2005 Audit Plan

8/4/2019 2005 Audit Plan

1/11

A&I Discussion Item 1April 7, 2005

INTE RNAL AUDIT OFF ICE

Audit PlanFor Calenda r Year 2005

April 2005

8/4/2019 2005 Audit Plan

2/11

Audit P lanFor Calendar Year 2005

Table of Contents

PageSection 1

Audit Planning Process 1

Section 2Anticipated Use of Audit Resources 3

Section 3Audit Plan 4

Section 4

Control System 6

Appendix AInvitation to Suggest Audit Topics 7

8/4/2019 2005 Audit Plan

3/11

8/4/2019 2005 Audit Plan

4/11


Section 1 (cont inued) Audit Plan nin g

Process

Audit Un iverse a nd Risk Ana lysis (cont inued)

Risk factors include:

Change in key personnel Complexity of operations or regulated operations Known significant changes in University operations or business processes Management accountability and oversight Political or adverse publicity Quality of internal controls Rapid growth Risk of financial loss (size of unit or dollars at risk) Technology (applications, data integrity, infrastructure, recovery of data, security of data,

etc.) Time since last audit (results of prior audits)By combining a review of the audit universe, risk analysis, and management input, the 2005 auditplan is developed. The plan is summarized in Section 2 of this report and Section 3 shows theaudit title and estimated project budget hours.

8/4/2019 2005 Audit Plan

5/11

2

8/4/2019 2005 Audit Plan

6/11

8/4/2019 2005 Audit Plan

7/11

3

Audit P lan For Calendar Year 2005

Section 3 Audit

Plan

The following shows the audits planned by category, title, and estimated project budget hours.

Compliance Audits Title Project

Budget

Title Project

Budget

Calumet Cam pus Skills Assessment 1 150 Calumet Campus Upward Bound

Program 1

200

Coopera tive Exten sion Ohio Count y 50 Effort Reporting an d Costs 200

Crimin al Conviction Check Pr ocedur es 75 Exempt/Non-exempt Classificat ion 200Fort Wayne Ca mpus Intercollegiate

Athletics Compliance*

180 Gra mm Leach Bliley Act, Fina ncial

Aid Office Com plian ce1,2

160

Ha ll of Music Follow-up Review 100 HIP AA Risk Assessment

2

150Independent Contr actors 100 Indiana Higher Education

Telecommun icat ion Syst em

Contracts

120

Int ercollegiate Athletics Concession

Agreement 1

150 NCAA Football Attend an ce

Regulatory Requirement *

14

Pur due Memorial Union Contr act

Compliance Freshens

80 Pur due Memorial Union Contr act

Compliance Villa Pizza

80

Purdu e-pay Server *, 2 40 Retirement Plans 75Signat ur e Delegation 75 Sponsored Pr ogram Services-

Specific Comput er Science Gran ts 1

150

Travel Reimbursements und er $500 75 University Business Leaves 100

University Collections Office Compliancewith Gr amm Leach Bliley Act 2

60 Vending Contr act 150

Total Compliance Audit Pr oject Hours 2,734

Financial AuditsTitle Project

Budget

Title Project

Budget

Calumet Campu s FACTS Data Exchan ge2 80 Calumet Campus Internat ional

FamilyTher apy Associat ion

75

Calumet Campus Marr iage and Fa milyTherapy

150 Cbord-Food Service Man agemen tInforma tion System2

20 0

Endowment Management * 200 Gener al Ban k Reconciliat ion* 80Glacier P ayroll Inter face 2 150 Henr y Strong Educational

Foundation*50

Housin g and F ood Services

Disbursement Validation

75 Housin g an d Food Services

Revenue Testing2

12 5

Indiana-Purdu e Foundat ion at F ortWayne* 90

Intercollegiate Athletics BasketballTicket S ales*

12 0

In ter collegiat e Athletics Footba llTicket Sales*

130 Investment of Fun ds* 25 0

Office of th e Bur sar Ban k Account

Reconciliation*

100 Procurement Cards 2 200

Purdue Foundation * 150 Pur due University Press 150

Ross-Ade Foun dat ion* 100 University Residences RevenueTesting-Housing System Controls1,2

200

Tota l Fina ncial Audit Pr oject Hours 2,675

8/4/2019 2005 Audit Plan

8/11

4


Section 3 (contin ued) Audit

Plan

Operations AuditsTitle Project

Budget

Title Project

Budget

Active Directory Security Configuration 2 180 Business Continuity2 60Calum et Cam pus F inan cial Aid Office

Compliance with Gra mm Lea ch BlileyAct 2

80 Calum et Cam pus Residency Policies

for In-State an d Out -of-Sta teStudents

150

Calumet Campu s Student Organ izationReceipt and Disbursemen t Procedures1

100 Constr uction Finan cial Procedures 250

Contr act Approval Pr ocedur es 150 Control Evalua tion for ERP

Implementation (System-wide)2

150

Coopera tive Exten sion 150 E-Comm erce an d Credit Car d

Reconciliation Controls2

80

E-Comm erce Firewalls2 80 Fort Wayne Campus Continuing

Studies

125

Fort Wayne Cam pus Housing 150 Ha ll of Music Box Office Operat ions 100Int ercollegiate Athletics Ticketin g

