Control Self - Assessment

Control Self - Assessment

Conducting a What is wrong, and how to fix it Tom York Tara Pritchett, CCSA Internal Audit March 4, 2016 First things first!

Please silence your cell phones Feel free to ask questions and share ideas Taras email address [email protected] Taras phone number 7-5694 Internal Audit website: internalaudit.uncc.edu Who are you?

Name Department Why did you sign up for this w Risk Management Lines of Defense Where do we fit in? Board of Trustees Chancellors Cabinet 2nd Line of Defense

3rd Line of Defense Department Admins Business Managers Chairs/Directors RMSS IT Security Compliance Internal

Audit State Auditors 1st Line of Defense What we will do today: Discuss internal controls what they are and why they are important Discover what a Control Self Assessment is and

why it should be completed regularly Review the Control Self Assessment document Complete a Control Self Assessment workshop with model departments within your group Bottom Line Up Front Internal controls are the tasks that are in place to help address risks. Risk = the unexpected, the undesirable Controls = steps in place to stop or soften the blow

6 What is a control? Internal Controls are steps within a process designed to provide reasonable assurance regarding the achievement of objectives: Effectiveness and Efficiency of Operations Reliability of Financial Reporting Compliance with applicable Laws, Regulations, Policies & Procedures

Effectiveness and efficiency Can the job be completed to the intended result in an easier, faster way? Can the job be done with more accurate results? Can the unit reach maximum productivity using minimal resources? Reliability of financial reporting Appropriated funds Foundation funds Discretionary funds

Restricted funds Unrestricted funds Agency funds Who determines that these are being spent properly? Compliance

Federal laws State laws County/City laws UNC System policies UNC Charlotte policies UNC Charlotte Compliance Director Sue Burgess

compliance.uncc.edu 5 Components of Internal Control How they apply to you Control Environment department head announcing policy changes, how financial reporting is handled and communicated, and how university standards are discussed and enforced Risk Assessment - considerations for security of cash collected, evaluation of student worker access to department files, and the information security

vulnerabilities posed by maintaining a set of laptop computers for check-out by traveling faculty Control Activities authorizations, approvals, verifications, reconciliations, business performance reviews, and segregation of duties Information and Communication - sharing and validating requests for information when received, then sharing and validating responses before their release Monitoring Activities - regular financial status reports as well as progress reports for major department

initiatives 11 Types of Internal Controls Preventive prevent errors from happening in the first place Preventive controls

Training on policies Supervisor review prior to submitting travel reimbursement Passwords Contract checklist review Card swipe door locks Types of Internal Controls Detective find potential errors after they happen

Detective Controls Reconciling invoices to ledger (payments) Comparing packing list/order contents with purchase order Reviewing card swipe logs for abnormal entry times Review Banner access lists Process Steps vs. Controls A process step is a task, activity that

moves an input closer to the final objective. The department admin collects timesheets and files them The office submits the reimbursements to the Travel Office within 30 days Faculty members send an email requesting supplies, and supplies are stored in a locked cabinet 16 Process Steps vs. Controls

An internal control is a critical step within the process that leads to the success of the entire process. Supervisors review timesheet submissions monthly to ensure they were completed on time Supervisors review and approve all travel reimbursements for accuracy before submission to the Travel Office Department admin staff matches the purchase order, invoice and receiving slip before marking the supply as received in 49er Mart

17 Process Step The department admin collects timesheets and files them The office submits the reimbursements to the Travel Office within 30 days Faculty members send an

email requesting supplies, and supplies are stored in a locked cabinet 18 Control Supervisors review timesheet submissions monthly to ensure they

were completed on time Supervisors review and approve all travel reimbursements for accuracy before submission to the Travel Office Department admin staff matches the purchase order, invoice and receiving slip before marking the

supply as received in 49er Mart Process Steps vs. Controls Test your knowledge! ? Takes inventory of office supplies before submitting an order. ? Create a spreadsheet of all laptops, desktop computers and printers in the department. ? Verify the serial numbers on all

laptops, desktops and printers in the department every 6 months. A director signs off on the spreadsheet. 19 What we will do today: Discuss internal controls what they are and why they are important Discover what a Control Self Assessment is and why it should be completed regularly

Review the Control Self Assessment document Complete a Control Self Assessment workshop with model departments within your group What is a self assessment? Why have a Controls Self Assessment workshop? When is a Controls Self Assessment recommended?

