May - The Institute of Internal Auditors

May 2015
Springfield
pringfield Audit Trails
https://chapters.theiia.org/springfield
Springfield Chapter (Since 1978)
Platinum & First Gold Chapter
Grant Guidelines & Accountability and
Audit Findings, Reporting & Follow Up
President’s Message
Tracy Allen, CPA, CISA
Chapter President
Jay Wagner, CIA, CFE, CISA
Chapter First Vice President
May iss International Internal Audit Awareness Month!
Governor Rauner has signed a proclamation to declare
that May is Internal Audit awareness month in the State
of Illinois. I worked with the Chapter Presidents from all
the Illinois based IIA chapters to request the designation.
As an internal audit professional, you play an important
role in raising awareness and elevating the profession.
Whether you are an active IIA member or new to internal
auditing, there’s something you can do to raise
awareness.
Thursday, May 28, 2015, will be our final seminar date
for the chapter year. What could be better than two halfday seminars in one day? Two half-day
half
seminars for the
half-day price!
In the morning session, from
8:30a to 11:30a, the topic will
be on the Illinois Grant
Accountability and
Transparency Act (GATA)
and Highlights of the new
Federal grant
nt guidelines (2 CFR Part 200).
For example, you can customize your
email signature and social media accounts
with the International Internal Audit
Awareness Month digital icon (depicted at
right). You can hold a lunch-and-learn in
your workplace to dispel myths about
internal auditing and explain the value that
a well-resourced, independent internal
audit function can provide. You can also
distribute sweet treats or tokens to
coworkers with an educational flier about
the profession.
Don’t let the opportunity pass to advocate the
importance
tance of internal auditing to your coworkers and
other stakeholders.
Congratulations to Abigail Flatt who recently earned her
CGAP designation.
Our IIA Chapter achieved Gold status for the current
year’s activities in December. Since the Chapter has
been Gold the last 10 years it has achieved Platinum
status. The Officers, Committees and Board of
Governors contribute a lot of effort to operating the
Chapter and completing the reports and training
necessary to obtain Gold status each year but we
couldn’t do any of it without the support of our
membership. As of the March Chapter Achievement
Program (CAP) report, Springfield Chapter was one of
only 2 Platinum Chapters in the Central region. The
CAP standings by region can be seen in the chart below.
Ms. Carol Kraus will be our presenter, and
will discuss important information on grant
requirements in Illinois state government,
recent and upcoming changes, and the
implications to internal auditors.
In the
he afternoon session, from 12:30p to
4:30p, the topic will be on Audit Reporting,
Finding, and Follow Up. Our presenter will
be a local favorite, Mr. Stephen Minder.
The morning session is 3 CPE and the
stand-alone member/nonmember
member cost will be $30/40.
The afternoon session will be 4 CPE and the standstand
alone cost will be $40/$50. If you attend both sessions,
the total cost will be $60/75.
A buffet lunch will be served for all attendees between
the two sessions. We hope to see you at the event.
TRAINING (2 Seminars)
Seminars
•
•
•
•
•
•
•
•
Date:
Place:
Course:
Speaker:
Time:
CPE:
Cost:
Register:
May 28, 2015 – lunch for all
a attending at 11:30a
Northfield Center
GRANT GUIDELINES FINDINGS & REPORTING
Carol Kraus
Steve Minder
8:30a – 11:30a
12:30p – 4:30p
3 hours
4 hours
(Total: 7 hours)
$30 / $40
$40 / $50 (Both: $60 / $75)
Emily Durbin at [email protected] by May 21
Continued on page 6 . . .
1
Springfield Chapter of the Institute of Internal Auditors
2014-2015 PROGRAM SCHEDULE
Date
Speaker
9/11/14
Nejolla Korris
Program
Pinocchio Effect, Linguistic
Lie Detection, and Ethics
Hours
CPE
Members
NonMembers
8:30 – 4:30
7
(Ethics
4
hours)
$100
$125
Students:
$20
10/29/14
to
10/30/14
Various
Annual SIAAB Fall
Government Auditing
Conference
8:30 – 4:30
14
(Gov’t)
$75
$75
11/20/14
Seminar
at UIS
Bill Jelen
Power Excel with Mr. Excel
– 567 Excel Mysteries
Solved
8:30 –11:30
3
$60
$75
December
2014
01/22/15
02/26/15
03/25/15
04/23/15
5/28/15
N/a
No Training Planned
Rob
Cameron,
CPA
Enhancing Internal Audit’s
Effectiveness in the
Organization – A Look at
the Proposed
Enhancements to the
Internal Professional
Practices Framework
Auditing a Modern Cyber
Program
Brad
Rachmiel and
Brennan
Warren
Dr. Joan
Pastor
John Hall
Carol Kraus
Steven
Minder
Adding Value through
Communication and
Collaboration in Your
Organization
Joint Meeting with
ISACA
Fraud Risk Management for
Internal Auditors
Joint Meeting with
Central Illinois Chapter
Grant Guidelines,
Accountability, and
Transparency
Audit Findings, Reporting,
and Follow Up
Students:
$25
12:30 - 4:30
4
$50
$75
Students:
$15
12:00 - 4:00
8:00 – 4:30
3
7
$60
$75
$125
Students:
$15
$150
Students:
$20
8:00 – 4:30
7
$125
$150
8:30 - 11:30
3
$30
Students:
$20
$40
12:30 - 4:30
4
$40
$50
Full Day
7
$60
$75
Cancellations should be made at least 24 hours before the meeting to avoid a charge.
