INTERNAL CONTROLS and UNCCHAPEL HILL Stan Koziol CPA

INTERNAL CONTROLS and UNC-CHAPEL HILL Stan Koziol, CPA

ADMINISTRATIVE OFFICE BUILDING (AOB)

INTERNAL CONTROLS BUNKER BELOW THE AOB

Internal Control is a n Process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

CATEGORIES n n n Effectiveness and efficiency of operations Reliability of financial reporting Compliance with applicable laws and regulations

TOPICS n Buzz Words & Phrases n Review Internal Control Initiatives

BUZZ WORDS & PHRASES n SOX Sarbanes-Oxley Act of 2002

SARBANES OXLEY ACT of 2002 n n Enacted on July 30, 2002 In Response to Major Corporate and Accounting Scandals Applies to Companies Registered with the SEC Does Not Apply to Not-For-Profit Entities

SARBANES OXLEY ACT of 2002

ENRON

WHO IS RESPOSIBLE ?

GET THE SHREDDER !

WHAT HAPPENED ?

BUZZ WORDS & PHRASES n n SOX NACUBO Advisory Report 2003 -3

BUZZ WORDS & PHRASES n n n SOX NACUBO Advisory Report 2003 -3 Guidance and Best Practices

BUZZ WORDS & PHRASES n n SOX NACUBO Advisory Report 2003 -3 Guidance and Best Practices Did You See Today’s Newspaper?

BUZZ WORDS & PHRASES n n n SOX NACUBO Advisory Report 2003 -3 Guidance and Best Practices Did You See Today’s Newspaper? Tone at the Top

BUZZ WORDS & PHRASES n n n SOX NACUBO Advisory Report 2003 -3 Guidance and Best Practices Did You See Today’s Newspaper? Tone at the Top Hotline / Whistle Blower

BUZZ WORDS & PHRASES n n n n SOX NACUBO Advisory Report 2003 -3 Guidance and Best Practices Did You See Today’s Newspaper? Tone at the Top Hotline Sub-Certification

BUZZ WORDS & PHRASES n n n n SOX NACUBO Advisory Report 2003 -3 Guidance and Best Practices Did You See Today’s Newspaper? Tone at the Top Hotline Sub-Certification Cascade Effect

CASCADE EFFECT n n Risk that some states will pass their own version of Sarbanes-Oxley for smaller, privately held companies and not-for-profits. AICPA formed the Special Committee on State Regulation.

UNC CHAPEL HILL INITIATIVES n Establish the “Tone at the Top”

UNC CHAPEL HILL INITIATIVES n n Establish the “Tone at the Top” Dedicate a Full Time Position

UNC CHAPEL HILL INITIATIVES n n n Establish the “Tone at the Top” Dedicate a Full Time Position Implement “Best Practices”

UNC CHAPEL HILL INITIATIVES n n Establish the “Tone at the Top” Dedicate a Full Time Position Implement “Best Practices” Ethics • New Ethics Statement • Applying Ethics to Your Job • Code of Conduct • Ethics Training

UNC CHAPEL HILL INITIATIVES n Hotline & Financial Controls Website

UNC CHAPEL HILL INITIATIVES n n Hotline & Financial Controls Website University Enterprise Risk Management Advisory Committee

UNC CHAPEL HILL INITIATIVES n n n Hotline & Internal Controls Website University Enterprise Risk Management Advisory Committee Internal Control Self Assessment

UNC CHAPEL HILL INITIATIVES n n Hotline & Internal Controls Website University Enterprise Risk Management Advisory Committee Internal Control Self Assessment Audit and Finance Committee Charter

UNC CHAPEL HILL INITIATIVES n n n Hotline & Internal Controls Website University Enterprise Risk Management Advisory Committee Internal Control Self Assessment Audit and Finance Committee Charter Enhanced Data Analysis

UNC CHAPEL HILL INITIATIVES n n n Hotline & Internal Controls Website University Enterprise Risk Management Advisory Committee Internal Control Self Assessment Audit and Finance Committee Charter Enhanced Data Analysis Sub-Certification

IN CONCLUSION n n n Integrity & Public Trust Positioned to be #1 Funding Attractive Bond Ratings Excellence in Financial Reporting Award from GFOA

SELF ASSESSMENTS n Thank you for all the suggestions!

SELF ASSESSMENTS n n Thank you for all the suggestions! Written disaster plan

SELF ASSESSMENTS n n n Thank you for all the suggestions! Written disaster plan Segregation of duties

SELF ASSESSMENTS n n Thank you for all the suggestions! Written disaster plan Segregation of duties Equipment inventory list

Internal Control is a n Process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

THANK YOU !