Houston Chapter

2016–2017 Houston IIA Annual Report

PURPOSE AND OBJECTIVES

To provide value and service to our members in Houston, Texas, principally through effective education, training and certification programs.

To build the profession of internal auditing locally

through enhanced training and programs, including supporting targeted universities.

To promote the global internal audit profession

through contributions of resources (human and financial) to research and professional programs, primarily through The IIA.

To establish and maintain an adequate and

sustainable governance and organizational infrastructure to manage the Chapter activities, and to develop leadership continuity and effective succession planning.

To ensure adequate financial resources through the

exercise of appropriate financial stewardship to support the mission of the Chapter.

The Houston Chapter of the Institute of Internal Auditors

is a professional association of internal auditors involved in

promoting professional growth and progress for the practice of internal auditing.

MISSION

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Leadership

BOARD OF GOVERNORS

KEITH KAHL

LyondellBasell

SHAWN KILCHRIST

Deloitte

PAUL PETTIT

Protiviti

PAUL VANEK

The Vanek Consultancy Group

ESI AKINOSHO

Ernst & Young LLP

LYNNE RENSHAW

Bristow Group, Inc.

RANDY PLATH

Revenew International

GARY DAUGHERTY

Occidental Petroleum Corporation

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A MESSAGE FROM THE PRESIDENTIt was an amazing 2016-2017 year for The Institute of Internal Auditors (IIA) and our Houston Chapter. Our Chapter mission is to promote professional growth of our members and to progress the practice of internal auditing. I want to highlight some of the key facts and accomplishments of the Houston Chapter in achieving this mission this past year.

Our Chapter has over 2,600 members representing over 500 companies in the Houston area, making us the 2nd largest US chapter and the 4th largest globally. This past year we offered 25 training events, including our full-day Annual Conference, providing the opportunity to earn 120 CPE hours. We awarded almost 14,000 CPE hours to more than 3,000 participants. Our Chapter also has an impressive 815 Certification holders and continues to annually sponsor a review course to prepare for the CIA exam.

In addition, the Chapter continued its giving back to the profession by donating $50,000 to The IIA’s Internal Audit Foundation. This funding is being used to sponsor research, create and publish knowledge resources, and support other development efforts of the profession. For example, a portion of the donation was used towards Richard Chambers’ latest book “Trusted Advisor.” Consistent with prior years, a portion was specifically earmarked to support the Internal Audit program at the University of Houston (U of H). You will be also proud to know that the U of H endowment established by the Chapter several years ago annually.

I’m also proud of the Chapter’s Test Development Team (TDT) who shared their knowledge and expertise by authoring CIA exam questions. The TDT’s work ensures that exam content is reflective of the current practice of internal auditing. We have the IIA’s largest TDT, both in terms of involved members and in the number of exam questions submitted for consideration. This past year, the TDT wrote almost 200 exam questions with 130 officially accepted for use in future CIA exams.

As the marquee event of the year, the Chapter hosted its eighth Annual Conference with over 1,200 participants and 30 booth sponsors. In addition to the outstanding speakers and learning sessions offered, the attendees enjoyed networking with other professionals and sponsors from over 200 companies and firms.

The continued success of our Chapter is largely attributable to our member volunteers who give of their time and talents to deliver high quality events. I want to thank each of the volunteers for your passion and commitment to serve our membership. In addition to volunteering locally, we have a number of Houston Chapter members that serve and influence the future of the profession in IIA national and global roles. I encourage you to seek ways to volunteer as there are many opportunities to get involved and serve your Chapter.

In closing, it was an honor and a privilege to serve as the President of the Houston Chapter this past year. Thanks for your commitment to The IIA, the Houston Chapter and the Internal Audit profession.

Jamie DuBray, Houston IIA Chapter President, 2016-2017

Year End R

eport

The primary objective of the Certification Committee is to sustain and help assure the professionalism, value and credibility of internal audit through professional certification and the application of the global professional standards. The Houston Chapter is committed to showcasing our leaders, promoting and encouraging members to obtain IIA designations and promoting internal audit organization management.

