Management of the financial affairs of the Hawai`i SBDC Network is an extremely difficult process due to the myriad regulations enforced through oversight examinations and audits. The purpose of regulations and oversight is to protect taxpayers who invest their money in government in order to achieve results that are beneficial to the nation. Protection involves documenting the appropriate use of funds with the effective uses of resources. Most problems can be avoided when the appropriate regulations are understood. Nevertheless, s0metimes what seems required is in conflict with what can be achieved. In these instances, a resolution of an intractable problem needs to occur quickly and without frustration and rancor.
The process for the resolution of intractable problems is as follows:
1. Problem Identification. First, a problem needs to be identified as intractable. An intractable financial problem is any problem that
Is unresolved in a center after 10 working days. On the 11th day, the problem must be turned over to Network Services or
Is unresolved by Network Services within 5 working days (see Reporting Deadlines & Master Calendar) or
Immediately, if it is believed by any party to the matter that no clear path to resolution exists.
The identification of a financial problem is not a matter of someone failing, it is a matter of quality in operations. Some problems can only be resolved through exceptions, which require a higher level of authority.
2. Notification. At that point, the state director (or, in his absence, the associate state director) is to be notified. It is the obligation of every member of Network Services to make this notification as soon as the intractable problem is identified.
3. Calling a Meeting of Financial Transactions Resolution Committee. Then, the state director (or, in his absence, the associate state director) will call a meeting of the Financial Transactions Resolution Committee. This committee must meet as soon as possible, preferably within 24 hours of notification.
4. Composition of Financial Transactions Resolution Committee. The Financial Transactions Resolution Committee is composed of the state director (or designee) as chair, the associate state director (if available), the director of Network Services, and the coordinator of Network Services (if available). Any other party to the problem may appear before the committee or provide documentation.
5. Charge of Financial Transactions Resolution Committee. The Financial Transactions Resolution Committee is charged with (a) understanding the scope of the problem, (b) understanding the regulatory issues involved, (c) identifying solutions, and (d) arriving at a consensus solution quickly—all while maintaining the values of the Hawai`i SBDC Network. The solution arrived at must be acceptable to RCUH’s Designated University Official (DUO).
See related topics in this section:
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Unresolved Financial Transactions |