Internal Control and the COSO framework: Application to the university sector. Lessons learned

Internal Control and the COSO framework: Application to the university sector.

Lessons learned

Report from the international project CPEA-ST/10022

Olga Iermolenko Anatoli Bourmistrov Mariya Knir

Oleksandr Saienko Diana Mykhaylyna Liudmyla Sybyrka Oksana Adamyk Bogdan Adamyk

Nord University R&D-Report no. 51 Bodø 2020

Internal Control and the COSO framework: Application to the university sector. Lessons

learned

Report from the international project CPEA-ST/10022

Olga Iermolenko Anatoli Bourmistrov Mariya Knir

Oleksandr Saienko Diana Mykhaylyna Liudmyla Sybyrka Oksana Adamyk Bogdan Adamyk

Nord University R&D-Report no. 51 ISBN 978-82-7456-818-1 ISSN 2535-2733

Bodø 2020

NORD

universitet Godkjenning av dekan

Tittel:

Report from the international project CPEA- ST /10022 "lnternal Control and the COSO framework: Application to the university sector".

Lessans learned.

Forfatter(e) / prosjektmedarbeider(e):

Olga lermolenko and Anatoli Bourmistrov, Nord University Business School; Mariya Knir, Taras Shevchenko National University of Kyiv; Oleksandr Saienko, Diana Mykhaylyna and Liudmyla Sybyrka, Yuriy Fedkovych Chernivtsi National University;

Oksana Adamyk and Bogdan Adamyk, Ternopil National Economic University

Prosjekt:

CPEA- ST/10022 lnternal control and the COSO framework: Application to the university sector

Sammendrag:

Denne rapporten beskriver erfaringer fra samarbeid med internasjonale partnere og erfaringer fra gjennomføringen av det internasjonale prosjektet CPEA-ST /10022

"Internat Contra/ and the COSO framework:

Application to the university sector", finansiert av Direktoratet for internasjonalisering og

kvalitetsutvikling i høyere utdanning (DIKU).

Summary:

This report aims to describe experiences from cooperation with international partners and lessans learned during the realization of the international project, CPEA-ST /10022 "Internat Contra/ and the COSO framework: Application to the university sector", financed by the Norwegian Agency for International Cooperation and Quality Enhancement in Higher Education (DIKU).

Offentlig tilgjengelig:

Ja ISBN 978-82-7456-818-1 Antall sider og bilag:

77 sider

Publikasjonsnr.

51 ISSN 2535-2733

Dato:

25.02.2020

Oppdragsgivers referanse Emneord:

Intern kontroll, COSO rammeverk, høyere utdanningsinstitusjoner, internasjonalt prosjekt, Norge, Ukraina.

Keywords:

lnternal control, COSO framework, higher education institutions, international project, Norway, Ukraine.

Report from the international project CPEA-ST/10022

Internal Control and the COSO framework: Application to the university sector

Lessons learned

Olga Iermolenko and Anatoli Bourmistrov Nord University Business School

Mariya Knir

Taras Shevchenko National University of Kyiv

Oleksandr Saienko, Diana Mykhaylyna and Liudmyla Sybyrka Yuriy Fedkovych Chernivtsi National University

Oksana Adamyk and Bogdan Adamyk Ternopil National Economic University

Contents

Introduction ... 3

Goals of the project ... 3

Results achieved... 4

Developed online course description ... 5

Quality assurance and evaluation ... 9

Lessons learned ... 13

Taras Shevchenko National University of Kyiv ... 13

Ternopil National Economic University ... 15

Yuriy Fedkovych Chernivtsi National University ... 16

Nord University Business School ... 18

Summary ... 21

Appendixes ... 23

Acknowledgements

We would like to thank the Norwegian Agency for International Cooperation and Quality Enhancement in Higher Education for making this project possible.

Introduction

This report aims to describe experiences from cooperation with international partners and lessons learned during the realization of the international project, CPEA-ST/10022

“Internal Control and the COSO framework: Application to the university sector”, financed by the Norwegian Agency for International Cooperation and Quality Enhancement in Higher Education (DIKU). First, we present the overall goals of the project and the project outcomes and describe the elements of the developed online course. Then, we describe the evaluation and quality assurance process implemented during the project’s realization. Finally, we describe the overall lessons learned from the project.

Goals of the project

The project’s aim was to develop an online competence improvement course in Internal Control, by applying the framework provided by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) for Ukrainian universities. The COSO framework is among the most used frameworks for internal control today worldwide and defines internal control in the following way: Internal control is a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance. By improving the competence of administrative university staff, this might make a contribution to better and more modern university management in Ukraine.

