Disclaimers and Caveats $780 million annual budget 4,200 employees - PowerPoint PPT Presentation

 Disclaimers and Caveats

 $780 million annual budget  4,200 employees  Serve over 200,000 families annually  People with Disabilities  Developmental Center  Substance Abuse & Mental Health  State Hospital  Child Welfare  Juvenile Justice Services  Recovery Services  Aging & Adult Services

 Resources  Time  Money  Qualified staff  Adequate tools  Risk assessment & identifying risks  Intimate Knowledge of all Programs  Advancement of Technology & Changing Environment  Adequate policies  Training  Political Constraints

The PINK phone!

 $800K missing: State agency employee fired over embezzlement allegation  Utah state employee tapped computers to steal identities  DMV employee accused of providing confidential information for crimes  State worker charged with stealing child support payments  The10 Worst Government Data Breaches of 2012:  3. Utah: Eastern European hackers pulled 780,000 Medicaid records from servers at Utah’s Department of Technology Services.

 California Correctional facility improperly reimbursed employees $55,000 in travel benefits for routine commutes to the facility  Fish and Game issued $118,700 in gift cards to high ranking employees of the Department over 3 year period  State accounting technician for the Employment Development Department arrested for fraudulently redirecting nearly $93,000 of unemployment insurance benefits  “As currently staffed, the SEC would have trouble finding first base at Fenway Park if seated in the Red Sox dugout and given an afternoon to find it.” Harry Markopolous (Madoff investigation)

 Financial  Separation of Duties  Controls enforced  Performance  This L.A. County panel is facing scrutiny for reinstating a social worker later charged in a boy's death  Comprehensive  Data Reliability  Critical decisions be based on good data  IT  Oregon sues Oracle over failed health care website ($250 million)

 Performance audits can be painful and politically sensitive but necessary  Frequent Financial audits critical to maintain the integrity of the process  “Efficiency in government is a matter of social justice. Every tax dollar controlled by the government is taken from the taxpayer who earned it. Wasting money shows contempt for the labor that produced that money.” John Norquist (Ex Mayor of Milwaukee)  IT Security audits  Data security  Client confidentiality

 Equity of Practices  Eligibility are equitable & consistent in application  Safeguards against abuse of power  Safety & Security  Employee  Public we serve  Disaster planning

 Private Sector experience  Large Audit Staff  Compensated well  Audit credentials required  Consequence of poor auditing practices  Reduced profits  Financial Insolvency  Business failure  Media scrutiny

 Public Sector experience  Auditors understaffed  Compensation less lucrative  Not always credentialed  Consequence of poor auditing practices  Inefficient government  Waste of finite resources  Corruption & Abuse of Power  Loss of Public support & confidence  Serious Injury or Loss of Life  Bad press

 Don’t let your Director be caught with a Pink Camo Phone!  Audit to greatest Risk factors  Make strong recommendations to identify & fix vulnerabilities  Strive to achieve the strongest audit team possible  Seek out auditors with diverse skills and knowledge  Encourage the sharing of ideas and best practices  Seek out training and certifications for your staff  Make a strong case for better software tools  Advocate to your Director the value of a strong internal audit function that is appropriately resourced

Audit risk analysis and planning of audits and time budgets  Scheduling  Audit program development  Working paper development  Supervisory review and signoff  Audit report development  Audit customer response  Audit issue/recommendation tracking and risk mitigation tracking  Recording of project time by audit program procedure and auditor  Summary management reports of audit projects and audit time by agency, specified dates, project, and  auditor Retention, destruction, and litigation hold reporting  Vendor hosted  Encryption of data at rest and in transit  Integration with LDAP  Segregation of duties based on role  Integration with MS Office suite and the State’s Google email system  Templates for audit programs, audit reports, and audit findings that can be used from audit to audit  Referencing/linking capabilities from objectives and audit program procedures to supporting documents, and  from the audit report to supporting documents. Check-out/check-in procedures for document control  Controls over replacing current documents with imported documents  Read only access for peer reviewers  Key word searching within and between documents  Workflow management capabilities  Redaction capabilities  Scalability 

Mark Brasher Deputy Director, Department of Human Services, State of Utah mbrasher@utah.gov