Risks

Activities 1 2 3 4 5 6 7
Disaster Recovery
Planning for
Business
Processes (Not IT Institutional
Strategic Planning Organizational Disaster Policies & Internal
Governance and Leadership HM Process HM Governance HH Structure HM Recovery) HL Budgeting MM Procedures MM Communications MM

Information Technology - See Appendix

D for detailed risk assessment for IT Acquisition and Delivery and
areas. HM Strategic Planning HM Implementation HM Support MM Monitoring
Organizational
Work Orders & Structure - Facilities Contracted
Plant Operations and Maintenance HM Construction HM Billings HM Management MM Utilities ML Services LL Transportation

Contract and
Research and Development - See Grant Accounting OSP: Preparation
Appendix C for detailed risk (CGA): Time & Engineering & Science Animal Research CGA: Allowable CGA: Cash of Research
Research Enhancement
assessment for Research. HH Biosafety HM Effort Reporting MH Initiative MH & Safety Issues MH Costs MM Management MM Protocols MM

Scholarships & Enrollment Admissions

Student Services HM Financial Aid HM Fellowships HL Student Records HL Services HL Registration HL Processing MM Student Life MM

Strategic Plan Human Resources

does not address Organization and Employment - Employment -
Human Resources Management HM Human Resources HM Staffing MM Compensation MM Recruiting MM Turnover ML Diversity ML Staff Development ML

Campus Safety & Tuition and Fee Fixed Assets /

Asset and Risk Management HM Security MH Cash Handling MM Investments MM Collection Process MM Endowments MM Equipment MM Risk Management MM
Financial Management - See Appendix Outside Sales by
H for detailed risk assessment for Internal Financial Financial Schools and Organization and
Financial Areas. HM Controls HL Reporting MH Travel MH Signature Authority MH Division MM Budget Operation MM Management MM

Annual Governmental Continuing

University Relations and Alumni Affairs HM Gifts MM Planned Giving MM Fundraising ML Partnerships ML Relations LL Public Service LL Education LL

Deployment of
Accreditation / Resources Among Course Instructional & Management of
Institutional Academic Scheduling and Academic Departments and Classroom and
Instruction and Academic Support HH Effectiveness MM Programs MM Library MM Availability MM Technology MM Programs of Study MM Building Utilization MM

Minority and Small

Contracting Policies and Operations and Organization and Business Vendors
Purchasing MH Process MM Procedures MM Bid Processes MM Management MM (HUB) LL Central Receiving

University Police
Auxiliary and Service Departments ML Housing ML Student Union ML and Parking LL Food Services LL Printing LL Bookstore

Institutional Compliance Program - see Compliance

Appendix E for listing of high-risk areas. MM Program

Extensive Risk Management & Considerable Risk Management (all levels of control plus traditional
HH, HM audit)
HL, MH Manage and Monitor (all levels of control, but no traditional audit)
MM, ML, LH Monitor (only execution controls and supervisory controls)
LM, LL Accept (accept the risk and have no controls)

Impact = The effect a single occurrence of that risk will have upon the achievement of org's goals & objectives.
22
 Risks
Activities 1 2 3 4 5 6 7
High: The effect will cause org not to achieve its goals and objectives.
Medium: The effect will cause org to operate inefficiently and/or expend unplanned resources to meet goals and objectives.
Low: There will be no measurable effect upon the achievement of org's goals and objectives.

Probability = The probability that a risk will become reality at org.

High: The risk will become a reality frequently at org.
Medium: The risk will become a reality infrequently at org.
Low: The risk will rarely become a reality at org.

23
 Activities 8 9 10 11 12 13 14 15

Upward
Office of the Meetings & Evaluation of Performance
Governance and Leadership Facility Planning MM President MM Committees MM Administrators MM Compliance Office ML Measures

Information Technology - See Appendix

D for detailed risk assessment for IT
areas.