Meetings will be held at the Northfield Center, unless noted differently (i.e., November 2014 at UIS).
2
This Month in Chapter History
5 Years Ago (May 2010)
•
Larry L. Stone, CISA, CCP, CRPC, served as the
Chapter President.
• This month’s training on May 12, 2010 was Power
Excel. The seminar was presented by the dynamic
and entertaining Mr. Excel Bill Jelen.
10 Years Ago (May 2005)
Stephen Kirk, CIA, CGAP, served as the Chapter
President.
• The May meeting was held at the Northfield Center
and focused on the “Year in Review,” with the theme
“No Auditor Left Behind.”
• The Chapter recognized members who helped make
it possible to achieve the coveted “Gold Award” and
thereby maintain the “Platinum” status in The IIA’s
Chapter Achievement Program.
• Dr. John Nosari announced he was retiring from
UIS in May and planning to go fly-fishing in Montana
during the summer.
• Brian Bond has been doing weekend Mystery
Theater.
15 Years Ago (May 2000)
Rusti Cummings, CPA, served as the Chapter
President.
• This month’s meeting was held at the Northfield
Center in Springfield. The afternoon seminar was
presented by Dennis R. Schueler, CIA, CPA, CFE,
President of Schueler Consultants, Inc., who spoke
on “Effective Communication/Reporting of Audit
Findings.” Mr. Schueler also presented the afterdinner presentation on “Measuring Internal Audit
Performance.” The Chapter recognized two new
CIA’s:
− Wendell Sheely – Department of Transportation
− Philip Donaho – Department of Natural
Resources
• Joining the Chapter as a new member was Dan
Kahle, Acting Chief Internal Auditor with the
Department of Commerce and Community Affairs.
The April meeting attendance award, a $15 gift
certificate to Best Buy, was won by Harry Thurau.
20 Years Ago (May 1995)
Nancy Hilger, CPA, served as the Chapter President.
• This month’s meeting was at the Best Western
Springfield East. The speaker was Chapter
President Nancy Hilger, who spoke on “The IIA
Springfield Chapter Recognition Program.”
•
The following Chapter members were recognized for
their years of service:
− Judith Lazar – 15 Years
− John Nosari – 15 Years
− William Henson – 15 Years
− Alvin Ostendorf – 15 Years
− Bradley Hammond – 10 Years
− David Leggett – 10 Years
− Elaine Hyden – 10 Years
− Gerald Wright – 10 Years
New Chapter members were:
− Nick Marsters – Illinois Supreme Court
− Jeffrey Wilson – Student at Illinois College
− Rodney Wilson – Illinois Secretary of State
25 Years Ago (May 1990)
Nita K. Wilson served as the Chapter President.
• This month’s meeting was held at the Sheraton Inn.
The pre-meeting seminar was a video called “Take
Action Now,” a two-part video providing an
understanding of the Treadway Commission’s
recommendations. The after-dinner speaker was Dr.
Curtis C. Verschoor, CPA, CIA, CFP, CMA,
managing director of C.C. Verschoor & Associates,
Inc., specializing in consulting to audit management
and audit committees of boards of directors.
• New Chapter members were:
− Sonya Bradley
− Stuart Gresham – Illinois Environmental
Protection Agency
− Donald Jones – Office of the Illinois Auditor
General
− Kathy Lacey – Franklin Life Insurance
Company
− Joseph Ohm – Office of the Illinois Auditor
General
− Larry Wilcox – Department of Military Affairs
− Patrick Zillen – Illinois Department of Revenue
30 Years Ago (May 1985)
Sandra K. King, CIA, was the Chapter President.
• This month’s meeting at Sheraton Inn. This month’s
speaker was Dr. Richard Ziegler, CPA, Associate
Professor of Accountancy, University of Illinois, who
spoke on “Audit Risk/Materiality (SAS 47)”.
• Joining the Chapter as a new member was
Frederick Wu, CMA, Chairman of Southern Illinois
University’s Department of Accountancy.
