Internal Auditing & Management Consulting Overview BOT On-Campus Orientation August 29, 2011...

Internal Auditing & Management Consulting

OverviewBOT On-Campus Orientation

August 29, 2011 Presentation to UWF BOT

Authority

BOT Finance, Administration and Audit Committee Charter

UWF Internal Audit Charter

Florida Statute 20.055 Inspector General Act


Reporting Authority

August 29, 2011Presentation to UWF BOT

President

Associate Vice President

Internal Auditor IIIStudent

EmployeeInternal Auditor

UWF Board of Trustees Finance, Administration and Audit

Committee

Note: One position (.75 FTE auditor) was lost in 2011/12 for budget cuts


Name Betsy Bowers Cindy Bookout Greg Hale Amy Bueno

Title Associate Vice President

Internal Auditor III

Internal Auditor Student Worker

Years in Internal Auditing 27 7

1.5 (internship @

Escambia County School District)

8 months

Years with UWF 18 years 10 months 7 months 8 months

Years Audit Experience 29 9 2 8 months

Educational Degrees, Institution, and Major

MBA and BA (Acct)East Tennessee State

University

BS AccountingUniversity of South

Alabama

MAcc and BSBA (Acct Information

Systems) University of West Florida

Working toward BSBA General

Business, Management

Minor

Professional Certifications

Certified Internal Auditor (CIA),

Certified Fraud Examiner (CFE),

Certified Government Financial Manager

(CGFM), Certified Inspector

General (CIG)

Certified Public Accountant

(CPA)Alabama and

Florida

Committee Responsibilities Meets quarterly

Vice President-Administrative Services, Chief Budget Officer, and General Counsel prepare agenda items

Associate Vice Internal Auditing prepares agenda – typical discussions include status of audit plan, reports issued, hot topics/risks.

Oversight of the financial statement preparation process.

Oversight of the internal audit function.

Oversight of external audits.

Reporting to the FAA(Finance, Administration & Audit) Committee of the Board.

Approval of Annual Audit Plan.


Standards

Institute of Internal Auditors International Standards for Professional Practice of Internal Auditing

Institute of Internal Auditors Code of Ethics

Government Auditing Standards (Yellow Book)

Generally Accepted Accounting Principles (GAAP)


Internal Auditors vs. External Auditors


Internal External

UWF Employee Independent contractor

Serves needs of UWF Serves 3rd parties, who need reliable financial information

Focuses on FUTURE events by evaluating controls designed to assure accomplishment of UWF goals and objectives

Focuses on accuracy and understandability of HISTORICAL events as expressed in the financial statements

Is DIRECTLY concerned with prevention of fraud in any form

INCIDENTALLY concerned with fraud, but DIRECTLY concerned if materially affect financial statements

Independent of activities audited, but ready to respond to needs/desires of all UWF management

Independent of management and board of directors, both in fact and mental attitude

Reviews activities CONTINUALLY Reviews records/financial statements PERIODICALLY, usually once a year

AUDITS• Financial

• Compliance

• Operational

• Combination

Management Advisory Services (consulting)

Investigations


ACTIVITIES

Functions

Supervise and coordinate audits, investigations, management reviews, and other accountability activities

Conduct activities to promote economy and efficiency in the administration of or preventing fraud, waste and abuse in the university programs and operations.

Follow-Up on prior audit findings (internal and external auditors)

Keep the President and Board of Trustees informed concerning fraud, abuses, and deficiencies in university programs

Coordinate activities with the Auditor General, federal auditors and other governmental agencies

Share with management collective expertise, insight, and knowledge, and assist management in establishing/enhancing internal control system


University Business Cycles

UWF Internal AuditingRisk Analysis


Overall View of Business Cycles


University Core Missions

Instruction Research Public Service

Ancillary Missions

Other(DSOs)

Fiscal

Proprietary Operational

Student Services

Administrative Services

Personnel


Instruction

Academic Reporting

Instruction & Instructional

Support

Research

Research Management

& Support

Public Service




Instruction Research Public Service

Ancillary Missions

Academic reporting

Instruction & Instructional Support

Research Management & Support Public Service

Other Fiscal Proprietary Personnel AdministrativeStudent ServicesOperational

DSOsBudgeting &

Performance Measures

Revenues &Collections

Disbursements

Asset Management

Financial Reporting

Procurement

Auxiliary Activities& Contracted

ServicesPersonnel

Management& Recruitment

Facilities Development

& Management

Computing& IT Support

Student SupportServices

Student HealthServices

Planning &Policy

Development

Administrative Support Services

External Audits Performed

Auditor General Financial Statement

Federal Funds

Bright Futures

SACS Special Purpose Financial Statement (every 10 years)

