Northern Arizona University Documents/NAU-2007-01-Alumni-Relations.pdfDr. Kathe M. Shinham, Vice...

Northern Arizona University Internal Audit Department

Alumni Relations November, 2006 Distribution:

Audit Committee, Arizona Board of Regents Michelle DeAngeles, Associate Budget Director - Planning, Budget & Institutional Research Dr. John D. Haeger, President Dr. Patricia Haeuser, Vice President for Planning, Budget & Institutional Effectiveness John W. Hesketh, Fiscal Operations Manager, University Advancement Becky McGaugh, Director of Procurement Dr. M.J. McMahon, Executive Vice President & Senior Associate to the President Mark Neumayr, University Legal Counsel Robert G. Norton, Assistant Vice President for Financial Services/Comptroller Krista L. Perkins, Interim Co-Director, Alumni & Constituent Relations Dr. Kathe M. Shinham, Vice President for Administration & Finance Cheryl L. Willers, Controller, NAU Foundation Molly Williams, Vice President for University Advancement

Alumni Relations November, 2006

Report Number 2006/07-02

August 8, 2006

(last day of fieldwork)

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BACKGROUND This audit was requested by President Haeger with the charge to review and document the Office of Alumni Relations’ sources and uses of funds. This audit was not on our audit plan.

ALUMNI RELATIONS The Director of the Office of Alumni Relations (AR) reports to Molly Williams, the Vice President for University Advancement. The former AR Director, Josh Allen, left NAU in April 2006 and a new Director has not yet been hired. Molly Williams and Krista Perkins are acting as Co-Interim Directors. AR’s offices are located in Old Main. AR employs 8 FTE personnel as of 6/30/2006. AR’s mission/vision is: “We provide opportunities for alumni and friends to connect with each other and support NAU. NAU alumni take pride in the university and value a lifelong connection to their alma mater.” AR hosts a series of events with the purpose of connecting with alumni and friends. These events take place throughout Arizona and in other states with high alumni populations, such as California and Colorado. AR’s activities are closely intertwined with University Development (fund-raising). Development Officers attend AR events to develop relationships with prospective alumni donors. For more information see: http://www.naualumni.com AR funding was addressed in two House Bills, signed by Governor Napolitano June 21, 2006:

• HB 2863, which states “The state general fund appropriation shall not be used for alumni association funding.”, and

• HB 2873, which states “…the universities shall not use any tuition or fee revenue to fund or support an alumni association.”

Comment from the Associate Budget Director: Fiscal Year 2007 funding for AR will not come from the state appropriation or from tuition/fee revenue.

NORTHERN ARIZONA UNIVERSITY ALUMNI ASSOCIATION The Northern Arizona University Alumni Association (NAUAA) is an independent non-profit 501(c)3 organization that works closely with AR. NAUAA uses the NAU Foundation to process all of its financial activity. The NAUAA Board of Directors consists of 22 voting volunteer members - 21 elected Board members and the Chair of the NAU Foundation Board. The NAUAA Board elects four officers and accomplishes its tasks through a series of committees. The standing committees are: Executive, Compliance, Resource Development, Nominations, and Traditions. The annual committees, which are renewed on an as-needed basis, are: Communications & Advocacy, Lifelong Learning, and Volunteer/Outreach. There is also a Past Presidents’ Club, composed of all former NAUAA Board presidents, which advises on activities in order to promote the purpose of the Association and stimulate interest and participation of all NAU alumni.

AUDIT OBJECTIVES To determine:

1. the sources and uses of AR funding, 2. whether there is effective control over AR revenues and expenditures, and 3. if AR is in compliance with NAU policies and procedures.

DESCRIPTION OF AUDIT WORK PERFORMED The scope of this audit was fiscal years 2005 and 2006. Historical data included in this report for fiscal years prior to 2005 was not audited. Information was obtained through interviews with:

• the (former) Director of AR, • the Controller of the NAU Foundation, • the Vice President for University Advancement, • University Advancement’s Fiscal Operations Manager, and • other AR and University Advancement staff.

