Title: OACR audit focus
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 Material Information
Title: OACR audit focus
Series Title: OACR audit focus
Physical Description: Serial
Creator: Office of Audit & Compliance Review, University of Florida
Publisher: Office of Audit & Compliance Review
Publication Date: June 2007
 Record Information
Bibliographic ID: UF00087344
Volume ID: VID00019
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.

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UNIVERSITY of
^^ ^^^ U FLORIA


4CR Audit Focus

i


A quarterly newsletter from the Office of
Audit & Compliance Review


Nur Erenguc, Chief Audit Executive


I guditors G Au *it e


SDid you ever wish that your
auditors were on the receiv-
'.. ing end of an audit? Well,
your wish came true when
the Office of Audit and Com-
pliance Review (OACR) was
subjected to a Quality Assessment Review
(QA) earlier this year.

International Standards for the Profes-
sional Practice of Internal Auditing state
that quality assessment reviews should be
conducted at least once every five years by
a qualified, independent reviewer or re-
view team from outside the organization.

Following this standard, the OACR re-
ceived a QA from an external team of In-
ternal Audit Executives from Stanford Uni-
versity, the University of Minnesota, the
University of Washington, and the Florida
State University. The objectives of the


QA, conducted in late January, were to (1)
assess OACR's conformity to the Interna-
tional Internal Audit Standards and (2) sug-
gest ways to enhance OACR's operations
and impact on the University.

The QA Report, dated February 2, included
the opinion that OACR "generally con-
forms" to the Standards. "Generally con-
forms" is the highest level of opinion al-
lowed. The QA Report also included minor
suggestions for improvement.

The QA Report was presented to the Board
of Trustees Audit and Operations Commit-
tee at their March 29 meeting. OACR and
BOT Audit Committee have implemented or
have plans in place to implement all sug-
gestions for improvement.


Inside this issue:









































\Ve're on the \eb at:
www.oacr.ufl.edu


SWe recently completed an audit
of Indirect Cost Recoveries for
the University. The objective
of the audit was to determine
whether surplus indirect cost
recoveries were used to sup-
port other research or sponsored training
programs as identified in Section 1004.22
of the Florida Statutes.

The indirect cost recoveries are consid-
ered as "earned" and are not subject to
further constraints from the sponsor but
are to be spent in support of research in
accordance with the above Statute. We


observed that justification for the amount
or the intended research purpose for the
allocations were not always documented
nor was there any verification process to
ensure that funds were used for research as
required.

Division of Sponsored Research will moni-
tor the use of the allocations to the admin-
istrative units and will modify directives
and procedures to better define what is
considered research expenditures.


Inirc Cos Recoverie







r |UNIVERSITY of

UF FLORIDA


Control S elf Assessment


Off*e of t &'.

I I34 1 i Hll,

IGa ine svlle,


"No" Responses per Category
Inomnalio ConIrol
Technrog Enviropmeni


14%

Purnasing an
Disbursements
16% 5%
13%
o Control Environment
Budgeting. Accounting, and Financial Reporting
CoaIecuons. Deposits, and Cash Funds
Asset Management
SPayroll
m Human Resoure Management
Purchasing and Disbursement
Research Management and Support
Informallon Technology


EnterpriS e Risk Managemet p(ERM)


The practice of managing
risks, which is a key element
of governance, traditionally
has been within individual
business units or silos of the
University.

Enterprise Risk Management (ERM) takes a
broader portfolio approach and deals with
risks and opportunities affecting the crea-
tion or preservation of organizational
value. ERM is a structured and coordinated
entity wide governance approach to iden-
tify, measure, and monitor risks or oppor-
tunities that affect the entire organization.
The use of an ERM methodology at any


level can expose individuals to critical
business issues outside their specific ar-
eas of responsibility.

Office of Audit & Compliance Review
(OACR) initiated some "pilot test groups"
of a facilitated session used to discuss an
enterprise risk assessment methodology.
The strengths and weaknesses of this
approach and its applicability were as-
sessed within the University. The positive
initial reaction promoted further organ-
izational discussions and action plans.


With a DDD Memorandum distributed on
April 20, 2007, the University of Florida
launched the Control Assessment Tool
(CAT), with the vision that managers need
easily accessible mechanisms to evaluate
their units' internal controls. As of May 22,
2007, we received responses from 200
units, amounting to 84% response rate.

The following chart displays the distribu-
tion of "No" responses for key control
questions under each category included in
the CAT. The results identify areas where
additional focus may be appropriate. For
more information on internal controls and
UF's Control Assessment Tool, please visit
the CAT webpage
http://oacr.ufl.edu/ControlSelfAssessment.htm.


Office of Audit & Compliance Review
341 Tigert Hall
P.O. Box 113025
Gainesville, FL 32611




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