Plant Operations and Maintenance

OSP: Research Office of
Integrity Sponsored
Research and Development - See (objectivity, Projects (OSP): CGA: Facilities
Appendix C for detailed risk scientific Institutional Negotiation of CGA: Financial CGA: Cost Technology and Administrative
assessment for Research. misconduct) MM Review Board MM Agreements MM Reporting MM Sharing MM Transfer ML Research Training ML Cost Accounting

Student
International Organizations & Student Activities Center Student
Student Services Administration MM Recruiting MM Student Health MM Students ML Activities ML Counseling LM Operations LL Grievances

Employee Employment - Faculty Policy and

Human Resources Management Relations ML Hiring ML Credentials LL Procedure
Bonded
Cash Indebtedness and Accounts Organization and
Asset and Risk Management Management MM Issuance MM Receivable MM Management ML Internal Auditing LM Records Retention
Financial Management - See Appendix Budget
H for detailed risk assessment for Contract and Preparation
Financial Areas. Accounts Payable MM Payroll MM Grant Accounting MM Process

News and
University Relations and Alumni Affairs Information LL Alumni Relations

Program Faculty
Development & (recruitment, tenure,
Program development,
Deferred Distance Evaluation turnover, workload, Institutional
Instruction and Academic Support Maintenance MM Education MM Special Programs ML Process ML productivity) LL K-16 Issues LL Affiliations

Purchasing

Auxiliary and Service Departments

Institutional Compliance Program - see

Appendix E for listing of high-risk areas.