The aim of the project is thus to contribute to the modernization of the Ukrainian universities and make them more transparent in their activities. It is a way to assist the European integration of the universities and their financial possibilities for self- development, and to strengthen university autonomy. In Ukraine, the modernization of management in higher education has been named among its development priorities.

The project’s implementation contributes to the improvement of university management in the field of internal control, by significantly raising the level of professionalism of staff involved in this field. The project also contributes to the achievement of another goal stated in the Ukrainian strategy: namely, the improvement of financial capacity and transparency of the higher education institutions (HEIs). Well-developed and well-documented systems of internal control can also improve the abilities of Ukrainian universities to gain access to international projects and funding.

Results achieved

Through cooperation between four public universities, one in Norway (Nord University Business School) and three in Ukraine (Taras Shevchenko National University of Kyiv, Ternopil National Economic University and Yuriy Fedkovych Chernivtsi National University), the online course was developed, placed on Canvas, an e-learning platform, and tested during 2018-2019.

Twenty-two participants took the course in 2019, successfully completing it by December 2019. Thereafter, each participant received a certificate, issued and signed by four partner universities (see Appendix A). Exit work requirements or final group presentations, outlining the main elements of the COSO framework and ways of improving interval control at each partner university, are attached as Appendixes B-D.

Developed online course description

Internal Control and the COSO framework: Application to the university sector Level of course: Continuing education (workload corresponds to 5 ECTS)

Type of course: Online Teaching language: English

Course coordinator: Olga Iermolenko olga.iermolenko@nord.no Costs: No tuition fees

Course evaluation: Students evaluate the course by evaluation survey

Responsible institutions: Nord University Business School, Norway; Taras Shevchenko National University of Kyiv, Ukraine; Ternopil National Economic University, Ukraine;

and Yuriy Fedkovych Chernivtsi National University, Ukraine Course description

Developed through cooperation between Nord University Business School, Taras Shevchenko National University of Kyiv, Ternopil National Economic University and Yuriy Fedkovych Chernivtsi National University, the course gives an overview of internal control systems through the COSO framework, which was introduced in 1992 and updated in 2013. The COSO framework is among the most used frameworks for internal control today worldwide and is a valuable tool for many types of organizations, both public and private. The course provides a historical background to the development of internal control systems, as well as to the practical needs and advantages of having solid systems of internal control.

The course focuses on why internal control is needed to ensure that organizational/project objectives are achieved, funds are used properly, irregularities

are avoided, and risks are identified and handled through procedures designed to minimize the risks to the organization.

The course is arranged as a guided self-study online course. It takes place on the Canvas, web-platform for distance learning. After being admitted to the course, students gain access to the course “room” on Canvas, where all study materials and assignments are available.

The course consists of four components – Control environment (Module 1 by Yuriy Fedkovych Chernivtsi National University, ChNU), Risk assessment (Module 2 by Nord University Business School, NUBS, Norway), Information and communication (Module 3 by Taras Shevchenko National University of Kyiv, KNU, Ukraine) and Monitoring activities (Module 4 by Ternopil National Economic University, TNEU, Ukraine) – the principles behind the framework and practical ways to ensure that systems of internal control are effective.

Each module includes several self-study videos supplemented with PowerPoint presentations/slides and other materials (required and recommended readings, Internet links, etc.). Each module consists of written exercises and quizzes to evaluate learning progress. The participants are judged based on a multiple-choice test, obligatory assignments after each module, as well as a final presentation given at the end of the course.

Learning outcomes:

Knowledge

upon completion of the course, the participants will have knowledge and understanding regarding:

• The historical development of, and driving forces for, internal control system development in organizations.

• The components of the COSO framework for internal control (Control environment, Risk assessment, Information and communication, Monitoring activities), as well as its principles.

• The indicators of a proper functioning system of internal control.

Skills

upon completion of the course, the participants will be able to:

• Apply the COSO framework to design internal control systems.

• Analyze problems of internal control system functioning in a university.

• Identify and avoid barriers to the proper functioning of internal control systems.

General competence

upon completion of the course, the participants will improve their:

• Skills in group and teamwork.

• Ability to assess and discuss the tension between the general framework and context-specific practice.

• Ability to link theory and practice.

Prerequisites: Participants must work at a Ukrainian higher education institution Recommended previous knowledge: None

Mode of delivery: Distant mode / online course Assessment methods and criteria:

• Each participant delivers written assignments and takes a multiple-choice test after each module, as well as presenting in groups their university’s internal control systems on the basis of the COSO framework at the end of the course.

Grade: passed/not passed.

