FY 2017-2019 STRATEGIC BUSINESS PLAN, North Carolina
STRATEGIC BUSINESS PLAN OUR To be a catalyst for positive change in Mecklenburg County government. OUR To support key stakeholders to cultivate an environment of accountability, transparency, and good governance.
OUR ENVIRONMENT Government The environment in which the County serves its citizens is always in a state of flux. Impacts from population growth, the economy, technology, internal and external threats, and other factors, could have a sudden and significant impact on the organization. Internal Audit tries to take a forward look at internal and external factors and trends that could prevent the County from successfully meeting its goals and objectives. By providing insight into potential threats and opportunities, Internal Audit can help management better manage their risks while reaping the rewards of opportunities taken. Internal and External Factors A critical aspect of Internal Audit s success is recognizing and responding to changes in our environment that may directly and indirectly impact the provision of audit services. Key environmental factors include: The demand for strong accountability, responsiveness, and accessibility of government to its citizens The insistence of effective governance, risk management, and internal controls to protect and most effectively use County resources Internal stakeholder expectations for efficient and effective internal audit services More effective use and retention of enterprise knowledge Increasing challenges with data retention and security Increasing complexity of information technology Workforce planning to maximize institutional knowledge and maintenance of organizational capability FY2017-2019 Strategic Business Plan 3
OUR GOALS Internal Audit provides an array of audit assurance and consulting services across all departments and all activities throughout the organization. This broad perspective on the organization s governance, risk management, and control activities makes us a valuable resource to the Board and executive management in accomplishing the organization s goals and objectives. To successfully maximize the value of Internal Audit and accomplish the goal of delivering high-quality assurance and consulting services to effect positive change in the County s governance, risk management, and control activities, Internal Audit will: Develop and execute an optimal annual audit plan Deliver high quality audit services Foster and cultivate meaningful relationships with customers and key stakeholders Support an organizational foundation of strong ethics, fraud awareness, and internal controls Continuously improve audit business and management processes Develop a sustainable, highly skilled workforce capability Internal Audit can help management better manage their risks while they reap the rewards of opportunities taken. DIRECTOR S MESSAGE Internal Audit s primary vision is to partner with management to effect positive change, helping management better mitigate their risks while reaping the rewards of opportunities taken. To be a valued partner, the Internal Audit team seeks opportunities to learn about and understand their business partners environment and the challenges they face, as well as taking a forward look at internal and external factors and trends that prevent the County from successfully meeting its goals and objectives. We seek creative ways to maximize the value and impact of available audit resources leveraging consulting activities and technology. We have an educated and motivated team of auditors dedicated to collaborating with management to improve the governance, risk management, and internal controls in. FY2017-2019 Strategic Business Plan 4
GOAL 1: Deliver High-Quality Assurance and Consulting Services to Effect Positive Change in the County s Governance, Risk Management, and Control Activities Objective 1: Develop and execute an optimal annual audit plan Strategy A Identify and provide the appropriate mix of assurance and consulting services Actions 1. Identify county risk universe and risk factors employing tools, such as the annual risk assessment, annual control self-assessment survey, Enterprise Risk Management Committee participation, department meeting/other attendance 2. Conduct an annual environmental scan to identify and respond to changes in the County s environment that directly and indirectly impact the provision of audit services 3. Understand the information technology (IT) risk environment 4. Understand and increase collaboration with other risk management functions 5. Using all risk information, develop and communicate the optimal annual audit plan Strategy B Expand the breadth and depth of audit coverage and assurance to the Board of County Commissioners and Executive Management. Action 1. Develop and fully staff four focus audit teams by adding six additional staff over the three-year period. The focus teams are Information Technology/Data Analytics (ITDA), Health and Human Services (HHS); Financial Services/Investigations (FINI); and General Audit (GEN) Performance Measures Annual environmental scan results Each new audit position provides approximately 1,400 more audit hours per year. Additional 12-24 assurance audits per year when fully staffed in FY 2019 (based on 68% productivity rate = 2-4 more audits per person per year) Comments Additional audit staff would provide: 1) Ability for staff to build business acumen in focus areas to increase audit efficiency, effectiveness, and audit value 2) Flexibility to pull staff from an audit to investigation, follow-up audits, or ad hoc activities without negatively impacting current audit timelines 3) Expansion of the continuous monitoring and auditing program that increases audit coverage with the given staffing resources 4) Increased audit hours of 1,400 per year per auditor per year or approximately 2-4 more audits per auditor per year depending upon audit complexity 5) Increased frequency with which we can audit high and medium risk departments FY 2017-2019 Strategic Business Plan 5
Objective 2: Deliver high quality audit services Strategy Comply with The Institute of Internal Audit Professional Practices Framework Standards (Standards) Actions 1. Support and maintain the Quality Assurance and Improvement Program (QAIP) to review audit activities and ensure compliance with The Institute of Internal Auditors International Professional Practices Framework Standards 2. Conduct a peer review every five years at a minimum Performance Measure Comments Successful peer review every five years at a minimum (next one December 2017) Performing audits in conformance with The IIA Standards ensures the quality, accuracy, and overall value of every audit. Peer review cost will repeat every five years, using existing resources covered by Internal Audit s current budget if necessary. Objective 3: Foster and cultivate meaningful relationships with customers and other key stakeholders Strategy Understand evolving stakeholder needs and expectations of Internal Audit Actions 1. Increase effective communications between Internal Audit and key stakeholders 2. Educate the organization s stakeholders about Internal Audit capabilities and potential services Performance Measures Maintain or increase customer satisfaction ratings Number of customer contacts/requests for services Comments By increasing communication and understanding of internal auditing and the internal audit function, we can improve trust, effective participation by key stakeholders, such as directors and upper management, and increased stakeholder satisfaction. Costs to achieve objective uses existing resources covered by Internal Audit s current budget. FY 2017-2019 Strategic Business Plan 6
