KU Medical Center Financial Certification FAQs

When submitting the university’s financial statements to the Kansas Board of Regents and State of Kansas Department of Administration, the chancellor, university chief financial officer, and KUMC finance leaders must certify the accuracy and completeness of the statements. This includes their representation that: 

• the financial statements are presented fairly and in conformity with U.S. generally accepted accounting principles; 

• appropriate internal controls are in place to ensure accuracy and reliability in accounting and financial data and compliance with established policies; and 

• they are not aware of any fraud or suspected fraud affecting the university or its employees who have significant roles in maintaining internal control. 

To support their certifications, we ask individuals who have significant operational and financial management responsibilities to make certain representations and disclosures related to their respective areas. Additionally, this process helps clarify roles and responsibilities pertaining to financial management and underlying internal controls.  

The results provide the chancellor and the chief financial officer with some level of assurance when making their representations of the university's financial statements. Institutional Finance and Internal Audit will also review the responses to determine whether changes to or additional training on key financial policies are warranted.  

We selected employees in positions with significant oversight or financial management responsibilities. These would include position titles including vice chancellors, associate and assistant vice chancellors, deans, directors, department chairs, and other ‘Cost Center’ managers. 

Examples include locker fees for students, faculty and staff, fitness programs, or student service programs (transcript charges, student i.d. card, etc.) The common feature of these charges is that they are intended to generate additional income to the department and the university by charging individuals for services. The university is concerned about the proliferation of such charges and is attempting to provide oversight and control over these charges. 

The accuracy of the University’s financial statements is dependent on the data within Workday being complete and accurate. Any goods and services sold must be reflected within Workday so that at any time the University can provide a reliable and accurate view of its financial standing. All customers are required to be billed through Workday. However, Institutional Finance has granted some campus units the ability to use systems outside of Workday on an as needed basis. This determination may only be made by Institutional Finance, though. If your campus unit is using a system that is not Workday and has not been approved by Institutional Finance, you should answer “Do Not Agree” on the certification. 

Examples include payments received for application fees, seat deposits, reimbursements, and course-related charges.

Under rare circumstances, Institutional Finance has granted approval for a campus unit to open an account on its own, but this must be approved and monitored by Institutional Finance. As such, accounts with external financial institutions (e.g. KUMC Credit Union) include accounts solely controlled by a campus unit or a KU employee.  

Students may receive payments for things such as scholarships, employment, and awards. It is important that the campus unit giving these payments to students are knowledgeable about university, federal, and state laws and regulations so that their financial aid eligibility is not in jeopardy and they do not incur any penalties for failing to submit required paperwork. 

Employees receive a budgeted salary for work that is in their job description when hired. Generally, an additional payment is for an activity conducted by an employee which contributes to the mission of the organization for which the individual is uniquely qualified to perform, but is not included in their job description. Any compensation made to an employee that supplements the designated, annualized, salary requires approval. All requests should be made in advance of the work activity being completed and require supplemental documentation regarding the reason, timeframe, and funding source.    

Examples of federal and state regulatory agencies which could contact your campus unit: U.S. Department of Health and Human Services (including NIH and FDA), U.S. Department of Labor, Environmental Protection Agency, Internal Revenue Service, Federal Bureau of Investigation, Kansas Legislative Division of Post Audit, Kansas Department of Health and Environment, and Kansas Department of Child and Family Services. 

Uniform Guidance is an authoritative set of rules and requirements for Federal awards that addresses allowable costs, internal controls over certifying time expended on sponsored projects, cash management, subrecipient monitoring, period of availability, and grant reporting requirements.  

The Board of Regents has authorized state universities, including KU, to enter into contracts to acquire or provide goods or services, which may involve an exchange of funds or other consideration, if such contracts are related to the university's operation, function, or mission. The Office of the General Counsel provides legal representation regarding the university’s contractual obligations. Anyone who is not authorized by written delegation, and who signs a contract that purports to bind KU or any of its units, or a controlled affiliate, is acting without authority and may be held personally liable for the contract and all costs incurred thereunder. The following areas are excluded from this policy or have special circumstances: processing of grant-funded contracts related to sponsored programs; contracts related to KU intellectual property; and real estate transactions. 

The definition of a "lease" includes contracts and agreements to use land, office space, buildings, mechanical or computer equipment, software, and other tangible or intangible assets. It would also include financing arrangements consisting of multiple payments that extend more than a year time-frame to a vendor for the purchase of tangible commodities (i.e., physical goods).

The University of Kansas Medical Center Research Institute, Inc., (KUMCRI), requires that all proposals; pre-proposals and letters of intent that include a budget or require institutional approval; and subcontracts, hereinafter referred to collectively as proposals, submitted to federal, state, local and private for-profit and non-profit funding agencies requesting funds and/or committing University resources (e.g. personnel, space, funds, equipment and facility use, etc.) be reviewed by the Sponsored Programs Administration Pre Award Office and approved by the Associate Vice Chancellor for Research Administration, or his designee, prior to submission.  

A research gift is defined as any item of value given to the University by a donor who wishes to support the research of a faculty member or group of faculty members, and who expects nothing of significant value in return, other than recognition and disposition of the gift in accordance with the donor's wishes.  

Fraud is the deliberate misrepresentation of fact for the purpose of depriving the university permanently of property or legal right to property. Examples include, but are not limited to: 

• Corruption: conflicts of interest, bribery, illegal gratuities, and economic extortion. 

• Cash asset misappropriation: larceny, skimming, check tampering, and fraudulent disbursements, including billing, payroll, and expense reimbursement schemes. 

• Non-cash asset misappropriation: larceny, false asset requisitions, destruction, removal or inappropriate use of records and equipment, inappropriate disclosure of confidential information, and document forgery or alteration. 

• Fraudulent statements: financial reporting, employment credentials, and external reporting. 

• Fraudulent actions by customers, vendors or other parties include bribes or inducements, and fraudulent (rather than erroneous) invoices from a supplier or information from a customer.