We reviewed the accounting and payroll records in the Advantage and PeopleSoft Systems. We reviewed expenditures, including travel and Purchasing Card, to test for compliance with NAU policy and procedure, and to examine supporting documentation. The NAU Foundation provided us with reports of account activity related to AR. The university’s administration is responsible for establishing and maintaining the internal control structure. Because of inherent limitations in any internal control structure, errors or irregularities may occur and not be detected by our audit tests. CONCLUSION

1. AR is funded from three sources - (A) university support (from both AR and University Advancement accounts), (B) NAUAA-generated revenue (donations, affinity partnerships, events, endowment earnings) maintained at the NAU Foundation and (C) University Advancement’s NAU Foundation accounts:

Source of Funding FY 05 FY 06University Support from:

AR accounts $702,000 $638,000University Advancement accounts 6,000 0

NAU Foundation Support from:NAUAA accounts 184,000 278,000University Advancement accounts 137,000 224,000

TOTAL EXPENDITURES (Uses) $1,029,000 $1,140,000

AR - SUMMARY OF FUNDING SOURCES & USES

Detail of the above summary financial information is provided as follows: • University Support from AR accounts – Attachment I • University Advancement support of AR – Attachment II, and • NAUAA’s NAU Foundation account activity – Attachment III.

Page 2 of 14

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2. Control over AR revenues and expenditures and AR’s accounting practices

require improvement as noted in the recommendations. 3. AR’s compliance with NAU policies and procedures requires improvement as

noted in the recommendations. EXECUTIVE SUMMARY OF RECOMMENDATIONS We have categorized the recommendations into: RECOMMENDATIONS FOR THE ATTENTION OF SENIOR ADMINISTRATION (pages 4 - 9) Contract Signing on Behalf of the University, Accounting for AR Expenses, Matching Event Revenue & Expense, Controls Over Cash Receipts, Purchasing Card (PCard) Processing OTHER RECOMMENDATIONS (pages 10 – 14) Travel Processing, Food Purchases, Event Prizes, NAU Foundation Reimbursement, Salary Distribution of Event Coordinators, Accounting for Financial Support from Other NAU Departments, Accounts Payable Payment to NAU Employee, Off-Contract Furniture Purchase, Postage to NAU Box Numbers ________________/s/_____________________ Genevieve C. Wilson, Senior Internal Auditor _______________/s/_____________________ Craig L. Hutton, University Auditor

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RECOMMENDATIONS FOR THE ATTE TION OF SENIOR ADMINISTRATION

Observation

Recommendation

N

Response

1) Contract Signing on Behalf of the University In fiscal years 2005 and 2006, the (former) AR Director and other AR employeefour different contracts with a vendor to provide services related to AR events. The AR employees signed the contracts on beh

s entered into

alf of the niversity; however none of the AR employees

were authorized NAU contract signers. U

RELATED ISSUE: These contracts were with a vendor owned by an NAU faculty member, who has a Disclosure of Substantial Interest form on file with the Director of Procurement, as required by NAU and ABOR

03-C, NAU

oyee of the University is not authorized unless it is made through public

These contracts were not awarded through

nction with an School of Hotel & Restaurant Management audit that is

lready in process.

sing activities receive additional training to assure AR’s compliance with

contracts be signed by authorized NAU contract

ee policy: ww.nau.edu/purch/Procedures/203.00_Signature_Authority.htm

s. I

ng Services for clarification. (Molly Williams, Vice President for University

policy. However, per A.R.S Section 38-5Purchasing Services Policy 102 and Faculty Handbook Policy 4.19: …”The procurement of supplies, equipment, or services from any empl

competitive bidding”…

public competitive bidding. NAU Internal Audit will further address this related issue in conju

a

a) That AR employees involved in purcha

state and University purchasing policies. b) That AR signers. Sw

a & b) I agree with the recommendationwill require staff involved in purchasing activities to read and understand the purchasing policies and instruct them that if they are unclear on anything, that they contact Purchasi

Advancement) Further Comment by Molly Williams: For the record, I attest that these were bona fide purchases for services rendered to AR by the same vendor that provided equipment and materials for three casino nights (which staff saw as rental agreements) and, in one instavendor served as a trip leader for an AR eve

nce, the nt.