Objective 4: Support an organizational foundation of strong ethics, fraud awareness, and internal controls Strategy Create and maintain countywide training and other activities to increase staff awareness and participation Actions 1. Maintain annual countywide staff Fraud Awareness and Ethics training; ensure Code of Ethics bookmarks stock available for new employee 2. Maintain the Fraud Hotline Program, including the Intake Team and distribution of Fraud Hotline posters 3. Create and publish the Tip of the Month for good governance, risk management, and internal controls Performance Annual Fraud Awareness and Ethics training modules Measures Distribution of Code of Ethics bookmarks to each new employee Updated Fraud Awareness as needed Update Fraud Hotline posters in FY 2018 to reflect change in scope of critical event case management software Routinely report Fraud Hotline activities to Board and Audit Committee Publish monthly Tip of the Month on Intranet Comments Creating and maintain a strong tone at the top regarding ethics and zero tolerance for fraud, creates a stronger organization that not only protects its assets but makes it a better place for people to work. Ethics and fraud awareness training and adequate internal controls strengthened by audit recommendations contribute significantly to the tone at the top and internal controls. FY 2017-2019 Strategic Business Plan 7
Objective 5: Continuously improve audit business and management processes Strategy A Seek out and embrace innovative approaches to meet current and future audit demands Actions 1. Leverage technology to increase audit activity where possible, i.e., Continuous Auditing and Monitoring (CA/CM) and audit management software 2. Seek opportunities to provide consulting services in front of key operational and/or system changes Strategy B Identify and apply relevant project management tools to audit activities Actions 1. Obtain and implement optimal audit management software that allows in one package all audit planning, budgeting, process, timekeeping, and reporting activities, as well as auditee response and survey tools 2. Develop work breakdown structure for budgeting purposes 3. Continue to employ new and current project management approach to improve efficiency and timeliness of audit process 4. Develop and operationalize key performance indicators to measure performance Strategy C Be good stewards of County resources Action 1. Employ sound financial management practices Performance Expanded CA/CM program Measures Increase efficiency in audit planning and execution Work Breakdown structure Comments An improved project management software system will add efficiency to the audit process, which should reduce audit hours. The additional project management and reporting capabilities should help maximize the use of current staffing resources and track performance. It will also provide the capability to push/pull audit reports with the expectation of decreased reporting time, and provide an internal survey tool for the Control Self-Assessment and Risk Assessment surveys and audit report responses. Audit management software purchase and installation is a future planned project in Technology Reserve. Start date unknown. Implementation will need IT assistance to implement software. Also uses existing resources covered by Internal Audit s current budget. FY 2017-2019 Strategic Business Plan 8
Objective 6: Develop a sustainable, highly skilled workforce capability Strategy A Promote building of staff s knowledge, skills, abilities, and job satisfaction Actions 1. Provide relevant mentoring, training, and coaching to build staff knowledge, skills, abilities, and job satisfaction 2. Identify and develop each staff and management person s individual and department development needs Strategy B Create and maintain a desired environment that promotes work/life balance Actions 1. Provide flexible work hours to meet both audit needs and auditor needs, i.e., flex Fridays and flexible start times 2. Conduct team building activities to strengthen team bond and understanding, i.e., annual team building event, quarterly birthday lunches, holiday parties 3. Provide recognition and merit awards and benefits for outstanding performance Performance 40 continuing education credits each year per auditor Measures Training presentation to team after training event Maintain or reduce resignation rate Comments Providing our auditors sufficient quality training provides leverage to attract and retain the same high quality, in demand auditors that the banking and other private sector industries are trying to hire or lure away. It also provides a more effective auditor who brings real value to the organization through his or her audit activities. FY 2017-2019 Strategic Business Plan 9
GOAL 2: Maintain Environmental Sustainability of Operations Objective 1: Adhere to environmentally preferable purchasing (EPP) guidelines Strategy Actions Monitor department practices to ensure adherence to environmentally preferable purchasing (EPP) guidelines FY 2017 Identify a department representative to work with the County s Sustainability Manager to track and meet the department s environmental goals FY 2017 FY 2019 Educate department employees on the importance of adhering to the County s environmentally preferable purchasing (EPP) guidelines Enforce the department s adherence to the County s EPP guidelines by monitoring purchasing habits Embrace new and innovative opportunities for improving the environmental-friendliness of the department s purchasing habits When making purchasing decisions, consider the full cost of the products environmental, social, and economic Performance Measures Dollars spent on recycled paper / Dollars spent on all paper purchases Dollars spent on environmentally preferable office supplies / Dollars spent on all office supplies Dollars spent on remanufactured printer cartridges / Dollars spent on all printer cartridges FY2017-2019 Strategic Business Plan 10
GOAL 2: Maintain Environmental Sustainability of Operations (cont d) Objective 2: Provide employees with opportunities to learn about and practice environmentallyfriendly activities (via the County s Work Green program) Strategy Actions Support employee involvement in environmentally-friendly activities (via the County s Work Green program) FY 2017 Identify a department representative to work with the County s Sustainability Manager to track and meet the department s environmental goals FY 2017 FY 2019 Educate department employees on the importance of participating in the County s Work Green program Educate department employees on opportunities to participate in the County s Work Green program via educational opportunities (i.e. Lunch & Learns), volunteer opportunities, alternative commuting (i.e. carpooling, mass-transit, walking, or cycling), and other unique employee engagement campaigns Enforce the department s participation to the County s Work Green program by consistently monitoring performance Total associated costs: FY 2017 FY 2019 $0 Performance Measure Total number of Work Green credits earned by the department s employees FY2017-2019 Strategic Business Plan 11