The Certification Committee is responsible for the acknowledgement of certificate recipients in the Houston area, as well as the promotion of IIA certifications to the membership and IA professionalism to the larger business community. Aligned to these responsibilities, the committee responds to and assists past, current and future recipients with inquiries related to the certification process. Throughout the year the Committee organized certification recognition luncheons to celebrate and recognize the past year’s recipients and promote the designation throughout the community. For further information on IIA certifications, please refer to Certifications and Qualifications – The Institute of Internal Auditors at: https://na.theiia.org/certification/Pages/Certification.aspx

Lisa Arroyas, CIA, MBA — Chair, Certifications

Matthew Marcinek — VP, Membership

Congratulations to our 61 members who earned IIA certifications!

55 CIAs3 CRMAs1 CPEA1 CCS

1 CFSA

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CIA REVIEW COURSE

The CIA Review Course was a BIG SUCCESS!! It was held on July 17 - 21, 2016 at the University of Houston, CT College of Business.

This course was offered to assist candidates in their preparation for successful completion of the Certified Internal Auditor (CIA) examination and was again instructed by Dr. Glenn Sumners from Louisiana State University.

We had a full class all five days and received excellent feedback from the participants! Many thanks to Dr. Sumners and all of the participants for making the class a great success!

Certifications

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Results from our Annual Member Survey

The 2016 - 2017 fiscal year was another very successful year for the Houston Chapter of the IIA and its over 2,400 active members.

Throughout the course of the year, the Chapter offered its members:• CPE Hours through monthly luncheons, full day seminars, and the Annual Conference• Networking Events• Golf Tournament• CIA Review Courses

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Mem

bershipRecognition of 61 Newly Certified Members

Aaron Ragusa (CIA)

Alexander Sears (CIA)

Ann Moore (CIA)

Bianca St. Rose (CIA)

Carol Rodriguez (CIA)

Craig A. McCollough

(CIA) Damon Ott (CIA)

Daniel Bayes (CIA)

Daniel Tsai (CIA)

Darrell Deams (CIA)

David Jensen (CIA)

Edward Fang (CIA)

Elisabeth Pieper (CIA)

Eric Beck (CIA)

Eric Paschal (CIA)

Erik Anderson (CIA)

Evan Leung (CIA)

Ljeoma Van-Lare (CIA)

Jeoffrey Clinkscales (CRMA)

Jie Zhang (CIA)

John Gilmore (CIA)

Julia Maldonado (CIA)

Justin McAninch (CIA)

Karen Wallace (CFSA)

Kim-Van Kairdolf (CIA)

Kiran Patel (CIA)

Kristine Dutton (CPEA)

Leland Redmond II (CIA)

Mandy Carpenter (CIA)

Marisol Purcell (CIA)

Marlin Guidry (CIA)

Maureen Casey (CIA)

Maurice Kamin (CIA)

Mei-ho Kao (CIA)

Michael Demby (CIA)

Mike Demerzhan (CIA)

Morenike Omidiran (CIA)

Naomi Pipes (CIA)

Ngum Ningo (CIA)

Noel Cipriano (CIA)

Pamela LaGrone (CIA)

Petra Valenzuela (CIA)

Rachel Duplantier (CIA)

Rachel Ozment (CIA)

Richard Paniagua (CRMA)

Ryan Cook (CRMA)

Ryan Sage (CIA)

Sandra Jones (CIA)

Sherin Kuriakose (CIA)

Steven Hitt (CIA)

Sydney Weaver (CIA)

Syed Abbas (CIA)

Syed Jaffery (CIA)

Tammey Smoot (CIA)

Tammy Billington (CIA)

Trenton Bush (CIA)

Trevor Jones (CIA)

Trung Tran (CIA)

Wayne Sutherland (CCS)

William White (CIA)

Yann Wilhelm (CIA)

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Academic Relations News - Fiscal Year 2016/2017 Annual Summary by Jay QatatoPURPOSE

Academic Relations plays an important role in our Chapter’s success! The goals of the Academic Relations Committee are to promote the profession and enhance Internal Audit through the advancement of academics at the collegiate level.