HH, HM

HL, MH
MM, ML, LH
LM, LL

Impact = The effect a single occurrence of that risk will have upon the achievement of org's goals & objectives.
24
APPENDIX C: Risk Assessment for Research Areas
FISCAL YEAR 20**
Risks
Activities 1 2
Laboratory Safety (Biosafety,
Chemical Safety,Controlled Financial, criminal, and/or
physical harm from
Substances, Laser/Radiation Safety) misapplication of laboratory
HM procedures and parctices.
Time and Effort Reporting
Loss of Federal/State funding
and incurrence of penalties
due to PI over-committing his
time-not charging minimum or
HH charging more than maximum, HH
Coordination of Gifts and Grants with
Development Office Improper classification of
grants or contracts as an
MH unrestricted gift.
Records Archiving
Improper maintenance of
MH records.
International Initiatives (Export Export of controlled
Control) information not properly
HL processed and reported.
Research Integrity - Objectivity of Research protocols are not
Research reviewed and approved by IRB
and IACUC committees for
HL scientific merit.
Research Integrity - Scientific PI or research staff reports
Misconduct invalid and inaccurate data to
MH funding agency.
Technology Transfer Patent and agreement
HL violations occur.
Training - Research
PIs and research staff are not
properly trained and record of
training is not on file with
HL research compliance.
Animal Research - Safety
Lack of training for PI and
HL Research Staff.
Protection of Animal Subjects
Lack of training for PI and
HL Research Staff.
Institutional Review Board (IRB) IRB Committee is not familiar
with state and federal
regulations concerning human
HL participant research. HL
Protection of Human Subjects
Lack of training for PI and
HL Research Staff.
Protection of Researcher
Lack of training for PI and
HL Research Staff.
Protection of Research
Lack of training for PI and
HL Research Staff.
3 4 5 6
Inappropriate disposal of Financial of physical harm to
hazardous waste resulting in the University, its students,
HM fines and criminal charges. HM faculty and staff.
Loss of Federal/State funding
and incurrence of penalties
due to RAs not knowing the Loss of Federal/State funding Loss of Federal/State funding Loss of Federal/State funding
name of the project they're and incurrence of penalties and incurrence of penalties and incurrence of penalties
working on, the funding School Effort Coordinators not due to lack of documentation due to someone other that a due to signed certification
source, and the link between performing independent for hourly time changes in the knowledgeable person signing reports not being returned to
their work and the project. HM reviews. HM school departments. HL the certification form. ML C&GA in a timely fashion.
Funding agency sends
confusing award letters as to if
MH the award is a gift or a grant.
Noncompliance with record Noncompliance with University
MH retention. MH or applicable sponsor policies.
Unauthorized foreign nationals
HL working on restricted research.
PI fails to report earning
HL returned from technology.
Funding opportunities are
missed because
documentations are not
provided to the funding
HL agency.
Lack of independent
monitoring of research activity Incidences of non-compliance
by PI and animal resources are not properly reported to
HL staff. HL research compliance.
Lack of independent
monitoring of research activity Incidences of non-compliance
by PI and animal resources are not properly reported to
HL staff. HL research compliance.
Proper measures are not taken
to review and approve Protocols are not pre-reviewed
research protocols thoroughly. HL by research compliance.
Non-compliance issues and
Proper measures are not taken adverse effects are not
to ensure confidentiality of Consent forms and research reported to research
HL research participants. HL data are not stored properly. HL compliance.
Non-compliance issues and
adverse effects are not
reported to research
HL compliance.
Issues of non-compliance are
Research data is not stored Access to research data by not reported to research
HL properly. HL unauthorized personnel. HL administration.
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APPENDIX C: Risk Assessment for Research Areas
FISCAL YEAR 20**
Risks
Activities 1 2
OSP - Negotiation of Agreements Lack of expertise when
negotiating other than System
approved contracts and
HL agreements. HL
Preparation of Research Protocols
Animal subject and human
participant research protocols
are not pre-reviewed by
HL research compliance.
Cost Estimates Faculty does not have any
idea of how to calculate the
actual cost of the research
MH project.
Cost Sharing
Disallowed costs due to
inability to get cost share
documentation from schools
MH on closed federal grants.
Financial Reporting Disallowed costs due to
inaccurate or incomplete
reporting requirements
reflected on contract
HL documents.
Allowable Costs Disallowed costs due to PIs
doing major purchases at end
HL of grant to use up funds.
Training - Post Award Research
Disallowed costs and damage
to reputation due to training
programs not being tailored to
the individual needs of
HL faculty/staff/management. HL
Sub-Contractor monitoring
org sub-contracts may not
include clause requiring sub-
contractors to comply with
MH applicable laws & regulations.
Cash Management Overspending Sponsored
Programs Budgets resulting in Schools not handling Petty
MH unreimbursed costs. MH Cash per org policy
Incomplete/inaccurate contract/grant
documentation or no documentation
received.
Delay in filing financial reports
HL to the sponsor(s).
Invention Disclosure PI does not accurately list the
percentage of work spent on
agreement or work with other
ML inventors.
Preparation of Certifications and
Assurances PIs and research staff do not
have proper certifications and
assurance on file with research
ML administration. ML
Facilities and Administrative Cost
Accounting
Incorrect IDC rate/base
entered into FINS due to
MM incorrect paperwork.
Lack of knowledge of System
rules and regulations regarding
contracts.
Protocols will not get approved
HL by IACUC and IRB.
Faculty underestimates what
the research will cost and will
be unable to complete the
MH research.
Unallowable costs due to
separately identifiable cost
share account does not get
opened and budgeted before
MH grant is opened, per org policy. MH
Loss of Federal/State funding
and public embarrassment due
HL to reports not done in a timely
fashion.
Unallowable costs incurred
and not reimbursed by
HL sponsors.
Disallowed costs and damage
to reputation due to lack of
training programs offered. HL
Subcontractors may not be in
compliance with Federal and
MH other applicable regulations.
Sponsor billing does not take
place, or is not done per the
contract. Negative effect on
MM cash flow.
PI does not disclourse an
ML invention.
Funding opportunities are
missed because
documentations are not
provided to the funding
agency.
IDC rate changes during term
of grant and separate account
is not opened. (The only way
MM FINS can handle this). MM
3 4 5 6
Lack of knowledge about
intellectual property
HL agreements.
Funding opportunities are
missed because of delay in
HL protocols approvals.
Loss of Federal/State funding
and public embarrassment due Sponsor disallowed costs due
to inaccurate reporting of or to charging unallowable costs
failure to provide mandatory to mandatory cost share
cost sharing per contract. MH accounts.
Disallowed costs and damage
to reputation due to lack of
training policy and plan for Disallowed costs due to lack
continuous improvements. HL of participation in program.
Sub-contractor invoice
Subcontracts are not reviewed Annual sub-contractor risk certification not included on
annually per new org policy. assessments not being done, sub-contractor purchase
MH Effective approximately 8/06. MH per new policy. MH orders and invoices.
Letter of Credit draws not Not collecting all billed
ML made in timely fashion MM revenue.
Contract versus grant
Risk of not being reimbursed in designation incorrect on brief.
a timely fashion. Negative Some federal contracts do not
MM IDCs not charged, if required. MM cash flow. MM require quarterly reporting.
PI does not disclose royalty
ML PI does not patent invention. ML revenues.
Loss of Federal/State funding
and public embarrassment due
to incorrect calculations in F&A
rate proposal.
Page 25
APPENDIX C: Risk Assessment for Research Areas