System Conrols2

120 Invest men t Office System Audit2 60

Micros Syst em in Cash Operations in

Un iversity Residences2

150 North Centra l Campu s Finan cial Aid

Operat iona l Review

175

Office for Cont inuin g Edu cation an d

Conferences Credit Courses andPREMIS 2

150 Password Authentication Procedures2 50

Pa yroll Ana lysis of Pay Scales 2 150 Pr inting Services2 150

Pur due Memorial Union Billing an dUpload Procedur es

150 Remote Site Connectivity Security2 200

Revolving Fu nd Pr ocedur es 50 Un iversity Developmen t Office GiftPr ocessing Contr ols1, 2

175

Veterinary Teaching Hospital Pha rma cy

Operations

150 Wireless Infra str uctur e (PAL)2 100

Total Operat ions Audit Pr oject Hours 3,635

Exter nal Audits (does not include externa l auditor hours) Title Project

Budget

Title Project

Budget

Feder al Awar ds Audit FY 2003-04*,1 600 Feder al Awards Audit FY 2004-05* 550

Finan cial Statemen t Audit* 280 In ter collegiat e Athletics NCAAFinancial Agreed Upon Procedures

Fort Wayne Campu s *

170

Int ercollegiat e Athletics NCAA Fina ncialAgreed Upon Procedures West

Lafayette*

200 WBAA Radio Sta tion FY 2004-05* 100

Tota l Exter nal Audit Pr oject Hours (int erna l audit sta ff only) 1,900

Total Int ern al Audit Office Pr oject Budget Hours 10,944

*=annual, 1=in-process as of December 31, 2004, 2=inform at ion technology au dit

8/4/2019 2005 Audit Plan

9/11

5


Section 4 Cont rol

System

We recognize that the internal control framework established by management is an integral partof our review. Internal control is a process, effected by the trustees, management, and otherpersonnel, designed to provide reasonable assurance regarding the achievement of objectives inthe categories of effectiveness and efficiency of operations, reliability of financial reporting, andcompliance with applicable laws and regulations.1

COSO Inter na l Contr ol Integrated F ram ework

Pr imar y Objectives of an Int ern al Cont rol System

4 Compliance with laws and regulations4 Financial reporting accuracy4 Operations efficiency and effectivenessEssen tial Componen ts of a Contr ol System

Control Environment

Sets the tone of the organization. Factors include integrity, ethical values,

competence, authority, and responsibility.

Foundation for all other components of control.

Risk Assessment

The identification and analysis of relevantrisks to achieving objectives.

The basis for determining control activities.

Control Activities

Policies and procedures that ensure managementdirectives are carried out.

Types of controls include approvals,authorizations, verifications, reconciliations,

asset security, and segregation of duties.

Monitoring

Assessment of a control systems performanceover time.

Combination of ongoing and separateevaluations.

Management and supervisory activities. Internal audit activities.

Information and Communication

Information identified, captured, andcommunicated in a timely manner for people to

Compliance, Financial Reporting, Operations

Control Environment

Risk Assessment

Control Activities

Information and Communication

Monitoring

8/4/2019 2005 Audit Plan

10/11

carry out their duties.

Flow of information allowing for successfulcontrol actions.

Effective communication flows down, across, andup.

1Treadway Commission: The popular name for the National Commission on Fraudulent Financial Reporting named after its first

chairman, former SEC Commissioner James C. Treadway.

6


Appendix A Invitat ion to Suggest Audit

Topics

Martin C. Jischke, PresidentMorgan R. Olsen, Executive Vice President and Treasurer

Sally Frost Mason, Provost

James S. Almond, Vice President for Business ServicesG. William Back, Vice Chancellor for AdministrationJoseph L. Bennett, Vice President for University RelationsMurray M. Blackwelder, Senior Vice President for AdvancementJames R. Bottum, Vice President for Information TechnologyWalter J. Branson, Vice Chancellor-Financial AffairsMorgan J. Burke, Director, Intercollegiate AthleticsHoward S. Cohen, ChancellorRichard A. Cosier, Dean, Krannert Graduate School of Management and School of ManagementDennis R. Depew, Dean, School of Technology

James B. Dworkin, ChancellorKevin P. Green, Director of State RelationsGeorge W. Hynd, Dean, School of EducationLinda P. B. Katehi, Dean, Schools of EngineeringWayne W. Kjonaas, Vice President for Physical FacilitiesMichael J. Kull, Assistant Vice Chancellor for Administration ServicesVictor L. Lechtenberg, Vice Provost for EngagementJames L. Mullins, Dean of LibrariesKeith S. Murray, Director, SMASRiall W. Nolan, Dean, International ProgramsToby L. Parcel, Dean, School of Liberal ArtsJohn M. Pezzuto, Dean, Schools of Pharmacy, Nursing & Health Sciences

Alan H. Rebar, Dean, School of Veterinary MedicineThomas B. Robinson, Vice President for Student ServicesAlysa C. Rollock, Vice President for Human RelationsCharles O. Rutledge, Interim Vice Provost for ResearchJohn A. Sautter, Vice President for Housing & Food ServicesDennis A. Savaiano, Dean, School of Consumer & Family SciencesGlenn F. Tompkins, Senior Associate Athletic Director-BusinessJeffrey S. Vitter, Dean, School of ScienceMichael A. Wartell, ChancellorWilliam R. Woodson, Dean, School of Agriculture

8/4/2019 2005 Audit Plan

11/11

7

Documents

2005 Audit Plan