1. Internal Audit Provisions North Carolina Office of State Budget and Management Office of Internal Audit Presenters: Barbara Baldwin CPA, CIA, CICA, Internal Audit Manager Shannon Byers, Director of Quality Assurance & Development

2. Overview Auditing and Evaluating in North Carolina The NC Internal Audit Act The Council of Internal Auditing The Office of Internal Audit (OIA) Agency Opportunities and Requirements Questions?

3. Auditing and Evaluating in NC External Auditing Internal Auditing Program Evaluation Management Studies

4. External Auditing Who Conducts Purpose Origin of Service Requests Office of the State Auditor Compliance in nature; provides an opinion on whether financial statements are fairly stated and reviews operation efficiency and effectiveness Mandated Legislative requests Citizen requests Risk assessment based Agency requests State Auditor discretion

5. Internal Auditing Who Conducts Purpose Origin of Service Requests State agencies and universities Management tool; identifies improvements to operations Risk assessment based Management requests State Auditor or whistle- blower leads

6. Program Evaluation Who Conducts Purpose Origin of Service Requests Legislative Services, Program Evaluation Division Determine if services are being delivered in an efficient and effective manner and in accordance with the law Mandated Legislative requests Program Evaluation discretion

7. Management Studies Who Conducts Purpose Origin of Service Requests Office of Budget and Management (OSBM) Consultant in nature; advise if programs are running efficient and effective Mandated Legislative requests Agency requests Governor or State Budget Officer directive OSBM initiative

8. Auditing in North Carolina

9. The North Carolina Internal Audit Act House Bill 1401 (SL 2007-424) Directed agencies to appoint an Internal Audit Director Directed agencies to comply with professional audit standards Established the Council of Internal Auditing Directed OSBM to support the Council

10. The Council of Internal Auditing Develop and publish internal audit guides Administer an independent peer review system Provide central professional development Administer a program for sharing internal auditors Maintain a central database of all annual internal audit plans and reports Issue an annual report to the General Assembly

11. Office of Internal Auditing (OIA) Charlie Perusse State Budget Officer Office of Internal Audit Shannon Byers Dir. of Quality Assurance Betty Haley Research Assistant Barbara Baldwin Internal Audit Manager Michele Evans Internal Auditor Regina Hill Info. Systems Auditor Courtney Michelle Internal Auditor

12. Agency Requirements 1.Appoint an Internal Audit Director 2.Establish an internal audit program 3.Comply with auditing standards 4.Submit audit charter and organizational chart to OIA as updated 5.Follow NC Internal Audit Manual 6.Submit Internal Audit Plan on a yearly basis 7.Submit internal audit reports regularly 8.Submit reports or information to the OIA as requested by the Council

13. Agency Opportunities Training Opportunities Peer Review Program Technical Assistance Recognition Program Council Information and Assistance

14. QUESTIONS? Barbara Baldwin, CPA,CIA, CICA internalauditinfo@lists.ncmail.net 919-807-4721 OIA Internal Auditing Services Technical Expertise Shannon Byers internalauditinfo@lists.ncmail.net 919-807-4755 OIA Peer Review Program OIA Training Opportunities Council of Internal Audit Questions