1. Audit Alert 2015 Research Foundation for SUNY Symposium March 25, 2015

2. Audit Alert  Emily Kunchala, Vice President, Internal Audit Services  Devin McCarthy, Associate Auditor, Internal Audit  Betsy Colón, Grants Management Associate, SUNY Geneseo  Sheila Routh, Director of Grants Management, Stony Brook University

3. Agenda  Your Internal Audit Function  Audit Risk Areas  How to Get the Most Value from Your Next Audit  Sponsor Audits 3

4. Your Internal Audit Function Emily Kunchala, Lisa LeBlanc, Ye Liu, Bradley Kenyon, Craig Osborne, Ryan Farrell, Devin McCarthy

5. Your Internal Audit Function Internal Audit Conduct Findings Follow-up Quality Assurance Services Annual Risk Assessment Test Internal Controls Conduct Investigations Assist with Sponsor Audits Conduct Audits Coordinate A-133

6. Audit Risk Areas Segregation of Duties No em­ployee or group of employees should be in a position both to perpetrate and to conceal errors or fraud in the normal course of their duties. 6

7. 7 Audit Risk Areas Segregation of Duties

8. Audit Risk Areas Segregation of Duties Challenges to implementing effective internal controls:  Not enough staff! 8

9. Audit Risk Areas Segregation of Duties Work around staff limitations with compensating controls Activities that compensate for the lack of an expected control 9

10. Audit Risk Areas Cost Transfers Redistributing OTPS or salary charges from one award to another for approved purposes 10

11. Audit Risk Areas Cost Transfers Bad justification: “There was no money left on the award so expenditures were moved to another award” Good justification: “Costs were re-allocated because multiple projects benefited from the expenditure.” 11

12. Audit Risk Areas Cost Transfers Timeliness is Key  Cost transfers should be processed no later than 90 days after the need for a transfer is discovered. 12

13. Audit Risk Areas Property 13

14. Audit Risk Areas Vendor Payments 14

15. Audit Risk Areas Cost Sharing A sponsored program cost that is not reimbursed by the sponsor. 15

16. Audit Risk Areas Conflict of Interest “A conflict of interest arises if personal relationships, activities, or finances interfere, or appear to interfere, with our ability to act in the best interests of the Research Foundation” - COI PolicyCOI Policy 16

17. Additional Risk Areas  Clerical & Administrative Salary Charges  New Hires  Extra Service  IFR Appointments  Subrecipient Monitoring 17

18. A vailable U nderstand D eliver I nteract T ying it all Together 18 A Campus Perspective

19. Sponsor Audits  Guidelines for sponsor audits outlines campus and central office responsibilities  Developed at campus request to provide a more formal process  Define roles and responsibilities  Available on the public website: Guidelines for Sponsor Audits  Email us at Internal.Audit@rfsuny.org to report sponsor audit notificationInternal.Audit@rfsuny.org 19

20. Question & Answer 20

21. Thank You!  Please contact us if you have any further questions Emily.Kunchala@RFSUNY.org (518) 434-7180 Devin.McCarthy@RFSUNY.org (518) 434-7287 Colon@Geneseo.edu (585) 245-5060 Sheila.Routh@stonybrook.edu (631) 632-4886 21