Study progression requirement: N/A

Required reading: Moeller, Robert R. (2014) Executive's Guide to COSO Internal Controls: Understanding and Implementing the New Framework. Hoboken, New Jersey, Wiley Corporate F & A. Web. A list of additional reading is available on Canvas for each module.

Quality assurance and evaluation

Quality assurance was a crucial point for the project’s realization. To assure the quality of the teaching material, each university team was tasked with going through another university’s modules and giving their critical opinion about the teaching material and tips for improvement. Thus, before launching the course, each module was critically assessed by another university’s team of teachers. Based on this feedback, the university responsible for each module had an opportunity to modify the tasks and to re-tape the video lectures.

An anonymous survey was carried out among course participants at the end of the course. The survey included “closed” multiple-choice questions, where course participants were asked to, for example, evaluate how satisfied they were with the practical information received before and during the course on a scale from 1 (“poor”) to 5 (“excellent”). We also asked several open-ended questions (e.g. “Please tell us why you were satisfied or dissatisfied with the course”, “Please suggest improvements for delivering the course materials in Canvas and how”, and “Do you have any further comments and suggestions?”).

Here is a short summary of the results of this survey. Course information dissemination (“Were you satisfied with the practical information you received before and during the course?”) was rated by 72% of participants as excellent, with 28% giving a score of 4 to this question. Rating the lectures provided by each of the faculty members (Module 1 by ChNU, Module 2 by NUBS, Module 3 by KNU and Module 4 by TNEU), participants gave excellent scores (5) to two of the modules; a few project participants suggested some improvements to the other two modules, however, giving them a score of 4. This means that, overall, the video lecture material was well received.

We asked four other questions that needed to be rated on a scale from 1 (“to a low extent”) to 5 (“to a high extent”). Of the course participants, 60% answered that they

were satisfied with the course content and the topics taught, and 40% gave a score of 4 to this question. Some participants suggested adding a fifth module to the course material (the third element of the COSO framework, “Control Activities”). We will consider this comment and will possibly add the fifth module to our online course.

To the question “Were you satisfied with the structure of the course (four modules, lectures, exercises)?”, all course participants (100%) answered that they were satisfied to a high degree (score 5). Among written comments, there were many stating that the course was quite detailed, interesting, and that the materials were presented in an accessible/convenient form. Moreover, participants mentioned that practical tasks made it possible to not only consolidate theoretical material but also analyze the activities of the university according to the proposed methodology.

More than 70% of course participants said that the course is highly relevant to their work and that they will attempt to use the new knowledge gained during this course and to implement it in practice and communicate it to the higher administrative layers of the universities. Their overall learning outcomes were rated as excellent by 86% of course participants. Many participants stated that, because of this course, they have had the opportunity to look at their university from an opposite corner. Other participants stated that internal control will be the topic of their further research.

Among other comments and suggestions for improvement of the course, the following thoughts were expressed:

• To have more time and opportunities for discussions and face-to-face meetings with faculty and course participants. There was only one final gathering of all project participants at the end of the project. However, different introductory and supervisory meetings were conducted with project participants at each Ukrainian partner university during the course. More interaction with NUBS was expressed to be important. We may introduce more offline-format meetings in

the future to facilitate information exchange. We will investigate possibilities for convenient online interaction between participants from different universities on Canvas or other e-learning platforms suited to this purpose.

• To prolong the time for completion of each module. In 2019, participants had approximately three weeks to complete each module. Some participants struggled to deliver tasks on time. In order to strengthen the motivation, we offered a short-term internship at NUBS for the three most successful candidates. This was very well received, and it seems that it facilitated the process of completing different modules. In the future, we can consider prolonging the time for each module.

• Internship at the Norwegian university. Due to limited funding, we could not offer this option to all candidates. However, based on the complex evaluation that includes written assignments, tests and final group presentation, we selected the three best candidates (one from each Ukrainian partner university) to come to Bodø in March 2020.

• Using Ukrainian/English subtitles. Some course participants suggested using subtitles in English or Ukrainian languages, in order to make it easier for them to follow the lectures. At the time of filming the lectures, we did not have this option, but we will consider adding subtitles for the next course.

• Other issues. Interest was expressed in learning more about the Western European higher education institutions and seeing more examples of poor/excellent internal control practices, showing the signals/facts of poor internal control in companies, organizations and their consequences and risks, as well as how companies found solutions to the situations. We can consider adding information on these issues to our course in the future.

Among important spin-offs of the project, participants mentioned that they have gained new contacts inside their universities and outside, which has opened up new forms of cooperation and group work for them.

Lessons learned

Reflections on the lessons learned from the project from each university are presented below.