Comment by Director of Procurement The former AR Director and other AR employeeswho signed these four contracts were not authorized NAU contract signers. The payments to a company owned by an NAU faculty member were made on departmental purchase orders, which are decentralized purchaseorder documents for amounts less than $5,000. NAU Purchasing Policy 102 sourced from A503 requires a competitive bidding process be completed where an employee is supplying materials or services to the University. It is recognized that a purchasing training course and clarification of posted policy can assist departments with decentralized procurement. Clarification will occur through review, and revision where appropriate, of policies and standard form documents. Training in this area will become part of the normal process required to obtain security access to the University’s Financial System for procurem

RS 38-

ent documents. Training will be available to the campus by December 15, 2006. (Becky McGaugh)

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RECOMMENDATIONS FOR THE ATTENTION OF SENIOR ADMINISTRATION

Observation

Recommendation

Response

2) Accounting for AR Expenses Accounting for AR expenses requires improvement in light of increased interest in AR

ND, AR’s activities are closely intertwined with those of University

xamples of practices that do not properly acc n

• , was paid from

University Advancement NAU and NAU

•

ns)

P 2500 and the University Advancement Special Events account

•

$224,000, was paid from a University Advancement NAU Foundation account.

. The current practice of expending AR support from University

ses.

P 2500 be strictly used for AR xpenses and not be used to pay for expenses related to non-R university events.

ns” pports

we will also look for ther ways to separate or better describe vents. (Molly Williams)

funding, i.e. Arizona House Bills 2863 and 2873. As stated in the BACKGROU

Development (fund-raising). E

ou t for AR expenses:

An expense with dual AR/Development purposes, a trip to Asia

Foundation accounts.

Expenses for AR events (e.g. DelMar, King Tut) and University events (Retirement Dinner, building dedicatioare being paid out of both the AR account, IV

IVP 2524.

An AR expense, Pine Magazine -

a) That AR expenses be paid from AR accounts. b) That any support provided to AR by University Advancement NAU funds be processed as a transfer of funds so that the expenses are properly recorded in AR accounts

Advancement NAU accounts understates AR’s expen c) That AR account IVeA

a – c) Accounting for AR expenses has been improved as recommended. It is worth noting again that there is a lot of overlap in the work that is done in University Advancement. It is not always easy to separate “alumni relatiofrom “donor relations”. Also AR staff suvarious initiatives of the President’s office which range from alumni relations to community relations and again cannot easily be put in one category. The suggestions made are good ones andoe

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RECOMMENDATIONS FOR THE ATTENTION OF SENIOR ADMINISTR

Observation

Recommendation

Response

ATION

3) Matching Event Revenue & Expense Revenue collected by AR for attendance at AR

nto ndation account. AR employee

trav sociated with these events are cal accounts. AR sociated with these events such

• Me• Flo• De

, o gift cards, o DVD players, and o XM radios.

any of these items were purchased from AR’s AU local accounts.

hat revenue and expense for an event be deposited to/paid om the same account - either the NAU Foundation or an AR AU account, as appropriate.

This is now being done. (Molly Williams) events (e.g. King Tut, DelMar) is deposited i

an AR NAU Fouel expenses as charged to NAU lo

purchases items as as:

als, wers, corations, and

• Giveaways, o iPods

MN

TfrN

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RECOMM NDATIONS FOR THE ATTENTION OF SENIOR ADMINISTRAT ON

Observation

Response

E I

Recommendation

4) Controls Over Cash Receipts AR is not following Comptroller’s policy CMP 307: Departmental Cash and Check Receipting.

payments, e.g.

omecoming breakfast.

here is currently no revenue reconciliation erformed on the cash receipts. Apart from the vents for which tickets are used, no receipts are sued. The money collected is deposited in an R NAU Foundation account.

