How to Need a Waiting Room in Internal Audit

2015 ANNUAL CONFERENCEI n d i a n a p o l i s

How to Need a Waiting Room

in Internal Audit

ACT…

Audit, Consult, Teach

Whit Madère & Mary Barnett

VCCS Audit & Consulting Team


Agenda• Background & Institutions

• Missions & Visions

— Fulfilling Responsibilities— Evolving Expectations of IA

• Adding Value

— Building “value” into your plano Risk assessmento Listen and commento Plan, coordinate, execute, follow-up

— The options & ideas

• Relationships

• Making the Change


Background & InstitutionsBackground

• We are “atypical auditors”

• We all have our own journeys and stories

• Where we are going next

Institutions vary… or do they?

• College/university/system

• VCCS/UTEP/Virginia



Missions

• Why we are here

• We are all pretty much the same… sort of

Visions

• They should be um… “visual” and motivational

• Examples (NASA, Navy, Caterpillar, etc…)

• A “waiting room” with people in it

Missions & Visions


ACT Mission

Provide assurance services and consultation to VCCS entities based on…

• objectivity,

• risk-based focus and prioritization,

• a focus on both effectiveness and efficiency,

• data-driven support, analysis, and decision-making,

• consideration of college/student success, and

• understanding operational, financial and mission-critical implications…

• without compromising IIA compliance, departmental goals, or system objectives.


VCCS Vision


Next auditee!

... and a waiting list.

We will become the most trusted and respected higher education auditing and consulting organization in Richmond, within the Commonwealth of Virginia, and across the nation and the world.

Our advice and counsel will be sought by VCCS administrators and faculty, by our counterparts throughout Virginia higher education, and by our peers at higher education audit departments throughout America and the world.

ACT Vision

A waiting room


Next auditee!

ACT Vision

Who says auditors can’t have waiting rooms?


ACT VisionYou usually have to wait for that which is worth seeking for. Craig Bruce

…but not Everyone Waits Patiently

2015 ANNUAL CONFERENCEI n d i a n a p o l i s We hope to have a nicer waiting room!


ACT VisionNow, all we need is the customers….


Evolving Expectations of Internal Audit

• Proactive

• Adding value

• Part of the team

• CEOs, IIA, consulting firms and visionaries agree

Mission & Vision


“…the importance of [Data Analytics] was rated high (at 78%) in our 2015

survey. If implemented properly, [Data Analytics] can help an Internal Audit

function simplify and improve the audit process to protect and create value.”<KPMG’s 2015 Data & Analytics-enabled Internal Audit Survey>

“When asked what would best improve overall effectiveness… the [audit committee

members] said

a better understanding of the business…

greater diversity of thinking, background, perspectives, and experiences…

more “white space” time on the agenda for open dialogue.” <AccountingWEB, referencing KPMG’s 2015 Survey of Audit Committees>

Mission & Vision



Adding Value“It’s about how your [services] exist in the real world: how people use your [services] –how they add value to people’s lives, ease their troubles, help shoulder their burdens, meet their needs. Think in those terms when producing… client narratives – so that people can relate to them.” Author Ann Handley

“Value” is some product, service, or other benefit that adds tangible worth such as monetary or material gain for our customers. In other words, some change that you create that your customers are (or would be) willing to pay for.

“Valued”, on the other hand, means “highly esteemed". A "valued" item is appreciated by your customers, but may not be important enough to them to pay for it.

Often, we think about what our customers appreciate rather than what they value.


Build “value” into your plan

• Definition of “value”

• Involve your “customers” in your risk assessments

• Listen and comment

• Plan, coordinate, execute, follow-up

Remember, YOU don’t get to decide what value is!

Adding Value


Some options

• Voluntary “non-audit” reviews

• Assisted self-assessments

• Training

• Involvement in risk assessment

• Quick wins (low hanging fruit)

• Facilitation & process mapping

Adding Value (options & ideas)

Adding Value (Real-life example)

SWCC Student Refund Disbursements

Syst

ems

Fin

. Aid

Bus

ines

s O

ffic

eG

ran

ts/O

ther

sFo

unda

tion

Func

tion

Stud

ent

Phase

Start Queries

Multiple Reports by Item Type Review

SIS SIS

Stamp & check SIS

Scholarship?

