1. Conducting a

2. First things first! Please silence your cell phones Feel free to ask questions and share ideas Tara’s email address – tpritch3@uncc.edutpritch3@uncc.edu Tara’s phone number – 7-5694 Internal Audit website: internalaudit.uncc.edu

3. Who are you? Name Department Why did you sign up for this workshop?

4. Internal Audit 3 rd Line of Defense Department Admins Business Managers Chairs/Directors 1 st Line of Defense RMSS IT Security Compliance 2 nd Line of Defense Board of Trustees Chancellor’s Cabinet State Auditors

5. What we will do today:  Discuss internal controls – what they are and why they are important  Discover what a Control Self Assessment is and why it should be completed regularly  Review the Control Self Assessment document  Complete a Control Self Assessment workshop with model departments within your group

6. Bottom Line Up Front 6

7. What is a control? Internal Controls are steps within a process designed to provide reasonable assurance regarding the achievement of objectives : Effectiveness and Efficiency of Operations Reliability of Financial Reporting Compliance with applicable Laws, Regulations, Policies & Procedures

8. Effectiveness and efficiency Can the job be completed to the intended result in an easier, faster way? Can the job be done with more accurate results? Can the unit reach maximum productivity using minimal resources?

9. Reliability of financial reporting Appropriated funds Foundation funds Discretionary funds Restricted funds Unrestricted funds Agency funds

10. Compliance Federal laws State laws County/City laws UNC System policies UNC Charlotte policies UNC Charlotte Compliance Director – Sue Burgess compliance.uncc.edu

11. 5 Components of Internal Control How they apply to you 11 Monitoring Activities - regular financial status reports as well as progress reports for major department initiatives Control Environment – department head announcing policy changes, how financial reporting is handled and communicated, and how university standards are discussed and enforced Risk Assessment - considerations for security of cash collected, evaluation of student worker access to department files, and the information security vulnerabilities posed by maintaining a set of laptop computers for check-out by traveling faculty Control Activities – authorizations, approvals, verifications, reconciliations, business performance reviews, and segregation of duties Information and Communication - sharing and validating requests for information when received, then sharing and validating responses before their release

12. Types of Internal Controls Preventive – prevent errors from happening in the first place

13. Preventive controls Training on policies Supervisor review prior to submitting travel reimbursement Passwords Contract checklist review Card swipe door locks

14. Types of Internal Controls Detective – find potential errors after they happen

15. Detective Controls Reconciling invoices to ledger (payments) Comparing packing list/order contents with purchase order Reviewing card swipe logs for abnormal entry times Review Banner access lists

16. Process Steps vs. Controls “A process step is a task, activity… that moves an input closer to the final objective.” – The department admin collects timesheets and files them – The office submits the reimbursements to the Travel Office within 30 days – Faculty members send an email requesting supplies, and supplies are stored in a locked cabinet 16

17. Process Steps vs. Controls “An internal control… is a critical step within the process that leads to the success of the entire process.” – Supervisors review timesheet submissions monthly to ensure they were completed on time – Supervisors review and approve all travel reimbursements for accuracy before submission to the Travel Office – Department admin staff matches the purchase order, invoice and receiving slip before marking the supply as received in 49er Mart 17

18. Process Step Control –The department admin collects timesheets and files them –The office submits the reimbursements to the Travel Office within 30 days –Faculty members send an email requesting supplies, and supplies are stored in a locked cabinet –Supervisors review timesheet submissions monthly to ensure they were completed on time –Supervisors review and approve all travel reimbursements for accuracy before submission to the Travel Office –Department admin staff matches the purchase order, invoice and receiving slip before marking the supply as received in 49er Mart 18

19. Process Steps vs. Controls Test your knowledge! 19 ? Takes inventory of office supplies before submitting an order. ? Create a spreadsheet of all laptops, desktop computers and printers in the department. ? Verify the serial numbers on all laptops, desktops and printers in the department every 6 months. A director signs off on the spreadsheet.