UNIVERSITY OF HOUSTON

The University of Houston (UH), is one of seven, Centers of Excellence for the Internal Audit profession. UH and the Houston IIA chapter work closely together in a number of functions including, but not limited to, Judging Communication Class Presentations, Presenting to the Professional Program of Accounting (PPA) opportunities in Internal Audit, recruiting activities, acting as mentors to students on projects related to Internal Audit, and participating in a variety of social and soft skill functions during the academic year.

The Houston IIA chapter also supports and participates in a variety of Student Associations which include “Beta Alpha Psi”, Internal Audit Student Association (IASA), Management of Information Systems Organization (MISO) and joint sessions between UH Bauer Student Associations.

ENDOWMENT

The Houston Chapter of the IIA has established a $100,000 endowment for the UH Center of Excellence Internal Audit Program. The investment returns from this endowment provide scholarship opportunities for students in the Internal Audit Track. This track consists of three classes and one colloquium.

This year was the FIRST YEAR that the IA track was open to non-business majors subject to some minimum requirements in an effort to attract students from Computer Science, Management of Information Systems, Supply Chain, Engineering and other disciplines. As Trusted Advisors seeking to propose innovative solutions to business problems, it takes a diverse set of skills, education and backgrounds.

SCHOLARSHIPS

There were two scholarships awarded in May to two students in the Internal Audit Track. They were funded from the proceeds of the endowment along with a donation from Goodman Financial – www.goodmanfinancial.com who manages the investment portfolio for the Houston Chapter. The requirements included i) Open to all students who have completed the first Internal Audit course, ii) Minimum GPA or 3.0 and iii) a one page essay on why they chose Internal Audit as a Career. The scholarships were award to Ms. Joselin Lopez and Mr. Fernando Santiago.

Internal Audit Student Association - Various Majors

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JUNIOR ACHIEVEMENT – JA INSPIRE

The Houston IIA Chapter participated in one of the most attended and largest Junior Achievement Event at the Barry Center in February. This JA even attracts almost 8,000 middle school students from all over the Houston area. Rick Hamel, IT Audit Manager – Calpine and Grazielly Costa, Audit Manager – Calpine, participated in breakout sessions to introduce these middle school students to Internal Audit.

The next JA Inspire opportunity is scheduled for February 5, 6 and 7, 2018. Come get involved and INSPIRE. To participate, email academic-relations@houstoniia.org.

TEST DEVELOPMENT TEAM (TDT)

The TDT is a group of volunteers who perform research and prepare questions for the Certified Internal Auditors (CIA) Exam. This team successfully submitted 200 Questions and 132 (68%) were accepted by the committee. This is the most in the world! Great job by these TDT members:

Jaina Kalan (Champion), Jamie DuBray, Nina Duanmu, Mary Hall, Alvin Obedi, Jill Hollingshead, Courtney Smith (Team Lead), Candice Elliott, Ava Henry-Chow, Shari Sanderford, Tasneem Kalolwala (Team Leader), Modesto Matheu, Theresa Watson (Team Lead) and Barry Lio.

If you know or recognize these members, be sure you acknowledge them for an amazing accomplishment and contribution to the profession.

The Exam consists of three sections and passing the Exam along with either two years of experience with a four year post-secondary degree or one year of experience with a Masters degree.

“CIAs earn on average $38,000 more annually than those without a certification”, so get started now. For more information or if interested in joining the team, email academic-relations@houstoniia.org.

ADVISORY BOARD – TEXAS A&M

Texas A&M has created an Internal Audit Advisory Board authorized by the Texas A&M University Department of Accounting of the Mays Business School. This board will, among other things, provide strategic direction for the development of the internal audit program, assist in program evaluation and improvement and facilitate cooperation and communication between the program and the community.

It will consist of a minimum of ten members and a maximum of thirty members. Board members will constitute a cross-section of the employment community in the internal audit field as well as senior corporate leadership both in private and public sector.

Jay Qatato, VP of Academic Relations and Senior Director Internal Audit, Calpine Corp. has been invited to be a board member.