• The Chapter recognized the efforts of Dan Bedell
who brought in at least 4 new members this year.
3
Back to the Basics
GOVERNMENT ACCOUNTABILITY OFFICE
Internal and External Auditing
Government Auditing Standards
www.theIIA.org
Internal and external auditors each play an important
role in the governance of an organization. Both groups
have mutual interests regarding the effectiveness of
internal financial controls, and both adhere to ethical
codes and professional standards set by their respective
professional bodies. Additionally, both types of auditors
operate independently of the activities they audit, and
they’re
re expected to have extensive knowledge about the
risks faced by their organization.
Yet, with all of their similarities,
arities, internal and external
auditing are distinct functions that have differences
differences:
•
The IIA defines internal auditing as “an independent,
objective assurance and consulting activity designed
to add value and improve an organization's
operations. It helps an organization accomplish its
objectives by bringing a
systematic, disciplined approach
to evaluate and improve the
effectiveness of risk
management, control, and
governance processes.”
AUDITORS’ RESPONSIBILITIES
Auditors need to make decisions that are consistent with
the public interest.
• Auditors should neither assume that management is
dishonest nor assume unquestioned honesty.
• In discharging their
professional responsibilities,
auditors may encounter
pressures from management
of the audit entity.
• In resolving conflicts, auditors
are responsible for acting
with integrity and should be
honest and candid with the
audited entity.
• Auditors should exercise professional skepticism –
i.e., questioning mind and critical assessment of
evidence.
MANAGEMENT’S ROLE
Agency management is responsible
for:
Using resources efficiently,
•
economically, effectively to
• In contrast, external auditing
accomplish program goals.
provides an independent opinion
•
Complying with laws and
of an entity’s financial statements
regulations,
including identifying
and fair presentation; whether the
applicable
requirements
and
statements conform with
implementing
systems
to
achieve
Generally Accepted Accounting
compliance.
Principles; whether they fairly
•
Establishing effective internal
i
present the financial position of
control
to
ensure
goals
are
met
and
the organization; and whether the
resources
are
used
appropriately.
results of operations for a given
John Hall presenting April’s seminar on
•
Reporting the results of
period of time are represented
Fraud Risk (photo by Cary Franks).
programs to those who oversee the
accurately.
program.
• Addressing audit findings and recommendations and
Organizational Structure
tracking their status.
Internal auditors represent
resent an integral part of the
INTERNAL CONTROLS
organization - their primary clients are management and
the board. Conversely, external auditors are not part of
Internal control includes the plan of organization;
the organization, but are engaged by it. Their objectives
methods and procedures adopted to meet its mission;
are set by statute and/or by the organization
organization.
and goals and objectives.
• Internal control includes the processes for planning,
Mandatory vs. Voluntary
organizing, directing, and controlling.
• It includes the system for measuring,
m
reporting, and
In general, internal audit functions are not mandatory for
monitoring program performance.
organizations. Instead, their installment is left up to
• Internal control also serves as the first line of
individual organizations’ discretion. An external audit is
defense in safeguarding assets and preventing and
legally required for many organizations and some
detecting errors, fraud, and violations of laws, and
government agencies require auditors to report to their
regulations, and provisions of contracts and grants.
respective legislature.
4
F ro m th e E d ito r
[email protected]
PRESIDENT
Congratulations to Chapter Vice
President Jay Wagner on passing the
Certified Fraud Examiner (CFE) exam!
Jay is the Chief Internal Auditor for the
Illinois Attorney General who already
had the CIA and the CISA certifications.
Congratulations to the new officers for
program year 2015 – 2016. All were
reelected at our April meeting and will
continue for another year to fulfill their
positions.
We have a great group of officers who
make sure that all aspects of the
chapter work together, such as
planning, administration, audit, training,
registration, membership, programs,
directory, awards, and accounting.
Thanks for making the chapter your
priority. The following officers were all
re-elected:
President
1st Vice President
2nd Vice President
Secretary
Co – Treasurer
Board of Governors
Tracy Allen
Jay Wagner
Leighann Brown
Emily Durbin
Paula Sorensen
Joelle Egger
Cary Franks – 2017 term
Denise Behl – 2018 term
Amy Lyons – 2018 term
Bill Sampias – 2018 term
Larry Stone – 2018 term
If you would like to serve the chapter,
please contact any officer as we need
new volunteers each year. Some
people volunteer for a year while others
volunteer for a decade or two. Look at
the list of positions on the right and tell
any officer what you would like to do.
I have met many dedicated officers each
year. When I first volunteered for the
newsletter in 1991-1992, I dreaded the
thought of having to do it each month,
rain or shine, work or vacation. But the
wonderful people I have worked with
has made serving a terrific experience.
