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

2. 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

3. 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

4. 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

5. 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

6. 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 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

7. 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

8. 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

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