The first meeting has been scheduled for the Fall of 2017.

VOLUNTEER OPPORTUNTIES

For volunteer opportunities in the area of academic relations, email academic-relations@houstoniia.org.

Academ

ic RelationsPictured from Left to Right (Fernando Santiago, Jay Qatato,

Joselin Lopez, Charlottee Jungen, Jamie DuBray)

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®

Houston 8th Annual ConferenceApril 3, 2018 • NRG Center

2017 Annual Conference — Climbing to New Heights!

Our 8th Annual Conference was another successful event as participants were motivated to take their career to “new heights”. Starting with The IIA’s President and CEO and concluding with an American patriot, the conference program continually challenged us to improve our performance as an internal audit professional.

Thank you to the Houston Chapter members and our wonderful sponsors for your continued support of our Annual Conference. And a special thanks to the Conference Committee for their time and commitment to make sure each attendee had a first-class learning experience.

Please mark your calendars for next year’s Annul Conference to be held on April 9, 2018.

Deanna Sullivan2017 Annual Conference Chair

Platinum Plus Sponsors

Lynne Renshaw – Program

Wilson Van Tine – Registration

Larry Abston – Sponsors

Mark Ross – Exhibit Hall

Connie Khawaja – Finance

Rumy Jaleel-Khan – Marketing

Brandon Tous – Facilities: AV

Cynthia Baldwin – Facilities: Catering

Sherry Magnus – Facilities: Stage

Becky Blanchard – Logistics

Christie Erickson – Volunteer

CONFERENCE COMMITTEE CHAIRS

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Thanks to our sponsors for supporting the 2017 Annual Conference!

Annual C

onferencePlatinum Sponsors

Gold Sponsors

CBIZ Risk & AdvisoryServices, LLC

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The 20th Annual Houston Audit Challenge Golf Tournament was held on May 25th, and was a fantastic success. We would like to thank the over 100 golfers, our volunteers and sponsors for continuing to support the IIA and this event. The schedule of events included:

♦ Two Closest to the Pin ♦ Beat the Pro ♦ Longest Drive ♦ Amazing Eagle Golf Ball Launcher♦ On the Course Pictures

Thank you to our Tournament Volunteer Committee: ♦ Tournament Chair : Jim McAnelly, Deloitte ♦ Sponsorship Coordinator: Robert Farlow, Deloitte ♦ Volunteer Coordinator: Alex Cervantes, Deloitte

Thank you to our generous sponsors and door prize supporters

Ace Sponsors Vanek Consultancy

Eagle SponsorsDeloitte & Touche LLP

Postlethwaite & NettervilleRSM US LLP

Sirius Solutions L.L.L.P.

Tee SponsorsCalpine

Lucas GroupWeaver

In Kind SponsorsBKD

Promotional SupportersGold SRD

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Golf Tournm

ent1st Place Gross 1st Place Net

Greg Bone, Bryan DuBray,Ryan Hubbs, Ryne Pearson

Brandon Heidel, Paul Pettit, Bill Walters

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Houston Astros Networking Event

The Houston Chapter hosted a networking event at Minute Maid Park with over 40 members enjoying an evening of baseball and

supporting our World Series Champions!

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Volunteer Recognition Luncheon

The Houston Chapter provides a variety of services to our members through the hard work and dedication of our volunteers. Our Chapter Leaders recognized our volunteers for their

contributions during our appreciation lunch held at Discovery Green on May 18, 2017.

Netw

orking & Events

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Chapter Achievement Program

One way we gauge our success as a Chapter is through the Chapter Achievement Program (CAP). CAP points are earned for accomplishments in three areas: Service to Members, Service to the Profession, and Chapter Administration.

This past year, our Chapter members and leaders have worked hard to deliver services to our members and to promote our profession. Because of everyone’s hard work, we earned 2,660 CAP points and once again achieved Platinum Status as well as the IIA’s Ruby Status! THANK YOU to our Board of Governors, officers, members, and volunteers who participated and contributed your time and talents for the benefit of our membership.

