Office of Inspector General and Director of Compliance NEWS

Size: px

Start display at page:

Download "Office of Inspector General and Director of Compliance NEWS"

Derrick Shepherd
6 years ago
Views:

Office of Inspector General and Director of Compliance NEWS We closed out last quarter with a successful Audit Committees Workshop. We appreciate your attendance and active participation.

1 Office of Inspector General and Director of Compliance NEWS We closed out last quarter with a successful Audit Committees Workshop. We appreciate your attendance and active participation. For this quarter, we look forward to completing additional work plan projects as we conduct our annual risk assessment and develop next year s work plan. Topics in this newsletter include: Annual Risk Assessment and Work Plan Development Audit Committees Workshop New College of Florida Internal Audit Function OIGC Internal Audit Project PBF Metrics Pulse of the Profession Internal Auditing Professional Development OIGC Annual Work Plan Update Joseph K. Maleszewski, MBA, CIG, CIA, CISA, CIGI, CGAP Inspector General and Director of Compliance ANNUAL RISK ASSESSMENT AND WORK PLAN DEVELOPMENT Section , Florida Statutes, specifies that the Inspector General develop long-term and annual audit plans based on the findings of periodic risk assessments and that the plan contain the individual audits to be conducted during each year and related resources to be devoted to the respective audits. By statute, the plan is submitted to the Audit and Compliance Committee (AACC), the Board, and the Chancellor for approval. A copy of the approved plan is then submitted to the Auditor General. The OIGC has initiated a risk assessment which will include each of the organizational units that comprise the Board Office and a review of Board regulations, the Florida Constitution, applicable statutes, financial records, internal operational manuals, handbooks, organizational charts, and various reports including prior audit reports, and other available data. THE STATE UNIVERSITY SYSTEM of FLORIDA Board of Governors OIGC News April

2 Based upon this risk assessment, we will develop a work plan for FY , which will be presented as an action item to the AACC for consideration at the Board of Governors June 2015 meetings. AUDIT COMMITTEES WORKSHOP Last month, we held our Audit Committees Workshop and discussed a wide array of topics with Boards of Trustees Audit Committee Chairs and their Chief Audit Executives. The workshop provided the Committee an opportunity to evaluate the audit, compliance and investigative elements of the System s governance structure. We discussed the following topics in detail: Compliance and Ethics OIGC Roles, Powers and Duties Complaints against Chief Audit Executives and Staff Audit Coverage Risk Assessment Risk Management Offices of the Chief Audit Executive Fraud We discussed the development of new Board regulations governing Compliance and Ethics; Office of Inspector General and Director of Compliance; Offices of Chief Audit Executives; and Board oversight and enforcement authority to address compliance issues and repeat audit findings. In addition to regulation development, the area of Information Technology Security stood out as a system-wide issue needing further study. Another outcome of the workshop was the inclusion of an Audit breakout session at the November 2015 Trustee Summit at FIU. NEW COLLEGE OF FLORIDA INTERNAL AUDIT FUNCTION Each of our state university s has a designated Chief Audit Executive. However, New College s implementation of an internal audit function is unique in that New College outsources its audit function. This model creates some unique challenges for New College s Vice President for Finance and Administration, John Martin. Presently, Mr. Martin serves as the Chief Audit Executive, with the bulk of New College s internal audit function performed/delivered via contract with an external audit firm. While the Institute of Internal Auditors supports co-sourcing for internal audit functions, oversight and responsibility for the internal audit activity cannot be outsourced. THE STATE UNIVERSITY SYSTEM of FLORIDA Board of Governors OIGC News April

To enhance oversight and responsibility for the internal audit activity, Mr. Martin recently hired an Assistant VP for Finance & Administration - Barbara Stier. Ms.