20. What we will do today:  Discuss internal controls – what they are and why they are important  Discover what a Control Self Assessment is and why it should be completed regularly  Review the Control Self Assessment document  Complete a Control Self Assessment workshop with model departments within your group

21. What is a self – assessment?

22. Why have a Controls Self Assessment workshop?

23. When is a Controls Self Assessment recommended? If a CSA has never been conducted in your department Within 6 months of coming into a department Within 12 months of the initial CSA to see if controls have been implemented properly To prepare for a visit from Internal Audit

24. Choose Facilitator Pre- Workshop Work ImplementationImplementation Follow Up Group Discussion Completing the CSA Guide

25. First thing: the role of the facilitator Be objective Planning Training on CSA process Encourage discussion Identify Issues and Resolutions Keep workshop on task

26. Pre-workshop activities Establish the objective – MOST IMPORTANT Choosing the participants Who should participate? Initial meeting with participants Risk assessment – Interviews and surveys (CSA guide) Schedule group discussion

27. The Controls Self Assessment Guide Internalaudit.uncc.edu

28. The Controls Self Assessment Guide

29. The group discussion Review of CSA Guide responses Vote to discuss 3 or 4 critical processes What is critical? What controls can we put in place to fix the issues chosen? When will we follow up?

30. Traps… We cannot discuss issues that require immediate attention – Fraud – Security issues – Possible wrong-doing If “immediate attention issues” arise in discussion, the facilitator will note it and refer it to the proper professionals. The conversation should be stopped and redirected!

31. Implementation Establish a timeline for implementation Overall project timeline? Individual process/item timeline? What defines “successful implementation?” Evidence of implementation

32. Follow up Schedule meeting after implementation date Have controls been fully implemented? – Are they working? – Have the controls made life easier? More difficult? – Is the objective of the department being met? – What could be done differently?

33. What we will do today:  Discuss internal controls – what they are and why they are important  Discover what a Control Self Assessment is and why it should be completed regularly  Review the Control Self Assessment document  Complete a Control Self Assessment workshop with model departments within your group

34. Workshop time! Review CSA Guide responses for two departments Identify: What good controls are in place? What are a few areas that need improvement? What controls can be put in place to fix these areas? What is a reasonable timeline to implement these changes? Discuss why some issues are more critical than others. Write selected responses on flipchart Need some help? Let us know!

35. Using the Table of Contents listed below: What good controls are in place? What are a few areas that need improvement? What controls can be put in place to fix these areas? What is a reasonable timeline to implement these changes Discuss why some issues are more critical than others.

36. Ready to practice? Assess First Model – 15 minutes Switch! – 15 minutes Discuss assessments – 15 minutes

37. Using the Table of Contents listed below: What good controls are in place? What are a few areas that need improvement? What controls can be put in place to fix these areas? What is a reasonable timeline to implement these changes Discuss why some issues are more critical than others.

38. To recap: Controls are in place to help mitigate risks A Controls Self- Assessment is how an individual or team in a department can look at the processes in place and determine if there are controls over the processes A CSA Workshop is a “meeting of the minds” to identify weaknesses and implement controls to mitigate the risks If you need help, you can always call Internal Audit to help facilitate!

39. How to request help from Internal Audit Internalaudit.uncc.edu Click “About Us” tab Click on “Services Offered” Complete a request form for a consultation with Internal Audit We love to help – just ask!

40. Any questions?

41. Contact: Your Internal Audit Team Raheel Qureshi 7-5698 Diana Hill 7-5695 Tara Pritchett 7-5694 Tom York 7-5693 Julie Earls 7-0049

42. Other Resources Greg Verret – Compliance Manager – Phone: 704 ‑ 687 ‑ 5781 – Email: gverret@uncc.edugverret@uncc.edu Alicia Bartosch – Business Process Analyst – Phone: 704 ‑ 687 ‑ 0950 – Email: abartosch@uncc.eduabartosch@uncc.edu Lisa Dooley – Business Process Analyst – Phone: 704 ‑ 687 ‑ 5002 – Email: ldooley@uncc.eduldooley@uncc.edu

43. Please… Leave the department packets on the tables Remember to complete the course survey when you get back to your office “Like” the Learning and Development Facebook page! Give us a call – we are here to help!