1. Open Topic
Jimmy Nolan

2. Internal Audit Services
2014 Assessment
Vision
Past focus of internal controls and compliance
New re-concentrated efforts on the field
Internal Audit Assistance
Risk Mitigation
Flexibility of Field Audits
Partnering Relationships

3. Internal Audit Assessment Roadmap
Work Plan
Define current state of Internal Audit scope activities
Map audit-related project activities by Home Office support function
- Interview key stakeholders and identify duplicated efforts and required alignment/integration
Benchmark Kiewit Internal Audit against other companies
- Consider construction industry, public versus private, high regulated versus unregulated
Perform a SWOT/PEST analysis of Internal Audit
Make recommendations for Internal Audit’s future scope and activities

4. B. Sarbanes-Oxley and Kiewit
FY 2001
FY 2002
Q4 2007
FY 2008 – Present
FY Present
No prior audit opinion required for all SEC registrants regarding the adequacy of internal controls
Internal Audit (universally) was perceived as a value-added group
Audit opinion required for adequacy of internal controls for all SEC registrants
Internal Audit (universally) absorbed the management’s burden of effort to document internal control processes
Last SOX opinion issued. Subsequent to this date, Kiewit is no longer required to file with the SEC due to corporate restructuring (no longer meets shareholder requirement)
Kiewit continues to follow some SOX standards
Internal Audit (Kiewit) continues to document internal control processes under a quasi-SOX structure
Kiewit plans, designs and implements KieCore
Internal Audit (Kiewit) bears management burden of internal control process documentation for undertaking of large effort similar to SOX
Independence is jeopardized

5. Internal Audit Services
Services will focus on traditional audit objectives that ensure:
An objective, independent perspective
Risk mitigation
Feedback regarding adherence to Company policies; operational- and financial-related areas
Services will add-value:
Specific focus on subject areas that are concerning to leadership
Concentrated efforts on business process improvements (KieCore)
“Observations” paired with recommendations
Continuing relationships and a resource for clients

6. Listen. Understand. Audit. Communicate.
Listen While audits will revolve around a core audit programs, the scope and objectives of the audit will not be finalized without conversations with District Managers, District Business Managers, Sponsors/PMs, and Compliance Understand Based on leadership feedback an audit program will be developed that ensures our scope addresses specific risks and concerns. An audit team will be built to ensure subject matter experts are involved and consulted.
Audit
Team will clearly define objectives, scope, and timeline. Audit will be timely and concise. When possible, procedures will be done from the Home Office to limit disruptions.
Communicate
Report draft will be issued in the field and fully
discussed. Involvement will continue beyond remediation.
Dave Biegert let his whole team down

7. What will a field audit include?
Core Audit Program Additional Program Options
What
Why
JOR, Contract, and Forecast Analysis
Accuracy of operational and financial reporting
Internal controls
Adherence to policies. Mitigation of inaccurate reporting risk; fraud.
Validation of underlying records
Job cost, contract, and claiming support exists
Compliance
Information Technology
KieCore User Acceptance
Escalation and Contingencies
Cash Position Improvement
Business Process Improvement
Claiming Scheme Reviews
Third-party payables
Equipment Inventories
Yard/STS Inventories
Travel/P-Card Monitoring
Job Cost Accruals
Payroll Controls
JV Partner Audits
Contract Administration

8. Focusing on Relationships
Open-Door Policy
Ad-Hoc Requests
Continued Communication
Sharing Talent
Did you know?
Internal Audit alumni include Andrew Pistorius, Dave Biegert, and Dave Freeman