Section 3: Comprehensive Standards

3.10.4 The institution exercises appropriate control over all of its financial and physical resources.

Judgment of Compliance:
Compliance

Narrative/Justification for Judgment of Compliance:
Christopher Newport University is in compliance with this comprehensive standard. Christopher Newport University is audited to ensure that it maintains control over its financial and physical resources, making use of external and internal audits as well as on-going interactions with numerous state agencies that provide post audit reviews on various transactions.

The Virginia State Auditor of Public Accounts performs the external audit annually. The most recently completed audit, for fiscal year 2003-04, confirms that all appropriate controls are in place. For at least the last 15 years, CNU has met all management standards required by the state. There were no material weaknesses, instances of noncompliance, or audit points identified in any of the reports.

The University's Internal Auditor regularly audits offices and functions of the University consistent with its risk assessment and audit plan. The Auditor reports directly to the Finance and Audit Committee of the Board of Visitors at each meeting. The Board approves the annual internal audit plan and receives regular updates against the plan. The Auditor also documents factors leading to known business risk and the related mitigation efforts currently in place or planned. Any deficiencies in the design of the mitigation efforts are reported to Executive Management along with the departmental plan to correct the weaknesses. The Finance and Audit Committee of the Board receives each report, including a list of factors considered in evaluating risk present. A database, developed by CNU, facilitates this process.

The Board of Visitors is presented with detailed month-end reports at each Board meeting through its Finance and Audit Committee. In addition, the Board receives a detailed discussion on all capital projects and financing.

The University's sponsored research programs are audited by federal auditors and Virginia's Auditor of Public Accounts in accordance with the Office of Management and Budget (OMB) Circular A-21.

Central agencies of the Commonwealth of Virginia set forth policies and procedures for the University as an agency of the Commonwealth. The primary central agencies include the Department of Planning and Budget, Department of Accounts, and the Department of the Treasury. Annual audits determine compliance with policies and procedures. The Department of Planning and Budget is responsible for the state-wide budget development processes along with the appropriation and allotment of funds. The Department of Accounts is responsible for the state-wide accounting system, including all policies and procedures as reflected in the Commonwealth's Accounting Policies and Procedures (CAPP) manual. The Treasury Department is responsible for all treasury functions and the issuance of debt. The University is in compliance with all policies and procedures as required by the state as evident by unqualified audit opinions and the existence of no management comments that would indicate any deficiencies in the application of these policies or other internal controls. Specific policies relative to cash receipts and deposits, fixed asset management, and physical inventory are highlighted in the supporting documentation including an overview of the state CAAP Manual.

The State provides an appropriation each year for the maintenance of all E&G buildings. Every two years, a Maintenance Deficiencies report is prepared and submitted to the State, the most recent one in 2004. This report provides input on creating the maintenance reserve figure to be funded by the state and is also used to establish the priorities for new construction/renovation.

Support Documentation:
FY 2002 Audit
FY 2003 Audit
FY 2004 Audit
FY 2005 Audit
FY 2002 Single Audit Report
FY 2003 Single Audit Report
FY 2004 Single Audit Report
FY 2003 through 2005 Management Standards Letter
Finance Committee Meeting Material
Deferred Maintenance Report
CAAP Manual Overview
CAAP Manual Overview – Fixed Asset Management
CAAP Manual Section – Cash Receipts and Deposits
CAAP Manual Section – Physical Inventory
Investment Policies
Annual Equipment Inventory Certification Instructions
Internal Audit Plan

Additional Live Web Resources:
None