CSU Audit and Advisory Services recently completed an audit of Professional and Continuing Education (PaCE) programs at SJSU. One of the findings needs to be addressed by all departments with self-support programs:
PACE fund expenditures were not always properly documented to show a clear and appropriate connection between the expenditure and the overall support and development of self-support programs….We recommend that the campus:
a. Improve its enforcement of the requirement to maintain documentation demonstrating a clear and appropriate connection between PACE expenditures and self-supporting programs that benefit from the expenditures, and ensure the standards are communicated to appropriate employees.
b. Develop a more effective process for reviewing expenditure activities in PACE funds to ensure proper coding for transactions.
We’ve taken action in FTS to help departments comply with PaCE policies. In response to this finding, you will see a reminder in FTS about the PaCE “golden rule”:
PaCE funds (48xxx) may only be used for the support and development of self-support programs. Please refer to the PaCE guidelines for more information.
This is a temporary measure while we work on modifications to FTS that will prompt users to provide some additional information when using PaCE funds. We’ll let you when this change has been implemented and what you need to do.
