Internal Audit Annual Board Update Audit Advisory Committee January 28, 2020 Debi Roth, Chair
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 of 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 organizational 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
ittee Mem bers rs Audit C Com ommit • 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 of A f Audit it C Commit ittee • Reviewed and approved the entity-wide risk assessment process and results • Reviewed and recommended School Board approval of 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 ontinued • Conducted the annual performance appraisal of 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 ontinued • 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 ommen endation ons Findings by Age in Months as of November 8, 2019 123 Findings from 25 Engagements More than 2 years 5 4% 1 - 2 years 12 10% 6 months - 1 year 8 6% Less than 6 months 98 80% Age of findings measured from Management’s most recent target completion date.
Benchmark rking Chart rt Number of Auditors per $100 Million of General Fund Budget - FY 18-19 0.98 0.84 0.76 0.75 0.58 0.58 0.56 0.33 Miami-Dade Broward Hillsborough Orange Palm Beach Duval Pinellas CGCS Average
Superintendent’s Comments School Board Questions and Discussion
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