1. C OMMONWEALTH OF V IRGINIA O FFICE OF THE S TATE I NSPECTOR G ENERAL 2015 College and University Auditors Association (CUAV) Conference OSIG Activities

2. OBJECTIVES New Administration Finalization of structure, processes Strategic Plan Performance Review Services Investigations Behavioral Health & Developmental Services Internal Audit Oversight and Training

3. N EW A DMINISTRATION June Jennings, State Inspector General CPA, Certified Inspector General Michael Westfall, Deputy Inspector General CPA, CFE, Certified Inspector General

4. F INALIZATION OF STRUCTURE / PROCESSES

5. D IVISIONS Performance Review Services Division Investigations Division –State Fraud, Waste and Abuse Hotline Behavioral Health & Developmental Services Division Administrative Services Division –Fiscal Services –Information Technology & Security Services –Internal Audit Oversight and Training

6. P OLICIES AND PROCEDURES Salary Administration Plan Delegated Purchase Authority Policy Educational Assistance Program Inventory Procedure Commuter Choice Program Freedom of Information Act Procedure State Fraud, Waste and Abuse Manual (updated September 2014) Whistleblower Manual (August 2014) Investigations Manual (May 2015) Performance Review Procedures (draft)

7. S TRATEGIC P LAN VCU Performance Management Group Strategic Planning Team High Level Strategic Plan and Action Plan Cover 2-3 years Completed in June 2015

8. Annual Work plan based upon risk assessment –Executive Branch Agencies –Special Projects Performance Review Audit Program Implementation of electronic working papers P ERFORMANCE R EVIEW S ERVICES D IVISION

9. Ongoing Performance Reviews: Department of Social Services University of Virginia Department of Motor Vehicles Department of Taxation Virginia Employment Commission Department of Education Special Projects: Department of Emergency Management Secretary of Natural Resources Department of Corrections – Agribusiness Study P ERFORMANCE R EVIEW S ERVICES D IVISION

10. Reports Issued: Department of Transportation –Identified potential costs savings of $13 million –Issued 17 recommendations to management to improve economy and efficiency in government operations Department of Medical Assistance Services –Recommended the implementation of performance measures in DMAS contracts –Increase accountability for eligibility determinations for Medicaid –Recommended the implementation of performance measures for interagency agreements

11. P ERFORMANCE R EVIEW S ERVICES D IVISION Going Forward: Re-evaluation of approach to work plan and scope of projects Expanded use of consultants to conduct performance reviews Performance Review Training

12. I NVESTIGATIONS D IVISION Initiated 16 investigations Fraud Procurement/Contract violations Conflict of Interests Collaborate with Auditors Coordinate with APA/VSP/FBI Point of Contact Program Review Critical Incident Data for DOC and DJJ VCA Certification Other Certifications: CFE, CIGI

13. I NVESTIGATIONS D IVISION State Agencies Reporting Requirement § 30-138. State agencies, courts, and local constitutional officers to report certain fraudulent transactions; penalty. A. Upon the discovery of circumstances suggesting a reasonable possibility that a fraudulent transaction has occurred involving funds or property under the control of any state department, court, officer, board, commission, institution or other agency of the Commonwealth, including local constitutional officers and appointed officials exercising the powers of elected constitutional officers, as to which one or more officers or employees of state or local government may be party thereto, the state agency head, court clerk or local official in charge of such entity shall promptly report such information to the Auditor of Public Accounts (Auditor), the State Inspector General, and the Superintendent of State Police (Superintendent).

14. S TATE F RAUD, W ASTE AND A BUSE H OTLINE Hotline Cases Referred: 432 Hotline Cases Screened Out: 152 Hotline Cases Closed Out: 286 53% of the Cases Referred were Screened Out Hotline Statistics 7/1/14 to present

15. S TATE F RAUD, W ASTE AND A BUSE H OTLINE 60 cases = substantiated 53 cases = not substantiated but recommendations were made to improve internal controls or processes 136 cases = not substantiated Hotline Statistics 7/1/14 to present

16. S TATE F RAUD, W ASTE AND A BUSE H OTLINE Hotline Statistics 7/1/14 to present Allegation Type Number of Cases FY 2015 Abuse205 Waste82 Personnel61 Fraud45

17. Current Projects: Unannounced Inspections of State Operated Facilities Juvenile Justice Access to Mental Health Services Unannounced Inspections of Training Centers Seven Complaint Investigations –Quality of care –Allegations of neglect –Unnatural death case reviews –Veteran services complaint B EHAVIORAL H EALTH & D EVELOPMENTAL S ERVICES D IVISION

18. Other Ongoing Activities: Review critical incident data Review DBHDS media alerts Review autopsies Joint Health Care Commission Meetings B EHAVIORAL H EALTH & D EVELOPMENTAL S ERVICES D IVISION

19. Updated OSIG Directive 1 to Chief Audit Executives in Executive Branch Agencies -Requires CAEs to submit audit plans, risk assessments, audit reports and status reports to OSIG -Recommends CAEs to adopt the IIA standards Created an OSIG CAE Collaboration Site on Sharepoint Provide cost effective training to the internal audit programs in the Commonwealth (now open to public) I NTERNAL A UDIT O VERSIGHT & T RAINING

20. Quality Assurance Review Program I NTERNAL A UDIT O VERSIGHT & T RAINING Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing (Standards) requirement: Quality Assessment Review (QAR) performed once every five years. Self-Assessment with Independent Validation -VABC -CNU -ODU -DMME -DMV

21. Internal Audit Structure Committee Reporting Structure Recommendations Option 1: Dual Reporting Structure to Agency Head and Board Option 2: Dual Reporting Structure to Agency Head and Cabinet Secretary I NTERNAL A UDIT O VERSIGHT & T RAINING

23. Questions Contact Information: June Jennings june.jennings@osig.virginia.gov www.osig.virginia.gov (804) 625-3255 T HE E ND