4th District - Shawn Nelson 5th District - Patricia Bates .
YTU S ANUt h eOi nCC o u n t yEGL a r g e s tNt h6ARApproved by the Audit Oversight Committeeon April 27, 2011, Item 4Report No. 1001Risk Assessment TeamDr. Peter Hughes, Director of Internal AuditEli Littner, Deputy DirectorMichael Goodwin, Senior Audit ManagerAutumn McKinney, Senior IT Audit ManagerMichael Dean, Audit ManagerWilson Crider, IT Audit ManagerCarol Swe, Audit ManagerLisette Free, Senior AuditorRenee Aragon, Administrative ManagerRISK BASED AUDITINGGAO & IIA Peer Review Compliant – 2001, 2004, 2007, 2010OInternal Audit Department3rd District - Bill Campbell, Chairman 4th District - Shawn Nelson 5th District - Patricia BatesO C B o a r d o f S u p e r v I s o r s’1st District - Janet Nguyen 2nd District - John M.W. Moorlach, Vice ChairmanAudit Plan andRisk AssessmentFY 2011-12American Institute of Certified Public Accountants Award to Dr. Peter Hughesas 2010 Outstanding CPA of the Year for Local Government2009 Association of Certified Fraud Examiners’ Hubbard Awardfor the Most Outstanding Article of the Year2008 Association of Local Government Auditors’ Bronze Website Award2005 Institute of Internal Auditors’ Award for Recognition ofCommitment to Professional Excellence, Quality, and Outreach
RISK BASED AUDITINGGAO & IIA Peer Review Compliant – 2001, 2004, 2007, 2010Providing Facts and Perspectives CountywideDr. Peter HughesDirector of Internal AuditE-mail:Eli LittnerDeputy DirectorMichael GoodwinSenior Audit ManagerMBA, CPA, CCEP, CITP, CIA, CFE, CFFCertified Public Accountant (CPA)Certified Compliance & Ethics Professional (CCEP)Certified Information Technology Professional (CITP)Certified Internal Auditor (CIA)Certified Fraud Examiner (CFE)Certified in Financial Forensics (CFF)peter.hughes@iad.ocgov.comCPA, CIA, CFE, CFS, CISACertified Fraud Specialist (CFS)Certified Information Systems Auditor (CISA)CPA, CIAAlan Marcum MBA, CPA, CIA, CFESenior Audit ManagerAutumn McKinney CPA, CIA, CISA, CGFMSenior Audit Manager Certified Government Financial Manager (CGFM)Hall of Finance & Records12 Civic Center Plaza, Room 232Santa Ana, CA 92701Phone: (714) 834-5475Fax: (714) 834-2880To access and view audit reports or obtain additional information about theOC Internal Audit Department, visit our website: www.ocgov.com/auditOC Fraud Hotline (714) 834-3608OC Internal Audit DepartmentApproved FY 11-12 Audit Plan and Risk Assessment
Letter from Dr. Peter Hughes, CPATRANSMITTAL LETTERReport No. 1001TO:FROM:SUBJECT:Honorable Members, Board of SupervisorsMembers, Audit Oversight CommitteeDr. Peter Hughes, CPADirector of Internal AuditFY 2011-12 Audit Plan andRisk AssessmentPer Resolution No. 95-271, the Board directed the Audit Oversight Committee (AOC) to actin an oversight capacity to the Internal Audit Department (IAD) and to approve the AnnualAudit Plan.For the 12th consecutive year, I am pleased to present the approved FY 2011-12 Audit Planand Risk Assessment. This comprehensive report details our plan for audits and reviews inthe upcoming fiscal year and incorporates the results of our extensive risk assessment.In accordance with the Board’s adopted Internal Audit Department Charter, “The InternalAudit Department reserves resources to accommodate Board of Supervisors’ requests.Individual Board members desiring specific audit projects shall place on the Board Agendatheir proposal for review and approval by Board majority. The County Internal Auditorreserves the right to determine how to best fit the Board directed review into the audit plan.”Any revisions or changes to the audit plan throughout the year are made in IAD’s QuarterlyStatus Report and approved by the AOC.The AOC reviewed and approved the FY 11-12 Audit Plan and Risk Assessment on April 27,2011. Accordingly, I am presenting it to the Board of Supervisors as part of my requiredmonthly Audit Status Report to the Board.We would like to acknowledge the professionalism and cooperation extended to us by themanagement of County agencies/departments during our Risk Assessment process.I look forward to another successful year of audit coverage and service to Orange County.cc:Audit Oversight Committee MembersChairman Thomas Mauk, County Executive OfficerVice Chair David Sundstrom, Auditor-ControllerSupervisor Bill Campbell, Chairman of the BoardSupervisor John M.W. Moorlach, Vice Chairman of the BoardShari Freidenrich, Treasurer-Tax Collector (Ex-Officio)Steve Danley, Performance Audit Director (Ex-Officio)Dr. David Carlson, Public MemberOC Internal Audit DepartmentApproved FY 11-12 Audit Plan and Risk AssessmentPage i