That the AR Office work with NAU’s Assistant Comptroller for Financial Controls, Wendy Swartz, to develop controls over their cash receipts that will make AR compliant with Comptroller’s policy.

This will be done by December 31, 2006. (Molly Williams) I will be glad to assist AR with their cash controls procedures. (Wendy Swartz)

AR has a cash box which is used to collect money received at the various events they host. A change fund is provided by the NAU Foundation. In some cases, tickets are given outin exchange for the participant h TpeisA

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Observation

Recommendation

Response

ATION

5) Purchasing Card (PCard) Processing PCard processing needs improvement:

) Use Tax A –

R was not aware of the Use Tax reporting equirement for out-of-state PCard purchases nd has not reported any Use Tax liability to the

Comptroller’s Office. The Use Tax liability is

Review/Approval of

Ara

estimated at less than $500. B) Second-Person Purchases - i) The former AR Director was signing off on hiown PCard transaction logs as both cardholder and as department Fiscal Liaison, thus approving his own purchasing activity. There was no second-person

s

review/approval of his

saction by the Fiscal Liaison.

There was no second-person review/approval of her PCard purchases. Card number xxxx-3579 iii) Fiscal Liaison signatures were missing other PCard logs that were reviewed. Card number xxxx-4930, 6420

) That the AR fiscal staff gain an understanding of the Use ax reporting requirement and that they contact the omptroller’s Office for assistance in reporting back taxes

owed.

i) That the department Fiscal Liaison review and sign the R Director’s PCard log.

) That the Fiscal Liaison sign and approve the Event oordinator’s PCard log.

) This has been done with assistance from he Comptroller’s Office. (Judi Burk, dministrative Associate, AR)

) i-iii Recommendations have been mplemented. (Judi Burk)

PCard purchases. Card number xxxx-4469 ii) The Event Coordinator’s PCard tranlogs were not being signed

on 8 iii) That the Fiscal Liaison sign off on all PCard logs.

ATC

BA iiC

AtA Bi

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Recommendation

ATION

Observation

Response

5) P ccontinue

• $43

zed

s (TE/TP) ns that we

eviewed. ard number xxxx-4930, 6420, 4110, 9985

F) Five PCard transaction logs were not signed and dated within 30 days after the end of the previous month. (PCard policy is ten days) Card number xxxx-6420, 4110, 4469

& D) That AR contact the vendor(s) in such cases to obtain copy of the receipt.

E) That cross references to travel documents be listed on the

d transaction logs be signed and dated by the 10th of the following month, as required by policy.

G) That AR staff involved in PCard transaction processing take additional PCard training/refresher training as appropriate.

can attest that these were bona fide NAU urchases. The litecubes were purchased for

nts

Retirement Dinner. The A Stitch Above

rk)

structure with the auditors. I have assigned Judi Burk the responsibility of being AR’s PCard Fiscal Liaison. Jack Hesketh will sign off on Judi’s PCard log. (Molly Williams)

G) The PCard Administrator has provided AR staff with in-person training. (Molly Williams)

ur hasing Card (PCard) Processing d) (

C) Two PCard logs were missing receipts for transact nsio .