Taras Shevchenko National University of Kyiv

Development of an online course. Lecturers of the course come from different universities and even countries and have different views and traditions regarding teaching students. It could be a challenge to create a harmonious course. Thus, face- to-face meetings and discussions became very useful. They helped to gain a common view regarding the style, structure and methods of the course. Together, exchanging teaching experience and creative ideas, we reached a consensus on the type of visual presentations and delivery of materials, and talked about examples and practical situations which could be used to facilitate the students’ understanding, and developed common methods of evaluation.

Filming short videos could be another interesting challenge for lecturers, assuming that online and distance learning have captured education worldwide, although it is still a rarity for Ukrainian universities, where lecturers are used to in-class courses. Thus, it was a very unique and valuable experience for Ukrainian lecturers and one which has substantially broadened their professional skills. From this experience, I learnt that, to make an appealing video lecture, you need to make the content more concise and less theorized, while working more on speech and emotions.

The focus of the course was on the students who are practitioners, have work experience in financial control and understanding of the management problems in their university. The tasks were developed, assuming that students are able to make comparative analysis, identify problems and develop improvement measures which may be used in their place of employment. Thus, the final presentations of students

contained useful data for practical use in financial management and control at universities.

Running the course. The first run of students on the course were the administrative and teaching staff of Taras Shevchenko National University of Kyiv, Yuriy Fedkovych Chernivtsi National University and Ternopil’ National Economic University. According to the feedback reports, the general attitude of students is very positive, and the course gained high points in almost all areas of the evaluation form, although some remarks are worth considering.

Relying on the students’ feedback reports and my personal observations, it is obvious that, although the course is intended to be online, this does not exclude the necessity for the students to communicate among each other and with lecturers. The topics raised during the course are very practical and discussible; thus, students and lecturers would benefit from the possibility to chat together. For this purpose, there is a need to develop a kind of chat platform in the future.

The second interesting remark is knowledge of the English language. The administrative staff of Ukrainian universities are highly experienced and professional in their work, but some of them do not know English at a sufficient level to understand the video lectures in English. Some of the students commented on this in their feedback reports. It was also evident to the project team that students experienced difficulties with the oral presentation of their final work during the seminar because of the language barrier. Thus, we need to think about the language issue and create some flexibility, for instance adding Ukrainian subtitles to the video lectures, etc.

International and national certification. The project team members raised this question among the administrative staff in the universities and discussed it with the first students of the course. All admitted that a formal award, such as certification, is important for the further introduction and popularization of the course.

To conclude, the experience and insights gained by the project team members and first-run students indicate that the course, “COSO Internal Control Online Course”, is an effective tool to raise the problems of financial control, to coordinate and educate staff to improve the existing situation in their universities using European approaches and experience. The project, “Internal Control and the COSO framework: Application to the university sector”, has been an important step in achieving the general goal to improve management in Ukrainian universities.

Ternopil National Economic University

It is unique and exciting that all the COSO project team members from different universities were able to take an active part in the development of the course. We were greatly impressed by the productive and interesting meetings in Norway and Ukraine. The project’s program was dynamic, complete and eventful. We had the unforgettable opportunity of creating a self-study online course that includes video lectures, presentations, theoretical and practical tasks, tests, recommended reading and other materials. We were delighted with the psychologically positive climate of communication between project members, and with the hospitality and goodwill of each of them.

Many lessons were gained from this project. First of all, we discovered for ourselves the importance of the COSO framework, which is among the most used frameworks for internal control today and is a valuable tool for many types of organizations, especially for universities.

The project gave us a deep understanding of the practical needs and advantages of having a complete system of internal control at the university. We could analyze the activities of the university from the COSO framework point of view, and we discovered the university’s weak and strong positions. We analyzed the control environment at the university, identified risks, described information and communication system, and

monitored activities at our university. This project provided – not only team members but also all participants (students) – with an understanding of the problem of building an effective system of internal control at their universities. All of them could see some problems in the system of internal control in their universities and could offer some proposals to amend problems.

During the preparation of the online course and the evaluation of the students' results, we realized that it is advisable to conduct this online course on a regular basis and to reach a much larger number of participants from different universities. We have seen that it is advisable to implement internal control training as a permanent component of the university's internal control. It could be a good idea to create a website for informational support for the construction of the internal control system in the university sector, with an introduction to the latest technologies of internal control.

Yuriy Fedkovych Chernivtsi National University

The idea of developing a joint online course originally arose at the Conference,

“Ukrainian universities as subjects of the state anti-corruption policy” (Kyiv, September 2016), and later at the seminar at NUBS (Bodo, November 2016). The active phase of the project began with a seminar, “Internal Control seminar: COSO framework applicability for universities” (Kyiv, December 2017), where the members of the Norwegian-Ukrainian University Alliance became acquainted with the COSO Internal Control framework. From the joint seminar in Bodo in January 2018, four universities’

project teams started working on developing the curriculum for the joint educational course.

