Orange County Public Schools Internal Audit Annual Update December - - PowerPoint PPT Presentation

Orange County Public Schools

Internal Audit Annual Update December 13, 2016

Orange County Public Schools

Internal Auditing

• Definition –

“Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.”

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

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Orange County Public Schools

Code of Ethics

• 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

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Orange County Public Schools

Audit Advisory 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

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Orange County Public Schools

Audit Committee Responsibilities

• 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 Senior Director

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Orange County Public Schools

Audit Committee Responsibilities - continued

• Review effectiveness of internal and external

audit functions

• Serve as the auditor selection committee in

accordance with Florida Statutes

• Report at least annually to the School Board

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Orange County Public Schools

Audit Committee Members

• Charles Puckett, CPA - Committee Chairman, Partner, McDirmit

Davis & Co., CPA’s

• Scott Funston – Vice President Finance, Shanghai Disney Resort
• Debi Roth, CIA – Managing Director – Global Standards & Guidance,

Institute of Internal Auditors

• Kay Redlich – Senior VP, Technology & Operations, CNL Financial

Group

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

Restaurants, Inc. Ex-officio Members

• School Board Chairman Bill Sublette
• General Counsel Woody Rodriguez

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Orange County Public Schools

2016 Activities of Audit Committee

• Reviewed & approved the entity-wide risk

assessment process and results

• Reviewed & recommended School Board

approval of the annual audit plan

• Met with external auditors at beginning of

audit process to establish expectations and will meet at end of audit to discuss results

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Orange County Public Schools

2016 Activities - continued

• Accepted results of the Peer Review of the

Internal Audit Department

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

performance against annual audit plan

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Orange County Public Schools

2016 Activities - continued

• Performed the committee self-assessment and

review of committee and Internal Audit charters

• Acted as proposal evaluation committee for

Schools’ Internal Accounts Audit Services

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Orange County Public Schools

Key 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

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Orange County Public Schools

Internal Audit Function

Current Resources

• One Senior Director and five staff (one vacancy at present)
• Two CPAs (Certified Public Accountants)
• Two CIAs (Certified Internal Auditors)
• One CGAP (Certified Government Auditing Professional)
• One CRMA (Certified in Risk Management Assurance)

Accomplishments

Please refer to the Internal Audit Annual Report published separately

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Orange County Public Schools

Coming Initiatives

• Continue to reduce the number of audit

findings outstanding for more than 1 year

(The Internal Audit Department maintains a listing of open comments from audits to ensure that all items brought to the attention of management are addressed.)

• Continue developing a more mature

enterprise risk management function

• Increase Internal Audit staff to better address

audit priorities in light of growing needs

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Orange County Public Schools

Less than 6 months 16 20% 6 months - 1 year 14 17% 1 - 2 years 45 56% More than 2 years 6 7%

Findings by Age in Months as of November 7, 2016 (81 findings from 21 reports)

Less than 6 months 6 months - 1 year 1 - 2 years More than 2 years

Approximately 30 of the items in the 1-2 years category moved into that category recently. These are findings from an audit of IT Controls. It is anticipated that some

• f these items will

require additional time to complete, but Internal Audit and ICTS have a process underway to monitor progress in addressing these issues.

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Orange County Public Schools

1.69 1.10 1.08 0.88 0.86 0.84 0.77 0.67 0.65 0.65 0.63 0.63 0.63 0.52 0.49 0.49 0.43 0.41 0.35 0.35 0.31 0.27 0.27 0.25 0.22 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00

Number of Auditors per $100 Million, Select CGCS School Districts

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Orange County Public Schools

0.83 1.06 0.78 0.31 0.78 1.37 2.11

Miami-Dade Broward Hillsborough Orange Palm Beach Duval Pinellas

Auditors Per $100 Million of General Fund Budget Large Florida School Districts

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