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Office of Internal Compliance (OIC)Annual Report to the Board
March 25, 2010Presented By: Connie BrownExecutive Director – Office of Internal Compliance
Date: June 1, 2020
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Purpose:
• To provide an update on the current status of the OIC
SY2020 Audit Plan
Roadmap:
This presentation will provide:
• An overview on the status of the SY2020 Audit Plan
and follow up on recommendations
• A look at how OIC continues to add value
Administration’s Summary:
• OIC continues its focus on risk-based auditing and is
working collaboratively with APS leadership to
implement thoughtful, cost-effective recommendations
to manage and mitigate risks
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Organization Chart - Independence
Atlanta Board of Education
Audit Committee
Office of Internal Compliance Superintendent
The OIC Executive Director reports to the School Board through its Audit
Committee. This reporting structure provides the independence necessary for
objective appraisals of the district’s operations. To date, there have been no
instances where the department’s independence has been compromised.
Board Members
Leslie Grant, Chair
Erika Mitchell
Aretta Baldon
Community Advisors
Brian Hawkins
Leslie Ward
Earl Fagan, Jr.
Audit Committee Members
Annual Audit Plan
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• OIC Executive Director prepares and submits an
annual audit plan to the Audit Committee for review
and comment at the start of each school year
• Risk Assessment developed every three years
• Identify potential topics:
• Review the external auditor’s report
• Consider previous year’s audit findings
• Consider requests and suggestions from the Audit
Committee, Superintendent and CFO, and other
interested parties
• Determine feasibility of audit topics and the
availability of resources
SY2020 - Status Update
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23%
55%
18%
5%
Audit Plan Status4/30/2020
Not Started In Process Completed Cancelled
9%
64%
27%
Audit Plan Status6/30/2020
In Process Completed Cancelled
SY2020 - Status Update
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Project Name
Status
4/30/2020
Status
6/30/2020
Miscellaneous Cash Activity Account Funds (MCAAF) Audits
Bejamin E. Mays HS In Process Completed
Booker T. Washington In Process Completed
Maynard H. Jackson In Process Completed
Mary Lin ES In Process Completed
Sutton MS In Process Completed
Morris Brandon ES In Process Completed
John Lewis Invictus Academy MS In Process Completed
School 8 Not Started Cancelled
School 9 Not Started Cancelled
School 10 Not Started Cancelled
School 11 Not Started Cancelled
School 12 Not Started Cancelled
Payroll Audit In Process In Process
Athletics Completed Completed
Transportation - Parts Vendor Oversight Cancelled Cancelled
Parking Lot Funds Process & Cash Management Review Completed Completed
P-Card Continuous Auditing (Quarterly) Completed Completed
Lawson ERP Upgrade Implementation Review In Process In Process
Entity-wide Risk Assessment In Process Completed
IT Risk Assessment Completed Completed
IT Audit - Vendor Management/Third-Party Review In Process Completed
IT Audit - Security and Vulnerability Review In Process Completed
Recurring Projects
Investigations Ongoing Ongoing
Audit Follow Up Ongoing Ongoing
Internal Compliance Project Summaries
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The following 5 slides detail summaries of our reports issued as of April 30, 2020. The
full reports and management responses are available on the OIC website at:
https://www.atlantapublicschools.us/Page/59000
Pay Parity (FY19-12)
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The audit was designed to achieve the following objectives:
• Determine if the Compensation Team has documented policies and procedures
for calculating salaries and wages
• Determine if the Compensation Team is accurately:
–calculating employee experience
–verifying job re-classifications
–applying the right step (via the Salary Step Schedule) based on employee
job, years of experience and pay grade
Auditor Conclusion: Pay Parity is performing effectively ensuring the same
salary is paid to employees working in the same job with the same pay
grade/years of experience, and ensuring these employees are placed on the correct
step per the applicable APS Salary Schedule.
There were no Findings noted for the Pay Parity audit; however, 4 observations
were noted as a byproduct of the Pay Parity audit.
Construction Risk & Controls Assessment (FY19-13)
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The audit was designed to achieve the following objective:
• Assess the risk and controls of the Construction Project Lifecycle to include
the following:
– Assessing the Construction Lifecycle
– Identifying risks and controls in the processes
– Testing a select group of internal controls
Auditor Conclusion: Overall, the Construction Project Life Cycle was managed
using industry best practices. Several areas were operating effectively, including
purchase requisitions and payment applications.
OIC made 5 recommendations; 4 opportunities for improvement and 1
opportunity for the managing of excess cash balances.
Parking Lot Funds & Cash Mgmt. (FY20-01)
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The audit was designed to achieve the following objectives:
• Document the process for fundraising, parking lot management, cash handling, and
accounting for funds
• Identify internal controls, assess the adequacy of those controls related to the risks,
and determine if opportunities for process improvement exist
Auditor Conclusion: Cash management processes and internal controls need to be
strengthened to make certain parking lot funds are properly tracked, accounted for and
safeguarded. Also, management oversight and monitoring of cash handling functions
need to be improved to make sure there is consistent recording of funds in SABO for
school and Accounting Department tracking purposes.