In general, the best result of the four years of collaboration was the direct involvement of the employees of the four universities in all stages of the project – from idea generation to discussions of the result achieved, course evaluation and reporting. Such participation has made it possible to improve the skills of the administrative and

teaching staff of our institution, as well as forming a new working group (expert group on internal control) at the university.

Team members were able to gain useful experience of participating in various project activities, including coordination and management (university administration), development of the initial program, lectures, tasks, processing of literature, recording of video lectures, introduction of training module materials into the e-learning system, Canvas, and participation in foreign trips (teachers directly involved in developing the course, filming lectures and formulating course tasks). An important outcome of the project for our university is that our staff completed online learning and training, completing tasks and preparing a final presentation, with recommendations for improving the internal control system according to COSO standards for ChNU.

The model and plan of the project activities allowed an improvement in the individual skills of the group participants, including the preparation and recording of video lectures, work in the multimedia studio of Nord University, study and use of the distance learning system, and elements of teamwork.

The pilot training team was able to address a number of issues related to the use of the COSO internal control system and present it to the university’s management, including an analysis of the elements and principles of the COSO internal control system. Course participants provided a description of the educational environment, risk management and monitoring of university activities. Modern control tools for the organization of the university’s scientific and educational activities were tested. Using the COSO framework, the group critically assessed the system of internal control of ChNU and offered recommendations for its improvement.

Nord University Business School

It is desirable for all educational institutions to have international cooperation, and this project has made a substantial effort to build a long-term partnership (friendship) between NUBS, ChNU, TNEU and KNU. Since the course was completed by the first group, we have gained useful ideas on how to improve the course. Among the most important lessons learned, we could name the following.

First, more individual contact and face-to-face meetings with the project’s participants are needed, either online or offline. It has been shown that there is a need to provide greater motivation to complete the online course. We decided to award the three most successful candidates from KNU, ChNU and TNEU with an opportunity to have a short- term internship at NUBS in the spring of 2020. Second, when we next hold the course, we should conduct a survey at the beginning and at the end of the course, to be able to evaluate the progress in learning and have an opportunity to give more guidance to those participants who struggle to understand the different concepts of internal control.

Third, administrative support is needed during the course. Although different university teams are involved in the course and are responsible for their modules, one coordinator from NUBS was needed to provide assistance to course participants and to follow up. This person has to coordinate the work of students and teachers;

otherwise, it is difficult to run the course on Canvas without someone who is responsible for these administrative matters.

Fourth, we had an opportunity to learn more about each other’s competence and scientific interests. This made it possible to connect during other meetings at the universities and invite guest lecturers to NUBS. And finally, based on the competence gained during the project, we have developed several ideas for further cooperation on

possible cross-country research and educational projects, and we are currently investigating different funding opportunities.

We would like to express our gratitude to all involved for the exciting project and the achieved project results!

Pictures from the graduation seminar at Taras Shevchenko National University of Kyiv, Faculty of Economics, 11 December 2019

Summary

The development of this course has provided a platform for developing further courses at Ukrainian universities and also at Nord University. This is a good foundation for other courses and degrees that supply this necessary expertise to different higher education institutions in Ukraine and in other countries. Development of the course has also led to an improved partnership between KNU, ChNU, TNEU and NUBS, and broadened the basis of our cooperation.

Appendixes

Appendix A – Example of certificate issued for project graduates

Appendix B – Graduation presentation by Ternopil National Economic University Appendix C – Graduation presentation by Taras Shevchenko National University of Kyiv Appendix D – Graduation presentation by Yuriy Fedkovych Chernivtsi National University

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International Cultural and Educational Agency

T he L ea de rs hi p o f T N E U Re ct or at e A ca de m ic C ou nc il Su pe rv is or y Bo ar d

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promotes -the solving of prospective tasks of its development; -the attraction of financial resources for the maintenance of its activity regarding the basic directions of development and control over their use; -effective interaction of the University with state bodies and local self-government bodies, the scientific community, socio-political organizations and economic entities in the interests of the development and improvement of the quality of educational activities and competitiveness of the University; -exercises public control over the activities of the University.

