As mentioned above, assertions can only be made "to the best of their knowledge and belief." In addition, the dean and department head fiscal closing certification letter is addressed to the Campus Controller, not PwC. We believe that there is no personal or professional exposure on the part of a dean or department head so long as the certification letter is signed with a good faith belief that the information provided is accurate. In the private sector, company executives have been held only to a standard of exposure where their representations were knowingly and intentionally untrue, or were reckless (reckless means beyond simple or even inexcusable neglect-an extreme departure from the standard of ordinary care). Cases holding company executives liable almost always involve intentional fraud or other deliberate illegal conduct.
The fiscal closing certification letter is intended to provide only reasonable assurance to the Campus Controller and Vice Chancellor of Administration that transactions have been properly recorded and the appropriate disclosures have been made, subject to any exceptions noted by the dean or department head. Absolute assurance by the dean or department head is not attainable, nor is it being requested in any covert or overt fashion. The dean or department head is not insuring anything, other than his or her good faith belief in the matters covered by the letter. The signed fiscal closing certification letter does not constitute a guarantee.
If there are exceptions noted, it is the responsibility of the Campus Controller and Vice Chancellor of Administration to evaluate the nature of the exception in order to judgmentally determine the overall effect on the integrity of the fiscal closing process, the accuracy of the reported financial information contained in the general ledger or the adequacy of disclosures associated with the preparation of the University's financial statements.