The Florida State University Office of Inspector General Services

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1 The Florida State University Office of Inspector General Services Work Plan

2 A. Audit Projects Carried Forward from Work Plan Hours Total A Audit Projects Carried Forward to Be Completed in Jeanne Clery Act Annual Security Report 219 University Coordination of Response to International Incidents 120 Review of College Town Financial Statements 225 Florida Center for Advanced Aero-Propulsion (FCAAP Polysonic Wind Tunnel) Auxiliary 256 Chemical Inventory Controls 331 Title IX 609 Student Tuition and Fees Waivers - Undergraduate 650 Business Practices Enhancement Program (BPEP) Ringling 789 Cyber Security Training Audit 571 Florida Psychological Association 248 Total Hours for Audit Projects Carried Forward from Work Plan 4,018 B. New Audit Projects for Hours Total State University System Performance-Based Funding (Mandatory) 730 Audit of the Registrar's Office's Internal Controls over the Driver and Vehicle Information Database (DAVID) (Mandatory) 160 Business Practices Enhancement Program Florida State University Schools 850 Sciquest/Jaggaer (FSU SpearMart) Electronic Procurement System 850 Accounts Receivable Decentralized Batch Upload in University Departments 800 Seminole Boosters Financial Reporting and Collection of Booster Pledges Internal Controls 800 Business Services Contracts Management 850 1

3 Business Practices Enhancement Program College of Engineering* Capital Projects Broad Scope Earth, Ocean, and Atmospheric Sciences (EOAS) Building* 120 University Disaster Recovery and Business Continuity Plan* 131 Center for Leadership and Social Change - Operational Audit including Cash Handling (Similar to Office of Inspector General (OIGS) BPEP)* 207 Sponsored Research Services Post Award (Formerly Sponsored Research Accounting Services (SRAS))* 139 Direct Support Organizations (DSOs) External Audits Financial Report Reviews (Required) 40 DSOs IRS Form 990 Reviews (Required) 20 Management of RSM Construction Consulting Project -- University Housing Replacement Phase II (Required) 56 Management of RSM Construction Consulting Project -- Doak Campbell Stadium Renovations (Required) 56 Fraud and Internal Controls Training to University Entities (Required) 40 Total Hours for New Audit Projects Begun in ,102 C. Follow-Up Projects for Hours Total Follow-up activities for previously completed audits 419 Total Hours for Follow-Up Projects for D. Contingency for Hours Total These hours are for new, unplanned projects given priority during the fiscal year. 370 Graduate Assistant Fee Waivers, Network Security Servers not under Control of Information Technology Services, Registered Sponsored Organizations Domestic Travel, Selected Centers and Institutes, the Concur Travel System, and Student Government have priority status as audits to begin during fiscal year , provided we have unforeseen available hours for them. Total Hours for Contingency for We have planned that these five audit projects indicated by an asterisk (*) will be carried over with additional hours and completed in the next fiscal year,

4 E. Investigations for Hours Total This includes ongoing and new investigations that may result from faculty and/or staff requests, Whistleblower complaints, and complaints received from the Ethics Point hotline. 1,231 Total hours for Investigations for ,231 Total Direct Service Hours for ,140 F. Audit Management and Administration for Hours Total Audit management and administration includes administrative meetings, continuing professional development, and approved employee leave and holidays. It also, for this fiscal year, includes maintenance of audit software and efforts towards continued accreditation in investigations. 6,295 Total Audit Management and Administration 6,295 Total Hours for ,435 3

5 A. Audit Projects Carried Forward from Work Plan A Audit Projects Carried Forward to be Completed in Jeanne Clery Act University Coordination of Response to International Incidents Review of College Town Financial Statements Florida Center for Advanced Aero- Propulsion (FCAAP Polysonic Wind Tunnel) Auxiliary Chemical Inventories Title IX Undergraduate Student Tuition and Fees Waivers The Jeanne Clery Disclosure for Campus Security Policy and Campus Crime Statistics Act is a federal law that requires institutions of higher education to disclose campus security information, including crime statistics for the campus and surrounding area. The purpose of this audit is to evaluate the University s processes for reporting crime statistics and determine if the University is in compliance with the federal law. The purpose of this audit is to determine if the University has a comprehensive and cohesive administrative strategy to coordinate multiple departmental incident-related services to achieve an efficient and effective response to international incidents impacting students, faculty, and/or staff. College Town, LLC was formed as a limited liability company in December 2011, to develop, maintain, manage, and operate a mixed-use project consisting of approximately 34,000 square feet of commercial space, 71 residential units, and an entertainment and food service venue. Initial construction was completed in July 2013 and the company continues to develop. At December 31, 2016, assets were $26 million, with liabilities exceeding assets by $3 million. Total revenue for 2016 was $2.37 million and the net loss for the year was $796,237. This consulting engagement will include review and summary reporting on all financial statements issued to date and additional inquiries and audit work considered necessary in the circumstances. The purpose of this audit is to determine whether the Auxiliary operates in compliance with University policies and procedures, assesses reasonable rates that are supported by adequate documentation, and properly records revenues and expenditures, with revenues and expenditures appropriate and consistent with the Auxiliary s mission. The purpose of this audit is to provide assurance that hazardous chemical inventories on campus are managed in compliance with state and federal safety regulations. The purpose of this audit is to evaluate the University s current practices for investigating and resolving reports of sexual misconduct and to determine if the University is in compliance with Title IX policies and procedures. The purpose of this audit is to evaluate the University s administration and oversight of undergraduate tuition and fees waivers, in accordance with applicable laws, rules, and regulations, as well as University policies. From preliminary data we received from Student Business Services, undergraduate student tuition and fee waivers for the most recent semester, 4

