2019 CAJPA Spring Workshop€¦ · 2019 CAJPA Spring Workshop 21st Century Internal Audit: How to...
Transcript of 2019 CAJPA Spring Workshop€¦ · 2019 CAJPA Spring Workshop 21st Century Internal Audit: How to...
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2019 CAJPA Spring Workshop21st Century Internal Audit: How to leverage internal audit to achieve your business goals
April 25, 2019
Presenters
PUNEET BEHL, CPA, ARMCSAC EIAChief Financial Officer
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MARK STERANKAMoss Adams LLPPartner, National Practice Leader
COLLEEN ROZILLIS, PMPMoss Adams LLPSenior Manager
• Different perspective than financial audit
• Goes beyond the finance dept.
• Govt. Code requirement to evaluate the need
• Best Practices
• Alignment with strategic goals
Why Internal Audit?
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• A more holistic approach to internal audit from both auditee and auditor perspectives.
• Objective and independent are not mutually exclusive of collaborative and constructive.
• Top opportunities for reducing risks, strengthening controls, and enhancing performance.
Learning Objectives
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Overview
I. Components of a Holistic Internal Audit Program
II. Proven Approaches
III. Keys to Success
IV. Questions
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I. Components of a Holistic Internal Audit Program
Tracking & ReportingCOpportunitiesBProgram InputsA
Enterprise Risk, Controls, & Performance AssessmentsEthics HotlinePerformance Metrics
RisksControlsCompliancePerformance
Findings & RecommendationsCorrective ActionsImplementation Validation
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Imp
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Per
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thro
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Inte
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A. Program Inputs
Key Sources of Input
ANNUAL AUDIT PROGRAM
ETHICS HOTLINE
PERFORMANCE METRICSENTERPRISE
ASSESSMENTS
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Enterprise Assessments
Enterprise Risk Assessment Enterprise Internal Controls Review
Asset Management and Capital Program Payroll
Operations/Service Delivery Monthly Account Reconciliation and Closing
Risk Management and Internal Controls Budgeting
Governance, Management, and Organization Cash Receipts and Cash Handling
Funding and Economics Revenues and Billings
Human Resources Accounts Receivables and Write-offs
Technology Grants Management and Compliance
Safety and Security Information Technology Access
Accounting, Financial Reporting, and Procurement Accounts Payable
Fraud, Waste, and Abuse Overall Control Environment
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• Tie to strategic plan
• Reflect community and stakeholder commitments
• Focus on outcomes
• Incorporate efficiency and effectiveness measures
Performance Metrics
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• Anonymous and confidential
• Employees and general public
• Third-party system
• Internal auditor administration
Ethics Hotline
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B. Improvement Opportunities
1.Succession
2.Asset management
3.Deferred maintenance
4.Technology
5.Governance and Management
Top Risk Opportunities
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1.Cash handling
2.Accounts receivable
3.Grants management
4.Purchasing
5.Technology
Top Controls and Compliance Opportunities
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1.Community outcomes
2.Service efficiency
3.Policies and procedures
4.Financial transparency
5.Employee engagement
Top Performance Opportunities
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C. Tracking & Reporting
Tracking & Reporting Framework
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Tracking & Reporting Framework
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II. Proven Approaches
Identifying Opportunities – Risks
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Identifying Opportunities – Risks
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Identifying Opportunities – Risks
Risk Factors Description
Risk Level Level of uncertainty
Likelihood Probability of a negative event occurring
Impact Level of significance should a negative event occur
Preparedness Level of preparedness to manage risks and minimize losses
Trajectory Direction of where risk is headed in the future
Condition Causes and impacts of identified risk
Risk Mitigation Actions and projects
Potential Residual Risk (if risks are mitigated) Level of uncertainty
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• Discrete tasks that are easily implemented
• Implementation that will take time to develop and implement
• Require policies and procedures
• Require training
• Address through internal audit work plans
Identifying Opportunities – Controls
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Identifying Opportunities – Performance
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• Outcomes
‒ Public Safety: Serious Crime Rate (UCR Part 1), Juvenile Crime Rate
‒ Fiscal Sustainability: Bond rating, Reserve Balance
‒ Economic Development: Unemployment Rate, Retail/Office Vacancy Rate
‒ Infrastructure: Pavement Condition Rating, Water Quality Rating
‒ Effective Government: Employee Turnover Rate, Workforce Diversity
• Efficiency and Effectiveness
‒ Functional Cost per FTE (support services)
‒ Functional Cost per Capita (direct services)
Identifying Opportunities – Performance
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• Program development
• Training at all levels
• Follow up and follow through
• Confidentiality protection
• Protection from retaliation
Identifying Opportunities –Ethics Hotline
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III. Keys to Success
• Objective
• Collaborative
• Constructive
• Comprehensive
Philosophy and Approach
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IV. Questions
Presenter Contract Information
PUNEET BEHL, CPA, [email protected](916) 850-7300
MARK [email protected](206) 890-3627
COLLEEN ROZILLIS, [email protected](206) 694-9760
The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation,
legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not
limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for
professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought.
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