May 7 2008 Audit Committee EFS Impact on Internal Controls [Compatibility

Impact oof f the Enterprise FFinancialinancial System and New Auditing Standards on the University’s Internal Control EnvironmentBoard of Regents Audit Committee MayMay 7, 2008Summary• The PeopleSoft Enterprise Financial System (EFS) will have a long-term positive impact on internal controls• Implementation of the new auditing standards will increase effectiveness of internal control documentation• These cchangeshanges will enhance thethe COSO Framework of Internal ControlCOSO Framework of Internal ControlThe five elements:– Monitoring– Information & communication– Control activities,– Risk assessment– Control environment (“Tone at the top”)EEtssentiial for:– Effective and efficient operations– Reliable financial reporting– ComplianceCOSO Framework of Internal ControlsEFS Impact• EFS – Enhanced monitoring ofof financial activitiesactivities and business processes– ImprovedImproved control activities from process design, syygstem design and configuration, transaction executionFinancial Activities & Transactions Heat MapContracts for Alternative Professional Service InvestmentsDebtTravel & Oversight of HospitalityCash External Investment ExpensesReconciliationsManagersCash Sponsored Billings &MtManagement AtAccounts RReceivabblleRegulatory CostNon-Sponsored A/R Accounting Construction Affiliated Transactions OrganizationsCompetent,Competent, Financial Student Qualified StaffA/PSystems & ...