Transcript Slide 1

An Overview: The Role of the Audit Committee
in Monitoring, Oversight, and Compliance
Derry Harper, Inspector General and Director of Compliance
June 18, 2010
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Duties & Responsibilities: SUS
Per the Audit and Compliance Committee Charter,
the Audit Committee is responsible for:
• receiving and reviewing university audit reports;
• identifying trends in such reports and confirming
adverse trends are addressed by the university;
• initiating inquiries if the Committee has reasonable
cause to believe a UBOT is unwilling or unable to
provide an appropriate response to an audit finding.
(Emphasis added)
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Duties & Responsibilities: SUS (con’t.)
•directing the Inspector General to conduct an
investigation into substantiated allegations of
waste, fraud, or financial mismanagement within a
state university if the Board determines that a UBOT
is unwilling or unable to do so.
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Duties & Responsibilities: SUS (con’t)
University Board of Trustees Powers and Duties,
BOG Regulation 1.001(6)(g):
• Each UBOT shall establish policies and procedures
for the performance of annual internal audits of
university finances and operations. All reports of
such audits must be submitted to the BOG via the
Inspector General. (Emphasis added.)
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Types of Audit Reports Received
• Financial and Operational Audits conducted by the
Auditor General
• Independent audited financial statements of Direct
Support and Health Services Support Organizations,
and Form 990s
• Audits of federal award, contracts & grants
received by universities (Florida Single Audit Act)
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Internal Audit Reports
• UBOT Powers and Duties Regulation requires all
eleven universities to submit internal audit reports
conducted by university auditors.
• BOG SUS Management Information System
Regulation [3.007] establishes the State University
System Data Collection Process.
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The Inspector General’s Role
As directed by the Audit Committee, the IG reviews
each audit report to:
• Identify adverse trends
• Follow-up with universities regarding findings and
corrective actions
• Provide comments and suggestions to Chancellor
and Board Senior Staff for enhancing internal
controls.
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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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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 3: Identify Key
Compliance Risk Areas
Brainstorm and assess high risk areas
Assign high risk areas to process
owner
Step 4: Establish Systematic
Compliance Program
Develop Compliance Matrix
Training
Monitoring
Identify areas of non-compliance
Corrective Action Plan Process
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Compliance Matrix - Schema
Florida Constitution
U.S. Constitution
BOG/Chancellor
State Statutes
Federal Statutes
BOG Policy
Regulations, Policies &
Procedures
Charters
External Policies &
Procedures
BOG Internal
Operating Policies &
Procedures
BOG Regulations
External Policies &
Procedures????
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Regulation Compliance Project (RCP)
The RCP was launched Fall 2009:
• 89 BOG Regulations to be reviewed or analyzed
• Access database created to record analyses
• To date, approximately 25% analyzed
• IG will review reports and make recommendations
to Senior Staff for enhancing and improving existing
procedures.
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Next Steps
• BOG Compliance Steering Committee - comprised
of Senior Staff from all units
• SUS Compliance Work Group – comprised of
representatives from four universities
• Each work group will assist the IG in developing a
recommendation for the establishment of a
compliance program for the Board Office and the
State University System.
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