6 Business Practices Enhancement Program John and Mable Ringling Museum of Art Cyber Security Training Audit Florida Psychological Association Spring 2017, totaled approximately $14 million. This audit is part of the OIGS Business Practices Enhancement Program. The primary purpose of this audit is to provide University administrators with assistance in strengthening procedures over cash handling, payroll, purchasing, human resources, inventory, and other facets of the John and Mable Ringling Museum of Art s business operations. The purpose of this audit is to evaluate the adequacy of cybersecurity training provided to University faculty and staff. The purpose of this audit is to evaluate the Florida State University College of Medicine s contract with Florida Psychological Associates to determine whether the contract complies with applicable laws, regulations, and policies and whether contract payments were valid, reasonable, complied with contract terms, and were adequately supported. B. New Audit Projects for State University System Performance-Based Funding (Mandatory) Audit of the Registrar's Office's Internal Controls over the Driver and Vehicle Information Database (DAVID) (Mandatory) Business Practices Enhancement Program Florida State University Schools Sciquest/Jaggaer (FSU SpearMart) Electronic Procurement System The purpose of this audit, mandated by the State University System of Florida, Board of Governors, is to assess controls that address the topic of data integrity, including a detailed analysis of the processes, procedures, system-based controls, and other data verification measures in place to support the integrity of information presented by the University to the Florida Board of Governors (BOG) for the University s Performance-Based Funding calculations. This is the fourth year we are conducting this BOG-mandated audit. The purpose of this audit is to provide the attestation statement required by the Department of Highway Safety and Motor Vehicles to ensure that the University unit was using DAVID information in an appropriate manner, as required by the Memorandum of Understanding for Drivers License and/or Motor Vehicle Record Data Exchange. This audit is part of the OIGS Business Practices Enhancement Program. The primary purpose of this audit is to provide University administrators with assistance in strengthening procedures over cash handling, payroll, purchasing, human resources, inventory, and other facets of the Florida State University School s business operations. On March 20, 2017, the University launched its new SpearMart electronic procurement system by Jaggaer (formerly SciQuest). The purpose of this audit is to determine if security of the system, which is Cloud-based, is adequate. We will also review security roles for appropriateness and determine if workflow approvals are proper, including workflow approvals by Sponsored Research Administration. 5

7 Decentralized Accounts Receivable in University Departments Seminole Boosters Financial Reporting and Collection of Booster Pledges Internal Controls Business Services Contract Management Business Practices Enhancement Program College of Engineering Capital Projects Broad Scope EOAS University Disaster Recovery and Business Continuity Plan In our recent Audit of Student Tuition and Fees, we identified a duplicate billing of a charge to a student resulting from decentralized charges in a University entity. The purpose of this audit will be to identify where decentralized charges and adjustments occur in the University, and determine whether accounts receivable generated by these units outside the University s centralized accounts receivable processes are valid and accurately recorded in the University s accounting system. Additionally, we will assess security and audit trails pertaining to these decentralized operations. As of June 30, 2016, the University s accounts receivable totaled $44,384,000. Our audit will consider a subset of these receivables. The purpose of this audit is to evaluate the effectiveness of Seminole Booster s internal controls, specifically as they relate to Financial Reporting and Collection of Booster Pledges. The Office of Business Services (OBS) offers a wide range of services across the FSU campus in the following 11 areas: 1) Banking, 2) Departmental Copier Services, 3) Departmental Postal Services, 4) Departmental Print Services, 5) FSU Bookstore, 6) FSUCard Program, 7) Laundry, 8) Seminole Dining, 9) Seminole Golf Course, 10) Student Copy, Print, and Mail, and 11) Vending. The purpose of this audit is to review business services contracts in selected areas and their management. This audit is part of the OIGS Business Practices Enhancement Program. The primary purpose of this audit is to provide University administrators with assistance in strengthening procedures over cash handling, payroll, purchasing, human resources, inventory, and other facets of the College of Engineering s business operations. Based on available hours this fiscal year and the estimated hours needed for completion, we anticipate carrying over this project into fiscal year The purpose of this audit is to evaluate the adequacy of controls over the administration of capital construction operations and determine if construction costs are documented and in compliance with contractual provisions and applicable laws, rules, and regulations. The audit will identify any overpayments, for recovery. The audit entity is the University s Earth, Ocean, and Atmospheric Sciences (EOAS) Building. Based on available hours this fiscal year and the estimated hours needed for completion, we anticipate carrying over this project into fiscal year The primary purpose of this audit is to determine whether the University has adequately provided for continuity, restoration, and recovery of critical data and systems. Based on available 6

