New Administrator Orientation Office of Audit,

Transcript:New Administrator Orientation Office of Audit,:
New Administrator Orientation Office of Audit, Risk and Compliance (OARC) August 5, 2019 Learning Objectives Understand OARC’s responsibilities Understand the compliance program Understand the audit process Understand common audit areas and findings Understand IT risk areas and findings Identify good internal controls and techniques Understand fraud indicators and reporting methods About The Office of Audit, Risk and Compliance (OARC) performs independent internal audits, plans and oversees the university’s risk assessment process and oversees the institutional compliance program. OARC’s purpose is to support the mission of MSU by: Providing an independent and objective process for monitoring and evaluating the reliability and integrity of financial and operating information to add value and improve MSU’s operations through internal audits and assurance services. Providing oversight of the risk assessment process by creating and maintaining a framework to effectively identify, assess, and manage risk. Promoting a university-wide culture of compliance and ethics through an effective Compliance Program that includes monitoring, education and investigation activities to prevent, detect, and resolve noncompliance with associated laws and regulations. Organizational Chart What is a Compliance Program? An effective compliance program prevents and detects violations of law or policy. Defines expectations for employees for ethical and proper behaviors when conducting business. Demonstrates the organization’s commitment to “doing the right thing”. Encourages problems to be reported. Provides a mechanism for monitoring. Elements of a Compliance Program Organizational Leadership, Culture and Governance Standards and Procedures Right People, Right Roles Education and Awareness Program Evaluation and Guidance Consistent Enforcement of Standards and Discipline Response and Prevention Internal Auditor Approach We act as an independent objective internal assurance and consulting function designed to add value and improve the University’s operations. We are here to assist you and help protect our University as a whole. We try to view audit projects as a partnership with you and your department maintaining a relationship characterized by respect, helpfulness and collaboration. We attempt to be as “transparent” as possible. Roles of OARC & Management University Management Develops and enforces effective internal controls. Responsible for monitoring compliance with federal, state or applicable laws. Responsible for setting policies and procedures. RESPONSIBLE FOR MAKING MANAGEMENT DECISIONS. OARC - Internal Audit Evaluates and provides reasonable assurance that internal controls are functioning as intended. Evaluates compliance with federal, state or other applicable laws. Evaluates compliance with MSU internal policies. CANNOT MAKE MANAGEMENT DECISIONS. Audit Plan Development/Approval “C’mon, why us???” University-wide risk assessment Annual