Funds available?

Post batchY

N

Pmt Dist Reports: Refunds, Tuition,

Book, Emerg Loans

Student Refunds Report (Non-

Update)Y

Request Funds Draw Funds Record Funds Deposit to AccountsCheck

Next Day

Check for Funds (Internal)

Selection Process

Award S/S (Internal)

Receive Funds Log Daily Deposit WeeklyTransmittal to Financial Aid

A

C

B Notice Verify and Correct Notify D

F Errors? GN

Research

Y

Opportunity

Monitor and Zero End

SIS Student Accounts

Mistakes?Disburse Refund

N

Corrections Y

Report with No Name – List, Batch

Total

Scholarship?

Student Refunds Report (Update)N

Y

Process for TMS

Process Vendor Pmt

Next Day Reconcile Correct?

Resolve N

AIS Transfer Funds

3 – 4 Days

Feedback Loop – Re-award?

Release and Email

By Date

Y

Reports for Business Manager Business Manager

Signs

By Date

Adjust?

Manually Process Checks

N

TMS Process

Adjust for Books and Expenses

Post and AdjustY Prepare ListsList Foundation

List Local

F

GStudent Refund

Process to TMS Nightly

D A

CFunds?

(Reconcile Funds Roster)

Y

BN

N

Y

Adding Value (Real-life example)


Some ideas

• Big data… or little data

• Dash Boards

• CIM Stats/Ratios/Charts

Adding Value (options & ideas)


What specialized skill can you offer?

Adding Value




Selling the Invisible – the idea of you

• It’s a new day

• There’s a new sheriff

• A new approach

• We have new standards

• New risks/emerging issues/events

• Tragedies are game changers

• Sometimes, all it takes is a new name (branding) or new attitude

Relationships



Relationships

We are all salesmen now

Are you prepared to “sell the invisible” value you can add?



• Attunement – Understand the Perspectives of our Clients

• Buoyancy – Accept Rejection by Questioning Your Approach

• Clarity – Provide Information for your Clients from an Ocean of Data

Relationships

We are all salesmen now

Are you prepared to “sell the invisible” value you can add?


Lead by example

• Self Accountability

• Contact Management Tools

• Face-to-face, phone calls, or post cards instead of emails

Relationships



Lead by example

• Self Accountability

• Contact Management Tools

• Face-to-face, phone calls, or post cards instead of emails

Relationships

Publicize your core values

• Sincerity

• Integrity

• Courage


Fulfilling your responsibilities, your mission…

• While remaining in compliance with the Standards

• Without compromising independence

• Without disclosing “holes” (examples including current Fed. Govt. leaks)

• Without hiding issues from the public/authorities

Bad news is NOT equal to a 2x4 (blindside)

It’s not just what you say, but how you say it!

Relationships



“If you focus on results, you will never change. If you focus on change, you will get results.”

Jack Cook

Making the Change

“Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek.”

Barack Obama

“Life was always a matter of waiting for the right moment to act.”Paulo Coelho


Don’t overlook “the little things” like the importance of politeness

• Flowers, chocolates

• Responsiveness

• Presentation

• Respect for their calendars

• Thank you notes

• Ask for endorsements at presentations/assemblies

Are you ready to make a change?

Making the Change



Q & A Opportunity

So be honest… some of you are thinking:

• “It can’t happen here.”

• “I’m concerned about not being tough enough.”

• “Will I still be objective if I offer consulting services?”

• Others?

What questions or concerns do you have?


Some closing thoughts…

• Optimism (say, “we can if…”)

• Enthusiasm is contagious.

• Be “Fantastic!” or “Outstanding!”

• Be genuine. “Sincerity” is vital.

Be something NEW… …and you just might find that you are worth waiting for!

The Last Slide


How to Need a Waiting Room

in Internal Audit

VCCS Audit & Consulting Team

The Real Last Slide

Whit Madè[email protected]

Mary M. [email protected]

ACT… Audit, Consult, Teach

mailto:[email protected]

mailto:[email protected]

Documents

How to Need a Waiting Room in Internal Audit