Transcript WVU Department of Intercollegiate Athletics

West Virginia University
Fraud Risk Assessment Process
Dan Durbin
West Virginia University
• Implemented in 2007 as a SOX Related “Best
Practice”
• Designed to Identify Areas of Weakness that Could
Impact Financial Reporting Accuracy
• Identify Areas of Potential Fraud and Abuse
• Annual Process
Process
• Obtain Institutional Buy-in
• Senior Management
• BOG Audit Committee
• Departmental Leadership
• Include the Right People
• Central Process Owners and Experts
• Compliance
• Capture Multiple Areas-Cross Validation
• Document !
• Share With Auditor, Audit Committee and Internal Audit
Process continued
• Define Possibilities
– What Could Go Wrong and Where
• Define Risks
– Embezzlement/Possible Fraud
– Reporting Errors
– “Honest” Mistakes that Lead to Waste
• Controls to Mitigate
– Current
– Required
Implementation at WVU Phase 1
Finance Division Units
Accounting / Reporting
Procurement
Risk Management
Payroll/Tax
Financial Services
Business Office
Starting Point
-6 Units
-22 Areas/Activities
Implementation at WVU Phase 2
Phase 2
Finance
Accounting / Reporting
Procurement
Risk Management
Payroll/Tax
Financial Services
Business Office
Treasury
Through 2010:
• 9 Units
• 83 Areas/Activities
Health
Sciences
Examples of Completed Assessments
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Year End Closing Process
Competency of Financial Reporting Team
Correct Student FICA Exemption Status
Independent Contractor Determination
Effort Reporting (Grants)
Driver Training
Billings/Collections of Rents
Case in Point Situation: Funds Handling
Objective:
• To Ensure the Security and the Appropriate Handling of
University Funds
• To Ensure Accuracy of Revenues, Expenses, Assets and
Liabilities
Risks:
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Non Compliance with Code/Law
Financial Loss Through Fraud and Loss
Reputational Risk
Misstatement
Controls
• Controls (to address) Risks:
Funds Handling
West Virginia University
Funds Handling Steps
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Policy
Guideline
Communications
Training
Web Page
http://financialservices.wvu.edu/revenue_services/depar
tmental_accounts/funds_handling
Project Status
• Identified 805 Employees
• Conducted 32 Training Sessions
• Trained 420 Employees
Questions/Comments
Dan Durbin
Phone: (304) 293-4008
[email protected]
Lisa Lively
Phone: (304) 293-8638
[email protected]