•
Administration (CAPologist)
Audit
•
Nominating
•
FIRST VICE PRESIDENT
•
•
•
Programs & Seminars
Continuing Education
Seminar Registration
SECOND VICE PRESIDENT
•
•
•
•
Academic Relations
Membership
Associate Trustee/Tech.
Certifications Program
SECRETARY
•
•
•
•
Directory, Distribution &
Public Relations
Newsletter
Photographer
Webmaster
TREASURERS
•
•
Awards
Historian
Term Expiring:
• 2015
• 2015
• 2015
• 2015
• 2015
• 2016
• 2016
• 2016
• 2017
• 2017
•
•
2011 – 2013
2013 – 2014
CHAPTER OFFICIALS
2014 – 2015
OFFICERS
Tracy Allen, CPA, CISA
[email protected]
782-1003
Amy Lyons
558-4347
Amy DeWeese, CPA
Tracy Allen, CPA, CISA
Amy Lyons
H. Jay Wagner, CIA, CFE, CISA
HWagner@atg. state.il.us
H. Jay Wagner, CIA, CFE, CISA
Tracy Allen, CPA, CISA
Emily Durbin, CIA, CGAP
Leighann Manning
[email protected]
Carol Jessup, Ph.D, CPA, CFE
Debbie Abbott, CIA
Larry L. Stone, CISA, CCP, CRPC
Leighann Brown Manning
Emily Durbin, CIA, CGAP
[email protected]
Emily Durbin, CIA, CGAP
558-3956
782-1003
558-4347
M. Ameen Dada, CGFM
Cary Franks, MS MIS
H. Jay Wagner, CIA, CFE, CISA
Paula Sorensen
[email protected]
Joelle Egger
[email protected]
Joelle Egger
Seeking Volunteer
GOVERNORS
Cary Franks, MS MIS
Deanna J. Marvin, CIA, CGAP, CISA
Bill Sampias, CISA, CFSA
Larry L. Stone, CISA, CCP, CRP
Doug Tinch, CIA, CPA, CISA, CISSP
Stephen D. Kirk, CIA, CGAP
Lesslie D. Morgan, CIA, CPA, CGFM, CISA
Barbara Ringler, CPA
Rusti Cummings, CPA
Ameen Dada, CGFM
PAST PRESIDENT
Denise Behl, CIA
Amy Lyons
524-4094
524-4094
782-1003
558-6546
557-5682
206-7923
782-2645
544-5198
557-5682
558-6546
558-6546
785-0165
741-4410
524-4094
782-4843
524-6423
524-6423
741-4410
789-2500
785-5563
544-5198
558-2495
557-1258
524-4094
524-7872
558-3386
785-0165
558-2701
558-4347
The Board of Governors consists of all Officers, Governors, and the past two
Presidents.
5
Difference between Private Sector and Government
Jan Mares, www.PowerMagazine.com
1. The controls on a government agency are
staggering compared to the private sector.
2. Most private organizations have clear, wellunderstood goals and objectives. Government goals
and objectives are not well formed.
3. Government has fewer measures of success than
the private sector, which has profit as its measure.
4. Most join the private sector to earn money.
5. There is little personal gain in government for taking
risks to achieve goals but there can be substantial
criticism for failure.
6. Private sector is market-driven whereas government
is a legislated monopoly.
7. Private sector requires products or services that can
be sold, which requires constant improvement.
8. Government managers policy face restrictions often
made years earlier, for other reasons.
9. Most political appointees need to promote the
policies of the administration and change the
policies of the previous administration, rather than
focus on issues.
10. Governmental oversight is more extensive, such as
from the press/media.
President’s Message . . . . . . . continued from page 1
Region
Canada
Caribbean
Central
Mid Atlantic
Midwest
Northeast
South
Southeast
West
Total
Platinum
2
0
2
3
2
4
4
0
3
20
Gold
0
3
1
0
0
0
0
5
0
9
Silver
1
0
11
1
7
2
5
2
9
38
Bronze
1
0
0
0
2
2
3
2
1
11
None
8
8
8
8
7
11
10
10
11
81
Total
12
11
22
12
18
19
22
19
24
159
Ever since our Chapter first received its charter in March
1978 it has built a rich tradition of service to the
profession and provided quality training.
I am proud of the Chapter and thankful that I have been
elected to serve you as President.
Tracy
HOW TO WRITE GOOD
www.WritersWorkShoppe.com (submitted by Teresa DeStasio)
• Prepositions are not words to end sentences with.
• Avoid clichés like the plague. They’re old hat.
• Be more or less specific.
1. Be consistent!
• Don’t be redundant; don’t use more words than necessary; it’s
highly superfluous.
• Exaggeration is a billion times worse than understatement.
Springfield Chapter
The Institute of Internal Auditors
P.O. Box 205
Springfield, IL 62705-0205
6