal year caused by either operations or capital purchases.
  • Reviews should include a general discussion around business model (any changes from original projections, upcoming capital needs) and qualitative issues impacting business model such as:
    • Change in expected demand
    • Change in customer base
    • Legislative changes impacting state funding
    • Currency exchange rates
    • New competing businesses
    • Change in key staff
    • Capital purchases
    • Other trends
  • Determine sources of funding within the School / organization if applicable (i.e. if a deficit position is likely). If deficit position will extend beyond the fiscal year, see deficit policy.
  • Material changes from original budget as well as significant issues noted in the qualitative analysis should be discussed.

Management Accounting & Analysis (MAA) Roles & Responsibilities

  • Review initial rate proposals to establish both service and recharge centers
  • Review and approve service and recharge center rates
  • Review cost center proposals when one of the following occurs: new services or products are added, or significant changes are made to the methodology used to calculate the rate(s).
  • Review recharge centers' quarterly reports
  • Approve recharge center working capital amounts
  • Periodically review service and recharge center classifications
  • Over $10M: in conjunction with the Office of Planning & Budgeting, perform annual review of large internal sales units.

Controller's Office Roles & Responsibilities

  • Over $10M: In conjunction with Planning and Budgeting, perform annual review of large, non-externally audited auxiliary units.

Office of Planning & Budgeting Roles & Responsibilities

  • Ultimately responsible for deployment of University central funds. In that respect, Planning and Budgeting is responsible for overseeing the financial activities of the self sustaining units as their negative performance could ultimately impact the central funds.
  • Over $10M: In conjunction with Controller's Office (auxiliaries), or MAA (internal sales units), annual review of large, non-externally audited units (in person). This review will include FAS balances (per report element column) as a starting point, along with qualitative information regarding impacts and risk to the related business

Operational Controls

Minimum Reporting Elements: (entire unit)

  • FAS Balances
    • Revenues by source
    • Expense by object code
  • Beginning & Ending fund balance
  • Preferable to include for a full financial picture:
    • Inventory
    • Accounts Receivable
    • Accrued liabilities
  • All reports should include prior year actuals as well
  • In addition to the quantitative items above, also include qualitative issues impacting business model such as:
    • Change in expected demand
    • Change in customer base
    • Legislative changes impacting state funding
    • Currency exchange rates
    • New competing businesses
    • Change in key staff
    • Capital purchases
    • Other trends

Unit Financial Manager / Director Roles & Responsibilities

  • Responsible for ensuring strong financial controls, providing accurate financial information to School Administrator and Dean/VP, as well as providing necessary updates as to expected future financial performance.
  • If unit does not have resources to produce the quantitative report, Enterprise Reporting support is provided by Decision Support.

Audit Controls

Internal & External Auditors Roles & Responsibilities

  • If external debt (or debt with internal lending program) annual audit required

Policies & Procedures

Establishing Service & Recharge Centers

Establishment of self sustaining unit policy