Internal Auditing & Management Consulting Overview BOT On-Campus Orientation July 29, 2013 Presentation to UWF BOT

Reporting Authority President UWF Board of Trustees Audit & Operations Committee Associate Vice President OPS Student Program Assistant (20 hrs/wk.) Internal Auditor III Internal Auditor II OPS PCard Auditor (15 hrs/wk.) OPS Student PCard Auditor (15 hrs/wk.) Note: One position (.75 FTE auditor) was lost in 2011/12 for budget cuts July 29, 2013 Presentation to UWF BOT

Associate Vice President Presentation to UWF BOT Name Betsy Bowers Cindy Talbert Dan Bevil Elizabeth Mrachek Brandon Heppler Amy Bueno Title Associate Vice President Internal Auditor III Internal Auditor II OPS PCard Auditor OPS Program Assistant Years in Internal Auditing 29 9 2 .5 2.5 Years with UWF 20 3 1 4 Years Audit Experience 31 11 Educational Degrees, Institution, and Major MBA and BA (Acct) East Tennessee State University BS Accounting University of South Alabama MBA and BBA (Finance) University of West Florida BS-Accounting Florida State University BS-Public Relations Oklahoma State Working toward BS in Health Science Professional Certifications Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), Certified Government Financial Manager (CGFM), Certified Inspector General (CIG),Certification in Risk Management Assurance (CRMA) Certified Public Accountant (CPA) Alabama and Florida Florida July 29, 2013 Presentation to UWF BOT

Presentation to UWF BOT Standards Institute of Internal Auditors International Standards for Professional Practice of Internal Auditing Institute of Internal Auditors Code of Ethics Government Auditing Standards (Yellow Book) Generally Accepted Accounting Principles (GAAP) July 29, 2013 Presentation to UWF BOT

Internal Auditors vs. External Auditors UWF Employee Independent contractor Serves needs of UWF Serves 3rd parties, who need reliable financial information Focuses on FUTURE events by evaluating controls designed to assure accomplishment of UWF goals and objectives Focuses on accuracy and understandability of HISTORICAL events as expressed in the financial statements Is DIRECTLY concerned with prevention of fraud in any form INCIDENTALLY concerned with fraud, but DIRECTLY concerned if materially affect financial statements Independent of activities audited, but ready to respond to needs/desires of all UWF management Independent of management and board of directors, both in fact and mental attitude Reviews activities CONTINUALLY Reviews records/financial statements PERIODICALLY, usually once a year July 29, 2013 Presentation to UWF BOT

External Audits Performed Auditor General Financial Statement Federal Funds Bright Futures Operational (once every 3 years) Federal Florida Small Business Network USDOE Program Audit - Financial Aid CPA firms WUWF-FM Intercollegiate Athletics Financial Statement Direct Support Organizations/Affiliated Organizations UWF Foundation Business Enterprises, Inc. West Florida Historic Preservation, Inc. Florida Institute for Human & Machine Cognition The type of audits that must be performed annually:   Financial Statement, required by Florida Statutes (done by Auditor General) Federal Monies, required by the Federal Government –primarily for student aid monies (done by Auditor General) OMB Circular A-133 “Audits of States, Local Governments, and Non-Profit Organizations” was created in 1997 to implement the Single Audit Act amendments of 1996. The A-133 audit measures compliance with federal laws and regulations applicable to federal financial assistance (appropriations, student financial aid, and sponsored grants and contracts) that the University receives. The audit is required as a condition of receiving federal financial assistance and must be performed annually (Auditor General does this for UWF.). Although A-133 audits have been required for a number of years, recent revisions to the audit requirements have resulted in a risk-based approach, consistent with the COSO [federal Committee On Sponsoring Organizations] framework. Bright Futures, requested by Legislature (done by Auditor General) WUWF-FM, required by Corporation for Public Broadcasting (done by external CPA firm) Intercollegiate Athletics Financials, required by NCAA and Gulf South Conference (done by external CPA firm) Florida Small Business Development Center, required by Federal agency (done by Federal Auditors) DSOs that have to provide us their audited financial statements: UWF Foundation BEI West Florida Historic Preservation, Inc. FIHMC Areas that will probably evolve into required audits Unrelated Business Income Tax (IRS is focusing upon universities; right now 30+ universities are under audit by them) July 29, 2013 Presentation to UWF BOT

Presentation to UWF BOT RISK TYPES OF RISK Strategic Financial Operational Compliance Reputational RISK FACTORS Executive Management Interest Internal Controls System Fraud Likelihood and Impact Changes in Personnel/Procedures Prior Audit Findings Time Since Last Audit Dollar Volume Exposure Interdependence Public Disclosure Implications External Audit Coverage Executive Management Interest (concerns of top management President, BOT, VPs); Internal Controls System (design/past performance of the Internal Control System); Fraud Likelihood and Impact Changes in Personnel/Procedures (dynamics of an environment: personnel turnover/procedure changes); Prior Audit Findings (significance of prior internal audit findings); Time Since Last Audit (length of time since last internal audit); Dollar Volume Exposure ($ amount of expenditures/revenues flowing thru a system) Interdependence (degrees of mutual reliance placed on a function by other functions) Public Disclosure Implications (prospect of significant notoriety as a consequence of errors and/or other deliberate misrepresentations); and External Audit Coverage (extent of external audit coverage within last 5 years). July 29, 2013 Presentation to UWF BOT

Example of Internal Audit Areas (Work Plan 2013/14) Audits Attractive Assets (cost <$5,000) Camps & Conferences Counseling & Wellness Materials & Supplies Fees Biology Department Chemistry Department Office of Economic Development and Engagement Student and Exchange Visitor Program (SEVIS) Subrecipient Monitoring (Research & Sponsored Programs) Management Advisory Services Evaluation of Policies, Rules, Procedures and changes Risk & Compliance Council Banner Student Implementation –team members SACS Reaccreditation teams July 29, 2013 Presentation to UWF BOT

Presentation to UWF BOT Questions & Comments? July 29, 2013 Presentation to UWF BOT