| 1. |
Effective financial management of a department involves two related components:
- Budgeting &
- Financial accounting and reporting.
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True |
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False |
| 2. |
A monthly reconciliation of the department’s ledgers is an excellent control, but the oversight and control value of the reconciliation is greatly diminished when the reconciliation is performed by the same employee who, for example, entered the transactions or processed the invoices for items purchased by the department. Whenever staffing allows, the duties of cash receipting and processing payments should be separated from the duty of reconciling the ledgers. |
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True |
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False |
| 3. |
The Department Ledger Report_ is an accounting document representing the current budget and expenditures of a department’s cost center(s) or of a particular sponsored project WBS element. Properly reconciling, reviewing, and approving the ledger report every month are the best ways to maintain adequate control over your department’s expenditures. |
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True |
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False |
| 4. |
The ledger has three sections:
- Sources and uses of funds
- Current period line items (the detail of postings during the period)
- Budget analysis comparing budgeted to actual totals by commitment item
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True |
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False |
| 5. |
You have the authority to approve financial and human-resources transactions for the department. While you may designate one or more alternate approvers. However, you are not ultimately responsible and accountable for the funds center’s transactions being reasonable and appropriate and for complying with university policies and procedures. |
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True |
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False |
| 6. |
Your main responsibility in HR/payroll management is to ensure that accurate information is entered in IRIS and is submitted as soon as possible when an employee is placed on or removed from the payroll or when the existing HR/payroll information needs to be updated. (see the Appendix). Human-resource action requests may be processed electronically in IRIS or on paper HR/payroll forms. |
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True |
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False |
| 7. |
The principal investigator (PI ) is the university employee who is primarily responsible for administering the grant or contract. |
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True |
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False |
| 8. |
Work breakdown structure (WBS ) elements are used to collect revenues and costs for sponsored programs with specific start and end dates, donations, gifts, loans, and all other restricted funds. (Examples of WBS labels: R180014321, F179901010). |
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True |
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False |
| 9. |
A purchase order (PO ) is the official purchasing document that is sent to vendors to initiate or, in some cases, confirm purchases. PO are for items costing, |
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$5,000 or more |
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$10,000 or more |
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$20,000 or more |
| 10. |
Departments may need to obtain services from people or external business entities that require contractual agreements. A formal contract is required when the cumulative cost of services by an independent contractor is |
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$1000 or more |
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$5000 or more |
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$10000 or more |
| 11. |
The University of Tennessee Procurement Card Program provides an efficient, cost effective alternative for departments to make purchases costing less than $5,000 (purchases of $5,000 or more must be bid). Using the card may greatly reduce the department’s need for a petty cash account. |
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True |
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False |
| 12. |
Money received as payments is extremely vulnerable to theft or misappropriation. It is therefore essential that departments take all appropriate actions to safeguard these funds until they are deposited. |
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True |
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False |
| 13. |
Before making allegations of dishonesty, you should be reasonably certain of any claims. Such allegations can affect the accused person’s life negatively and can damage the working environment of your department. |
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True |
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False |
| 14. |
Many accounting software products offer accounts receivable functions that may provide several of the safeguards mentioned above. If the department plans to use such a product, you should discuss implementing the product with the internal audit department of your campus or institute to ensure that the necessary safeguards are in place. |
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True |
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False |
| 15. |
A suspected compromise of any system that stores, processes, or transmits information considered confidential-for example, student-information, credit-card, or patient systems-must be reported immediately to the campus or institute office that handles information security incidents to ensure that any evidence is not corrupted. |
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True |
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False |
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