OIC identified 4 recommendations to assist the district in managing parking lot
fundraisers as a result of the audit.
Athletics (FY20-02)
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The audit was designed to achieve the following objectives:
• Gain an understanding of the key processes, risks, and controls within
Athletics as it relates to student athlete eligibility, health & safety, and
program management
• Determine if controls are in place and adequately designed to address
associated risks
• Evaluate the Athletics program processes and procedures to determine if
opportunities for improvements exist
Auditor Conclusion: Key areas within Athletics were identified where
improvements can and need to be made. There were areas identified where
efficiency and effectiveness of operations can be improved through the execution
of established policies and procedures, implementation of internal controls around
eligibility determinations, and record retention.
OIC made 9 recommendations to assist the district in managing the areas of focus
as a result of this audit.
P-Card Continuous Audit (FY20-03)
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The audit was designed to achieve the following objectives:
• Determine if P-Card transactions were processed outside of the APS Purchasing Card
guidelines.
Auditor Conclusion: P-Card monitoring oversight needs to be strengthened to make
sure improper card usage does not go undetected.
OIC shared 5 recommendations to assist the district in managing and monitoring the P-
Card activity as a result of the audit. OIC used custom tableau scripts to extract and
analyze purchasing card data. OIC has offered to share tableau scripts with the P-Card
team for use in their oversight and monitoring efforts.
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Follow-up on Audit Recommendations
Recommendations from audits become meaningful only when management agrees and
implements corrective action plans to address risks and gaps in processes.
Total Audit Recommendations
Less:
Suspended MCAAF Audit (School Audits)
Recommendations
Corrective Action Plans Implemented
& Validated by OIC
Total Active Recommendations
As of April 30, 2020
258
(16)
(199)
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Follow-up on Audit Recommendations
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**Corrective Action Plan (CAP)
Report # Report Report Date# of Recs (Per Report)
# of Open
Recs
CAP**
Implemented
Various Miscellaneous Cash Activity Account Fund (MCAAF) Audits SY2017 - SY2019 199 195 4
FY18-11 Transportation - Certification & Inspection Program December 18, 2018 11 8 3
FY18-19 IT General Controls Review September 7, 2018 9 0 9
FY19-08 Office of Innovation-Charter and Partner School Operations February 12, 2019 3 3 0
FY19-10 Procurement Sevices June 18, 2019 7 7 0
FY19-11 Infinite Campus Access Review March 21, 2019 2 2 0
FY19-12 Pay Parity July 29, 2019 4 4 0
FY19-13 Construction Projects Risk and Control Assessment July 31, 2019 5 5 0
FY19-14 Infinite Campus Monitoring Review March 21, 2019 2 2 0
FY19-15 Nutrition Vendor Management & Oversight April 9, 2019 3 3 0
FY20-01 Parking Lot Funds Process & Cash Management Review December 4, 2019 4 4 0
FY20-02 Athletics Audit March 9, 2020 9 9 0
Total 258 242 16
Ethics & Compliance Hotline (4/30/2020)
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• 69 cases reported via Ethics & Compliance Hotline
• 62 (90%) referred to Office Employee Relations (OER)
• 7 (10%) assigned to OIC
o Accounting/Audit Irregularities
o Conflicts of Interest
o Policy Issues
o Employee Relations
• 4 additional concerns received via the Board Office
• 3 of 11 OIC assigned cases closed
1-877-801-7754
www.tnwinc/atlantapublicschools
OIC – An Excellent Investment
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➢ Multiple recommendations were presented
and accepted by management that will
lead to better efficiencies and effectiveness
of operations:
• Developed and offered to share data
analytic test scripts that would allow
for greater coverage and review of p-
card transactions in less time. (P-
Card Continuous Audit)
• Identified methods to account for,
track and record the amount of funds
collected during parking lot
fundraisers spaces
• Identified gaps in the execution of
key procedures designed to
effectively manage the district’s
Athletics Programs and safeguard
our student athletes. (Athletics)
➢ Identified an opportunity for leadership to
optimize earnings on invested funds. OIC
estimated that holding cash balances in
accounts with the highest rate of return
would have yielded approximately $600,000
in additional investment earnings.
(Construction Projects – Risk & Control
Assessment)
➢ Identified $103,000 in overstatements of
Guaranteed Maximum Price (GMP)
Calculation and Construction Manager Fees.
(Construction Projects – Risk & Control
Assessment)
➢ Researched and identified an alternative
option for collecting parking lot funds.
Alternative method would eliminate the use
of cash and minimize the potential for theft
of funds. (Parking Lot Funds Process & cash
Mgmt. Review)
Questions
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Contact Information
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Connie Brown, CPA, CIA, CRMA
Executive Director, Internal Compliance
130 Trinity Avenue, S.W.
Atlanta, GA 30303-3624
Office: 404-802-2732
Mobile: 404-408-4869
Fax: 404-802-1717
Contact Information (cont’d)
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https://www.atlantapublicschools.us/domain/1144