Treasurers Town Hall J. Michael Gower Executive Vice President, - PowerPoint PPT Presentation

Treasurer’s Town Hall J. Michael Gower Executive Vice President, University Finance and Administration University Treasurer November 8, 2018 College Avenue Student Center

Nimish Patel Chief Procurement Officer

Topics to be Discussed  Voice of the Customer  Purchasing and Travel Cards  RU Marketplace  Expense Management 3

Listening to the “Voice of the Customer” University Procurement Service’s (UPS) Mission  Provide customer service to meet function’s purchasing needs  Identify and deliver value to the organization as a whole Voice of the Customer Universitywide assessment to baseline UPS against our goals to become a customer-focused, strategic service organization. 4

About the Voice of the Customer (VOC) Initiative Comprehensive review of UPS operations to understand the perception, needs and expectations of the organizations we serve Face-to-face Online survey Benchmarking interviews with among University against Big10 peer Deans, Chancellors community groups and leading and Business practices Managers 5

VOC: Leading Practices and Benchmarking  Multi-channel stakeholder engagement  Deep analytics capabilities  Separate strategic sourcing and purchasing operations Leading Practices  Supplier relationship management  Centers of Excellence  Dashboard, performance metrics, and reports University Benchmarks 6

VOC: Key Findings Stakeholder Discussions – “Voice of the Customer” (cont’d)  Unresponsive (black hole), inaccessible, rigid, no expertise  No data reporting available Perceptions  Policing instead of helping and partnering  Campus Liaison program is well-received Campus Relationship/  UPS staff (Newark, Camden) drive collaboration Alignment  Limited, inconsistent updates and recommendations Communications  Confused by new policy, procedures, forms  Lack expertise regarding data/reporting and analytics Data / Reporting  Unit-level spend data is needed  Universitywide spend not leveraged Strategic Sourcing  Lack of sourcing mindset, v. purchasing mindset Value Creation  Want consultative approach, more flexibility and speed  Operational issues with requisitions, travel and expense Systems / Process 7

VOC: Where Do We Go from Here? Stakeholder Discussions – “Voice of the Customer” (cont’d) As a forward-leaning, customer-focused organization, UPS will be in position to contribute to the bottom line and top line , propelling us forward from a buying to a sourcing organization. To become a forward leaning, customer-focused organization, UPS will  Partner with campuses, including cross-campus collaborations  Align with department’s priorities  Encourage customer-focused decision making  Simplify business processes  Adopt an “enabler for success” mindset 8

VOC: Recommendations and Benefits Key Recommendations Benefits  Improved customer service Deploy a consolidated  Value creation (cost reduction) organization in support of People  Continuous improvement strategic goals  Development opportunities  Improved collaboration  Strategic planning Deepen relationships with Process  Reduction in transactions campuses, schools, and units  Operational efficiencies, rebates  Improved performance Systems Develop stronger linkages  Operational efficiencies and Data between data systems  Strategic insights, risk management Analytics  Transparency and accountability  Value creation (cost reduction)  Shared goals / team benefits Build strategic partnerships with Governance  Greater, mutual accountability campuses and units  Improved spend, budget controls Realign operating model to address unmet and evolving University needs 9

Purchasing and Travel Cards  Purchasing Card o Pilot with Athletics, Mason Gross School of the Arts (completed) o Phase 1 • Diners Card replacement (started) • Usage analysis for high-impact purchasing (in progress) • Target launch 4Q18 (200+ cards)  Travel Card o Launched pilot with President’s Cabinet (Oct 1, 2018) o Replaced American Express cards with Bank of America Visa cards o Replace JP Morgan cards (planned) 10

RU Marketplace and Expense Management Jaggaer applications  Mobile application release on Apple iOS (Available Nov. 1, 2018)  Contact Procurement help desk for account activation  Android application (TBD) I-Expense (mobile) application  Mobile application in testing (TBD) 11

Ruth Stevens Chief Audit Executive

Topics to be Discussed • Who is Audit and Advisory Services (formerly Internal Audit)? • What does Audit and Advisory Services Do? • What is our Audit Process? • Contact Us 13

WHO IS AUDIT AND ADVISORY SERVICES? 14

Our Vision Adding value across Rutgers by providing services and guidance that result in effective management 15