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Pr op os al s • Im pl em en t a re sp on si bl e pe rs on o r a n of fic e fo r i nt er na l i nf or m at io n an d co m m un ic at io n as a p ar t o f t he in te rn al c on tr ol d ep ar tm en t • M ak e ou r U ni ve rs ity ’s lo ca l n et w or k m or e tr an sp ar en t a nd u se fu l • Sw itc h m or e fr om a p ap er -b as ed in fo rm at io n sy st em to a n IT -b as ed sy st em a nd e le ct ro ni c da ta in te rc ha ng e (E DI )

Pr op os al s • Im pl em en t a n an nu al U ni ve rs ity -w id e su rv ey of s tu de nt s an d em pl oy ee s • U se th e U ni ve rs ity ’s a ss es sm en t s ys te m to tr an sp ar en tly e va lu at e th e pe rs on al in vo lv em en t o f t ea ch in g st af f a nd re se ar ch er s • Im pl em en t i nt er na l c on tr ol tr ai ni ng a s an on go in g co m po ne nt o f t he U ni ve rs ity 's In te rn al C on tr ol

Co nc lu si on In te rn al c on tr ol a t o ur U ni ve rs ity is ad eq ua te ly d es ig ne d an d pr op er ly e xe cu te d. • Al l f iv e in te rn al c on tr ol co m po ne nt s of th e U ni ve rs ity -a do pt ed CO SO m et ho do lo gy ( Co nt ro l E nv iro nm en t, Ri sk As se ss m en t, Co nt ro l Ac tiv iti es , I nf or m at io n & Co m m un ic at io n, a nd M on ito rin g ) a re pr es en t an d fu nc tio ni ng .

Th e im pl em en ta tio n of CO SO ri sk m an ag em en t

• A co nt in uo us p ro ce ss th at c ov er s th e en tir e or ga ni za tio n • Is im pl em en te d by e m pl oy ee s a t a ll le ve ls o f t he o rg an iz at io n • U se d in st ra te gy d ev el op m en t a nd fo rm ul at io n • Ap pl ie d th ro ugh ou t t he o rg an iza tio n, a t e ac h of it s le ve ls a nd in e ac h un it, a nd pr ov id es fo r a na ly si s of a ll ris ks a t t he o rg an iz at io na l l ev el • Ai m s to id en tif y al l e ve nt s th at m ay a ffe ct a n or ga ni za tio n's a ct iv iti es a nd ad eq ua te ly re sp on d to ri sk s, s o th at th ey d o no t e xc ee d th e m ax im um le ve l (r is k ap pe tit e) • Gi ve s as su ra nc e to m an age m en t a nd th e “B oa rd o f D ire ct or s" in a ch ie vi ng th e go al s

St ra te gi c go al s ar e to c ar ry o ut s ta te -le ve l ed uc at io na l a ct iv iti es a t a h ig h- qu al ity le ve l a nd to tr ai n hi gh ly q ua lif ie d sp ec ia lis ts O pe ra tio na l g oa ls ar e go al s th at d et er m in e th e ef fic ie nt a nd e ffe ct iv e us e of re so ur ce s Th e ob je ct iv e fo r p re pa rin g th e fin an ci al st at em en ts is th e re lia bi lit y of th e re po rt in g Le gi sl at io n go al s ar e to c om pl y w ith a ll re gu la to ry re qu ire m en ts

Th e go al s of th e un iv er si ty a re

Th e ris k m an ag em en t p ro ce ss c on si st s of th e fo llo w in g co m po ne nt s:  Co nt ro l ( in te rn al ) e nv iro nm en t  G oa l s et tin g  D ef in iti on o f e ve nt s  Ri sk a ss es sm en t  Re sp on di ng to ri sk s  Co nt ro l m ea su re s  In fo rm at io n an d co m m un ic at io n  M on ito rin g

Th e CO SO p rin ci pl es a re no t f ul ly fo rm ed a t t he U ni ve rs ity . H ow ev er , t he U ni ve rs ity is a n in st itu tio n w ith m an y ye ar s of ex pe rie nc e. It h as it s ow n or ga ni za tio na l s tr uc tu re , w ith w el l-e st ab lis he d ho riz on ta l a nd v er tic al lin ks , a h ie ra rc hy a nd su bo rd in at io n, w ith a cl ea r d iv is io n of re sp on si bi lit ie s a nd a re as of re sp on si bi lit y fo r e ac h un it, w ith d ef in ed fu nc tio na l r es po ns ib ili tie s fo r e ac h em pl oy ee .

