ELIZABETH PRESTON
WESTFIELD – Westfield State University yesterday released a report by the state Office of the Comptroller, which reviewed its current financial policies and controls. Interim President Elizabeth H. Preston had requested that Massachusetts State Comptroller Martin Benison undertake the review as part of the university’s own accelerated evaluation of policies, procedures, and internal controls to make sure they are consistent with best practices and to assure appropriate use of university resources.
“We are deeply grateful to Mr. Benison and his team for undertaking this expedited review as part of the university’s own rigorous review of policies and controls,” said Preston. “While the report identifies areas for improvement, as we expected it would, it also validates many of the steps we have taken proactively to improve understanding and compliance with financial policies and procedures and confirms that we are moving in the right direction.”
According to a university spokeswoman, Preston and Interim Vice President of Administration & Finance (A&F) Kimberly Tobin have made it clear to faculty and staff that adhering to policies and procedures related to spending and managing resources is critical to the university with the administration leading by example.
As part of the university’s already strong efforts to set the right “tone at the top,” the importance of which was emphasized in the Comptroller report, the university is implementing a more proactive risk management financial strategy to address and evaluate exposures that can affect the university’s ability to achieve its stated educational and business objectives, according to a written statement released by the university. The university has improved access and visibility of all university policies on the website to reinforce awareness and create an environment of compliance. Future plans include creating an interactive “Ask Kim” tool on the website, which allows staff and faculty to ask questions pertaining to policy directly to Tobin, according to the statement.
As was also recommended in the report, the university is also strengthening its own internal audit capabilities to help identify and address potential issues before they become problems through creation of an internal auditor position. The Board of Trustees is in the process of establishing its own audit committee, and the internal auditor will be reporting directly to the audit committee as soon as that committee is established.
The report found that the university’s current practices regarding “reporting on presidential expenses and getting Trustee approval for specific expenses made by the president” seem to be “in line with [Board of Higher Education Trust Fund] guidelines.”
“During our review we found the administration and finance staff committed to the university and knowledgeable of university and comptroller polices,” Benison said. “The transaction testing confirmed policies and procedures were generally being followed. We did identify areas of improvement, which are outlined in the report.”
The report does recommend additional steps the university should undertake, and Preston has made clear that “the university will be carefully reviewing and implementing the recommendations made in the report.” Those recommendations include:
· Conducting annual reviews of all A&F policies
· Expanding understanding of state requirements for signatures authorizing spending
· Improving campus-wide communications of A&F policies, procedures and deadlines
· Separating internal audit and budget functions and creating a direct reporting relationship between internal auditing and the board.
Preston has asked the comptroller to return to campus in one year to review the progress the University had made.
The report also referenced to the problem of high turnover in the position of Vice President of Administration & Finance – the position chiefly responsible for setting and ensuring compliance with financial policies, procedures and controls.
The Office of the Comptroller was assisted in developing the report by Kurt Steinberg, Executive Vice President of the Massachusetts College of Art and Design.
The full report of the Comptroller will be posted at: www.westfieldstate.ma.edu/movingforward
