Establishing A Compliance Program: It Makes Sense

Derry Harper Inspector General & Director of Compliance January 28, 2010

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Institutional Compliance Program Broadly Defined

• A program that has been reasonably designed,

implemented, and enforced so that it will generally be effective in preventing and detecting violations of law.

• Program must evidence the organization’s “due

diligence” in seeking to prevent and detect violations of law.

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Compliance Program Design Proactive

• Identify key risk areas and perform a risk

assessment on compliance readiness.

• Prioritize implementation of compliance program

in the areas of higher regulatory risk because of impact on health or safety, academic or fiscal integrity.

• Provide recommendations, education and training

in connection with regulatory compliance gaps that have been identified.

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Compliance Program Design

(Cont.)

Integrated

• Work collaboratively and as a liaison to other

compliance offices/functions throughout the organization

• To identify risk areas and conduct assessment • To monitor new developments or requirements in regulatory compliance

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Compliance Program Design

(Cont.)

Transparent

• Promote Mission/Vision of the organization • Promote an organizational culture that encourages

a commitment to compliance with law

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Internal Control

A process affected by an entity, board of directors, management and other personnel designed to provide reasonable assurance regarding achievement of objectives related to:

• Reliability of financial reporting • Effectiveness and efficiency of operations • Compliance with applicable laws and regulations

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Compliance Program Elements

• Risk Assessment • Responsible Parties and Roles • Standards and Procedures • Program Oversight • Awareness, Education and Training • Lines of Communication • Monitoring and Auditing • Enforcement • Corrective Action

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Audit & Compliance Committee Charter

Regarding the SUS, the Audit & Compliance Committee will:

•Receive and review university audit reports; •Identify trends in such reports and confirm that adverse trends are being addressed by the universities; •Initiate inquiries if Committee has reasonable cause to believe a university is not providing appropriate response to audit findings; •Direct the IG to conduct an inquiry or investigation if the Committee has reasonable cause to believe that a university board of trustees is unwilling or unable to provide for investigation of allegations of fraud.

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The Brogan Doctrine

Step 1: Establish Compliance Program

 Identify Project Owner or Champion  Establish a Steering Committee

Step 2: Identify Key Objectives

 List Key Objectives  Prioritize Key Objectives

Step 4: Establish Systematic Compliance Program

 Develop Compliance Matrix  Training  Monitoring  Identify areas of non-compliance  Corrective Action Plan Process

Step 3: Identify Key Compliance Risk Areas

 Brainstorm and assess high risk areas  Assign high risk areas to process owner

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Compliance Matrix – Schema

Florida Constitution U.S. Constitution BOG/Chancellor BOG Policy State Statutes Federal Statutes Charters External Policies & Procedures BOG Internal Operating Policies & Procedures BOG Regulations External Policies & Procedures????

Regulations, Policies & Procedures

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Compliance Matrix Steps

> Constitution > State Statutes (20.055) > BOG Regulations Compliance Matrix > State Admin Regs & Rules > Federal Statutes > Charter Research Analysis Implementation: Development of Policies & Procedures

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Compliance Assistants

SUS Compliance Work Group:

•FAMU Vice President for Compliance & Audit •FIU Assoc Vice President & University Compliance Officer •UCF Vice President & General Counsel •USF Executive Director for University Audit & Compliance •USF Chief Compliance Officer

BOG Compliance Steering Committee:

Senior Associate Vice Chancellor, Associate Vice Chancellor, Chief of Staff, IRM Assistance Vice Chancellor, Director of University Budgets, Director of Academic & Student Affairs, General Counsel, IRM Assistant Director, Assistant Director of Personnel, Budget Analyst, Campus Development Coordinator, and Research Associate

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BOG Regulation Compliance Review Tools

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