c ommonwealth of v irginia o ffice of the s tate i nspector g eneral 2015 college and university...
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COMMONWEALTH OF VIRGINIA
OFFICE OF THE STATE INSPECTOR GENERAL
2015 College and University Auditors Association (CUAV)
Conference
OSIG Activities
OBJECTIVES
• New Administration• Finalization of structure,
processes• Strategic Plan• Performance Review Services• Investigations• Behavioral Health &
Developmental Services• Internal Audit Oversight and
Training
NEW ADMINISTRATION
• June Jennings, State Inspector GeneralCPA, Certified Inspector General
• Michael Westfall, Deputy Inspector GeneralCPA, CFE, Certified Inspector General
FINALIZATION OF STRUCTURE/PROCESSES
July 1, 2012
Present
DIVISIONS
• Performance Review Services Division• Investigations Division
– State Fraud, Waste and Abuse Hotline• Behavioral Health & Developmental
Services Division• Administrative Services Division
– Fiscal Services– Information Technology & Security
Services– Internal Audit Oversight and Training
POLICIES AND PROCEDURES
• Salary Administration Plan• Delegated Purchase Authority Policy• Educational Assistance Program• Inventory Procedure• Commuter Choice Program• Freedom of Information Act Procedure• State Fraud, Waste and Abuse Manual
(updated September 2014)• Whistleblower Manual (August 2014)• Investigations Manual (May 2015)• Performance Review Procedures (draft)
STRATEGIC PLAN
• VCU Performance Management Group
• Strategic Planning Team• High Level Strategic Plan and
Action Plan• Cover 2-3 years• Completed in June 2015
• Annual Work plan based upon risk assessment– Executive Branch Agencies– Special Projects
• Performance Review Audit Program• Implementation of electronic working
papers
PERFORMANCE REVIEW SERVICES DIVISION
Ongoing Performance Reviews:• Department of Social Services• University of Virginia• Department of Motor Vehicles• Department of Taxation• Virginia Employment Commission• Department of Education
Special Projects:• Department of Emergency Management• Secretary of Natural Resources• Department of Corrections – Agribusiness Study
PERFORMANCE REVIEW SERVICES DIVISION
PERFORMANCE REVIEW SERVICES DIVISION
Reports Issued:• Department of Transportation– Identified potential costs savings of $13 million– Issued 17 recommendations to management to
improve economy and efficiency in government operations
• Department of Medical Assistance Services– Recommended the implementation of
performance measures in DMAS contracts– Increase accountability for eligibility
determinations for Medicaid– Recommended the implementation of
performance measures for interagency agreements
PERFORMANCE REVIEW SERVICES DIVISION
Going Forward:• Re-evaluation of approach to work plan
and scope of projects• Expanded use of consultants to conduct
performance reviews• Performance Review Training
INVESTIGATIONS DIVISION
• Initiated 16 investigationsFraudProcurement/Contract violationsConflict of Interests
• Collaborate with Auditors• Coordinate with APA/VSP/FBI• Point of Contact Program• Review Critical Incident Data for DOC
and DJJ• VCA Certification• Other Certifications: CFE, CIGI
INVESTIGATIONS DIVISION
State Agencies Reporting Requirement§ 30-138. State agencies, courts, and local constitutional officers to report certain fraudulent transactions; penalty. A. Upon the discovery of circumstances suggesting a reasonable possibility that a fraudulent transaction has occurred involving funds or property under the control of any state department, court, officer, board, commission, institution or other agency of the Commonwealth, including local constitutional officers and appointed officials exercising the powers of elected constitutional officers, as to which one or more officers or employees of state or local government may be party thereto, the state agency head, court clerk or local official in charge of such entity shall promptly report such information to the Auditor of Public Accounts (Auditor), the State Inspector General, and the Superintendent of State Police (Superintendent).
STATE FRAUD, WASTE AND ABUSE HOTLINE
• Hotline Cases Referred: 432• Hotline Cases Screened Out: 152 • Hotline Cases Closed Out: 286• 53% of the Cases Referred were
Screened Out
Hotline Statistics 7/1/14 to present
STATE FRAUD, WASTE AND ABUSE HOTLINE
• 60 cases = substantiated• 53 cases = not substantiated but
recommendations were made to improve internal controls or processes
• 136 cases = not substantiated
Hotline Statistics 7/1/14 to present
STATE FRAUD, WASTE AND ABUSE HOTLINE
Hotline Statistics 7/1/14 to present
AllegationType
Number of Cases FY 2015
Abuse 205Waste 82
Personnel 61Fraud 45
Current Projects:• Unannounced Inspections of State Operated
Facilities• Juvenile Justice Access to Mental Health
Services• Unannounced Inspections of Training Centers• Seven Complaint Investigations
– Quality of care– Allegations of neglect– Unnatural death case reviews– Veteran services complaint
BEHAVIORAL HEALTH & DEVELOPMENTAL SERVICES
DIVISION
Other Ongoing Activities:• Review critical incident data• Review DBHDS media alerts• Review autopsies• Joint Health Care Commission Meetings
BEHAVIORAL HEALTH & DEVELOPMENTAL SERVICES
DIVISION
•Updated OSIG Directive 1 to Chief Audit Executives in Executive Branch Agencies
- Requires CAEs to submit audit plans, risk assessments, audit reports and status reports to OSIG
- Recommends CAEs to adopt the IIA standards
•Created an OSIG CAE Collaboration Site on Sharepoint •Provide cost effective training to the internal audit programs in the Commonwealth (now open to public)
INTERNAL AUDIT OVERSIGHT & TRAINING
Quality Assurance Review Program
INTERNAL AUDIT OVERSIGHT & TRAINING
Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing (Standards) requirement: Quality Assessment Review (QAR) performed once every five years.
Self-Assessment with Independent Validation
- VABC- CNU- ODU- DMME- DMV
Internal Audit Structure Committee
Reporting Structure RecommendationsOption 1: Dual Reporting Structure to Agency Head and Board
Option 2: Dual Reporting Structure to Agency Head and Cabinet Secretary
INTERNAL AUDIT OVERSIGHT & TRAINING
INTERNAL AUDIT OVERSIGHT & TRAINING
Audit Committee Commissioner or Agency Director
Below Commissioner or Agency Director
Board Secretary0
2
4
6
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10
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16
18
Current Internal Audit Reporting Structure
