Tiers of Fiscal Responsibility

Overview

The titles of fiscal personnel across campus vary greatly.  In order to create a common language and consistent responsibilities, the University Controller’s Office has defined tiers of fiscal responsibility.

It is important to note that communication is an essential part of all three tiers, especially during higher level review.  The reconciliation, review, and approval process not only protects the University of Florida, but also all tiers, as everyone makes mistakes.

Tier 1

This person enters the transactions and (in a small department) uses the reconciliation guide to reconcile at the end of each month.  In addition, this person makes notes on any items needing explanation, investigation, or correction.

In a larger unit, we would have separation of duties with two people in this Tier, one for transaction entry and the second for reconciliation.

  • Tier 1 will obtain Monthly Financial Reports
  • Reconcile and review the Monthly Financial Reports and add notes for any items needing explanation, investigation, or correction
  • Research and correct any errors

This provides a summary of resources available to Tier 1 employees.

Please e-mail controller-office@ad.ufl.edu with suggestions of useful materials to add to this list.

Tier 2

This person is responsible for the finances of the department and checks the reconciliation for the Tier 1 role. Separation of duties is critical in this Tier as well.  In addition, the Tier 2 review is even more important in departments where the Tier 1 both processes transactions and reconciles.

  • Do a deep sampling and thorough review of the Tier 1 reconciliation
  • Check month-to-month, year-to-year and critically look for errors and unusual activity
  • Communicate with Tier 1 on any errors or corrections needed

This provides a summary of resources available to Tier 2 employees.

Please e-mail controller-office@ad.ufl.edu with suggestions of useful resources to add to this list.

Tier 3

This person has authority in the department.  Their role is to perform spot-checking monthly and verify that their units’ accountability structures are in place and functioning well.

  • The Tier 3 reviewer’s focus should be on activity that is unanticipated or unreasonable
  • Become familiar with the spending trends in your area.  Familiarity comes with time and regular spot-checking
  • Question and think critically about the validity of the spending in your area
  • Consider the holistic view of the trends and spending in your departments.  How and when are your monies being spent?
  • Compare budgeted revenue and expenditures with actual activity for the period (depending on your area)
  • Have conversations regularly about fiscal matters and trends to understand variances, exceptions, and fluctuations in revenues and expenditures

This provides a summary of resources available to Tier 3 leaders.

Please submit a ticket to the Finance Hub contact form with suggestions of useful resources to add to this list.

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