2.78, Ship the Web (litecubes) 3/31/05, Card number xxxx-9985

• $246.19, 3/7/05, Deluxe Fashion Accessories (pendants/broaches) Card number xxxx-6420

D) One PCard log did not have an itemieceipt, just the credit card slip. r

• $390.00, 5/5/05, A Stitch Above, Card number xxxx-9985

mentE) Cross references to travel docu

were missing on 11 PCard transactiorC

Ca

PCard transaction logs, as required by policy. F) That PCar

C & D) This is now being done. (Judi Burk) I pthe 30 days/30 night AR event. The penda

nd broaches were for the President’s a

purchase was for a new table drape. (Molly Williams) E – F) This is now being done. (Judi Bu

A – F) I reviewed our present PCard approval

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OTHER RECO DATIONS

Observation

Recommendation

Response

MMEN

6) Travel Processing In the sample of trips we reviewed we noted the

on, e.g. invitation/brochure, attached to the Exhibit J

rive their tate events in lieu of

flying. This exception to policy was not

C) e s doc :

• Hotel rate exceeded maximum, and

D) kdocume

re out-of-state.

Travelers were paid per diem & lodging

stance charges on hotel bills were not indicated as to whether business or personal

0015,

ncies were explained during the audit to our satisfaction, but were not documented on the travel claim.

) That the AR travel specialist attend the “Travel Refresher lass” offered by the Comptroller’s Office.

ess travel, so that

ave also been reminded of eir responsibilities for documentation.

(Molly Williams)

following documentation deficiencies: A) The purpose of the trip(s) was described as “alumni event(s)”. There was no documentati

that indicated which event(s) were involved. B) AR employees frequently opted to dpersonal vehicle to out-of-s

documented or signed for.

Oth r exceptions to policy were not alwayumented or signed for including

• Multiple representation.

Lac of audit trail, i.e. there was no ntation explaining why:

• Lodging was not charged for some of thedays that the travelers we

•on between-event days.

E) Long di

purpose.

TP# 5IVP2500010, 5IVP2500014, 5IVP250(5IVP2500030, 5IVP2500031, 5IVP2500032, 4IVP2500026, King Tut & DelMar events) These deficie

a) That travel processing be improved. bC

a & b) The AR Travel Specialist has taken a refresher class and other employees havebeen cross-trained to proctravel can be processed when the Travel Specialist is out of the office. Staff who travel hth

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OTHER RECO DATIONS

Observation

Recommendation

Response

MMEN

7) Food Purchases A) AR is not always following the Comptroller’s Office food policy CMP 420 02: Food and Refreshments: i) T r ot sub tt :

PCard xxxx-9985 12/15/04 $43.37

d,

ceip if alcohol was served can not be determined.

a meal per

e and 2) was added on as a mandatory tip for parties over x amount of

ces Turquoise Room, 7/28/05, $86.40, and • Buster’s, 11/4/05, $80.00.

A i) That AR complete the required Food Purchase Form for all meals purchased with NAU funds.

ii) That AR obtain itemized receipts for all purchases, ncluding meals.

B) That AR pay close attention to tipping arrangements on meal purchases.

& B) This is now being done. (Molly illiams)

ited no alcohol

was purchased. We are now insisting on emized receipts. (Molly Williams)

ed this with AR staff and are reviewing meal expenditures more losely. (Judi Burk)

he equired Food Purchase Form was nmi ed and/or completed on the following• PCard xxxx-4930 11/4/05 $693.20 • PCard xxxx-4110 1/31/05 $636.45 • PCard xxxx-9985 4/23/05 $590.05• PCard xxxx-4930 7/27/05 $210.78 • PCard xxxx-4930 3/21/05 $85.56 •• PVAV000173186 12/14/04 $403.93

ii) An itemized meal receipt was not providejust the credit card slip. Without an itemized re t, the number of people served and

• PCard xxxx-9985 4/23/05 $590.00 B) Over tipping on meals: In two cases AR staff added a tip ontocharge when the tip was: 1) included in themeal pric

people. Ex s tip amounts: •

Ai

AW

A ii) I am satisfied that the 4/23/05 meal cwas a legitimate AR event and that

it

B) We have reinforc

c

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OTHER RECO DATIONS

Observation

Recommendation

Response

MMEN

8) Event Prizes

prizes include: DVD player, LCD TV, iPods, XM radios and gift

es were made via id not have a

econd “approval” sign off. (see Recommendation # 5).