FISCAL YEAR 20**

Risks
Activities 1 2
Minority and Small Business
Vendors
Loss of Federal/State funding
and damage to reputation due
to PI not using small
business/minority and women
owned business to fullest
MM extent practicable. MM
Records Archiving Loss of Federal/State funding
and public embarrassment if
org Accounts Payable and the
Schools cannot produce
receipts for contract/grant
MM expenditures. MM
Administration/creation of contract
and grant documentation: Unreimbursed costs due to
Lack of clarity between sponsor & opening and budgeting
org regarding carry-forward of funds sponsored programs accounts
before obtaining official
MM sponsor commitments. MM
Authorized spending of
contract/grant funds without signed Funds expended before official
pre-award or signed agreement. contract date may be
MM disallowed by the sponsor(s)). MM received.
Purchase Orders for services are Loss of Indirect Cost revenue
treated as sub-contracts in violation due to expenses charged to
of OMB Circular A-133, sect sub-contractor expense
$___.210. instead of M&O. Breakdown
on invoices and financial
reporting by expense category
MM are incorrect. MM reporting by expense category. MM
Data input to systerm not accurate
and/or differs from paperwork
received.
Lacking CFDA # - required for
MM Federal reporting.
3 4 5 6
Loss of Federal/State funding
and damage to reputation due
to PI not making information
on forthcoming opportunities
available to encourage and Loss of Federal/State funding
facilitate participation by small and damage to reputation due
business/minority and women to vendor being on debarment
owned business. MM list
Untimely closing of grants
creating increased risk for
unallowable costs due to
audits.
Excessive cost transfers may
affect the audit trail of
transactions which in turn may
result in unsubstantiated costs
leading to disallowances.
Negative effect on cash flow
until funds can be reimbursed,
if and when signed contract is
Vendors providing services are
Incorrect breakdown of costs treated as sub-contractors in
on invoices and financial violation of OMB A-133,
section $___.210.
Accurate contract/grant Pre-award specialist assigns
start/stop dates cannot be grant number from wrong
counted on leading to Missing Sponsor or PI ID range (fed., state, pvt., or
inaccurate financial reporting numbers-leading to inaccurate local)- Reporting category is in Sponsor/sub-sponsor switched
MM of grants. MM reporting. MM error. MM on brief.

HH
= Extensive Risk Management & Considerable Risk Management (all Levels of Control* plus a traditional audit)
HM
HL
= Manage and Monitor (all Levels of Control but no traditional audit)
MH
MM
ML = Monitor (only Execution Controls & Supervisory Controls)
LH
LM
= Accept (accept the risk and have no controls)
LL

Impact = The effect a single occurrence of that risk will have on org.
High: The effect will cause org to materially misrepresent its financial position.
Medium: The effect will cause org to misrepresent its financial position.
Low: There will be no measurable effect upon financial statement reporting.

Probability = The probability that a risk will become reality at org.

High: The risk will become a reality frequently at org.
Medium: The risk will become a reality infrequently at org.
Low: The risk will rarely become a reality at org.

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