INTERNAL CONTROLS and UNCCHAPEL HILL

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INTERNAL CONTROLSandUNC-CHAPEL HILL
Stan Koziol, CPA
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ADMINISTRATIVE OFFICE BUILDING (AOB)

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INTERNAL CONTROLS BUNKER BELOW THE AOB
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Internal Control is a

• Process, effected by an entitys board of
  directors, management and other personnel,
  designed to provide reasonable assurance
  regarding the achievement of objectives in the
  following categories

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CATEGORIES

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

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TOPICS

• Buzz Words Phrases
• Review Internal Control Initiatives

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BUZZ WORDS PHRASES

• SOX
• Sarbanes-Oxley Act of 2002

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SARBANES OXLEY ACTof 2002

• 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

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SARBANES OXLEY ACTof 2002

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ENRON

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WHO IS RESPOSIBLE ?

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GET THE SHREDDER !

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WHAT HAPPENED ?

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BUZZ WORDS PHRASES

• SOX
• NACUBO Advisory Report 2003-3

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BUZZ WORDS PHRASES

• SOX
• NACUBO Advisory Report 2003-3
• Guidance and Best Practices

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BUZZ WORDS PHRASES

• SOX
• NACUBO Advisory Report 2003-3
• Guidance and Best Practices
• Did You See Todays Newspaper?

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BUZZ WORDS PHRASES

• SOX
• NACUBO Advisory Report 2003-3
• Guidance and Best Practices
• Did You See Todays Newspaper?
• Tone at the Top

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BUZZ WORDS PHRASES

• SOX
• NACUBO Advisory Report 2003-3
• Guidance and Best Practices
• Did You See Todays Newspaper?
• Tone at the Top
• Hotline / Whistle Blower

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BUZZ WORDS PHRASES

• SOX
• NACUBO Advisory Report 2003-3
• Guidance and Best Practices
• Did You See Todays Newspaper?
• Tone at the Top
• Hotline
• Sub-Certification

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BUZZ WORDS PHRASES

• SOX
• NACUBO Advisory Report 2003-3
• Guidance and Best Practices
• Did You See Todays Newspaper?
• Tone at the Top
• Hotline
• Sub-Certification
• Cascade Effect

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CASCADE EFFECT

• 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.

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UNC CHAPEL HILL INITIATIVES

• Establish the Tone at the Top

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UNC CHAPEL HILL INITIATIVES

• Establish the Tone at the Top
• Dedicate a Full Time Position

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UNC CHAPEL HILL INITIATIVES

• Establish the Tone at the Top
• Dedicate a Full Time Position
• Implement Best Practices

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UNC CHAPEL HILL INITIATIVES

• 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

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UNC CHAPEL HILL INITIATIVES

• Hotline Financial Controls Website

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UNC CHAPEL HILL INITIATIVES

• Hotline Financial Controls Website
• University Enterprise Risk Management Advisory
  Committee

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UNC CHAPEL HILL INITIATIVES

• Hotline Internal Controls Website
• University Enterprise Risk Management Advisory
  Committee
• Internal Control Self Assessment

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UNC CHAPEL HILL INITIATIVES

• Hotline Internal Controls Website
• University Enterprise Risk Management Advisory
  Committee
• Internal Control Self Assessment
• Audit and Finance Committee Charter

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UNC CHAPEL HILL INITIATIVES

• Hotline Internal Controls Website
• University Enterprise Risk Management Advisory
  Committee
• Internal Control Self Assessment
• Audit and Finance Committee Charter
• Enhanced Data Analysis

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UNC CHAPEL HILL INITIATIVES

• Hotline Internal Controls Website
• University Enterprise Risk Management Advisory
  Committee
• Internal Control Self Assessment
• Audit and Finance Committee Charter
• Enhanced Data Analysis
• Sub-Certification

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IN CONCLUSION

• Integrity Public Trust
• Positioned to be 1
• Funding
• Attractive Bond Ratings
• Excellence in Financial Reporting Award from GFOA

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SELF ASSESSMENTS

• Thank you for all the suggestions!

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SELF ASSESSMENTS

• Thank you for all the suggestions!
• Written disaster plan

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SELF ASSESSMENTS

• Thank you for all the suggestions!
• Written disaster plan
• Segregation of duties

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SELF ASSESSMENTS

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

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Internal Control is a

• Process, effected by an entitys board of
  directors, management and other personnel,
  designed to provide reasonable assurance
  regarding the achievement of objectives in the
  following categories

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THANK YOU !