a) That AR use NAU Foundation discretionary and donated

ontrol purposes, receipt of prizes be documented y the signature, printed name, address and phone number of he winner.

a & b) This is now being done. (Molly Williams & Krista Perkins, Interim Co-Directors, AR)

AR gives away prizes at many of their events. These

cards. Many of these prize purchasNAU PCard where the logs ds

funds for the purchase of any prizes. b) That for cbt

A)

d this

t to NAU from the NAU Foundation for the expense incurred in FY

B)

for a contribution. AR obtained reimbursement from the NAU Foundation for

es should be recorded as NAU revenue, since the source of funds is from an outside agency.

NAU Foundation or the NAUAA President’s FY 2005 conference expenses hat have not yet been reimbursed to NAU.

oundation funds received into NAU ccounts be recorded as NAU revenue, as required by the

Comptroller’s Office.

A) This has been done. (Molly Williams)

A & B) This is now being done. (Molly Williams)

9) NAU Foundation Reimbursement

AR used University funds to pay for plane tickets and a conference fee for the NAUAA President to attend a conference in fiscal years 2005 & 2006. After we questioneexpense during the audit, AR obtained a reimbursemen

2006 - $679.

AR used University funds to pay for refreshment items provided at a gathering to thank a donor

this expense. AR deposited both NAU F reimbursements (A & B) as a negative expense rather than as revenue. Although the total dollar amount is not material, these moni

A) That AR request reimbursement from the ft A & B) That all NAU Fa

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OTHER RECO DATIONS

Observation

Recommendation

Response

MMEN

10) Salary Distribution of Event Coordinat Currently, Event Coordinator “A” is charged 100% to the Alumni account (IVP 2500) andEvent Coordinator “B” is charged 20

ors

% to the

Alumni account (IVP 2500) and 80% to the

s a iversity events and that Event

oordinator “B” is filling in as the Interim Co- Director of AR.

istribution for Event curately account for AR and

pecial Events salary expense. (also see Recommendation #2)

r a and the structure of the AR

office and “B’s” duties are decided upon. (Molly Williams)

Special Events account (IVP 2524). We are told that Event Coordinator “A” spendlot of time on UnC

That AR reevaluate the payroll dCoordinators “A & B” to more acS

This has been done. Event Coordinator “A” will be charged 100% to the Special Events account, IVP 2524. Event Coordinator “B’s” salary distribution will be reevaluated afteDirector is hired

11) Accounting for Financial Support from

r most such support. port is improperly accounted

Exa• ave

for

. Payroll transfers are meant

• AR tain Fest. This was done

using an expense transfer rather than a transfer of funds.

AR from other departments be o properly account for

xpenses by department. also see Recommendation #2)

ams)

n ers

e recommendation. (Michelle DeAngeles, Associate Budget Director)

Other NAU Departments AR receives support from other departments on campus. The proper accounting treatment (a transfer of funds) is used foHowever, some supfor as an expense transfer.

mples include: In FY 2004, University Advancement g$45,000 in support to AR’s Special Events via a payroll transfer. This accounting practice zeroed out all payroll expenses the Special Events account, understating its expenses and overstating expenses for Advancementonly to be used for correction purposes (not funding support). In FY 2005, Student Life gave $4,500 to in support of Moun

That University support to processed via transfer of funds te(

This has been implemented. (Molly Willi The Budget Office has recently beemonitoring the accounting for such transfmore closely. I agree with th