In te gr ity an d et hi ca l va lu es Ro le o f t he Bo ar d of D ire ct or s Th e ne ed fo r po w er a nd re sp on si bi lit y Id en tif ic at io n of th e st re ng th s of hu m an re so ur ce s Re sp on si bi lit y fo r i nt er na l co nt ro l

Th e ba si c pr in ci pl es o f a st ro ng C O SO m an ag em en t en vi ro nm en t c an b e ap pl ie d:

Al lU ni ve rs ity st af f cr ea te a un ifi ed U ni ve rs ity co m m un ity th at w or ks fo r th e co m m on ou tc om e an d re pu ta tio n of th e in st itu tio n. Th e U ni ve rs ity ha s ad op te d a Co de of Et hi cs fo r th e U ni ve rs ity co m m un ity ,w hi ch se ts ou t cl ea r ru le s of co nd uc t th at al le m pl oy ee s fr om th e re ct or to th e te ch ni ci an m us ta dh er e to .

1. In te gr ity a nd e th ic al v al ue s

2. Ro le o f t he B oa rd o f Di re ct or s Th e U ni ve rs ity as a st at e in st itu tio n do es no t ha ve a bo ar d of di re ct or s. H ow ev er , th e fu nc tio n of co nt ro lli ng th e in st itu tio n's m an age m en t is pe rf or m ed by th e Su pe rv is or y Bo ar d, th e Ac ad em ic Co un ci la nd th e ge ne ra l m ee tin g (c on fe re nc e) of th e la bo r te am , as th e su pr em e co lle gi al bo dy of pu bl ic se lf- go ve rn m en t. Al so ,t he co nt ro lli ng fu nc tio n is as su m ed by th e st at e, in th e ro le of th e M in ist ry of Ed uc at io n an d Sc ie nc e of U kr ai ne ,a s th e fo un de r of ou ri ns tit ut io n.

D ire ct m an age m en to ft he in st itu tio n's ac tiv ity is ca rr ie d ou tb y its he ad – th e re ct or . Th e he ad of th e in st itu tio n is re sp on si bl e fo r th e im pl em en ta tio n of ed uc at io na l, sc ie nt ifi c, te ch ni ca l an d in no va tiv e ac tiv iti es , th e re su lts of fin an ci al an d ec on om ic ac tiv iti es ,a nd th e co nd iti on an d pr es er va tio n of re al es ta te an d ot he rp ro pe rt y. Th e U ni ve rs ity , in ac co rd an ce w ith th e or ga ni za tio na l st ru ct ur e, w ith its ve rt ic al an d ho riz on ta ld iv is io n of la bo r, fo rm s ap pr op ria te lin es of co m m un ic at io n, fo r in fo rm at io n ga th er in g an d re po rt in g, w hi ch ar e ne ce ss ar y fo rp la nn in g, pe rf or m in g co nt ro la nd pe rio di c ev al ua tio n of th e ac tiv ity of th e en tir e U ni ve rs ity .

3. Th e ne ed fo r p ow er a nd re sp on si bi lit y

4. Id en tif ic at io n of th e st re ng th s of hu m an re so ur ce s Th e U ni ve rs ity 's hu m an re so ur ce s ar e de te rm in ed by th e ap pr ov ed em pl oy ee lis t. Ea ch em pl oy ee ha s hi s or he r ap pr ov ed pe rs on al fu nc tio na l re sp on si bi lit ie s th at cl ea rly de fin e th e ar ea of hi s / he ra ct iv ity an d re sp on si bi lit ie s.

Th e U ni ve rs ity h as th e m os t d ev el op ed in te rn al c on tr ol o ve r f in an ci al ac tiv ity , a nd it is p re ci se ly re gu la te d fin an ci al s ta te m en ts th at a re co nt ro lle d an d au di te d by th e st at e. T he U ni ve rs ity h as a d ep ar tm en t o f in te rn al c on tr ol a nd a ud it, a nd a n an ti- co rr up tio n de pa rt m en t. H ow ev er , i n al l o th er a re as o f a ct iv ity , t he re a re n o cl ea r p er fo rm an ce in di ca to rs fo r w hi ch st af f c an b e re w ar de d or p un ish ed . I nd iv id ua l re su lts w ou ld b e gr ea tly e nh an ce d if th e em pl oy ee w er e cl ea rly a w ar e of th e le ve l o f e ffi ci en cy he w ou ld b e re sp on si bl e fo r a nd fo r w hi ch h e w ou ld re ce iv e fa ir re m un er at io n.