3 To enhance oversight and responsibility for the internal audit activity, Mr. Martin recently hired an Assistant VP for Finance & Administration - Barbara Stier. Ms. Stier has a BS in Accounting, an MBA, and holds the Certified Internal Auditor (CIA) designation from the Institute of Internal Auditors. Ms. Stier, who begins at New College on April 13 th, most recently worked for the Baycare Health System in Clearwater as an internal auditor and previously worked as an internal auditor at St. Leo University. While New College will continue to outsource its internal audit services, Ms. Stier will serve as Chief Audit Executive for New College s internal audit activity. She will also replace Mr. Martin on the State University Audit Council (SUAC). Mr. Martin has been an active and valued member of SUAC and his unique perspective will be missed. OIGC INTERNAL AUDIT PROJECT PBF METRICS Our audit of the Board Office s telecommuting practices and policies has been postponed to allow OIGC staff to focus their efforts on another project. The alternate project is to map the processes and controls used by the Board Office for computing PBF metrics. The scope of this work will encompass the current processes and practices used by Board Office staff to accept and process university data as well as the processes used to apply the PBF model, compute the scores, and evaluate them against defined or computed baseline standards. This project is another step to provide the Board of Governors assurance regarding the accuracy of data used for PBF decision-making and to demonstrate the Board Office s commitment to continuous improvement. Work on this project has started and is expected to be completed over the next few months. COMPLIANCE Ms. Rhonda L. Bishop, UCF s Chief Compliance and Ethics Officer, addressed the AACC during its January 22, 2015, meeting at UNF. After her presentation, the Committee directed me to develop a Board compliance regulation. The draft regulation has been prepared, reviewed by legal and will soon go out to the university chief audit executives and general counsels for informal review and comment before proceeding with the formal regulation development process. THE PULSE OF THE PROFESSION INTERNAL AUDITING The Institute of Internal Auditors annual Pulse of the Profession survey assesses the course of the internal audit profession, both by measuring year-over-year trends and THE STATE UNIVERSITY SYSTEM of FLORIDA Board of Governors OIGC News April

4 evaluating emerging issues. This year s Pulse report identified a number of areas that warrant closer attention: On one hand, nearly 7 in 10 respondents to the survey viewed cyberattacks and other security threats as a high or critical priority. At the same time, respondents as a whole did not express significant concern about major geopolitical developments, global health threats, or the impact of social media, perhaps because of a failure to see how such factors could impact their organizations. More than half of the chief audit executives consider the identification of emerging risks to be their biggest challenge. Yet only about onethird expressed a high degree of confidence in their ability to identify such concerns. Four in 10 respondents put a high priority on attracting and retaining talent, and 54 percent of respondents cited competition for a limited pool of skilled auditors as a reason for skill gaps on their audit teams. The growing talent shortage may blindside some in the profession. In today s operating environment, internal auditors have a clear mandate to identify and address major risks on a continual basis. They also need to find the talent to do so and to allocate their resources in response to those risks. The full report can be accessed at: March-2015.pdf PROFESSIONAL DEVELOPMENT On April 3 rd, I received notice from the Institue of Internal Auditors that I completed all of the requirements for the Certified Government Auditing Professional (CGAP) program and have therefore earned the CGAP designation. Lori Clark (Compliance and Audit Specialist) and Melanie Yopp (Investigations and Audit Specialist) are continuing their preparation to take the CGAP examination in the near future. Also, I am scheduled to attend the Compliance & Ethics Academy hosted by the Society for Corporate Compliance and Ethics this month and hope to achieve professional certification from the Society in the near future. THE STATE UNIVERSITY SYSTEM of FLORIDA Board of Governors OIGC News April

5 OIGC ANNUAL WORK PLAN UPDATE The following table provides an overview of the approved annual work plan with a brief status of the progress. Annual Work Plan - FY Project Title AUDIT Information Resource Management - Information Technology Governance Board Office Telecommuting PBF Metrics - Board Office Process Mapping CONSULTING Performance Based Funding Model - Data Integrity Target Educational Attainment (TEAm) Grant Program Control Self Assessment - University Audit and Audit Committee Practices FAMU Corrective Action Plan Follow-up COMPLAINTS/PRELIMINARY INQUIRIES/INVESTIGATIONS Complaint Intake and Triage Preliminary Inquiries Investigations OIGC PROJECTS Risk Assessment and Audit Plan OIGC Annual Report OIGC Complaint Webpage (Hotline) Development Regulations Development Audit Finding Tracking and Assessment Data Request System for Collection of SUS External and Internal Audit Reports Chief Audit Executives Reporting System (CAERS) Development Audit Committees Workshop Records Retention/Archival Project Update Audit and Investigative Procedures Committee and Board Meeting Preparations Status Not Begun Postponed In Process Not Begun None Initiated THE STATE UNIVERSITY SYSTEM of FLORIDA Board of Governors OIGC News April

Board of Governors. State University System of Florida Best Practices for Audit Committees and Internal Auditors

Board of Governors. State University System of Florida Best Practices for Audit Committees and Internal Auditors Board of Governors State University System of Florida Best Practices for Audit Committees and Internal Auditors Board of Governors Audit Committee Meeting March 29, 2007 Gainesville, Florida November 15,