Table of ContentsApprovedAudit Plan andRisk AssessmentFY 2011-12TABLE OF CONTENTSPAGETRANSMITTAL LETTER .iEXECUTIVE SUMMARY .1MISSION STATEMENT.1ANNUAL AUDIT PLAN & KEY AUDIT CATEGORIES .3DEDICATION OF RESOURCES TO AUDIT- RELATED SERVICES.4OC INTERNAL AUDIT DEPARTMENT .5DETAILED FY 11-12 AUDIT PLAN .5DEPARTMENT ORGANIZATION CHART .13COUNTYWIDE RISK ASSESSMENT METHODOLOGY .14A RISK BASED APPROACH TO DETERMINE AUDIT PRIORITIES .14RISK ASSESSMENT ANALYSIS FOR FY 2011-12 .14RISK ASSESSMENT METHODOLOGY .14INFORMATION TECHNOLOGY INVENTORY AND ASSESSMENT .16RISK ASSESSMENT ANALYSIS AND TRENDS .17SEE ATTACHMENT - RISK ASSESSMENT SCHEDULES . A-1 thru A-4OC Internal Audit DepartmentApproved FY 11-12 Audit Plan and Risk Assessment
FY 2011-12 Approved Audit PlanEXECUTIVE SUMMARYMISSION STATEMENTThe mission of the OC Internal Audit Department is to provide reliable,independent, objective evaluations and business and financialadvisory services to the Board of Supervisors and County management.Our role is to assist both parties with their important business andfinancial decisions, as well as to contribute to protecting and safeguardingthe County’s resources and assets.We support and assist the Board of Supervisors and County Executive Managementin the accomplishment of their functional business goals and objectives by helpingimplement best business practices with regard to internal controls, accounting systems,and business processes. Our contribution to this effort is testing and reporting on theirinternal control systems and processes. County executive management is responsiblefor establishing and maintaining these control processes because they must rely onthese processes in managing their organizations. These systems and processes areused for safeguarding the County’s assets and resources, and for reasonable, prudent,and effective financial stewardship and for accurate recording and reporting.PUBLIC SECTOR GOVERNANCE AND THE ROLES OF INTERNAL AUDITPublic sector governance encompasses the policies, procedures, processes and internalcontrols used to direct an organization’s activities to provide reasonable assurance thatobjectives are met and that operations are carried out in an ethical and accountablemanner. Governance relates to the means by which goals are established andaccomplished; ensures government credibility; and assures appropriate behavior ofgovernment officials by reducing the risk of public corruption. Government auditing(both external and internal) is a cornerstone of good public sector governance byproviding unbiased, objective assessments of whether public resources areresponsibly and effectively managed to achieve intended results. Governmentauditing supports the governance roles of oversight, insight, and foresight. Oversight. Auditors provide oversight of County management by evaluating whetherdepartment/agencies are doing what they are supposed to do, spending funds forintended purposes, and complying with laws and regulations. Insight. Auditors provide insight to assist County management by assessing whichprograms, policies and internal controls are working and which are not; sharing bestpractices and benchmarking information; and looking across department/agencies tofind opportunities to borrow, adapt, or re-engineer management practices. Foresight. Auditors help County management look forward by identifying trends andbringing attention to emerging challenges before they become crises. These issuesoften represent long-term risks that may far exceed the terms of office for most electedofficials, and can sometimes receive low priority for attention where scarce resourcesdrive more short-term focus on urgent concerns.The OC Internal Audit Department is committed to serving the Board and Countymanagement in helping ensure effective public sector governance!OC Internal Audit DepartmentApproved FY 11-12 Audit Plan and Risk AssessmentPage 1