Audit and Advisory Services at-a-Glance Integrated Team Approach People Interactive Audit Process Collaboration Tools Audit and Advisory Technology Process Services Follow-up on Data Analytics and Recommendations Visualizations Collaboration University Ethics and Compliance Senior Leadership Team and Management 16 Big Ten and Ivy Plus Peers

Our Organization Lydia Gray University Ethics & Matt Katz Ruth Stevens, PMP, CIA, CISA Shared Department Compliance Office Manager of Data Analytics Chief Audit Executive Administrator Nicholas Di Giovanni, CIA, CISA Director of Audit and Advisory Services Information Technology Audit Services Advisory Services Audit Services Latha Sharma, PMP, CISA Marion Candrea, CIA, CFE Manager of Manager of Audit & Advisory Services – Audit & Advisory Services IT and Healthcare (H) Odir Chavez, CIA Erin Egan, CPA, CIA Yiya Yuan, CPA Patrick Egan, CISA Senior Auditor Senior Auditor Senior IT Auditor Senior Auditor (H) John Makropoulos, CPA Colleen Tedeschi, CIA Thomas Scarantino John Tschirpke, CISA, CISSP Senior Auditor Senior Auditor Senior Auditor (H) Senior IT Auditor Marilyn Carnevale, CPA, CIA Patrick McNamara, CIA Jean Cineas Maricelly Salazar Associate Auditor Associate Auditor Associate Auditor Associate IT Auditor (H) – Healthcare Subject Matter Expert 17

WHAT DOES AUDIT AND ADVISORY SERVICES DO? 18

Our Services  Continuous improvement of departmental operations  Increased effectiveness of controls and governance practices to mitigate risk  Proactive response to compliance, fraud, cyber security and data privacy concerns  Support of informed decision-making through data mining and analytics  Serve in an advisory capacity on committees  Facilitate communication between departments 19

FY2018 Activities and Key Accomplishments Audit and Advisory Projects Universitywide Initiatives  14 internal audit reports presented to  Cornerstone Finance Audit Committee Committees  Rutgers Hotline monitoring  Chart of Accounts Initiative  Procure-to-Pay Data Analytics  Cross validation rules  Accounting procedures  Continuous monitoring scripts  Interactive T&E dashboard  University Budget Office  Newark 2020  Enterprise Tableau server  Annual NCAA compliance reviews in  Data warehouse Division of Intercollegiate Athletics  Reporting Optimization  Reduced past due audits (2+ years) from 16 to 1  Reporting and Analytics Center of Excellence  219 recommendations closed/ implemented since May 2017 20

Planning Process for Annual Audit Plan Evaluate internal and external inputs to develop an initial plan that aligns audit’s priorities with Rutgers’ overall objectives and risk areas Results Key Inputs Process  Understand institutional  Senior leader strategic 2019 Audit and objectives, initiatives objectives Advisory Plan  Interview senior  Enterprise Risk leaders, management Management data High-level  Identify and assess key  Compliance concerns objective, scope, risk areas  Prior year audit findings timeline  Develop potential audit  Management requests and advisory activities  Hotline activity to evaluate control Framework to  Data incident response / environment for high update investigations priority areas management and  Higher education trends audit committee throughout 2019 and best practices 21

2019 Audit Plan Highlights Finance and Operations  Employee off-boarding and employee transfer process  Cash management operations (petty cash, wire transfers, gift cards)  Treasury management (review of active bank accounts)  Purchasing card program (review of procedures, data analytics)  University Finance and Administration review of human resource and procurement procedures and communications Healthcare, Research and Compliance Information Technology and Systems  System Implementation Quality  Sponsored Research (Post-Award Assurance and Advisory Support Billing/ Collection, Service Centers)  Cornerstone Advisory Support  Annual Athletics Audit and Compliance Program (NCAA Year 3)  IT Security and Support Assessment

WHAT IS OUR AUDIT PROCESS? 23

Audit Process: Research and Planning On-Request Annual Audit Plan Project Scoping the audit Planning the audit Conduct Determine client need background Develop Request and develop audit and best internal audit documentation scope and objective practice work plan from client research Create or update audit file 24