Internal Auditing & Management Consulting
OverviewBOT On-Campus Orientation
August 29, 2011 Presentation to UWF BOT
Authority
BOT Finance, Administration and Audit Committee Charter
UWF Internal Audit Charter
Florida Statute 20.055 Inspector General Act
August 29, 2011 Presentation to UWF BOT
Reporting Authority
August 29, 2011Presentation to UWF BOT
President
Associate Vice President
Internal Auditor III StudentEmployeeInternal Auditor
UWF Board of Trustees Finance, Administration and Audit
Committee
Note: One position (.75 FTE auditor) was lost in 2011/12 for budget cuts
August 29, 2011 Presentation to UWF BOT
Name Betsy Bowers Cindy Bookout Greg Hale Amy Bueno
Title Associate Vice President
Internal Auditor III Internal Auditor Student Worker
Years in Internal Auditing 27 7
1.5 (internship @
Escambia County School District)
8 months
Years with UWF 18 years 10 months 7 months 8 months
Years Audit Experience 29 9 2 8 months
Educational Degrees, Institution, and Major
MBA and BA (Acct)East Tennessee State
University
BS AccountingUniversity of South
Alabama
MAcc and BSBA (Acct Information
Systems) University of West Florida
Working toward BSBA General
Business, Management
Minor
Professional Certifications
Certified Internal Auditor (CIA),
Certified Fraud Examiner (CFE),
Certified Government Financial Manager
(CGFM), Certified Inspector
General (CIG)
Certified Public Accountant
(CPA)Alabama and
Florida
Committee Responsibilities Meets quarterly
Vice President-Administrative Services, Chief Budget Officer, and General Counsel prepare agenda items
Associate Vice Internal Auditing prepares agenda – typical discussions include status of audit plan, reports issued, hot topics/risks.
Oversight of the financial statement preparation process.
Oversight of the internal audit function.
Oversight of external audits.
Reporting to the FAA(Finance, Administration & Audit) Committee of the Board.
Approval of Annual Audit Plan.
August 29, 2011 Presentation to UWF BOT
StandardsInstitute of Internal Auditors International
Standards for Professional Practice of Internal Auditing
Institute of Internal Auditors Code of Ethics
Government Auditing Standards (Yellow Book)
Generally Accepted Accounting Principles (GAAP)
August 29, 2011 Presentation to UWF BOT
Internal Auditors vs. External Auditors
August 29, 2011 Presentation to UWF BOT
Internal External
UWF Employee Independent contractor
Serves needs of UWF Serves 3rd parties, who need reliable financial information
Focuses on FUTURE events by evaluating controls designed to assure accomplishment of UWF goals and objectives
Focuses on accuracy and understandability of HISTORICAL events as expressed in the financial statements
Is DIRECTLY concerned with prevention of fraud in any form
INCIDENTALLY concerned with fraud, but DIRECTLY concerned if materially affect financial statements
Independent of activities audited, but ready to respond to needs/desires of all UWF management
Independent of management and board of directors, both in fact and mental attitude
Reviews activities CONTINUALLY Reviews records/financial statements PERIODICALLY, usually once a year
AUDITS• Financial• Compliance• Operational• Combination
Management Advisory Services (consulting)
Investigations
August 29, 2011 Presentation to UWF BOT
ACTIVITIES
FunctionsSupervise and coordinate
audits, investigations, management reviews, and other accountability activities
Conduct activities to promote economy and efficiency in the administration of or preventing fraud, waste and abuse in the university programs and operations.
Follow-Up on prior audit findings (internal and external auditors)
Keep the President and Board of Trustees informed concerning fraud, abuses, and deficiencies in university programs
Coordinate activities with the Auditor General, federal auditors and other governmental agencies
Share with management collective expertise, insight, and knowledge, and assist management in establishing/enhancing internal control system
August 29, 2011 Presentation to UWF BOT
University Business Cycles
UWF Internal AuditingRisk Analysis
August 29, 2011 Presentation to UWF BOT
Overall View of Business Cycles
August 29, 2011 Presentation to UWF BOT
University Core Missions
Instruction Research Public Service
Ancillary Missions
Other(DSOs)
Fiscal
Proprietary Operational
Student Services
Administrative Services
Personnel
University Core Missions
Instruction
Academic Reporting
Instruction & Instructional
Support
Research
Research Management &
Support
Public Service
August 29, 2011 Presentation to UWF BOT
August 29, 2011 Presentation to UWF BOT
University Core Missions
Instruction Research Public Service
Ancillary Missions
Academic reporting
Instruction & Instructional Support
Research Management & Support Public Service
Other Fiscal Proprietary Personnel AdministrativeStudent ServicesOperational
DSOsBudgeting &
Performance Measures
Revenues &Collections
Disbursements
Asset Management
Financial Reporting
Procurement
Auxiliary Activities& Contracted
ServicesPersonnel
Management& Recruitment
Facilities Development
& Management
Computing& IT Support
Student SupportServices
Student HealthServices
Planning &Policy
Development
Administrative Support Services