FY 2011-12 Approved Audit PlanIAD’S EXPERTISE IN FINANCIAL/BUSINESS PROCESSES AND CONTROLSThe OC Internal Audit Department (IAD) is recognized for our financial expertiseand knowledge in business cycle internal controls and processes. We apply thisexpertise in assisting County executive management in enhancing their businessprocesses and constantly improving and strengthening the internal control environmentthe public expects, relies upon, and demands of its government. We are committed to aprocess of continuous learning and improvement, and we keep ourselves updated onrelevant issues in business and industry with regard to accounting trends and developingfinancial best practices.Such constant renewal keeps the IAD and its staffprofessionally current, refreshed, invigorated, and responsive to the County’s needs forattestation, compliance assurance, accountability testing, and business improvement.To meet our clients’ expectations for integrity, objectivity, and independence and tofunction effectively with consistent reliability and credibility, the IAD applies professionalauditing standards to all engagements. This allows us to ensure audits of Countyoperations are always informative, accurate, and objective. Where required, the IADfollows the ethical and professional standards promulgated by the American Institute ofCertified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), and theGovernment Accountability Office (GAO). Moreover, the quality of IAD operations isregularly and independently assured by rigorous Peer Reviews conducted by outsideCPA firms or by the California Counties Audit Chief’s Association. We have passed fivesuch peer reviews to date; with the last one performed in 2010.As further validation of our department’s commitment to quality, IAD completed its firstBalanced Scorecard for FY 09-10 as our framework for performance measurement. Weadopted 14 Key Performance Indicators as indicators of our success towards achievingour strategic vision and mission. Our results were validated by the County of San DiegoOffice of Audits & Advisory Services. In addition, IAD Director Dr. Peter Hughes hadthe honor of being selected by the American Institute of Certified Public Accountants(AICPA) as 2010 CPA of the Year. In prior years, IAD received the IIA’s award for“Recognition of Commitment to Professional Excellence, Quality and Outreach” as wellas the Association of Local Government Auditor’s Bronze Website Award. A Grand Juryreport issued in FY 07-08 found the IAD independent and appropriately reporting to theBoard of Supervisors and meeting all professional standards to perform any audit.ANNUAL RISK ASSESSMENT FOR DEVELOPMENT OF AUDIT PLANEach year, IAD conducts a comprehensive, interactive countywide Risk Assessment thatincludes input from members of the Board of Supervisors, the County Executive Office,and all Department/Agency executive management regarding risks affecting theirrespective areas. We also review Business Plans, prior audit coverage and annualfinancial information for core business processes in all departments/agencies. We rankand tabulate the results that are used in developing a “risk-based” Annual Audit Plan.We note in our Risk Assessment that the County’s control environment is an everchanging and a dynamic environment. Continued budget reductions resulting in workfurloughs and layoffs; a new County financial/payroll/human resources system (CAPS );new rules and regulations; and turnover of several department/agency executivemanagement positions are key issues that departments and agencies are facing.OC Internal Audit DepartmentApproved FY 11-12 Audit Plan and Risk AssessmentPage 2
FY 2011-12 Approved Audit PlanA detailed description of our Risk Assessment is shown below in the COUNTYWIDE RISKASSESSMENT METHODOLOGY section of this document.ANNUAL AUDIT PLAN & KEY AUDIT CATEGORIESWe design our “risk-based” Audit Plan to address what we consider to be the highestpriority areas and audits requested by departments/agencies, while limiting the scope ofwork to what can realistically be accomplished with the staff resources available. Ourrisk ratings are based on current information that fluctuates frequently given the nature,diversity, size and impact of County operations on the public.Our Audit Plan is submitted, publicly discussed, reviewed and approved at the beginningof each fiscal year by the AOC. We are dedicated to completing our Audit Plan whilecontinuing to be flexible and responsive to the Board of Supervisors’ requests for auditservices. The Audit Plan also includes some flexibility