COLLEGE OF ENGINEERING AND INTERNAL AUDIT:

A “DO IT RIGHT” PARTNERSHIP

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WHY DO YOU CARE ABOUT INTERNAL AUDIT?

because………

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we’re here to help!

we’re on

YOURside

AND

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Provide tools for you to assess your offices

Preparation for future agency or sponsor audits

Assistance in identifying risks

Assistance in potential misuse

cases

Verification you’re “doing it

right”

Recommendationsfor process

improvements

HOW CAN WE HELP?

WHAT CAN WE NOT DO?

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WHY NOT? Maintain

independence AND Avoid conflict of interest

Assume responsibility or

ownership of processes and

procedures

Establish requirements

Develop or write policies

Make management

decisions

SELF ASSESSMENTS: WHY DO THEM?

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Identify risks

Avoid potential fraud

by ensuring that proper controls are in place and

working effectively

The Department The Department Heads provide

oversight as they are ultimately

responsible for financial

management

Familiarize you with policies and procedures that

apply to your departments, the college, and the

University

Identify areas where training is

needed

Heighten your awareness –especially of “gray areas”

BUSINESS PRACTICES

Goals

• Avoid common issues such as not redacting employee’s information (personal or financial) or entire purchase card number from departmental forms or documentation loaded into the financial system

• Promote an environment of solid controls over business processes to prevent and detect errors

How To’s

• Self Assessment Tool

• Monthly Reconciliation

• Familiarize yourself with policies – REG 01.25.12 University Record Retention and Disposition Regulation

– REG 07.70.1 Identity Theft Prevention Program

• Training Opportunities:– Controller’s Office Trainings:

– Security Access Training Class: http://oit.ncsu.edu/sar6

DISBURSEMENT PROCESSGoals

• Avoid common issues such as:

– Splitting purchases to avoid restrictions

– Inconsistent documentation of the receipt of items

– Excess use of personal reimbursements

• Ensure that money is being spent according to respective

guidelines with appropriate amount of supporting

documentation (5 W’s)

How To’s

• Self Assessment Tool

• Monthly Reconciliations

• Training Opportunities:

– Controller’s Office Trainings: Accounting Certification Series and

Financial (e.g., travel, small purchase vouchers, POs)

http://www.fis.ncsu.edu/controller/training/default.asp

– Purchasing Best Practices

http://www7.acs.ncsu.edu/materialsmgmt/purchasing/guidelines/trainin

g.asp7

RECEIPT PROCESS

Goals

• Keep track of receipts

• Involvement of enough people to ensure no chance of

misuse or perception of misuse

• Enough documentation to avoid questions from the

Central Offices and internal and external auditors

How To’s

• Self Assessment Tool

• Monthly Reconciliations

• Familiarize yourself with policies

– REG 07.30.03 “Receipts Centers-Operation and Use”

• Training Opportunities:

– Controller’s Office Trainings: Accounting Certification Series

http://www.fis.ncsu.edu/controller/training/default.asp

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HUMAN RESOURCES

Goals

• Compliance with state and federal requirements

• Accuracy, completeness, and appropriate review of

timesheets by the supervisor to ensure no errors that

could cause the University to be in violation of FLSA

• Record all types of leave in the University’s Web Leave

System

– Understand the importance of compensatory time

http://www7.acs.ncsu.edu/hr/hrim/comptime.asp.

How To’s

• Self Assessment Tool

• Training Opportunities:

– HR course offerings:

http://www7.acs.ncsu.edu/hr/tod/coursereg.asp

– HR Classification and Compensation: Time Records and Work

Schedules

http://www7.acs.ncsu.edu/hr/classcomp/timerecdefault.asp9

CONTRACTS AND GRANTS

Goals

• Avoid common issues such as:– Time and Effort (e.g., Paid from a project they haven’t worked on or

worked on a project they haven’t been paid from)

– Expenditures (e.g., Unallowable costs incorrectly charged)

– Budget (e.g., Inappropriate transfers to zero balance (a.k.a. “clean up”) an overspent account)

• Be prepared for an external audit at any time

How To’s

• Use the Self Assessment Tool

• Reconcile C&G expenditures just as you would any other

account

• Best practices and training opportunities:– New award meetings

– College of Education training on effort reporting (Best Practice)

– SPARCS: http://www.ncsu.edu/sparcs/training/index.html

– Contracts and Grants: http://www.ncsu.edu/cng/training/index.php

– RAMP, Accounting Series, and Purchasing Best Practices 10

GENERAL RECOMMENDATIONS

Communicate

• If it doesn’t seem/feel right or you don’t know, don’t do it!

• Ask your College Business, Personnel, or Research Office first

• Call the Central Groups such as the Controller’s Office, HR, Contracts & Grants, SPARCS, or us

NCSU Internal Audit Division

Cecile Hinson, Director, 515-8862

Jordan Holaren, Audit Manager, 515-6849

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http://www.ncsu.edu/internal_audit/hotline/

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WHAT IF THERE IS OR MIGHT BE MISUSE OF STATE PROPERTY?

• Resources

– NC G.S. §114-15.1

– REG07.40.2 http://www.ncsu.edu/policies/finance/property/REG07.40.2.php

• Responsibility and how to report

– Reporting option:

http://www.ncsu.edu/internal_audit/hotline/

• Collaboration between: Internal Audit, Legal Affairs, Campus Police, State Auditors, SBI

NCSU PRR, Reg 07.40.2 (G.S. § 114-15.1), “Reporting Misuse of State Property”

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TO SUM IT ALL UP…

• Internal Auditors are your friends!

• When in doubt, ask yourself… “How

would an auditor perceive this?”

• Our goal is to keep you out of trouble

and out of the newspapers!!

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