POSITIONING YOUR INTERNAL

Transcription

1 1 POSITIONING YOUR INTERNAL AUDIT DEPARTMENT: NAVIGATING POLITICS, AVOIDING PITFALLS, AND BUILDING PARTNERSHIPS E RSHIPS AHIA 32 nd Annual Conference August 25-28, 2013 Chicago, Illinois

2 Agenda 2 Internal Assessment The Internal Audit Department Positioning Internal Audit Building Relationships Understanding Motivations Educating Key Stakeholders External Assessment Senior Management Operations Management Audit Committee Strategies

3 Elements of a Successful IA Function 3 People Process Tools/Technology Relationships People, Process, Tools/Technology can be OUTSTANDING but without t Relationships there will be little Value.

4 Internal Assessment People 4 Where to start Meet with department staff to gain an understanding of: Concerns/challenges/issues Department strengths and weakness Current skills Career goals Give department staff the opportunity to get to know Give department staff the opportunity to get to know you, your background, your vision and management style

5 Internal Assessment People 5 How many FTEs are budgeted? Has the organization demonstrated commitment to IA? Number of FTEs per Revenue Where do you find this information? What is the right ratio? Small Group Discussion

6 Internal Assessment People 6 IA Skills Operational Audits Financial Audits IT Audits Regulatory/Compliance Audits What is the right mix? How do you determine the right mix? Answer Based on Organizational Risks

7 Internal Assessment People 7 How can you address skill gaps? Partner with vendor for specialty audit needs Consider Control Self Assessment Approach Partner with other departments Compliance Quality Any other corporate resources?

8 Internal Assessment Process 8 Department infrastructure documents Audit charter Risk assessment process Department procedures Take a look at the process Has there been an external Quality review? Review workpapers/report from recently completed ev ew wo pape s/ epo o ece y co p e ed projects.

9 Internal Assessment Tools/Technology 9 What is available? Computer Assisted Audit Tools Data Mining Tools Report templates Document management system Automated risk assessment tools Audit Committee presentation tools Customer satisfaction tools

10 Internal Assessment Findings 10 Pull together the information and present it to the department Engage the team in the solution Develop teams/assign internal projects Establish timelines Make it a priority and meet about progress regularly

11 Building Relationships 11 Positioning the Internal Audit Department as a valued partner requires good relationships with stakeholders Develop department reputation as objective, Develop department reputation as objective, reliable, thorough, responsive and reasonable

12 Building Relationships 12 Interview stakeholders- How do they interact with the internal audit department? How do they think the department is generally regarded within the organization? What is their opinion of the effectiveness of the department? Are the projects focused on the right risk areas? Are there gaps in coverage? What keeps them up at night? What do they value most from internal audit? What could be done better? What do they wish was done differently? Can the department better meet their needs?

13 Building Relationships 13 Interviews with: Audit Committee members Executive leadership Key operations stakeholders- both up and downstream Your department staff Are the perspectives in alignment and consistent? Identify strengths to build upon Look for opportunities to improve Build your goals accordingly

14 Understanding Motivations 14 IA project plan should be in support of business initiatives and continued health of organization Know the objectives/business goals of your stakeholders Align discussions, use language consistent with their objectives Understanding their agendas/interests will help Understanding their agendas/interests will help gain support and build credibility

15 Educating Key Stakeholders 15 What is Internal Audit? How the function supports management. Refer to themes from interviews where possible Demonstrate use of feedback Describe Internal Audit process. Identify how stakeholders are engaged in the process Describe collaboration with stakeholders Give them a tangible document & walk them though it.pictures/diagrams always help!

16 Senior Management Meetings 16 Chief Executive Officer Chief Financial Officer Chief Information Systems Officer Chief Talent Officer Chief Compliance Officer Chief Medical Officer Other VPs/Key Leaders

17 Operations Management 17 Who are the key managers in the following areas? Think about meeting with them because you will probably interact with them frequently. Finance IT Patient Financial Services Outpatient Units Inpatient Units Human Resources Others?

18 Audit Committee 18 Meet with the Chair to discuss expectations What are their goals & objectives? How do they want materials presented? Is their a preferred format for Committee meetings?

19 Audit Committee 19 Things to check into/review Audit Committee charter Audit Committee policies and procedures Committee work plan Who staffs the committee in addition to CAE?

20 Politics and Pitfalls 20 The right access is essential to be effective Best practice is for CAE to report Administratively to CEO Functionally to the Audit Committee of the Board CAE should have a seat at executive leadership CAE should have a seat at executive leadership meetings where strategic decision are made

21 Strategies When Reality is Not the Ideal 21 When not reporting to CEO Report to a member of the executive team ( C suite ) Have regular (quarterly) meetings with the CEO and open access whenever needed If not a member of executive forum(s) Obtain minutes if possible Review forum decisions with your accountable executive Develop relationships with key stakeholders and meet with them regularly to stay updated

22 Strategies When Reality is Not the Ideal 22 When Right Sizing means Down Sizing Benchmark with like organizations Demonstrate efficiencies you have already put in place that should be considered for new targets Demonstrate impact of work that will not be done But, be willing to flex with needs of the organization

23 Strategies When Reality is Not the Ideal 23 Look for opportunities Can operations do more monitoring? Can automated continuous/periodic monitoring be used more? Would integrated reviews cover more risks with same or fewer resources? Is co-sourcing an option? Make sure work plan is focused on highest potential value

24 Sleeping Well at Night 24 Every organization has challenges Internal auditing walks a fine line in managing relationships and maintaining objectivity and relevance Working around personalities, budget realities, less than ideal conditions i is necessary and fine as long as you can deliver work that stands up to independent review, and you are able to fulfill your obligation to the organization and the Board

25 Contact Information 25 Kelly yn Nueske, Managing gdirector Altegra Health Mary Jo Flynn, Director, Audit Management UnitedHealthcare Government Programs

26 Save the Date September 21-24, rd Annual Conference Austin, Texas 26