to be responsive to directives foraudit services from the Board of Supervisors or AOC. For each audit in the Audit Plan,we have listed the proposed audit objectives, dollar impact and estimated audit hours.Our Audit Plan has as its foundation the traditional internal audits of “hard-control areas”such as segregation of duties, limiting access to cash, accurate originating accountingentries and transactions, and key reconciliations. Examples of such traditional audits inour Audit Plan include the Financial Audits and Mandates, Internal Control Audits,Information Technology Audits, and Revenue-Generating Leases Audits. Theseaudit reports contain opinions regarding the status of internal controls or the County’scompliance with grant or other governing provisions. Our audit reports also includerecommendations to management regarding improvements to specific accountingprocesses and internal controls in order to enhance or strengthen them. Starting in FY10-11, we reinstated our Control Self Assessment facilitated workshops based onrequests received from certain departments.In our audits, we also look for opportunities to improve the “Efficiency and Effectiveness”of operations. Our reports, where applicable, contain performance recommendationsrelated to efficiency and effectiveness enhancements. As part of our internalimprovement process, we distribute a customer survey with each of our audit reports toallow customer evaluation and feedback.Our Follow-Up Audit process ensures that our audit recommendations areimplemented satisfactorily. Our First Follow-Up Audit begins about six monthsfollowing the release of an audit report. If necessary, a Second Follow-Up Audit will beconducted about six months following the release of the First Follow-Up Audit report. Atthe request of the AOC, we are to bring to their attention any audit recommendations wefind still not addressed, resolved or mitigated after the Second Follow-Up Audit.Based on our Follow-Up Audits, we can state that County management substantiallyimplements our report recommendations on a timely basis. We attribute this levelof implementation to the reliability and usefulness of our audit findings andrecommendations. We also compliment County management in partnering with us inthis effort to be responsive.OC Internal Audit DepartmentApproved FY 11-12 Audit Plan and Risk AssessmentPage 3
FY 2011-12 Approved Audit PlanDEDICATION OF RESOURCES TO AUDIT-RELATED SERVICESBecause of retirements, budget cuts, loss of two positions and possible mandatory workfurloughs, our Audit Plan is now based on 14,100 direct audit hours to be provided bynine audit professionals and three Senior Audit Managers. This is a reduction of 1,600direct audit hours from our prior Audit Plans budgeted for 15,700 direct audit hours.Because of budget constraints, we no longer have any vacant auditor or administrativepositions. We are utilizing audit positions to perform our administrative duties such asbudgeting and human resources. The audit hours for the Director and Deputy Directorare not included in the above total while the time for the three Senior Audit Managers isadjusted to allow them time for administrative duties.Because of our budget and staffing constraints, we audit the areas that are assessed ahigh level of risk and limit the work to what realistically can be accomplished with thestaff resources available.Audit Plan hours are allocated to the audit areas as follows:Internal Control Audits (ICA):Financial Audits and Mandates (FAM):Revenue Generating Lease Audits (RGL):Information Technology Audits (IT):Control Self-Assessment (CSA – Time Permitting)Other Audit 8%22%0%9%100%* The plan allocates an additional 1,200 hours for audit activities such as staffingthe Fraud Hotline, tracking Cash Losses, administering data collection ofExternal Audit Activity, providing Technical Assistance to Departments onpractical internal control concepts and application, performing the Annual RiskAssessment, HIPAA Administration, and compiling and presenting AuditActivity Reports to the Board of Supervisors and Audit Oversight Committee.Included in the ICA, FAM, IT, and RGL categories are a total of 875 Reserved Hours torespond to Board requests for audit services. Our FY 11-12 Audit Plan is detailedbeginning on page 5.This year, we have audits in the Audit Plan that are designated as “Time Permitting orNext Audit Plan.” These audits are determined from our Risk Assessment and will beconsidered for inclusion in the subsequent year Audit Plan if not completed in the FY 1112 Audit Plan.OC Internal Audit DepartmentApproved FY 11-12 Audit Plan and Risk AssessmentPage 4
