Embed Size (px)
DESCRIPTION
ARMICS Update: May 14, 2008. FOCUS. ARMICS Update: FOCUS Presentation. Best Practices Room for Improvement Flexibility Where do we go from here?. ARMICS Update: Best Practices. Written Plan – Approved by Agency Head / Board Chair Written Internal Report - PowerPoint PPT Presentation
Citation preview
Photo by Karl Steinbrenner
ARMICS Update:May 14, 2008
FOCUS
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 2
ARMICS Update: FOCUS Presentation
Best Practices
Room for Improvement
Flexibility
Where do we go from here?
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 3
ARMICS Update: Best Practices
Written Plan– Approved by Agency Head / Board Chair
Written Internal Report– To Agency Head / Board Chair (Audit Committee)
Internal Quality Assurance Review– Good use of an Internal Audit function
Management– Designation of an Internal Control Officer / Manager
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 4
ARMICS Update: Best Practices
Survey Automation– Zoomerang, Survey Monkey, etc.
Survey Experts– Questionnaire modification, Statistical Analysis– Source: Colleges and Universities
Documentation– Parallel Flowcharts and narratives w/ IC Identification
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 5
ARMICS Update: Room for Improvement
General: – Stage 1 Testing: Key controls that can be tested.– Input, All levels when applicable
– NOT just management– NOT just Finance / Fiscal
– Attitude: Process has a benefit other than getting DOA off my back– Over-reliance on Exhibits as the only tool to identify risk – No customization
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 6
ARMICS Update: Room for Improvement
Stage 1: Customize Questionnaires– Corrections: Access and Security
– Federal Grants: Sub-grantee monitoring (Pass-thru)
– Colleges: Students – System Access - Security
– Shared Services Agreements – Split controls - MOU
– External Entities (Providing input services – Contracts)– Avoid a Minimalist Approach (Underestimating Risks)
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 7
ARMICS Update: Room for Improvement
Stage 1: Control Environment– Ethics Programs not JUST a Code of Ethics– Testing the effectiveness of Ethics Programs-- Random mini-exams (verbal or written)– Ethics awareness program– Awareness programs in general (Safety, Harassment, Sensitivity, Terrorism, etc.)– Ethics and control responsibility in EWPs
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 8
ARMICS Update: Room for Improvement
Stage 1: Risk Assessment– External Risks (Data Flows and sources)
– Evaluate Risks – Impact & Likelihood– Don’t forget SWOT (High Level)
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 9
ARMICS Update: Room for Improvement
Stage 1: Control Activities– Stage 1 VS Stage 2
– Example: General VS Application controls
– Good area for Stage 1 “Testing”
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 10
ARMICS Update: Room for Improvement
Stage 1: Information and Communication– Agency FOIA process– Sensitive data, redaction, privacy restrictions– Info. Security: Not just electronic – check your garbage– Error 1: Release what should be restricted– Error 2: Restrict what should be released
– Perception VS Reality = Communication gaps– Add Question on Hotline effectiveness
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 11
ARMICS Update: Room for Improvement
Stage 1: Monitoring– Special Monitoring
– Grant Pass Thrus (OMB Circular A-133)
– Audit CAPs
– Internal projects
– System Development – NCAA
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 12
ARMICS Update: Room for Improvement
Stage 2: Identification of Significant Fiscal Processes– So far, so good
– Definition of Significant – Consistency
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 13
ARMICS Update: Room for Improvement
Stage 2: Documentation of Fiscal Processes
– The key is your flexibility
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 14
ARMICS Update: Room for Improvement
Stage 2: Identification of Internal Controls
– Steady as she goes
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 15
ARMICS Update: Room for Improvement
Stage 2: Testing of Key Internal Controls– Document, Document, Document
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 16
ARMICS Update: Room for Improvement
Stage 3: Corrective Action Plans– Include all elements listed in the ARMICS Manual
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 17
ARMICS Update: Flexibility
• Deferring SWOT until Strategic Planning
• Review after major operations change
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 18
ARMICS Update: The Future
One Certification per YearReplaces DOA-FR Year End CertificationUpdate only for processes done wellStage 1: Refresh and RefineStage 2: Update and RetestStage 3: Follow-up and Test from Prior Year
+ newAddresses Service Provider AgreementsConstant Improvement
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 19
Conclusion
Good First TryRoom for ImprovementVariance in Implementation – A Good Thing
“Forward, always forward, everywhere forward.” – Boniface Wimmer, OSB
“Don’t look back, you can never look back.” – Don Henley, The Boys of Summer
“Don't look back — something might be gaining on you.“– Leroy “Satchel” Paige
May 14, 2008Accounting and Internal Control
Compliance Oversight Unit 20
Contact Information
Joseph A. Kapelewski, CGFM, CPA, [email protected]
Commonwealth of VirginiaDepartment of Accountswww.doa.virginia.govClick on ARMICS
