Internal Audit Annual Board Update Audit Advisory Committee - - PowerPoint PPT Presentation

Internal Audit Annual Board Update

Audit Advisory Committee Debi Roth, Chair

January 28, 2020

Mission of Internal Audit

To enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight.

Source: International Professional Practices Framework of the Institute of Internal Auditors

Cod Code of

• f Ethics

cs

• Mandatory for IIA* members (we are members)
• Internal auditors are expected to apply and uphold

the following principles:

• Integrity
• Objectivity
• Confidentiality
• Competency

* Institute of Internal Auditors

3

Au Audit t Ad Adviso sory Com y Committee

• Operates pursuant to a charter approved

by the School Board

• Oversees all audit functions of OCPS
• Provides required independence for the

Internal Audit Function

4

Audit it C Commit ittee R Responsib ibilit ilitie ies

• Review the plans, activities, staff and
• rganizational structure of Internal Audit
• Ensure no restrictions on Internal Audit
• Review and concur in the appointment,

replacement or dismissal of the School Board Internal Auditor

5

Audit t Committee R Responsibilities - continued

• Review effectiveness of internal and external

audit functions

• Report at least annually to the School Board

6

Audit C Com

• mmit

ittee Members

rs

• Debi Roth, CPA, CIA – Committee Chair, Managing Director –

Curriculum Strategy, Institute of Internal Auditors

• Dan Williams, CPA – Retired Senior VP of Internal Audit,

Darden Restaurants, Inc.

• Scott Funston, CPA – Vice President, Finance, Shanghai Disney

Resort

• Kay Redlich – Chief Technology Officer, CNL Financial Group
• Tammy Campbell, CPA – Partner, McDirmit Davis & Co., CPA’s
• Ex-officio Members:
• School Board Chair
• General Counsel

7

2019 A Activ ivit itie ies o

• f A

f Audit it C Commit ittee

• Reviewed and approved the entity-wide risk

assessment process and results

• Reviewed and recommended School Board approval
• f the annual audit plan
• Establish expectations with external auditors at

beginning of audit process and discuss results at upon completion of audit

8

2019 2019 A Acti tivities s - con

• ntinued
• Conducted the annual performance appraisal
• f the Senior Director
• Monitored Internal Audit Department

performance against the annual audit plan

• Ensured compliance with new requirements of

Florida Statutes

9

2019 2019 A Acti tivities s - con

• ntinued
• Performed the Committee self-assessment

and reviewed charters of the Committee and the Internal Audit Department

• Met with the CIO and discussed IT security

issues

10

Key P Points

• Internal audit function is independent via its

reporting relationship to the School Board through the Audit Committee

• The annual audit plan is being accomplished
• The Audit Committee actively oversees the audit

function and maintains a focus on continuous improvement

• Objectives have been met for the Audit Committee

and the Internal Audit Department

11

Best P Pract actice ces A s Alignment

Best practices are from the CGCS white paper titled Internal Auditing in the Great City Schools.

Internal Audit Team

Current Resources

• Senior Director and six professional staff members
• Two CPAs (Certified Public Accountants)
• Two CIAs (Certified Internal Auditors)
• One CGAP (Certified Government Auditing Professional)
• One CRMA (Certified in Risk Management Assurance)
• One CISA (Certified Information Systems Auditor)

Accomplishments

Please refer to the Internal Audit Annual Report published separately

13

Coming Initiatives

• Continue to evaluate outstanding audit

recommendations

• Assess the enterprise risk management process and

make recommendations for improvements

• Complete Internal Self-Assessment Quality Review
• Follow up on recommendations from IT Security Audit

Open en Audit R Recom

• mmen

endation

• ns

Age of findings measured from Management’s most recent target completion date.

Less than 6 months 98 80% 6 months - 1 year 8 6% 1 - 2 years 12 10% More than 2 years 5 4%

Findings by Age in Months as of November 8, 2019 123 Findings from 25 Engagements

Benchmark rking Chart rt

0.98 0.75 0.58 0.33 0.58 0.76 0.84 0.56 Miami-Dade Broward Hillsborough Orange Palm Beach Duval Pinellas CGCS Average

Number of Auditors per $100 Million of General Fund Budget - FY 18-19

Superintendent’s Comments School Board Questions and Discussion