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UTMB Management Responsibilities Handbook
Fiscal Oversight
Accountability
The department head may delegate financial responsibilities to the
department administrator, but cannot delegate accountability. A department
head who delegates financial responsibilities to the department administrator
needs to establish formal and informal procedures to remain informed
of the financial actions and status of the department. The Senior Associate
Dean for Administration, assistant vice presidents and executive directors
are resources to the department heads in establishing these procedures.
The associate/assistant deans in each of the schools, the Business
Administration assistant vice presidents, and the hospital executive
directors have general oversight responsibilities to ensure that departments
fulfill their financial and legal responsibilities.
Major Fiscal Oversight Responsibilities
Each department head will establish a financial plan based on programmatic
priorities that result in a sound financial condition for the department.
To assure that resources are properly used and safeguarded against waste,
loss and misuse, the department head will also establish ethical values
and sound business practices and maintain a system of internal controls.
This system will include methods and procedures for the separation of
duties, proper approvals, security of physical, informational and intellectual
assets, and review and reconciliation of the department’s accounts.
Functions of those responsible for the execution of the system will
be to:
• Implement monitoring and reporting procedures to measure
progress in achieving the financial plan and
to avoid overdrafts for all accounts including gift, grant and contract
funds.
• Operate the department in compliance with all applicable laws
and regulations, with all university policies and
procedures, and with the terms and conditions of gifts, grants, and
contracts.
• Perform an annual physical inventory of all inventoried equipment
assigned to the department and assure that university property
is used for official purposes only. Identify unauthorized
transactions and provide immediate feedback to management if
a loss of university assets or any significant irregularity
has occurred.
Potential Problem Areas – Finance, Assets
Department heads should take the following precautions to avoid situations
that could result in conflict of interest or financial loss.
• Entertainment expense reimbursements and payments must be within
the university limits from the appropriate fund -
never from educational and general, service department or
federal funds - and require the approval of the department heads and
appropriate administrators.
• When an employee signs any document as the approving authority,
he/she must sign his/her own name.
• Employees should not approve disbursements to themselves.
• Deposits should be made daily if total receipts are $200.00
or greater, or weekly if the accumulated deposit
is less than $200.00. Cash and checks received for the university must
be deposited in accordance with the Regents’ Rules, and must be
adequately protected from theft or misappropriation.
• Financial systems developed by a department must demonstrate
that income and expenses reconcile to the general
ledger, which is the official record of UTMB financial transactions.
• Employees must comply with the UT System, state ethics laws,
and UTMB policies and procedures regarding the acceptance
of gifts, favors or services.
• All payments to, or for the benefit of UTMB employees, must
be according to personnel policies and compensation
plans.
• University funds, assets, or resources cannot be used for personal
gain. This includes the purchase of products for personal
use, or the purchase of products or services from oneself
or a relative, or from other department employees or their relatives.
• Full records of equipment not on university premises must be
kept in the department. Equipment that is used in
individuals’ homes or other locations remains the property of
the university and must be returned when no longer
used for university business.
• Certain types of equipment and supplies, such as personal computers,
televisions and drugs are susceptible to theft and
misuse and require higher degrees of control. The department
head is ultimately responsible for safeguarding all department assets.
• Charitable and/or political contributions cannot be made from
university funds.
• All clinical trials agreements and non-purchase order contracts
must be reviewed and approved by Research Services
(SPA) or the Vice President for Business and Administration,
prior to being accepted. Signature for these contracts rests exclusively
with university administration. Department personnel,
including the department heads, may not sign such
contracts and obligate the university.
• All managed care contracts must be reviewed and approved by
the Associate Vice President of Managed Care prior
to being accepted and signed.
• The Risk Management Department or the Hospital Chief Executive
Officer must be promptly notified of any patient complaints
regarding medical services provided.
• Consulting agreements between a faculty member and an outside
organization (commercial or non-commercial) are considered
outside employment under the University of Texas System
Regents’ Rules and Regulations, and must receive prior approval
of the department head and dean to assure that the duties under the
agreement do not conflict with the duties the employee
owes to UTMB. In clinical departments, a determination
must also be made as to whether the money will become MSRDP income.
Administrative service units that provide expertise and assistance
in the above areas are Finance, Audit Services, Human Resources, Materials
Management, Research Services, Purchasing, University Advancement, Institutional
Compliance, Risk Management, Employee Injury Management, and the Office
Planning and Management Systems.
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