University of Michigan, Ann Arbor, said in a news release Thursday that it has put a series of new controls in place for its investment functions following an audit report issued by PricewaterhouseCoopers.
"The university acknowledges there are certain areas for improvement and has identified the changes it will make, including several that were immediately implemented, with others being adopted in the months ahead," the release said. University of Michigan's investment office oversees an $11.3 billion long-term endowment pool.
The university plans to make the following changes:
- Present the allocation ranges for each asset class to the board of regents for approval on at least an annual basis.
- Record due diligence documentation in a timelier fashion.
- Make refinements to the process of recording information contained within financial statements received from fund managers.
- Establish a more formal protocol to record financial commitments to funds and add a process to make sure that financial commitments are carefully verified.
It will also make changes to its travel and expense reimbursement policy and how it handles gifts from third parties.
Additionally, the university will require tighter adherence to an already established process of segregation of duties on who is authorized to sign off on investment purchases.
These changes follow the university amending its process in the spring for documenting any conflicts of interest with members of the university's investment advisory committee and the managers they invest with.