2.E.1 Audits and Reporting
The institution utilizes relevant audit processes and regular reporting to demonstrate financial stability, including sufficient cash flow and reserves to achieve and fulfill its mission.
This section provides evidence of compliance with Eligibility Requirements 19. FINANCIAL RESOURCES AND PLANNING, and 20. FINANCIAL ACCOUNTABILITY.
UAF鈥檚 long-established auditing processes and regular reporting demonstrate that the institution prioritizes financial stability and maintains sufficient cash flow and reserves in order to achieve and fulfill its mission.
Relevant audit processes and regular reporting. As per , UAF reports its financial activity in accordance with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board. UAF鈥檚 financial system allows for periodic financial reporting at the unit level in accordance with the budget requirements of both restricted and unrestricted funding and produces annual financial statements in accordance with generally accepted accounting principles. UAF must account for all financial transactions related to operations and capital expenditures. This information is used by the UA System to complete the consolidated annual audited Financial Statements report for the entire UA system. These reports, along with others, are submitted to the board and also published on the UA System鈥檚 website, under the Annual Audited Financial Reports button. UAF鈥檚 system of internal controls, ensuring accurate and timely financial information, is developed from guidelines described in the UA System Controller鈥檚 and relevant BoR Policy.
External financial audit. External auditors annually conduct an audit of UA system financial reporting in accordance with auditing standards accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller of the United States. The results of this audit, including all findings and a letter of recommendations, are presented to the UA BoR Audit and Finance Committee. These reports are published on the UA System鈥檚 website, under the Annual Audited Financial Reports and Federal Single Audit Reports buttons. The external audit report for the previous fiscal year, e.g., , which is FY2024-2025, is presented and accepted by the UA BoR at its November meeting (). This is a single system report. Findings are included in the report, including when they are specific to a university. If an item does not rise to the level of a finding, it is communicated to the university by the external auditor and Internal Audit office for the university to address. The UA system president or designee reports on the implementation of these findings at subsequent UA BoR meetings.
Oversight and management of financial resources. addresses finance and business management. UAF complies with these policies while providing comprehensive reporting services to support operational decision-making. Further, financial management and accounting activities align with procedures established by the UA System to ensure compliance with federal, state, UA BoR, and industry standards, as published in the UA System . The UA System Office of ensures compliance with all policies and regulations by employing an developed by the chief audit executive (CAE) who reports administratively to the UA System chief financial officer, and functionally to the UA BoR Audit and Finance Committee. The CAE presents findings annually to the UA BoR and conducts follow-up audits as needed to determine progress on exception items. To guide operations, UAF maintains its own set of Office of Finance and Accounting policies, which address fiscal matters and comply with board policy. The university reviews its financial status throughout the fiscal year and reports on its fiscal status through management reports that reconcile current expenditures and forecast future expenses. (Management report templates are posted on the Office of Finance and Accounting website.) UAF鈥檚 Office of Finance and Accounting coordinates the management reporting process and provides training to new preparers. Management reports are required at the completion of the first and second quarters and monthly for the third and fourth quarters of the fiscal year, which provides information so that administrators can take corrective action to prevent potential deficits or lapses and distribute contingency funds in accordance with needs and priorities.
Financial stability, sufficient cash flow and reserves. UAF receives financial support from seven primary sources: tuition, fees, federal programs, donors, debt instruments, indirect cost recovery, and State of Alaska General Fund appropriations. General Fund allocations, distributed throughout the UA BoR, are the largest single source of financial support for the university.
On behalf of UAF, the in the UA System Office of Administration pools cash equivalent resources and handles all cash management duties including analyzing present and future cash flows, investing excess funds in a responsible manner commensurate with appropriate risk, and ensuring adequate liquidity. Per the Accounting and Administrative Manual鈥檚 section on (Items 5 and 6), the Department of Cash Management must authorize any check of $100,000 or greater to ensure adequate cash reserves are available. The issues all long-term debt, analyzes costs and benefits, and ensures adequate funds for debt service.
The Financial and Business Services Department at UAF tracks revenues and expenditures using a reporting process that also informs the UA System Office of Administration accounting systems. The director of the Finance and Accounting Office monitors and reconciles the institution鈥檚 current assets and resources. Administrators use the management reports as a guide to adjust operations in response to changing conditions, and the chancellor and Chancellor鈥檚 Core Cabinet use this information to locate and redeploy unused funds to address emerging needs, fund additional actions to address mission fulfillment, or to replenish contingency reserves. The general guidance from the UA System is that UAF is expected to maintain reserves within the range of 2-6% of unrestricted revenues, with a goal of maintaining 4%. (This range is referenced on a regular report provided at Board of Regents meetings, such as the .