1. Establishing A Compliance Program: It Makes Sense
Derry Harper
Inspector General & Director of Compliance
January 28, 2010

2. Institutional Compliance Program
Broadly Defined
A program that has been reasonably designed, implemented, and enforced so that it will generally be effective in preventing and detecting violations of law.
Program must evidence the organization’s “due diligence” in seeking to prevent and detect violations of law.

3. Compliance Program Design
Proactive
Identify key risk areas and perform a risk assessment on compliance readiness.
Prioritize implementation of compliance program in the areas of higher regulatory risk because of impact on health or safety, academic or fiscal integrity.
Provide recommendations, education and training in connection with regulatory compliance gaps that have been identified.

4. Compliance Program Design (Cont.)
Integrated
Work collaboratively and as a liaison to other compliance offices/functions throughout the organization
To identify risk areas and conduct assessment
To monitor new developments or requirements in regulatory compliance

5. Compliance Program Design (Cont.)
Transparent
Promote Mission/Vision of the organization
Promote an organizational culture that encourages a commitment to compliance with law

6. Internal Control
A process affected by an entity, board of directors, management and other personnel designed to provide reasonable assurance regarding achievement of objectives related to:
Reliability of financial reporting
Effectiveness and efficiency of operations
Compliance with applicable laws and regulations

7. Compliance Program Elements
Risk Assessment
Responsible Parties and Roles
Standards and Procedures
Program Oversight
Awareness, Education and Training
Lines of Communication
Monitoring and Auditing
Enforcement
Corrective Action
Identify gaps in regulatory compliance
Coordinate, manage and monitor internal and external risks associated with regulatory compliance
Improve coordination, dissemination and communication of regulatory compliance issues
Develop a best practices model for regulatory compliance
Save millions of dollars in settlements of government lawsuits*
Protect the organization and its employees from severe criminal and civil penalties*
*The existence of an effective compliance program shows the government that the organization has undertaken its compliance obligations seriously and allows the courts to reduce fines and penalties under the U.S. Sentencing Guidelines.

8. Audit & Compliance Committee Charter
Regarding the SUS, the Audit & Compliance Committee will:
Receive and review university audit reports;
Identify trends in such reports and confirm that adverse trends are being addressed by the universities;
Initiate inquiries if Committee has reasonable cause to believe a university is not providing appropriate response to audit findings;
Direct the IG to conduct an inquiry or investigation if the Committee has reasonable cause to believe that a university board of trustees is unwilling or unable to provide for investigation of allegations of fraud. 8 8

9. The Brogan Doctrine Step 1: Establish Compliance Program
Identify Project Owner or Champion
Establish a Steering Committee
Step 4: Establish Systematic Compliance Program
Develop Compliance Matrix
Training
Monitoring
Identify areas of non-compliance
Corrective Action Plan Process
Step 2: Identify Key Objectives
List Key Objectives
Prioritize Key Objectives
Step 3: Identify Key
Compliance Risk Areas
Brainstorm and assess high risk areas
Assign high risk areas to process owner

10. Compliance Matrix – Schema
BOG Internal Operating Policies & Procedures
State Statutes
Regulations, Policies & Procedures
Federal Statutes
BOG/Chancellor
Charters
BOG Regulations
BOG Policy
External Policies & Procedures????
External Policies & Procedures
Florida Constitution
U.S. Constitution
Developing a Compliance Matrix that will help guide the implementation efforts and assist in identification of compliance gaps and education/ training needs
Adopting a Code of Conduct accepted by all members of the organization

11. Compliance Matrix Steps
> Constitution > State Admin Regs & Rules
> State Statutes (20.055) > Federal Statutes
> BOG Regulations > Charter
Research
Analysis
Implementation: Development of Policies & Procedures

12. Compliance Assistants
SUS Compliance Work Group:
FAMU Vice President for Compliance & Audit
FIU Assoc Vice President & University Compliance Officer
UCF Vice President & General Counsel
USF Executive Director for University Audit & Compliance
USF Chief Compliance Officer
BOG Compliance Steering Committee:
Senior Associate Vice Chancellor, Associate Vice Chancellor, Chief of Staff, IRM Assistance Vice Chancellor, Director of University Budgets, Director of Academic & Student Affairs, General Counsel, IRM Assistant Director, Assistant Director of Personnel, Budget Analyst, Campus Development Coordinator, and Research Associate

13. BOG Regulation Compliance Review Tools