Internal Audit Annual Report

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University of North Carolina Wilmington

Internal Audit Annual

Report
Office of Internal Audit
Internal Audit Annual Report 2010



University of North
Carolina Wilmington

2010 Internal Audit Team
UNCW/Jamie Moncrief

Letter from the Director
Dana Harris, CPA, CIA, Director

The 2010 audit year was a busy one for the Office of Carol Harris, Auditor
Internal Audit at the University of North Carolina
Wilmington (UNCW). Our staff spent nearly 4,500 Laura LaBree, CIA, Auditor
hours conducting a variety of scheduled and special
Stefanie Powell, CPA, Auditor request audits, consultations, and investigations. In
addition, we served on numerous university
Brittney Lunsford, MSA Candidate, committees, participated in several UNCW
Audit Intern organizations, engaged in academic outreach, and
volunteered for campus events.

The 2011 audit year promises to be just as exciting and
busy. In October we will proudly host a conference for
the North Carolina University Auditors Association.
Throughout the year we also plan to complete the
external portion of our quality assurance review and to
coordinate our work with campus departments to
implement a continuous monitoring program.

I would like to thank Chancellor DePaolo and the Audit
Committee of the UNCW Board of Trustees for their
continued support. I would also like to thank the staff
of the Office of Internal Audit for all their hard work,
UNCW/Jamie Moncrief their commitment to furthering their professional
careers and their continued dedication to the practice
of internal auditing. Finally, I would like to thank the
university community for their cooperation and
responsiveness.


Dana Harris, CPA, CIA
Director, Office of Internal Audit

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Internal Audit Annual Report 2010

Internal Audit Overview


The mission of the Office of Internal Audit is:
UNCW/Jamie Moncrief

To provide independent, objective assurance and consulting services designed to add value and improve
the organization’s operations. We help the organization accomplish its objectives by bringing a
systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control,
and the governance process.

The Office of Internal Audit reports functionally to the audit committee of UNCW’s Board of Trustees
and administratively to the Chancellor. Our office consists of a director, three professional staff
members, and a student intern who assists with audits and consultations. The director and two of the
staff members hold professional certifications including Certified Public Accountant (CPA) and Certified
Internal Auditor (CIA). The intern has a Bachelor of Science degree in accountancy and began UNCW’s
Master of Science in Accountancy program in August 2010.

Our professional pledge is to conduct our audits based upon the best benchmarks available. The goal
for the Office of Internal Audit is to conduct and manage our audits in accordance with The Institute of
Internal Auditors’ (IIA’s) International Standards for the Professional Practice of Internal Auditors, which
include the definition of internal auditing, Code of Ethics, and the Standards. A peer review of our
department is required to ascertain compliance with these Standards. We are currently working
towards obtaining a peer review with the guidance of the North Carolina Office of Internal Audit and
expect to complete this process during the 2011 audit year.

In keeping with the IIA’s standards, we maintain a strong working relationship with the audit
committee. Consequently, the director presents results of audits and other office activities to the audit
committee at the audit committee’s quarterly meetings. In addition the director assists the audit
committee to ensure their charter, activities, and processes are appropriate to fulfill their
responsibilities; ensures that the charter, role, and activities of internal audit are clearly understood;
maintains open and effective communications with the audit committee and the chairperson; and keeps
the audit committee informed of emerging trends and best practices.

The audit year begins each year on August 1 and ends July 31 of the following year. This allows our
office to have our annual audit plan approved by the audit committee during the first month of the
audit year at their August meeting.

For more information about the office, please see Internal Audit’s website at
http://www.uncw.edu/ia/index.html

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Internal Audit Annual Report 2010
Audits and Consultations


Reports Issued During the 2010 Audit Year The work completed by our office extends beyond
fundamental audits. We completed the following
Scheduled Audits and Consultations types of engagements during the 2010 audit year.

• Athletic Academic Eligibility
Scheduled Audits and Consultations
• Banner Course Coding
These include the audits, consultations, and other
• Banner Disaster Recovery Testing
projects listed on our audit plan approved by the • Cameron School of Business
Chancellor and the audit committee of the Board of • College of Arts and Sciences
Trustees. These items are added to the audit plan • Friends of UNCW
based on the annual risk assessment conducted by • Hazardous Waste Handling
the Director of Internal Audit and the goal of • Housing and Residence Life
reviewing campus departments on a rotating basis. • Parking T2 Flex Consult
• Year End Inventory
Special Requests
Each year our audit plan includes time budgeted for Special Requests
special requests. These include consultations and
• Athletic Complimentary Ticket Review reviews conducted at the request of UNCW
• Facilities Store Reconciliation Consult management or based on information learned by
• Seahawk Mail Cash and Stamp Inventory the director throughout the year.
Count
• Staff Senate Fundraiser Consult Follow Ups
• Tuition Waivers Consult We complete follow up reviews to all audits,
whether scheduled or special requests, which
Follow Ups include reportable audit findings. Follow ups
typically occur 12 – 18 months after the original • Named Scholarships
audit report was issued. • Network and Communications
• Office of International Programs
Investigations • Parking Reconciliation
Investigations result from tips reported to our office • Passport Acceptance Agency
via the Office of the State Auditor’s hotline, our • Postal Services
internal hotline, and other sources. • Purchasing Card
• Travel Office
• Follow Up to the Office of the State
Audits in Process at 7/31/2010 Auditor’s Fiscal Control Review
• Third Follow Up to the Office of the State
• Athletics Auditor’s FY07 Financial Audit
• Special Responsibility Constituent
Institution (SRCI) Budget Revisions Investigations
• UNCW Presents Follow Up
• Motor Fleet Complaints • University Vehicles Follow Up
• Pharmacy

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Internal Audit Annual Report 2010
Other Services


In addition to completing audits and consultations, our office adds value to the university in numerous
other ways. During the 2010 audit year, the director and the staff were involved with the following
activities.
Committee Work
• Banner Project Lead Meetings
• Chaired the Committee on Financial and Physical Resources for the
Southern Association of Colleges and Schools (SACS) accreditation
process
• Compliance Committee
• Enterprise Risk Management Committee
• Finance SSRS Reporting Group
• General Counsel Search Committee
• Led Executive Director of Associated Entities Search Committee
• Red Flag Committee
• Supplemental Compensation Workgroup
• UNC Finance Improvement & Transformation (FIT) working team
• Vision 2020 Mission Committee

Participation in Campus Groups
• Administrative Cabinet
• Chancellor’s Extended Cabinet
• Staff Senate
• University Planning and Quality Council

Academic Outreach
• Created a position for a student intern
• Guest speaker for Accounting 445 and 495 classes
• Guest speaker for Business Week at the Cameron School of Business

Special Projects
• Reviewed Financial Accounting’s Assessment of Internal Controls
Over Financial Reporting
• Transportation Study Review

Volunteering
All photos: UNCW/Jamie Moncrief
• 2009 Move-In
• December 2009 Commencement

Meetings with External Auditors
• Attended exit meetings with external auditors from various agencies

Hotline Reporting
• Monitored and maintained UNCW’s fraud and abuse reporting hotline

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Internal Audit Annual Report 2010
Productivity

As with any industry, there are numerous measures of productivity used as benchmarks. For our office,
the two most important measures of productivity are the allocation of time and the completion of the
audit plan.


UNCW/Jamie Moncrief
Time Allocation

For the 2010