Helping You Achieve Your Research Objectives DIVISION OF AUDIT SERVICES

Navigating the Administrative Highway - September 2004 Presentation Objectives 1. Overview of the Division of Audit Services 2. Navigating the Administrative Highway 3. How Audit Services can help you achieve your research objectives 4. Recap and questions

Navigating the Administrative Highway - September 2004 Overview of Audit Services

Navigating the Administrative Highway - September 2004 Overview of Audit Services – con’t Internal auditors ascribe to professional standards Internal auditors ascribe to professional standards Distinguish internal auditors from other employees Distinguish internal auditors from other employees Bestows credibility to internal auditors Bestows credibility to internal auditors

Navigating the Administrative Highway - September 2004 Overview of Audit Services – con’t Resources: Institute of Internal Auditors (IIA) Institute of Internal Auditors (IIA) Association of College and University Auditors (ACUA) Association of College and University Auditors (ACUA) Canadian Association of University Business Officers (CAUBO) Canadian Association of University Business Officers (CAUBO) Our mandate is approved by the Board of Governors. Our mandate is approved by the Board of Governors. We are dedicated to assisting University Management in the effective discharge of their responsibilities. We are dedicated to assisting University Management in the effective discharge of their responsibilities.

Navigating the Administrative Highway - September 2004 Question? By a show of hands, how many of you have had any dealings with an auditor? Traditional view Traditional view Internal Audit model Internal Audit model “a tiny cloud that can mushroom into a tempest that may rock the pillars of the organization” (CGA Canada)

Navigating the Administrative Highway - September 2004 Navigating the Administrative Highway – Audit Services’ View Travelling the highway To reach your research objectives To reach your research objectives Using the infrastructure created Using the infrastructure created

Navigating the Administrative Highway - September 2004 The Infrastructure - Audit Services’ View System of people System of people Computers Computers Data Data Information systems Information systems Policy, procedures, and guidelines Policy, procedures, and guidelines The Goal To help you achieve your objective

Navigating the Administrative Highway - September 2004 The journey to a successful research project Risks involved in completing the journey Risks involved in completing the journey Some may be obvious while others are not Some may be obvious while others are not Analogy of a family vacation Analogy of a family vacation

Navigating the Administrative Highway - September 2004 The Journey Objective Objective To reach your destination safely, efficiently, timely, safely, efficiently, timely, and within budget! and within budget! Identify “things” that may Identify “things” that may not allow us to get there not allow us to get there Defining risk and internal control. Defining risk and internal control.

Navigating the Administrative Highway - September 2004 Defining risk and internal control Risk: the potential of something occurring that will prevent us from achieving our objective. Risk: the potential of something occurring that will prevent us from achieving our objective. Internal control: an action, process or item to mitigate that risk. Internal control: an action, process or item to mitigate that risk.

Navigating the Administrative Highway - September 2004 Risk Aversion Planning the trip Planning the trip Maps Maps Money Money Packing suitcases Packing suitcases

Navigating the Administrative Highway - September 2004 Risk Aversion Car maintenance Car maintenance Tune-up Tune-up Oil change Oil change Check the tires Check the tires Buy gas Buy gas

Navigating the Administrative Highway - September 2004 Risk Aversion Make accommodation reservations Make accommodation reservations Ensures your family will have someplace to sleep Ensures your family will have someplace to sleep

Navigating the Administrative Highway - September 2004 Risk aversion costs money! All of the “internal controls” cost money. All of the “internal controls” cost money. What happens if you decide not to spend money on “controls”? What happens if you decide not to spend money on “controls”? You may have car trouble You may have car trouble You may run out of gas You may run out of gas The journey may cost you more or you may not get to your destination! The journey may cost you more or you may not get to your destination!

Navigating the Administrative Highway - September 2004 Relating the analogy to your research project Risk is identified as Risk is identified as the potential of something occurring the potential of something occurring that will prevent you from achieving that will prevent you from achieving your research objectives. your research objectives.

Navigating the Administrative Highway - September 2004 Areas of Risk 1. Compliance with regulatory bodies 2. Use of University facilities and assets 3. Expenditures

Navigating the Administrative Highway - September Risks identified: Compliance Freezing or closing of the grant account(s) Freezing or closing of the grant account(s) Of the individual researcher, or Of the individual researcher, or Of all grant accounts at the Institution Of all grant accounts at the Institution

Navigating the Administrative Highway - September 2004 Compliance issues Tri-Council Tri-Council Funding received through parliamentary appropriations Funding received through parliamentary appropriations Responsibility to Parliament and taxpayers Responsibility to Parliament and taxpayers Audit Services role and responsibility Audit Services role and responsibility

Navigating the Administrative Highway - September Risks identified: Using University facilities & assets Misuse and abuse of University assets Misuse and abuse of University assets Exposure to insurance and liability issues Exposure to insurance and liability issues Unfavourable public perception Unfavourable public perception

Navigating the Administrative Highway - September Risks identified: expenditures Financial loss to the University Financial loss to the University Unauthorized or inappropriately authorized Unauthorized or inappropriately authorized Unsupported expenditures Unsupported expenditures Ineligible expenditures Ineligible expenditures Overspending Overspending Expending additional resources Expending additional resources Integrity and reputation compromised Integrity and reputation compromised Individual and the University as a whole Individual and the University as a whole

Navigating the Administrative Highway - September 2004 Bridging the gap Lack of knowledge – increases the risk that research funds may be inappropriately spent Lack of knowledge – increases the risk that research funds may be inappropriately spent Audit Services –adds value Audit Services –adds value

Navigating the Administrative Highway - September 2004 Independent Eyes and Ears Audit Services acts as management’s eyes and ears Audit Services acts as management’s eyes and ears Making sure that the University’s assets are protected Making sure that the University’s assets are protected Making sure that the University is being a good steward of the funds that have been entrusted to the researcher and institution Making sure that the University is being a good steward of the funds that have been entrusted to the researcher and institution

Navigating the Administrative Highway - September 2004 Independent eyes for a smooth ride We are the independent eyes that make sure all the system checks and balances are in place. We are the independent eyes that make sure all the system checks and balances are in place. This will help the researcher have a smooth ride down the Administrative Highway. This will help the researcher have a smooth ride down the Administrative Highway.

Navigating the Administrative Highway - September 2004

Contact information Al Novakowski, Director Ph: Dale Holaday, Senior Internal Auditor Ph:

Navigating the Administrative Highway - September Troy Harkot, Information Systems Auditor Ph: John Cornwell, Internal Auditor Ph: Office Fax: 1904