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OTHER RECOMMENDATIONS

Observation

Recommendation

Response

12) Accounts Payable Payment to NAU Employee On 4/14/05, a payment was made to an individual through Accounts Payable for a “Jazz quartet for Retirement Dinner”. This payment was made froan invoice received from the performer and the “Guest Lecturer/Guest Speaker/Performer” form wnot completed and submitted to Accounts Payable. The recipi

m

as

ent of the payment was also a student sic on the date of the

ayment. This payment should have been rocessed on a PAR (Personnel Action Request)

roper

r” forms

b) That Accounts Payable require “Guest Lecturer/Guest

th a

st Lecturer/Guest Speaker/Performer” form states bold capital letters that “…EMPLOYEES SHALL NOT ECEIVE PAYMENT AS A GUEST LECTURER/GUEST

l

) Accounts Payable agrees. We will require he Guest Lecturer/Guest Speaker/Performer

form for payments to speakers/performers. (Susan Weaverling, Accounts Payable Coordinator)

worker in the School of Muppform and paid through Payroll with the pdeductions. (PV #AV000182501 $500.00)

a) That “Guest Lecturer/Guest Speaker/Performebe used when paying performers.

Speaker/Performer” forms for payments to performers (so that NAU employees are paid such additional compensation through Payroll and do not receive boW-2 and a 1099 form). the “Gue(

inRSPEAKER/PERFORMER” and also states …”(Employee payments shall be disbursed through the applicable payrolsystem)

a) This will be done in the future. (Judi Burk) bt

13) Off-Contract Furniture Purchase

r rather than from the tri-university contracted vendors Walsh Brothers or Corporate Express.

cy from

That AR use contracted vendors for future furniture purchases.

AR purchased (via PCard) $826 of office furniture from an off-contract vendo

AR did not obtain an exception to poli

urchasing Services. P

This will be done. (Judi Burk) Comment from Procurement Director: The furniture contracts are exclusive contractPurchasing sends out remind

s and ers that contracted

endors must be used. We also review PCard ansactions to look for non-contracted vendors. In

this case, the vendor was “buyonlinenow.com”

vtr

which did not flag this transaction as a furniture purchase. (Becky McGaugh)

14) Postage to NAU Box Numbers AR mails correspondence to alumni with NAU on-campus PO boxes using bulk USPS postage.

That AR avoid paying postage for mailings that are going to on-campus PO boxes.

We already try to avoid this but sometimes miss. We will try harder and look for ways to automate. (Molly Williams)

ATTACHMENT I

AR'S NAU SOURCES & USES OF FUNDS (FY02 - FY06)(as recorded in NAU's financial system)

(AR Accounts: IVP 1176, 2500, 2524 & 2526) FY02 FY03 FY04 FY05 FY066/30/2002 6/30/2003 6/30/2004 6/30/2005 6/30/2006

SOURCES:

University Support $456,920 $458,468 $478,497 $701,796 $637,502Detail:

State appropriation (with ERE) (1) 202,333 230,085 259,751 39Locally retained tuition (LRT) revenue (2) 177,000 159,300 155,300 544,500 570,851University reserves/budget stabilization 21,305 60,082Investment income 62,030 60,000 64,712Reserve for University Advancement 45,136Student Life: Homecoming/MtnFest/etc support 5,000 5,000 300 4,500 4,500NAU Previews: Parents Association workers 5,749Distribution of pooled interest 2,235 1,468 1,155 1,776Retirement recognition 684President's Office (PSV 2501) 12,052Enrollment - R & R Grant 2,500Housing 2,000President's Office - Choral 500Commencement - Choral 500Other sales 360Change in fund balance (3) 1,889 -19,051 1,303 84,269 2,069

Transfers from NAU Foundation (NAUAA) $65,000 $67,965 $373 $42,000 $27,166

TOTAL SOURCES OF FUNDS $521,920 $526,433 $478,870 $743,796 $664,668

USES:Salaries & ERE 399,273 428,831 397,079 544,454 530,172Operations (4) 112,613 85,787 70,530 185,659 104,456Professional & outside services 4,814 3,020 2,964 3,805Travel - in state 1,269 3,921 4,022 6,057 5,320Travel - out of state 3,950 1,655 4,274 3,821 8,645Equipment/capitalConvocation/Parent Assoc worker 3,220Other/interdepartmental -500Transfer to ERL 2501 1,000Transfer to STU 2572 (Football event) 15,575

