Department of Internal Audit and Compliance

The Compass March 2024 Vol. 17 no. 1

Guidance for University leaders on governance topics facing UToledo and our peer institutions

 

The Seven Essential Elements

In the compliance profession, we are all about the “Seven Essential Elements.” By this, I am referring to direction provided within a document called the Federal Sentencing Guidelines. While the title of the document sounds menacing -- it is not. The Guidelines provide oversight in support for establishing and maintaining an effective ethics and compliance program, through the following seven elements, and are adaptable to all industries, not just higher education and healthcare.

1. Maintaining current standards of conduct, policies, and procedures
2. Designating a compliance office
3. Conducting effective training and education
4. Developing effective lines of communication
5. Conducting ongoing internal monitoring and auditing
6. Enforcing standards through well-publicized guidelines
7. Responding promptly to detected problems and undertaking corrective action.

The University of Toledo has an excellent story to tell in terms of ensuring conformance with the Seven Essential Elements, from its central Institutional Compliance office to its broad network of compliance partners across the academic and clinical enterprises. A comprehensive annual report captures their excellent work, published at the end of each fiscal year and shared with Senior Leadership and the Board.

We invite you check out our webpage to learn more. And if you ever want to “geek out” on the Federal Sentencing Guidelines, look here. Thanks for your continuing support.

David L. Cutri, CPA, CISA, CIA
Executive Director of Internal Audit and Chief Compliance Officer
Internal Audit and Compliance
Anonymous Reporting Line

March Madness

We are fortunate to have Brian Lutz (Senior Associate Athletics Director for Compliance and Administration) contribute the article below to The Compass, this time about the upcoming NCAA basketball tournament. With the ability to gamble on sporting events getting easier and easier these days, it is important to remind you of appropriate behaviors in this area. Thanks to Brian and Kenny Schank for your leadership!

Last year, according to the American Gaming Association, an estimated 15.5 billion dollars was wagered on the NCAA basketball tournament. Strikingly, approximately one quarter of all American adults (sixty-eight million) bet on the 2023 tournament. As sports wagering is now available in over 30 States (including Ohio and Michigan), the lure of the bet is propagated in advertisements through all media, including mobile applications. College students, a risk-taking population, are particularly susceptible to problem gambling. According to a University of Buffalo study, one out of ten students are problem gamblers. Furthermore, a 2023 survey of 3,527 Americans between the ages 18 and 22 by the National College Athletic Association (NCAA) revealed that 60% bet on sports, and 4% do so every day. Six percent of those surveyed reported having lost $500.00 or more on a given day.

What do all these statistics mean within the context of NCAA rules? Well, while the public can legally wager on collegiate (and professional) sporting events, NCAA student-athletes, coaches, and athletics staff members are prohibited from doing so, even in States in which gambling is permitted. This NCAA rule forbids a sports wager of any kind, including $5.00 tournament bracket sheets in the dormitories and small bets with neighbors in the community. A wager is defined by the NCAA as placing something of value at risk for the opportunity to win cash or prizes.

Finally, while a great deal of emphasis has been given to the psychological impact of problem gambling on the bettor, new attention is being focused on student-athletes who face the prospect of psychological harassment and abuse in social media from angry gamblers who feel the student-athlete impacted a lost bet. The comments and yes, threats, a student-athlete receives on his/her social media account for failing to make a play in a game are disturbing occurrences. To that end, the NCAA Mental Health Advisory Group is currently updating the Best Practices publication to include these forms of harassment in assisting student-athletes and institutions.

If you or someone you know has an issue with problem gambling, there is help. In Toledo, contact the Zepf Center at (419) 841-7701 EXT 6111, or nationally, contact the National Problem Gambling Helpline (1-800-GAMBLER).

Cyberattack

Kansas State University (K-State) announced it is managing a cybersecurity incident that has disrupted certain network systems, including VPN, K-State Today emails, and video services on Canvas and “Mediasite.” On the morning of January 16^th, the university announced on its media portal that it was experiencing disruption in certain IT systems, and by the afternoon, it confirmed a cyberattack had caused it. K-State took impacted systems offline upon detection of the attack, resulting in the unavailability of VPN, emails, Canvas and Mediasite videos, printing, shared drives, and mailing list management services (Listservs).

Cyberattack

Financial Aid Program Compliance

The Ohio auditor's office executed search warrants on January 4^th at Eastern Gateway Community College in Steubenville, months after the U.S. Department of Education ordered the college to halt enrollment over a possible violation of federal law over how it pays for students to attend classes. U.S. Secret Service agents, Ohio State Highway Patrol's computer crimes unit, Jefferson County Sheriff's office and others joined state auditors, according to a statement from the office of Ohio Auditor Keith Faber. In a video statement, Faber said they are investigating matters of financial irregularities at the college.

Financial Aid Program Compliance

U.S. to Ease Requirements for Colleges

The U.S. Education Department is relaxing certain requirements so that colleges and universities dealing with delayed student financial aid information can better focus on processing aid applications and delivering aid packages to students. Check out this Inside Higher Ed article to learn more.

U.S. to Ease Requirements for Colleges

The Cliffs of Higher Ed: Who’s Going Over? Why?

A great deal is being written about higher education’s straits, the headwinds they are facing, and the cliffs (enrollment, financial, existential) they are marching toward. We hear about enrollment cliffs, the financial crises and exigency, seemingly draconian cuts and backlash from within, and even mergers and closures. This recent Forbes article provides additional context, for those of us employed in higher education, and those that are not.

The Cliffs of Higher Ed: Who’s Going Over and Why?

Does a 4-Year Diploma’s Value Change?

Although new policies are propping up workers without degrees, experts say higher education will continue to play a role in hiring decisions and pay rates. This Higher Ed Dive article discusses what is driving this trend, the persistent value of a college degree, and the need for other solutions.

Does a 4-Year Diploma’s Value Change?

 

If you have any suggestions, questions or feedback, please e-mail david.cutri@utoledo.edu, including suggestions for items to include in future newsletters Feel free to forward this email to your colleagues, employees. Back issues of this newsletter are available on the Internal Audit and Compliance website.

Redistribution of this newsletter, with or without modification, is permitted provided University of Toledo Internal Audit Department is listed as the source.