If a CSA has never been conducted in your department Within 6 months of coming into a department Within 12 months of the initial CSA to see if controls have been implemented properly To prepare for a visit from Internal Audit The CSA Workshop Process Choose Facilitato r

Follow Up PreWorkshop Work Implementati on Completing the CSA

Guide Group Discussion First thing: the role of the facilitator

Be objective Planning Training on CSA process Encourage discussion Identify Issues and Resolutions Keep workshop on task Pre-workshop activities Establish the objective MOST IMPORTANT Choosing the participants

Who should participate? Initial meeting with participants Risk assessment Interviews and surveys (CSA guide) Schedule group discussion The Controls Self Assessment Guide Internalaudit.uncc.edu

The Controls Self Assessment Guide The group discussion Review of CSA Guide responses Vote to discuss 3 or 4 critical processes What is critical? What controls can we put in place to fix the issues chosen? When will we follow up?

Traps We cannot discuss issues that require immediate attention Fraud Security issues Possible wrong-doing If immediate attention issues arise in discussion, the facilitator will note it and refer it to the proper professionals. The conversation should be stopped and

redirected! Implementation Establish a timeline for implementation Overall project timeline? Individual process/item timeline? What defines successful implementation? Evidence of implementation Follow up

Schedule meeting after implementation date Have controls been fully implemented? Are they working? Have the controls made life easier? More difficult? Is the objective of the department being met? What could be done differently? What we will do today: Discuss internal controls what they are and why they are important Discover what a Control Self Assessment is and

why it should be completed regularly Review the Control Self Assessment document Complete a Control Self Assessment workshop with model departments within your group Workshop time! Review CSA Guide responses for two departments Identify:

What good controls are in place? What are a few areas that need improvement? What controls can be put in place to fix these areas? What is a reasonable timeline to implement these changes? Discuss why some issues are more critical than others. Write selected responses on flipchart

Need some help? Let us know! Using the Table of Contents listed below: What good controls are in place? What are a few areas that need improvement?

What controls can be put in place to fix these areas? What is a reasonable timeline to implement these changes Discuss why some issues are more critical than others. Ready to practice? Assess First Model 15 minutes Switch! 15 minutes Discuss assessments 15 minutes

Using the Table of Contents listed below: What good controls are in place? What are a few areas that need improvement? What controls can be put in place to fix these areas? What is a reasonable timeline to implement these changes Discuss why some issues are more critical than others.

To recap: Controls are in place to help mitigate risks A Controls Self- Assessment is how an individual or team in a department can look at the processes in place and determine if there are controls over the processes A CSA Workshop is a meeting of the minds to identify weaknesses and implement controls to mitigate the risks If you need help, you can always call Internal Audit to help facilitate!

How to request help from Internal Audit Internalaudit.uncc.edu Click About Us tab Click on Services Offered Complete a request form for a consultation with Internal Audit We love to help just ask! Any questions?

Your Internal Audit Team Contact: Raheel Qureshi 7-5698 Diana Hill 7-5695 Tara Pritchett 7-5694

Tom York 7-5693 Julie Earls 7-0049 Other Resources Greg Verret Compliance Manager Phone: 704687578168768757815781 Email: [email protected]

Alicia Bartosch Business Process Analyst Phone: 704687578168768757810950 Email: [email protected] Lisa Dooley Business Process Analyst Phone: 704687578168768757815002 Email: [email protected] Please

Leave the department packets on the tables Remember to complete the course survey when you get back to your office Like the Learning and Development Facebook page! Give us a call we are here to help! Thank you!

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