8 Center for Leadership and Social Change - Operational Audit including Cash Handling (Similar to OIGS BPEP)* Sponsored Research Administration (Formerly SRAS) Post Award* DSOs External Audits Financial Reviews (Required) DSOs IRS Form 990 Reviews (Required) Management of RSM Construction Consulting Project of University Housing Replacement Phase II (Required) hours this fiscal year and the estimated hours needed for completion, we anticipate carrying over this project into fiscal year The Center for Leadership and Social Change is organizationally located under the Vice President for Student Affairs. The Center focuses on leadership education, identity development, and community engagement. The primary purpose of this audit will be to provide University administrators with assistance in strengthening procedures over cash handling, payroll, purchasing, human resources, inventory, and other facets of the Center s operations. Based on available hours this fiscal year and the estimated hours needed for completion, we anticipate carrying over this project into fiscal year The Sponsored Research Administration (SRA) is responsible for pre- and post-award functions of the University for awards with public funding (federal, state, and local governments) and public funding that flows through private organizations. The purpose of this audit is to review SRA post-award policies, procedures, and practices to determine compliance with applicable: Federal (Office of Management and Budget (OMB) Circulars, Uniform Guidance, Federal Acquisition Regulations) and state regulations; and Contracts and grants terms and conditions. Based on available hours this fiscal year and the estimated hours needed for completion, we anticipate carrying over this project into fiscal year Each University Direct-Support Organization (DSO) is required to provide an annual audit of its accounts and records by an independent certified public accountant in compliance with Section (5), Florida Statutes. The purpose of this review is to confirm that University DSOs comply with this statutory requirement and to identify areas of concern in individual DSO audits that may require further attention. Each University Direct-Support Organization meeting certain financial criteria is subject to Internal Revenue Service requirements to complete Form 990, Return of Organization Exempt from Income Tax. The purpose of this review is to confirm that IRS filings have been submitted as required and are consistent with the results of audited financial statements. As of September 10, 2015, the University entered into a contract with McGladrey (now RSM) to conduct construction consulting for University Housing Replacement Phase II. The OIGS Chief Audit Officer (CAO), Sam McCall, is the University s Contract Manager for this consulting contract. As the Contract Manager, the CAO, Sam McCall, is to monitor the activities of RSM; receive and review the reports of RSM to determine whether the 7

9 Management of RSM Construction Audit of Doak Campbell Stadium Renovations (Required) Fraud and Internal Controls Training to University Entities (Required) objectives of the contract are being accomplished; receive and review the invoices for payment of funds to assure that the requirements of the contract have been met and that payment is appropriate; evaluate the process used by the contractor to monitor the activities of any subcontractor or assignee, if any; and establish the right for the CAO as the Contract Manager to directly access subcontractors and assignees records, if any, as the Contract Manager deems necessary. As of September 10, 2015, the University entered into a contract with McGladrey (now RSM) to conduct construction consulting for Doak Campbell Stadium Improvements. The OIGS Chief Audit Officer (CAO), Sam McCall, is the University s Contract Manager for this consulting contract. As the Contract Manager, the CAO, Sam McCall, is to monitor the activities of RSM; receive and review the reports of RSM to determine whether the objectives of the contract are being accomplished; receive and review the invoices for payment of funds to assure that the requirements of the contract have been met and that payment is appropriate; evaluate the process used by the contractor to monitor the activities of any subcontractor or assignee, if any; and establish the right for the CAO as the Contract Manager to directly access subcontractors and assignees records, if any, as the Contract Manager deems necessary. As part of its services to the University community, the Office of Inspector General Services provides training services throughout the University, to include fraud awareness and internal controls. Training classes are held at least four times per year. C. Follow-up Projects for Audit Follow-Up Follow-up activities on management recommendations are conducted on previously completed audits. Follow-ups are conducted every six months - in February and August. 8

Office of Internal Auditing

Office of Internal Auditing FY 2017 Annual Report Page Intentionally Blank CONTENTS Executive Summary... 4 Introduction... 5 Personnel/Proficiency/Professional Development... 6 Resources - Allocation...