1. Internal Audit Office Manager Meeting November 13, 2012

2. Agenda What is Internal Audit? Campus Audits – Scope – Ratings – Frequency What to expect 2012-2013 Schedule

3. What is Internal Audit? “Internal auditing is an independent, objective, assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by brining a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance.” – The Institute of Internal Auditors (The IIA)

4. What is Internal Audit? Independent, objective, assurance and consulting – Independent and objective– reporting and duties – Assurance and consulting – confirming and reviewing Systematic, disciplined approach – Audit program and sampling pre-determined

5. Campus Audits - Scope General controls over – Cash (deposits and security) – Campus and Student Activity funds – Disbursements – Petty Cash – Library – Security – FANS Review current year

6. Campus Audits – Rating Why? Excellent – No cash control weaknesses – No procedural errors – Transactions timely Strong – No cash control weaknesses – Few and infrequent procedural errors – Transactions timely

7. Campus Audits - Ratings Adequate – Some cash control weaknesses – Consistent, but minor procedural errors – Transactions occasionally not processed timely Insufficient – Cash control weaknesses – Consistent procedural errors – Transactions frequently are not processed timely

8. Campus Audits – Frequency Change in Principal or Office Manager Request Prior audit rating Rotation – Sr. High – every year – High - every other year – Middle - every three years – Elementary – every four years

9. What to Expect Initiation letter Opening meeting Timing on campus varies – Middle-Sr. High 1-4 days – Elementary 1-2 days Draft Report Report

10. 2012-2013 Campus Audits to begin January (Approx. 30 locations) Scope from November to current Documentation – TEAMS Petty Cash support AP – Hard Copy Fund-raising documents

11. Need Help? Finance sets policy – Great resource for questions, especially unique situations. Don’t wait until it’s a big problem! Fraud – Start with security Getting started – Un-official visit by Internal Audit

12. Questions? Jenna Isensee CIA, CCSA Jenna.Isensee@pisd.edu 469-752-6174