1. www.flbog.edu The Board of Governors Compliance Committee Derry Harper and Lori Clark November 3-4, 2010, Audit and Compliance Committee Meeting www.flbog.edu

2. Our Philosophy “…the Board of Governors has reserved overall fiduciary responsibility for management of the university system. Part of that responsibility is to be able to demonstrate accountability. The organization needs to be able to demonstrate by empirical and objective evidence that it is achieving that goal.” –Chancellor Frank Brogan, January 28, 2010, Audit and Compliance Committee meeting

3. www.flbog.edu Board Of Governors Compliance Committee GENERAL COUNSEL CORP SECY INFO RESOURCE MANAGEMENT CHIEF FINANCIAL OFFICER CHIEF of STAFF HUMAN RESOURCES FACILITIES Audit and Compliance Committee Board Compliance Committee ACADEMIC & STUDENT AFFAIRS Board of Governors Inspector General, Chair Chancellor

4. www.flbog.edu 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

5. www.flbog.edu Our Philosophy Step 1: Establish Compliance Program  Identify Project Owner or Champion  Establish a Steering Committee 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 Step 4: Establish Systematic Compliance Program  Develop Compliance Matrix  Training  Monitoring  Identify areas of non-compliance  Corrective Action Plan Process

6. www.flbog.edu Board Compliance Plan - Phase 1 Review all Board Regulations to i dentify Board responsibilities (ref. RCR Project) Tool(s): RCR Database Projected End Date: November 2010 OIGC review of staff analyses of Board Regulations Tool(s): RCR Database Projected End Date: December 2010 Verify compliance Tool(s): RCR Database Projected End Date: December 2010

7. www.flbog.edu Analyst Maturity Rating Scale RED – the regulation has inconsistencies or outdated information that must be corrected immediately. Yellow – Clarifications or improvements need to be made fairly soon. Green – There are tasks to be done by either university or Board staff, and procedures are in place and working; no changes are needed. Blue – The regulation is informational only, and there are no tasks to be done. OIGC Review: Approved Rejected For Review

8. www.flbog.edu OIGC Maturity Rating & Analysis Generally Adequate - Controls are in place and functioning as designed. Opportunities may exist for improvement or significant improvement applicable to sub-objective controls. Needs Improvement – There are designed controls but not always effective and/or other controls are needed. Needs Significant Improvement – Some controls may exist, but they are not effective in achieving the primary objective within the scope of the audit.

9. www.flbog.edu Board Compliance Plan - Phase 2 Review all Board Regulations to id entify SUS responsibilities Tool(s): RCR Database Projected End Date: March 2011 Validate and verify university compliance Tool(s): RCR Database Projected End Date: June 2011

10. www.flbog.edu Board Compliance Plan - Phase 3 Identify statutory requirements (ex. S. 20.055, F.S., and S. 381.79, F.S.) for Board Office Tool(s): RCR Database Projected End Date: March 2011 Verify Board compliance Tool(s): RCR Database/Data Request System Projected End Date: June 2011

11. www.flbog.edu WHAT’S NEXT? Establish an SUS Compliance Program Adopt a Board Of Governors and SUS Code of Ethics/Conduct ? Establish an Enterprise Risk Management System?