Penn Finance Department

Penn's Finance Department is a crucial operational unit within the University of Pennsylvania, responsible for the effective and compliant management of the university's financial resources. Its broad mandate encompasses financial planning, accounting, reporting, treasury functions, tax compliance, procurement, and risk management. The department strives to provide accurate, timely, and reliable financial information to support strategic decision-making across the institution. A core function of Penn Finance is developing and executing the university's annual budget. This involves collaborating with various schools, centers, and administrative units to forecast revenues, allocate resources, and monitor spending against established goals. The department analyzes trends, identifies opportunities for efficiency, and ensures that financial resources are aligned with Penn's academic and research priorities. Furthermore, they are heavily involved in the long-range financial planning of the university, evaluating the potential impact of capital projects, new initiatives, and fluctuating economic conditions. The accounting and reporting section of Penn Finance maintains the university's financial records in accordance with Generally Accepted Accounting Principles (GAAP). This includes processing accounts payable and receivable, managing the general ledger, and preparing financial statements for internal and external stakeholders. They also ensure compliance with federal and state regulations, including those related to grants and contracts. The department is responsible for the annual audit, working closely with independent auditors to verify the accuracy and integrity of the university's financial records. Treasury functions within Penn Finance involve managing the university's cash flow, investments, and debt. The team invests university funds in accordance with established policies and manages relationships with financial institutions. They also oversee debt financing activities, including the issuance of bonds and management of outstanding debt obligations. The goal is to optimize returns on investments while maintaining sufficient liquidity to meet the university's operational needs. Tax compliance is a critical area for Penn Finance, ensuring that the university adheres to all applicable federal, state, and local tax laws. This includes managing tax reporting requirements for income, sales, and property taxes, as well as providing guidance on tax-related matters to faculty and staff. The department also works to ensure compliance with regulations related to international activities and charitable giving. Procurement Services, a key component of Penn Finance, is responsible for sourcing goods and services for the university. They develop and implement procurement policies and procedures, negotiate contracts with vendors, and manage the university's purchasing card program. The department emphasizes cost savings, efficiency, and compliance in its procurement activities. They also promote sustainable procurement practices and support the university's commitment to diversity and inclusion by encouraging the use of minority-owned and women-owned businesses. Risk Management is increasingly integrated into Penn Finance's operations. The department works to identify, assess, and mitigate financial risks across the university. This includes developing and implementing internal controls, managing insurance programs, and providing training to faculty and staff on risk-related topics. By proactively addressing potential risks, Penn Finance helps to protect the university's assets and reputation. Ultimately, Penn Finance plays a vital role in ensuring the financial health and stability of the University of Pennsylvania. Through sound financial management, compliance, and strategic planning, the department supports the university's mission of education, research, and service.