Prior to 1996, the UW System Office of Internal Audit was responsible for conducting most audits within the UW System. These audits were primarily financial and
operational in nature. As a result of a 1996 UW System reorganization, each UW institution was expected to establish at least one auditor position. Institutional auditors were given responsibility for conducting campus-based financial and operational audits. The UW System Office of Internal Audit, later renamed the Office of Operations Review and Audit, was charged with conducting program and management reviews, as well as some financial reviews, with a systemwide impact.
The Office of Operations Review and Audit is responsible for providing objective review and analysis to assure that University of Wisconsin programs, policies, and practices are conducted in accordance with applicable laws and Board of Regents policy. The Office helps ensure University operations are proper, efficient, and effective. Specific
responsibilities include:
• reviewing the status of Board of Regents policy implementation;
• reviewing the effectiveness with which the UW institutions or UW System Administration have implemented state or federal legislative requirements; • conducting research and analysis in operational areas of interest to the Board of
Regents or the UW institutions;
• recommending any necessary changes in programs, policies, or practices at the UW System or institution level; and
• working with the audit offices at the UW institutions to provide assurances to the Board of Regents that necessary financial and management controls are present. The Office’s staff have diverse educational and work backgrounds, including advanced degrees in such fields as public policy analysis, urban and regional planning, law, and business administration, as well as many years of policy analysis or auditing experience. Purpose of the Review Plan
To help allocate limited resources within the Office, we have identified programs, policies, and practices to be reviewed at a System level in calendar year 2009. This review plan strives to achieve two objectives: to assure coverage of areas of risk, while at the same time assuring broad coverage of the operations of the UW System over time. The review plan is a guide that must remain flexible to accommodate review or audit requests from Regents, requests for assistance from UW institutions, and unexpected
In addition, while the review plan identifies formal reviews that will be presented to the Board of Regents, the Office of Operations Review and Audit undertakes other projects that are not included in this plan because they are performed on an ad hoc basis or are intended for internal management purposes. Examples of such projects in the past include the Office’s research on student health insurance;involvement with the
President’s Advisory Committee on Health, Safety, and Security; and technical assistance to campuses.
Development of the Review Plan
The review planning process begins with an understanding of the University’s activities and its risks, including operational, reputational, strategic, financial, and compliance risks. We gathered such information by (1) discussing various issues with Regents, UW System Administration management, institutional management, institutional internal auditors, and student representatives; (2) reviewing Board of Regents policies, UW System policies and procedures, state and federal laws and requirements, and changes therein; (3) considering institutional internal audits and external review activities or inquiries, such as those by the Legislative Audit Bureau and federal oversight agencies; and (4) considering areas receiving attention at other colleges and universities.
Several factors were considered to determine which UW programs, policies, or practices should be reviewed. Examples of these factors include whether there have been recent administrative, organizational, or operational changes; whether concerns have been noted in the past; the length of time since the last review; the number of impacted students or employees; external reporting requirements; and potential monetary and/or reputational losses, if issues are not addressed. Potential topics were discussed with the
administrators of the affected program or policy areas. Planned Reviews
As a result of this process, the issues proposed for calendar year 2009, not listed in order of priority, are as follows:
• Student Evaluation of Instruction – Student evaluation is an important source of information on teaching performance. For this reason, the Board of Regents established Regent Policy Document (RPD) 20-2 regarding the use of student evaluations for (a) improvement of instruction, (b) retention, promotion, and tenure decisions, and (c) merit salary increase deliberations. A review may include identifying UW institution student evaluation policies, methods, and best practices.
• Service Learning – Student education frequently occurs in the workforce through internships and other programs that integrate community service with academic study. Significant risks and potential liabilities may exist in these environments.
• Prior Learning Assessments – As part of Advantage Wisconsin, Think Tank #2 reviewed the goal of more graduates, and suggested that UW institutions “adopt uniform policies that encourage the awarding of credit for prior experience.” Although many UW institutions assess prior and nontraditional forms of learning, the extent of their use varies considerably and their application may be
inconsistent. A review could determine the frequency with which students currently receive credit for prior learning and identify related best practices. • Policies Affecting Students with Learning Disabilities – In 1999, the Office of
Operations Review and Audit reviewed the UW System’s responsibilities to provide services to students with disabilities and the implementation of RPD 14-10 (formerly 96-6), Nondiscrimination on Basis of Disability. A review may determine the progress toward implementation of some prior-review
recommendations, as well as identify new approaches, institution policies, and the related cost for providing these services.
• UW Higher Education Location Program (HELP) – HELP provides systemwide student advising and academic information primarily via the internet and
telephone. In addition to identifying the services provided by HELP, a review may determine how these services are accessed by students, parents, and high school counselors, how HELP services are coordinated with those provided by individual UW institutions, and how HELP has incorporated statewide and nationwide programs, such as the Wisconsin Covenant and the KnowHow2GO campaign, into its programming.
• National Collegiate Athletic Association (NCAA) Financial Reporting at UW-Milwaukee and UW-Green Bay – The Office will perform agreed-upon procedures for the NCAA-required reports that include fiscal year 2008 revenues, expenses, and capital improvements associated with the institutions’
intercollegiate athletics departments. A private CPA firm performs a similar function for UW-Madison.
• WUWM FM 89.7 Financial Statements Audit – This annual audit is conducted to meet requirements of the Corporation for Public Broadcasting.
• NCAA Division III Programs – Except for UW-Madison, Milwaukee, Green Bay, and Parkside, all UW institutions are Division III schools. A review may include an analysis of fiscal controls and compliance with state and NCAA regulations for potentially high-risk areas, such as sponsorships.
• Academic Fees Reviews – The Office will review the assessment and collection procedures for academic tuition and segregated fees at UW-La Crosse and UW-
Next Steps
The list above identifies the topics for review in 2009. However, the specific scope of each review has not been determined. Before fieldwork for any review begins,
Operations Review and Audit staff will conduct preliminary research and prepare a project-overview memo, which includes (1) background data and circumstances
prompting the review; (2) the specific purpose(s) and objective(s) of the review; and (3) a description of the project methodology, such as what information would be gathered and who would likely be contacted. The project-overview memo would be discussed with the President, his cabinet, and appropriate UW System staff. These discussions provide assurance that the Office of Operations Review and Audit is correctly targeting the areas of interest.
In conducting its work, the Office of Operations Review and Audit has no direct authority over or responsibility for the reviewed programs, policies, or practices. As a result, review findings are communicated to the appropriate level of UW management to act upon as they choose. However, as in the past, the Office may provide technical assistance to program managers or staff workgroups charged with developing policy changes. In addition, after administrators have adequate opportunity to implement the recommendations, typically several years, the Office may follow up on implementation and report on progress.
REVISED
BUSINESS, FINANCE, AND AUDIT COMMITTEE Resolution:
That, upon the recommendation of the Chancellor of the University of Wisconsin - Milwaukee and the President of the University of Wisconsin System, the Board of Regents approves the following modifications to the UW-Milwaukee per credit differential tuitions:
Peck School of the Arts – The differential may increase up to three percent annually, beginning Fall 2009 through Fall 2012.
College of Engineering and Applied Science – The differential may increase up to four percent annually beginning Fall 2009 through Fall 2012.
Sheldon B. Lubar School of Business Administration – The differential may increase up to three percent annually beginning Fall 2009 through Fall 2012.
College of Nursing – The differential may increase up to three percent annually beginning Fall 2009 through Fall 2012.
ADJUSTMENT OF EXISTING DIFFERENTIAL TUITION LEVELS