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Administrative Responsibilities: Principles of Regulatory Compliance

Read about administrative officials' responsibilities in the area of regulatory compliance.

Regulatory compliance

Employees who conduct transactions that affect University funds must comply with laws, regulations, and special restrictions.

Principles

  • Individuals who violate laws/ regulations while on University business are held personally responsible and face punitive actions.
  • Fraudulent or illegal business is reported immediately.
  • Each unit is responsible for the restitution of any disallowance due to noncompliance with laws, regulations, or special restrictions.
  • Employees conducting university business transactions are responsible for staying abreast of changing legal and regulatory requirements.
  • Legal/ regulatory requirements and donor-imposed restrictions shall be maintained on record with the university and readily accessible.

Responsibilities

  • Financial reporting compliance: Transactions must follow Generally Accepted Accounting Principles (GAAP) and must be applied consistently. Sources and uses of funds must be aggregated by type of activity and in accordance with use restrictions. Revenue is reported when earned, and expenditures are reported when goods or services are received.
  • Reporting to sponsoring entities: Adherence to Office of Management and Budget (OMB) Circulars and/ or Federal Acquisition Regulations (FAR) is required. Two primary OMB Circulars, OMB Circular A-21 and A-110, should be reviewed for compliance requirements.
  • Regular audits: Financial reporting systems must be open to internal and external review. External auditors must be cleared and coordinated by the UCSD external audit coordinator.