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Campus Audits: Chancellor

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Compliance Audits - Review adherence to laws, regulations, policies, and procedures. ... Internal Control Reviews - Focus on the components of the university and ... – PowerPoint PPT presentation

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Title: Campus Audits: Chancellor


1
Campus Audits Chancellors Office Guide to
Survival
  • Janice Mirza Senior Director, Office of the
    University Auditor
  • Academic Resources Council - April 2, 2009

2
Presentation Overview
  • The Office of the University Auditor (OUA)
  • Types of Audits
  • What We Look For
  • How We Select and Schedule
  • Tips for Audit Survival

3
OUA Organization Chart
4
Mission Statement The mission of the Office of
the University Auditor is to assist university
management and the Trustees in the effective
discharge of their fiduciary and administrative
responsibilities by bringing a systematic,
disciplined approach to evaluate and improve the
effectiveness of risk management, control, and
governance processes. This assistance is
provided through a series of independent and
objective operational and compliance audits,
internal control reviews, investigation services,
and consulting.
5
Purpose and Authority Education Code Section
89045, enacted by Chapter 1406 of the Statutes of
1969, provided for the establishment of an
internal auditing function reporting directly to
the Trustees of the California State University
(CSU). Subsection (b) of the Code states that
the duties of this function/internal audit staff
shall include, but not be limited to, auditing,
reviewing, cost and system analysis, analyzing
and recommending operating procedures for the
California State University. Subsection (c) of
the Code states that management audits shall be
made to determine the effectiveness and
efficiency of the organization, operation, and
procedures of each state university, each
auxiliary organization, and the Office of the
Chancellor.  
6
The Audit
Artist Jeff Leedy artthatmakesyoulaugh.com
7
General Types of Audits
  • Operational Audits - Examine the use of unit
    resources to evaluate whether those resources are
    being used in the most effective and efficient
    manner to fulfill the University's mission and
    objectives. An operational audit may include
    elements of the other audit types listed below.
  • Financial Audits - Focus on accounting and
    reporting of financial transactions, including
    commitments, authorizations, and receipt and
    disbursement of funds. The purpose of this type
    of audit is to verify that there are sufficient
    controls over cash and cash-like assets, and that
    there are adequate process controls over the
    acquisition and use of resources.
  • Compliance Audits - Review adherence to laws,
    regulations, policies, and procedures. Examples
    include federal and state law, Trustee policies,
    and chancellor's office directives.
    Recommendations typically call for improvements
    in processes and controls intended to ensure
    compliance with regulations.

8
General Types of Audits (contd)
  • Information Systems (IS) Audits - Examine the
    internal control environment of automated
    information processing systems and how people use
    those systems. IS audits typically evaluate
    system input, output, and processing controls
    backup and recovery plan system security and
    computer facility reviews.
  • Internal Control Reviews - Focus on the
    components of the university and auxiliary
    organization major business activities. Areas
    such as payroll and benefits, cash handling,
    inventory and equipment and their physical
    security, grants and contracts, and financial
    reporting are usually subject to review.
  • Investigations - Seek to establish evidence of
    impropriety imply a systematic track-down of
    information the auditor hopes to discover or
    needs to know. Investigations include alleged
    instances of fraud, waste and abuse, and improper
    governmental activities.
  • Consulting Services - Add value and improves an
    organization's governance, risk management, and
    control processes without the auditor assuming
    management responsibilities. Consulting services
    may include counsel, advice, and facilitation.

9
Types of Audits Within the CSU
  • Mandatory Audits
  • FISMA Financial internal control reviews
    required as part of the Financial Integrity and
    State Manager's Accountability Act (FISMA) of
    1983. Performed on a two-year cyclical basis on
    all campuses.
  • Auxiliary - Internal compliance/internal control
    reviews of each auxiliary organization, including
    segregation of duties, safeguarding of assets and
    reliability and integrity of information required
    by EO 698. Performed on a three-year cyclical
    basis on all campuses.
  • Delegations of Authority Reviews of delegations
    of authority concerning purchasing and
    contracting activities, motor vehicle
    inspections, and real and personal property
    transactions to assure that CSU has acted
    responsibly under the Delegations of Authority
    established by SB 1828 (1986) and expanded by AB
    1191 (1993). Performed on a five-year cyclical
    basis on selected campuses.

10
Types of Audits Within the CSU
  • Other Audits
  • Subject Area Selected annually via a risk
    assessment process. Audits can be of anything on
    a college campus and include operational,
    financial, compliance, information systems and
    internal control elements.
  • Construction Selected on the basis of project
    size.
  • Investigations Performed as the need arises.
  • Consulting Services Performed as requested.

11
Campus Selection and Audit Scheduling
12
Campus Selection
  • FISMA audits 12 per year.
  • Auxiliary audits 8 per year.
  • Delegations of Authority audits selected as
    noted below but only performed every 5th year.
  • 10 campuses for each of three subject areas
    coordinated with above cyclical audits and
    consideration of campus size, prior audits, and
    management judgment.
  • Construction selected based on project size and
    status of completion.

13
Audit Scheduling
  • FISMA and Auxiliary audits based on prior audit
    dates with two months avoided for yearend close.
  • Subject area audits coordinated with cyclical
    audits to maintain adequate spread when multiple
    audits on one campus.
  • Construction audits sort of thrown in.
  • All audits scheduled to provide adequate mix of
    in-town and out-of-town assignments.
  • Scheduling impacted throughout the year by
    staffing changes, vacation requests, specific
    campus issues.

14
Tips for Audit Survival
  • Be Proactive
  • Review your internal controls
  • Review prior and similar audit reports
  • Self Audit
  • Use policies and procedures as criteria for
    self-assessment
  • Create internal control/compliance checklists
  • Ensure prompt correction of errors and deviations
    from policies and procedures
  • Have all requested documents ready at start of
    audit

15
OUA Audit Reports
16
More Tips for Audit Survival
  • Be positive, professional, and confident.
  • Listen carefully to questions and understand
    question before answering.
  • Keep answer simple and direct.
  • Be honest.
  • Understand that we are all working on the same
    team.

17
Even More Tips for Audit Survival
  • Do not get offended by WHY questions.
  • Recognize that the auditors may be experts (they
    may have worked in the specialty area prior to
    becoming an auditor).
  • Realize that the auditors may not be subject
    experts (this may be their first audit so be
    patient).
  • Understand that the auditors really are there to
    help.

18
  • QUESTIONS

19
Contact Information
  • Janice Mirza
  • 562-951-4430
  • jmirza_at_calstate.edu
  • OUA Website
  • www.calstate.edu/audit

20
THANK YOU
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