TheQAP

SessionWhere Quality Talk is #1

What is it?• QAP = Quality Assurance Program• Transaction entry and approval moved from Business Affairs

to Business Centers– Created a need for an ongoing internal quality assurance

monitoring program• Monitoring and reviewing of accounting transactions for:

– Policy compliance– Account coding– Internal control– Funding source– Operational efficiency– Adequate supporting documentation

• Similar to the High Risk Monitoring Program (now part of QAP)– QAP will monitor transactions that post to all funding types

Why are we doing it?• Need to maintain consistency across

the 7 different Business Centers• OUS Internal Audit recommended a

monitoring system • Goals:– Optimize business processes–Maintain strong internal controls– Contribute to accurate financial

statements

How does it work?• Three parts:

1. Exception Reports• Run daily to show unallowable expenses

2. Special Approval Queues• Transactions posted to certain account code

series

3. Transaction Testing • Random samples of all transactions to

determine if standards are being met• All transaction types will be tested• Testing will be an ongoing process

Reporting & Communication

• New QAP SharePoint Site (under construction)– Results from Testing will be posted on the

SharePoint Site• Monthly reporting initially; can change based on

feedback from Business Centers

– Each Business Center will have their own access/determine who can access the site

• Goals:– Two way communication– Identify process and/or policy issues

QAP Responsibilities• Business Affairs and Business

Centers– Policy compliance and internal control

• Business Centers – Complete action items/corrections found

during testing– Respond to recommendations from

Business Affairs– Establish and maintain strong internal

control environment

Benefits• Management tool for Business

Centers– Assurance that processes and controls

are in place and working– Tool to strengthen internal controls

• Metrics– Ability to communicate findings from

testing to Business Centers

• Identify best practices

More Benefits• Identify training needs– Allow for targeted training based on findings

• Reduce Audit findings– Once the system is in place, possibly even

prevent audits!

• Reduce Year End frenzy– Reviewing transactions throughout the year

allows for corrections to be made much sooner

• Better, more accurate financial statements

TheQAP

SessionUntil Next Time….