1. Preparing for an Audit Roy De Lauder, CPPM, CF NOVA Chapter Today’s instructor is:

2. Today’s agenda Introduction / What to do? What is an audit? Coordinate with the auditor. Coordinate with your team. Data needed. Choreographing the audit. Day of the Audit. Questions?

3. What to do? You have just received word that you will have an audit! You should:

4. What to do? You have just received word that you will have an audit. You should: a.Run in circles?

5. What to do? You have just received word that you will have an audit. You should: a.Run in circles? b.Scream and shout?

6. What to do? You have just received word that you will have an audit. You should: a.Run in circles? b.Scream and shout? c.Quit your job and move to Cucamonga?

7. What to do? You have just received word that you will have an audit. You should: a.Run in circles? b.Scream and shout? c.Quit your job and move to Cucamonga? d.None of the above?

8. What to do? You have just received word that you will have an audit. You should: a.Run in circles? b.Scream and shout? c.Quit your job and move to Cucamonga? d.None of the above? The correct answer is “d” – None of the above. This presentation should give you some ideas of what to do.

9. An audit? “A property audit is a systemic, objective review and evaluation of an organization’s property control system, which includes the organization’s established procedures and its application of, implementation of, and compliance with those procedures.” NPMA Intermediate Studies Manual p.7-1

10. An audit? A property audit is a systemic, objective review and evaluation of an organization’s property control system. The property control system includes begins with the organization’s established procedures. The review must include the and its application of, implementation of, and compliance with those procedures.

11. An audit? In other words the auditor wants to know: – What do your procedures say? And – Does your organization follow your own procedures?

12. Strategic Business Processes

13. How to prepare for an audit? What can I do before I even get word of an audit? What steps should I take after I have been notified of an audit? Who are the other players that I need to involve in my audit preparations?

14. What can I do before I even get word of an audit? Review your procedures. Conduct internal audits.

15. What steps should I take after I have been notified of an audit? Coordinate with the auditor. – Who? – What? – Where? – When? – How?

16. Coordinate with the auditor. Who? Who is coming? Who does the auditor want to see? What? What is he/she going to look at? Which contracts and what time frame? Where? Which of your facilities will he visit or will you be going to his office? When? When will the audit take place? Does the auditor want some data before he shows up? (If so, what and when.) How? How will this audit be conducted? (Interviews, record to floor checks, questionnaire, etc.?)

17. After coordinating with the auditor Once you have talked with the auditor and you have the Who, What, Where, When, and How – what next? – You need to brief the players on your side of the fence. Who will the auditor want to visit with when they are there? – You will have a bunch of data requirements that the auditor needs to see (list of equipment, list of material, Copies of some Purchase Orders, a copy of the procedures, etc.). – Which of the players on your side are going to provide which of the data sets? Does the data set get sent off or do they need to be ready when the auditor shows up?

18. Data Sets Copy of your procedures. List of all open contracts that are applicable. List of all contracts closed within the last year. Listing of all equipment. Listing of all material. Listing of all Purchase Orders. – Copies of selected Purchase Orders. A listing of all applicable subcontracts. All LTDD (Loss, Theft, Damage, & Destruction) reports for the last 5 years. Internal audit results and findings. Results of the last external audit. All open disposal schedules.

19. Processing the Data sets Now that we know what the auditor wants to see: – Who is going to prepare which Data Set? – When will it be due? – Will it be forwarded to the auditor before he arrives or given to him when he walks in the door?

20. Choreographing the Audit

21. Choreographing the Audit Directions to your facility.

22. Choreographing the Audit Directions to your facility. Security Clearances & access.

23. Choreographing the Audit Directions to your facility. Security Clearances & access. Entrance Brief?

24. Choreographing the Audit Directions to your facility. Security Clearances & access. Entrance Brief? Exit Brief?

25. Choreographing the Audit Directions to your facility. Security Clearances & access. Entrance Brief? Exit Brief? Multiple Buildings? – Group visits (Scheduling)?

26. Choreographing the Audit Directions to your facility. Security Clearances & access. Entrance Brief? Exit Brief? Multiple Buildings? – Group visits (Scheduling)? Guest office.

27. Choreographing the Audit Directions to your facility. Security Clearances & access. Entrance Brief? Exit Brief? Multiple Buildings? – Group visits (Scheduling)? Guest office. Meals?

28. Choreographing the Audit Directions to your facility. Security Clearances & access. Entrance Brief? Exit Brief? Multiple Buildings? – Group visits (Scheduling)? Guest office. Meals? Samples?

29. Day of the Audit Meet the auditor at Security. Try to be there before the auditor is. Have the data sets that the auditor requested printed out and ready to go when he/she asks for them. Answer just the questions that the auditor asks. Do Not volunteer information. Do Not argue with the auditor.

30. After the out brief Start getting ready for the next audit by correcting the issues that the auditor found. – The auditor will almost always find something that needs work. (Hopefully it won’t be anything major.) – The auditor is Not out to “get you”. His purpose is to make sure that you are controlling the items entrusted to your organization.

31. Questions? ?

32. If your organization failed the previous audit, how would you prepare differently for the next audit?

33. This concludes our presentation. Thanks for coming today.