We hope everyone continues to participate in the profession and our Chapter. Report your activities to the CAP Administrator at CAPAdministrator@houstoniia.org so we can continue to annually achieve our Chapter’s Platinum status.

Sincerely,

Connie KhawajaPast President and CAP Administrator 2016-2017

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Professional Development

Our members received over 13,650 CPE hours through a wide variety of Chapter

sponsored programs and events!

Learning Programs

Luncheon Topics

♦ IIA Global Chairman of the Board Perspective – Audit Never Sleeps

♦ The Power of Presence

♦ IA Innovation and Change

♦ Keys to Improving Team Productivity

♦ Project Management

♦ Burning the Box

♦ Assessing Corporate Culture

♦ Data Analytics and Political Risks

♦ Cyber Security Threats for Today’s Organizations

♦ Ransomware and Data Breaches

Seminars & Events

♦ 8th Annual Conference

♦ Government Conference

♦ Sr. Auditor Bootcamp

♦ CAE Survey Results and

Local Perspectives

♦ CAE Roundtables

♦ CIA Review Course

♦ Career Development Forum – Outlook and Personal Branding

♦ Agile Auditing

♦ Operational Auditing

♦ Facilitation Skills - How to Run Meetings that Rock

♦ Fraud – Lie Detection

♦ Critical Thinking Skills

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JAMIE DUBRAY

Schlumberger

President

WILSON VAN TINE

Phillips 66

Vice President Administration

JOHN WONG

Deloitte

Vice President Communications

JAY QATATO

Calpine

Vice President Academic

MARY HALL

CanCare of Houston, Inc.

Vice President Technology

MATTHEW MARCINEK

RSM

Vice President Membership

CHAPTER OFFICERS

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LeadershipThank you to our volunteers!

GREG BONE

Crestwood Midstream Partners

Vice President Seminars

ROWEN CHEN

Calpine

Vice President Finance

RADHA AHYA

Plains All American

Secretary

CHAPTER OFFICERS

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LARRY ABSTON

Anadarko Petroleum

Corporation

LYN BEATY

Halliburton

KEVIN CANTRELL

Plains All American

BOB HERRIN

Transocean

JIM GARCIA

JG International Audit Services

RUMY JALEEL-KHAN

Deloitte

RANDY FERNANDEZ

Houston Community

College System

BOARD OF GOVERNORS

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LeadershipBOARD OF GOVERNORS

KEITH KAHL

LyondellBasell

SHAWN KILCHRIST

Deloitte

PAUL PETTIT

Protiviti

PAUL VANEK

The Vanek Consultancy Group

ESI AKINOSHO

Ernst & Young LLP

LYNNE RENSHAW

Bristow Group, Inc.

RANDY PLATH

Revenew International

GARY DAUGHERTY

Occidental Petroleum Corporation

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Houston Chapter

PURPOSE AND OBJECTIVES

To provide value and service to our members in Houston, Texas, principally through effective education, training and certification programs.

To build the profession of internal auditing locally

through enhanced training and programs, including supporting targeted universities.

To promote the global internal audit profession

through contributions of resources (human and financial) to research and professional programs, primarily through The IIA.

To establish and maintain an adequate and

sustainable governance and organizational infrastructure to manage the Chapter activities, and to develop leadership continuity and effective succession planning.

To ensure adequate financial resources through the

exercise of appropriate financial stewardship to support the mission of the Chapter.

The Houston Chapter of the Institute of Internal Auditors

is a professional association of internal auditors involved in

promoting professional growth and progress for the practice of internal auditing.

MISSION

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LeadershipBOARD OF GOVERNORS

KEITH KAHL

LyondellBasell

SHAWN KILCHRIST

Deloitte

PAUL PETTIT

Protiviti

PAUL VANEK

The Vanek Consultancy Group

ESI AKINOSHO

Ernst & Young LLP

LYNNE RENSHAW

Bristow Group, Inc.

RANDY PLATH

Revenew International

GARY DAUGHERTY

Occidental Petroleum Corporation

Houston Chapter

2016–2017 Houston IIA Annual Report