External Audits PerformedAuditor General
Financial Statement Federal Funds Bright Futures SACS Special Purpose Financial Statement (every 10 years)
Federal Florida Small Business Network
CPA firms WUWF-FM Intercollegiate Athletics Financial Statement Direct Support Organizations/Affiliated Organizations
UWF Foundation West Florida Historic Preservation, Inc. Florida Institute for Human & Machine Cognition
August 29, 2011 Presentation to UWF BOT
RISK FACTORS• Executive Management Interest • Internal Controls System• Fraud Likelihood and Impact• Changes in
Personnel/Procedures• Prior Audit Findings• Time Since Last Audit• Dollar Volume Exposure• Interdependence• Public Disclosure Implications• External Audit Coverage
August 29, 2011 Presentation to UWF BOT
RISKTYPES OF RISK
• Strategic • Financial• Operational• Compliance• Reputational
Evaluation of Audit Areas
August 29, 2011 Presentation to UWF BOT
Topic Factors AVP Evaluation Conclusion
Financial Risk
Dollar Volume Exposure 27% budget cut in 3 years; ARRA one-time funding; reduced endowment interest; changes to Financial AidManagement Interest: HighChange: Significant reductions, new Chief Budget OfficerPublic Exposure: Highly newsworthy, external interest highPrior Audits: AG audits financial statement, federal funds and Bright Futures ; IAMC Treasury Management auditCompetency of Personnel: Fin Svcs and Budget Office personnel competent; leadership strong. We are cognizant of tight budgetEthical Climate: Those entrusted appear ethical; however, cognizant that fraud can occur anywhereInterdependence: HighFraud Potential: High
Reduced funding is foremost on all manager’s minds, as well as the Board of Trustees. Increased exposure for fraud exists as many are asked to do more without salary increases, as well as personal financial situations may have been significantly impacted with the recession. Every area IAMC will work in during the coming two fiscal years will touch the financial risk in the course of work. All IAMC personnel are competent to perform an assessment of financial risk. Some IAMC personnel have professional certifications (CIA, CPA, CFE, and CGFM) which will compliment the financial acumen within the IAMC portfolio of skills.
Incorporated into all
aspects of IAMC
financial, operational,
and compliance
audits as well as MAS and investigative
activities.
Parking Services
Dollar Volume Exposure: $500k (decals, fines, meters)Prior Audit: Never audited; MAS by IAMC on decalsManagement Interest: Moderate; pressure to build a parking garageStrategic Impact: If parking not available, students may not continue at UWF; revenues declineExternal Audit: AG looks at revenue on financial auditEthical Climate: Parking Svcs does not collect money; Parking Svcs clerk enters A/R into systemFraud Potential: Level of unpaid fines
Internal Auditing personnel are competent to assess the motor pool and vehicles. We can assess the validity/ reasonableness of the rates assessed by Motor Pool. We can also review the advantages/ disadvantages regarding lease/purchase/rental of vehicles. Management has expressed concern over this area.
AUDIT PARKING SERVICES
Examples of Audit AreasAthleticsAuxiliariesComputer SecurityConstructionFinancial AidHousingInstitutes & CentersLibrary
Parking & Transportation ServicesProcurementPurchasing CardResearch & Sponsored ProgramsStudent ActivitiesStudent Government AssociationVending/Contracted Services
August 29, 2011 Presentation to UWF BOT
Work Plan 2011/12Audits• Aquatic Center• Construction• Educational Research
Center for Child Development (ERCCD)
• Institutes and Centers (in process)
• PCard Audits (department level)
• Recreation• Revenue Generating
Contracts (in process)
• Telecommunications• Testing Center• Voyager Student Center
Management Advisory Services
• Evaluation of Policies, Rules, Procedures and changes
• Risk & Compliance Council• Banner Student Implementation –
team members • Facilitator for Workgroups and
Departments
August 29, 2011 Presentation to UWF BOT
Activities 2010/11
Audits Auxiliaries American Recovery and
Reinvestment Act (ARRA) Institutes and Centers (in
process)
Parking & Transportation Services
Revenue Generating Contracts (in process)
Treasury Management Vending
Management Advisory Services
Research and feedback on rules, policies, and procedures
DMV annual certification Emerald Coast cashiering Export controls, eCustoms External Auditor selection Athletics
and WUWF Public Media Mobile Data Plans Oil Spill claims Parking Decal inventory Perquisites Retention and destruction of
electronic records Risk Council SACS 5th Year report (Section leader) Search committees Small and attractive assets Staff Senate Terminated employee security
change Ticket Office Procedures and
workflow Websense
August 29, 2011 Presentation to UWF BOT
Other Services
Academic Outreach• Student internship• Teaching UWF White Collar Crime course (CCJ4644)• Guest speaker in classes• Chapter Advisor –Delta Sigma Pi Business Fraternity
Volunteerism• Move-In for Residence Halls• No Run Around: Student Assistance 1st week of class
(worked since 1994)• Hand to Paw Drive• Staff Senate
August 29, 2011 Presentation to UWF BOT
Questions & Comments?
August 29, 2011 Presentation to UWF BOT