5. Re sp on si bi lit y fo r i nt er na l c on tr ol

Th e m ai n ris ks th at a ris e in th e cu rr en t re al iti es o f o ur U ni ve rs ity

In fo rm at io n ris ks O pe ra tio na l ris ks Fi na nc ia l ris ks

St ra te gi c ris ks

 Gl ob al iza tio n  Ag gr es si on fr om th e Ru ss ia n Fe de ra tio n  D em ogr ap hi c si tu at io n an d sig ni fic an t im ba la nc e in th e la bo r m ar ke t  Re fo rm s in s ta te e du ca tio n st an da rd s  Re fo rm s in th e qu al ity o f e du ca tio n

St ra te gi c ris ks

O pe ra tio na l r is ks  O rg an iz at io n of e du ca tio na l a ct iv iti es  Th e la te st te ch no lo gi es o f t he e du ca tio na l pr oc es s  St af fin g  U ni ve rs ity -w id e in fo rm at io n ba se  Li ce ns in g

Fi na nc ia l r is ks  St at e fin an ci al s ec ur ity  Bu si ne ss in vo lv em en t i n fin an ci ng  Fi na nc ia l a ut on om y  Pr ic in g  Sp ec ifi c co nd iti on s of fi na nc ia l m an ag em en t po lic y

In fo rm at io n ris ks  Th e re pu ta tio n of th e U ni ve rs ity  U ni ve rs ity ra tin g  Ad ve rt is in g of n ew s pe ci al tie s  In fo rm at io n ex ch an ge sy st em  Ac ce ss to o pe ra tio na l i nf or m at io n an d co m m un ic at io n

Fo r t he s uc ce ss fu l a na ly si s an d ris k as se ss m en t of th e U ni ve rs ity 's a ct iv iti es , t he fo llo w in g ar e ne ce ss ar y Ca rr y ou t c on tin uo us m on ito rin g H av e th e w id es t p os si bl e ra nge o f i nf or m at io n Re sp on d pr om pt ly to b ot h in te rn al a nd e xt er na l f ac to rs Cr ea te a ge ne ra l i nf or m at io n ba se fo r t he U ni ve rs ity , e na bl in g in fo rm at io n to b e ex ch an ge d no t o nl y be tw ee n th e ve rt ic al (le ad er sh ip ) a nd h or izo nt al (b et w ee n un its ) a re as , b ut to re sp on d m or e qu ic kl y to in te rn al c ha lle ng es Es ta bl ish a m on ito rin g un it th at s ho ul d co nt in uo us ly a na ly ze an d ev al ua te p ot en tia l r is ks a nd d ev el op a n in te rn al c on tr ol st ra te gy

In te rn al C o n tr ol a nd th e C O S O f ra m e w o rk : A pp lic at io n to th e Y u riy F e dk o vy ch C h e rn iv ts i N a tio na l U ni ve rs ity

Y U R IY FE D K O V Y C H C H E R N IV TS I N A TI O N A L U N IV E R S ITY  o ne o f t h e o ld est cl a ssi ca l u n ive rsi tie s in U kr ai n e ( 1 87 5 )  a bo ut 16 ,0 0 0 st ud en ts  A bo ut 1 20 0 te a ch in g st af f  1 2 fa cu lti e s, 2 in st itu te s, 1 co lle ge  8 th pl a ce a m o ng t he b e st cl a ssi ca l U A u ni ve rsi tie s  4 th pl a ce a cco rd in g to S co pu s d a ta ba se in 2 01 8  in te n si ve in te rn a tio n al a ct ivi ty w ith m o re th an 3 0 co un tr ie s

C O S O C O N TR O L E N V IR O N M E N T A T C H N U D e fici en ci es ✔ U n ive rs ity re g u la tio ns a re d e cl a ra tiv e in n at ur e ✔ Th e C o de o f C on d uc t i s a ct u al ly a b se nt ✔ Th er e is n o U ni ve rsi ty d e ve lo p m en t st ra te g y ✔ Th e S u pe rv is or y B o a rd d oe s no t h o ld m e e tin g s in fa ct ✔ C h a n ge s in th e U n ive rsi ty ext er n al co nd iti o ns d o n o t a llo w g oa ls a n d o b je ct iv e s to b e fo rm u la te d ✔ L ac k o f m at e ria l a n d m o ra l m o tiva tio n d o e s n ot co n tr ib u te to th e in vo lve m en t o f q u a lif ie d p ro fe ss io na ls ✔ E m pl oye es ’ r e p or ts a re v e ry fo rm a l

C O S O C O N TR O L E N V IR O N M E N T A T C H N U P er sp e ct ive s ✔ Th e U n iv e rsi ty h a s th e C o n ce pt o f D e ve lo p m e n t, th e C o d e o f A ca d em ic In te g rit y (a lth ou g h on ly a t t h e Fa cu lty o f L a w ), th e A n ti- C o rr u p tio n R e gu la tio n s ✔ Th er e is a S u p er vi so ry B o a rd a t t he U n ive rsi ty ✔ Th e U n iv e rsi ty is tr yi n g to a ttr ac t co m p e te nt p ro fe ss io na ls ✔ E m pl oye es p re pa re a nn u al r e po rt s on co m p le te d ta sks