Finance & Audit Committee Update Office of Internal Auditing June 11, 2013

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1 Finance & Audit Committee Update Office of Internal Auditing June, 2 Page of 5

2 Audit Personnel Authorized Audit Positions Filled Vacancies 2 Frozen Positions Cancelled Positions Vacancies 2 Personnel Professional Designations Certified Public Accountant Certified Fraud Eaminer Certified Internal Auditor Certified Info Systems Auditor Certified Compliance & Ethics Prof Si Sigma Greenbelt 5 Personnel Authorized Audit Salaries & Wages Salaries $95, Bonuses $ Overtime $ Comissions $ $95, Professional Development Travel $,425 Training (Registration Fees) $2,4 Professional Associations $,25 Reference Materials $29 $,24 Personnel Summary HUMAN CAPITAL CAPACITY -Currently staffed at % of authorized capacity -Competitive local market negatively effects staff recruiting and continuity QUALIFICATIONS -Current staff seasoned with relevant credentials & eperience -Staff members frequently solicited to contribute to professional organizations by authoring articles or presenting at conferences Professional Organization Participation Organization Role Member Volunteer Board Presenter Association of Certified Fraud Eaminers Association of College and University Auditors Information Systems Audit and Control Association National Association of College and University Business Officers Society of Corporate Compliance and Ethics State University Audit Council (Chair 2-22) The Institute of Internal Auditors Year Filled Position Title Applicants Days Open Application Withdrawn Interviewed - Withdrawn Offer Rejected 29 Senior Auditor IT Auditor Senior Auditor IT Auditor Average Internal Audit Recruiting Highlights Hired TRAINING -Department oftentimes receives subsidies to training events for volunteering in professional organizations RECRUITING & RETENTION -Average 4 applicants per job posting -Postings, on average, remain open 225 days -Recent turnover due to market competition for qualified personnel. Personnel leave with substantial pay increases RECOMMENDATION Competition from the local market (i.e. several companies viing for few candidates and below market salaries) contribute to lengthy hiring processes. Therefore, it is suggest that the Office of Internal Auditing: -Hire short term contract personnel to assist with specific projects Page 2 of 5

3 Audit Personnel, Attrition and Performance (table) Beginning Head Count Attrition 2 Additions Ending Head Count Attrition % % % % % % % % 6% 5% % FTE - Direct Audit Allocation Audits Advisory Services 8 4 Investigations Special Projects Audit Personnel, Attrition and Performance (graph) 2 5% % 8 % % 5% 5% 4 25% % % % % % % % Audits Advisory Services Investigations Special Projects Ending Head Count Attrition 5 Year Hiring History Commentary -The quality and quantity of staff has a direct correlation to the projects completed as evidenced in the table and graph above -There has been a significant attrition rate from 2 to 22 >, 6, 5% respectively

4 Projects - - Reportable Items FY Project # Status Project Name Milestone Progress and % Complete Critical High Moderate Low 2 AUD2 Open Audit Game Room (FRv) 2 ggggggg 2 AUD22 Open Audit Grade Integrity (PC) 5 2 AUD2 Not Started Audit Library Operations 2 AUD24 On Hold Audit IT Audit - Server Security 2 AUD25 Not Started Audit Feul Usage - 2 SPC2 In Process Special Project Physical Security (FC) ggggggg 2 SPC25 In Process Special Project Dean Retention Vote (PC) ggggggg 2 SPC24 In Process Special Project Data Analytics (FC) 5 ggg 2 SPC2 In Process Special Project Audit System Implementation (FwC) ggggggg 2 SPC2 In Process Special Project Audit System Documentation n/a 2 5 g 2 SPC22 In Process Special Project Recruiting/Staffing (IT Auditor) n/a 95 gggggg 2 SPC26 In Process Special Project Risk Assessment n/a 2 5 g - 2 ADS2 Closed Advisory Services Student Affairs (FRv) ggggggg 2 ADS22 Closed Advisory Services Student Affairs - CDRC (FRv) ggggggg 2 ADS2 Closed Advisory Services Student Affairs - Travel (FRv) ggggggg 2 ADS24 Closed Advisory Services Center for Student Media (FRv) ggggggg - 2 INV2 Closed Investigation Financial Aid (FRv) ggggggg Legend Project Milestone Legend (PC) Planning Commenced (EM) Entrance Meeting (FC) Fieldwork Commenced (FwC) Fieldwork Complete (EC) Eit Conference (DR) Draft Report Issued (FR) Final Report Issued (FRv) Final Report Verbal Progress Status Green - On Track 2 Yellow - Some Delays Red - Major Delays White - Not Started Allegations Received Fraud Allegations Customer Service False Positives 4 Disposition Preliminary Investigation Full Investigation Investigation Assistance Transferred Customer Assistance Fraud Hotline Summary Allegation Category Financial Human Resources Information Technology Diversity/Equal Opportunity Safety Research Athletics Academics Other Commentary Significant Time Allocated to the Following: Significant time devoted to: -Building and implementing an Audit Management System (AMS) -Recruiting efforts for open positions -Coordinating with various stakeholders to develop a continuous auditing/continious monitoring program Additional activities include the following: -One management advisory service in the Center for Student Media -One false positive on the fraud hotline ( total) Page 4 of 5

5 Follow Up Status Audit Issue Status As of March 2 Critical High Moderate Low *Unrated Current Previous Open Risk Accepted In Process 5 Resolved 5 8 Closed % Closed % 55% 5% 5% % 56% 54% % Closed or Resolved % 68% 66% 5% % 69% 6% Follow Up Commentary Now using the newly implemented Audit Management System to track outstanding items. However, it has not been rolled out our audit clients. This system will allow for better follow up tracking. Activities and accomplishments during the year include the following: -Successfully implemented an Audit Management System -Made offer to an IT Auditor Other Activities and/or Achievements During the Period -Working with staffing firms to obtain temporary audit consultants -A staff member received the Top Rising Stars in Internal Audit TM award. -A staff member was featured on the Institute of Internal Auditors ' Audit Channel.tv video service. -Personnel invited to present at the General Audit Management Conference sponsored by the Institute of Internal Auditors -One staff member published content in the Internal Auditor Magazine, which is the premier audit publication Page 5 of 5