Federal Florida Small Business Network

CPA firms WUWF-FM

Intercollegiate Athletics Financial Statement

Direct Support Organizations/Affiliated Organizations UWF Foundation West Florida Historic Preservation, Inc. Florida Institute for Human & Machine Cognition


RISK FACTORS• Executive Management Interest

• Internal Controls System

• Fraud Likelihood and Impact

• Changes in Personnel/Procedures

• Prior Audit Findings

• Time Since Last Audit

• Dollar Volume Exposure

• Interdependence

• Public Disclosure Implications

• External Audit Coverage


RISK

TYPES OF RISK

• Strategic • Financial• Operational• Compliance• Reputational

Evaluation of Audit Areas


Topic Factors AVP Evaluation Conclusion

Financial Risk

Dollar Volume Exposure 27% budget cut in 3 years; ARRA one-time funding; reduced endowment interest; changes to Financial AidManagement Interest: HighChange: Significant reductions, new Chief Budget OfficerPublic Exposure: Highly newsworthy, external interest highPrior Audits: AG audits financial statement, federal funds and Bright Futures ; IAMC Treasury Management auditCompetency of Personnel: Fin Svcs and Budget Office personnel competent; leadership strong. We are cognizant of tight budgetEthical Climate: Those entrusted appear ethical; however, cognizant that fraud can occur anywhereInterdependence: HighFraud Potential: High

Reduced funding is foremost on all manager’s minds, as well as the Board of Trustees. Increased exposure for fraud exists as many are asked to do more without salary increases, as well as personal financial situations may have been significantly impacted with the recession. Every area IAMC will work in during the coming two fiscal years will touch the financial risk in the course of work. All IAMC personnel are competent to perform an assessment of financial risk. Some IAMC personnel have professional certifications (CIA, CPA, CFE, and CGFM) which will compliment the financial acumen within the IAMC portfolio of skills.

Incorporated into all

aspects of IAMC

financial, operational,

and compliance

audits as well as MAS and investigative

activities.

Parking Services

Dollar Volume Exposure: $500k (decals, fines, meters)Prior Audit: Never audited; MAS by IAMC on decalsManagement Interest: Moderate; pressure to build a parking garageStrategic Impact: If parking not available, students may not continue at UWF; revenues declineExternal Audit: AG looks at revenue on financial auditEthical Climate: Parking Svcs does not collect money; Parking Svcs clerk enters A/R into systemFraud Potential: Level of unpaid fines

Internal Auditing personnel are competent to assess the motor pool and vehicles. We can assess the validity/ reasonableness of the rates assessed by Motor Pool. We can also review the advantages/ disadvantages regarding lease/purchase/rental of vehicles. Management has expressed concern over this area.

AUDIT PARKING SERVICES

Examples of Audit Areas

AthleticsAuxiliariesComputer SecurityConstructionFinancial AidHousingInstitutes & CentersLibrary

Parking & Transportation ServicesProcurementPurchasing CardResearch & Sponsored ProgramsStudent ActivitiesStudent Government AssociationVending/Contracted Services


Work Plan 2011/12Audits• Aquatic Center

• Construction

• Educational Research

Center for Child

Development (ERCCD)

• Institutes and Centers (in

process)

• PCard Audits (department level)

• Recreation

• Revenue Generating

Contracts (in process)

• Telecommunications

• Testing Center

• Voyager Student Center

Management Advisory Services

• Evaluation of Policies, Rules,

Procedures and changes

• Risk & Compliance Council

• Banner Student Implementation –

team members

• Facilitator for Workgroups and

Departments


Activities 2010/11

Audits Auxiliaries

American Recovery and Reinvestment Act (ARRA)

Institutes and Centers (in process)

Parking & Transportation Services

Revenue Generating Contracts (in process)

Treasury Management

Vending

Management Advisory Services

Research and feedback on rules, policies, and procedures

DMV annual certification Emerald Coast cashiering Export controls, eCustoms External Auditor selection Athletics

and WUWF Public Media Mobile Data Plans Oil Spill claims Parking Decal inventory Perquisites Retention and destruction of

electronic records Risk Council SACS 5th Year report (Section leader) Search committees Small and attractive assets Staff Senate Terminated employee security

change Ticket Office Procedures and

workflow Websense


Other Services

Academic Outreach• Student internship• Teaching UWF White Collar Crime course (CCJ4644)• Guest speaker in classes• Chapter Advisor –Delta Sigma Pi Business Fraternity

Volunteerism• Move-In for Residence Halls• No Run Around: Student Assistance 1st week of class

(worked since 1994)

• Hand to Paw Drive• Staff Senate


Questions & Comments?


Internal Auditing & Management Consulting Overview BOT On-Campus Orientation August 29, 2011...

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