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