TOTAL USES/EXPENDITURES $521,920 $526,433 $478,870 $743,796 $664,668Notes: (1) HB 2863 (signed June 21, 2006) states " The state general fund appropriation shall not be used for alumni association funding."(2) HB 2873 (signed June 21, 2006) states ..."the universities shall not use any tuition or fee revenue to fund or support an alumni association."(3) $79,741 of the ending fund balance through FY 2004 was from the "Breakage Fee Residual Funds" account. In FY 2005, this account was closed, the funds were transferred into IVP 2500 and expended. AR's ending fund balance as of 6/30/06 is $1,152.(4) Some University events, e.g. Retirement Dinner, Building Dedications, were paid out of IVP 2500 & IVP 2524 (see Recommendation # 2)

ATTACHMENT II

UNIVERSITY ADVANCEMENT FINANCIAL SUPPORT OF AR (FY 05 - FY 06)(figures provided by University Advancement)

FY 05 FY 06Advancement's University Account (DEV 2554):

Travel Expenses - Trip to Asia (1) $6,144Subtotal NAU Support $6,144

Advancement's NAU Foundation Account:Travel Expenses - Trip to Asia (1) $5,140Pine Magazine - Printing & Design 131,899 $223,805

Subtotal Foundation Support $137,039 $223,805

TOTAL SUPPORT: $143,183 $223,805Notes:(1) Vice President Molly Williams explains that the trip, taken by AR personnel, to Kuala Lumpar & Tokyo was in support of President Haeger'sinitiatives in Asia. The trip was timed to coincide with President Haeger's Asia trip so that he could be present at the Alumni event in these cities.Unfortunately, the President was not able to make the trip after all.

Attachment III - NAUAA NAU FOUNDATION ACCOUNTS RECAP(figures provided by NAU Foundation)

Alumni Association NAU Foundation Accounts FY 05 7/1/04 - 6/30/05

Fund TitleBalance

7/1/04

Revenue Expense

InvestmentIncome

Allocation

Balance

6/30/05Alumni Board Scholarship $605,257 $875 $18,500 $15,955 $603,586Alumni Legacy Fund 17,324 45,685 -14 440 63,462Permanently Restricted $622,581 $46,560 $18,486 $16,394 $667,048

Alumni Discretionary Fund $2,183 $1,394 $594 $2,983Temporarily Restricted $2,183 $1,394 $594 $2,983

Alumni Fund $180,314 $169,327 $150,016 $199,625Centennial Project 271 701 972Alumni Project Account 5,879 -1,909 15,274 -11,304Alumni Travel Programs 1,508 2,335 3,843Operating Funds $187,972 $170,453 $165,289 $193,135

TOTAL $812,735 $218,407 $184,370 $16,394 $863,167

Alumni Association NAU Foundation Accounts FY 06 7/1/05 - 6/30/06

Fund TitleBalance

7/1/05

Revenue Expense

InvestmentIncome

Allocation

Balance

6/30/06Alumni Board Scholarship $603,586 $660 $16,500 $25,787 $613,533Alumni Legacy Fund 63,462 30,270 712 94,444Permanently Restricted $667,048 $30,930 $16,500 $26,498 $707,977

Alumni Discretionary Fund $2,983 $1,050 $2,793 $1,240NAU Logging Wheels 18,726 851 17,875Temporarily Restricted $2,983 $19,776 $3,644 $19,115

Alumni Fund $199,625 $165,929 $258,342 $107,212Centennial Project 972 4 968Alumni Project Account -11,304 11,304Alumni Travel Programs 3,843 -3,843Operating Funds $193,135 $173,390 $258,346 $108,180

TOTAL $863,167 $224,096 $278,490 $26,498 $835,272

Northern Arizona University Documents/NAU-2007-01-Alumni-Relations.pdfDr. Kathe M. Shinham, Vice...

Documents

Transcript of Northern Arizona University Documents/NAU-2007-01-Alumni-Relations.pdfDr. Kathe M. Shinham, Vice...