FY 2011-12 Approved Audit PlanOC INTERNAL AUDIT DEPARTMENTDETAILED FY 11-12 AUDIT PLANBudgetedHoursAudit Category and Audit NameINTERNAL CONTROL AUDITS (ICA)31% OF TOTAL AUDIT COVERAGEValidate, substantiate, and confirm the integrity and adequacy of critical internal controls toensure accurate, complete, proper and timely processing of County financial transactions;ensure County assets are adequately safeguarded from loss, waste, and abuse; evaluatecompliance with department and County policies; and evaluate process efficiency andeffectiveness.Cash Receipts & Receivables: Audits of cash handling, records and deposits processed inCAPS to ensure cash receipts are safeguarded, deposited and reconciled with Countyrecords; and to ensure accounts receivable and related billings are established timely; aremonitored by aging of accounts; and collection efforts and bad debt write‐offs are approvedwith management's authorization.1 Health Care Agency ‐ Integrated Audit of Medical Billing ‐ 47M (carry‐over from FY 10‐11)OC Community Resources (All Operations) ‐ 58M receipts; 26M receivables (time2permitting ‐ Note 2)3 John Wayne Airport ‐ 341M receipts; 13M receivables (time permitting ‐ Note 2)15000Fee‐Generated Revenues: Audits of department/agency fee studies and fee developmentprocesses, methodologies
O C B o a r d o f S u p e r v I s o r s’ 1st District - Janet Nguyen 2nd District - John M.W. M oorlach, Vice Chairman 3rd District - Bill Campbell, Chairman 4th District - Shawn Nelson 5th District - Patricia Bates Audit Plan and Risk Assessment FY 2011-12 ORANGE COUNTY 6 th Lar g est Count y in the USA
5th std books maharashtra board, fifth standard english medium maharashtra board, 5th std english book, 5th std english digest, 5th std english lessons, std v english book, 5th standard english guide maharashtra board, 5th standard english balbharti, 5th standard english
5th std books maharashtra board, fifth standard english medium maharashtra board, std 5th, 5th std book, 5th standard evs book, 5th standard evs 2, 5th std science book, 5th std evs 2
Table of Contents a. District 1 pg. 6 b. District 2 pg. 7 c. District 3 pg. 9 d. District 4 pg. 10 e. District 5 pg. 11 f. District 6 pg. 12 g. District 7 pg. 13 h. District 8 pg. 14 i. District 9 pg. 15 j. District 10 pg. 16 k. District 11 pg. 17 l. District 12 pg. 18 m. District 13 pg. 19 n. District 14 pg. 20
Nelson-Siegel-Svensson.Nelson-Siegel and Nelson-Siegel-Svensson models using Ordinary Least Squares after fixing the shape parameters to make the models linear models. A t-test conducted is conducted on the adjusted R2 of the two models and results showed that Nelson-Siegel-Svensson model fits better the yield curves of the Bank
Std. 5th Perfect Hindi Sulabhbharati Workbook (MH Board) Author: Target Publications Subject: Hindi Sulabhbharati Keywords: hindi sulabhbharati 5th, 5th std books maharashtra board, fifth standard english medium maharashtra board, 5th standard hindi workbook, 5th std hindi book, 5th std hindi lessons,
Title: Std. 5th Perfect English Balbharati Workbook, English Medium (MH Board) Author: Target Publications Subject: English Balbharati Keywords: 5th std books maharashtra board, fifth standard english medium maharashtra board, 5th std english book, 5th std english digest, 5th std english lessons, std v english book, 5th standard english guide maharashtra b
O C B o a r d o f S u p e r v I s o r s 1st District - Janet Nguyen 2nd District - John M.W. Moorlach 3rd District - Todd Spitzer 4th District - Shawn Ne lson, Chairman 5th District - Patricia Bates, Vice Chair Revised Audit Plan and Risk Assessment FY 2014-15 ORANGE COUNTY 6 th Lar g est Count y in the USA
Modern Approaches to Management *Separated Bureaucracy from Classical School. Lawal (2012) 1. Classical School of Management 2. Organic or Neo-Classical School (Human Relations and Behavioural Theories) 3. System and Contingency School 4. Dynamic Engagement Era * Agreed with Stoner et al. (2004) by Identifying New School (No. 4) Robbins and Coulter (2009) 1. Classical Approach 2. Quantitative .
