Title: STATE AGENCY INTERNAL AUDIT FORUM SAIAF Background
1STATE AGENCY INTERNAL AUDIT FORUMSAIAF
Background HistoryJune 20, 2003
- Dave MacCabe
- Teacher Retirement System
2SAIAF History
- Great example of the IIAs theme of progress
through sharing - Provide more effective internal audit services
to - -- state agency management
- -- Board members
- -- clients/constituents/taxpayers/public
- -- oversight agencies
3SAIAF History
- Accountability, integrity, and governance
- Barbara JordanPublic service as a calling
- Sharing of information, ideas, perspectives
- IA profession transformation from a job to a
profession
4SAIAF History
- Product of the Governors MBO Task Force
(predecessor to State Agency Coordinating
Committee) - Internal Audit Subcommittee (Jan 1983)
- Met the need for state agency internal auditors
to share information and ideas - Originally 12 agencies represented now more than
50 agencies
5SAIAF Founding Agencies
- Corrections/Criminal Justice
- Education
- Employment/Workforce
- Health
- Highways Public Transportation
- Human Resources/Human Services
6SAIAF Founding Agencies (Continued)
- Mental Health Mental Retardation
- Parks Wildlife
- Public Safety
- Rehabilitation
- Water Resources/Water Development/
- Environmental Quality
- Youth
7SAIAF History
- Questionnaire Survey (Feb 1983) on state agency
IA organizations - -- Auditor experience
- -- Training
- -- Procedures
- -- Methodologies
- Results reported to SACC (Apr 1983)
8SAIAF History
- Different world of internal auditing (1983)
- -- First CIA exam held 9 years before
- -- IIA Standards (Brown Book) only 5 years old
- -- Austin IIA Chapter was 4 years old
- -- Few state agencies had internal audit
functions - -- Governor Clements operational audits program
- -- Texas Internal Auditing Act did not exist
9Position Statement on Internal Auditing
- Developed by Internal Audit Subcommittee
- Approved by SACC (May 12, 1983)
- 13 points
- Beginning of a new day for Texas state agency
internal auditing
10Position Statement on Internal Auditing
- IA is a management tool
- Report to executive management
- Audit charter
- Audit policies and procedures
- Applicable auditing standards
11Position Statement on Internal Auditing(Continued
)
- Continuing professional development
- Annual audit plans and audit programs
- Audit coverage (financial, compliance, and
operational audits) - Auditor/auditee relationships
12Position Statement on Internal Auditing(Continued
)
- Liaison with external audit groups
- Sharing of audit programs, policies, procedures,
and experiences - Certified Internal Auditor Program
- Chief Internal Auditor meeting
13SAIAF HistoryKey Events
- Governor Whites Proclamation on
- Internal Auditing Week (May 1983)
- Meeting of IA Directors (Jun 1983)
- Renewed interest from SACC (Mar 1984)
- Governors Office interest in the IA function and
Board Audit Committees - (May 1984)
14SAIAF HistoryKey Events
- SAIAF organizational meeting held
- (May 1984) at remote TYC facility
- 9 of 14 SACC agencies represented
- Discussed organization, mission, and established
three primary goals - -- professional development
- -- auditor classification/career ladder
- -- education/marketing
15SAIAF HistoryKey Events
- SACC approved the SAIAF organization, mission,
and goals (July 1984) - SACC reaffirmed the Position Statement on
Internal Auditing (July 1984) - Journal article on SAIAF formation and purpose
appeared in the Internal Auditor (Jun 1985)
16SAIAF HistoryCharter Members
- Bill Mikulencak, Public Safety
- Bill Montalvo, MHMR
- Dave MacCabe, Rehabilitation
- Don Cox, Health
- Ed Grant, Human Resources
- Ed Randall, Education
- Farland Bundy Owen Whitworth,
- Highways Public Transportation
17SAIAF HistoryCharter Members
- Jeff Marshall, Parks Wildlife
- Jim Cannedy, TYC
- Marc Korb, Employment
- Michael Doggett, Corrections
- Natalie Sanchez, Community Affairs
- Richard Feldman, Purchasing General Services
- Robert Cranshaw, Water Resources
18SAIAF HistoryOther Key Business Partners
- George McNeil, SAO
- Larry Alwin, SAO
- Walter ODell, Governors Office
- Herschel Meriwether, Governors Office
- Mart Hoffman, TYC
- Urton Anderson, UT Austin
- Shannon Bieberdorf, SAO
19SAIAF History1980s
- Internal Auditor article (1985)
- Governor Whites Board orientation
- C. Aubrey Smith Center for IA _at_ UT
- Gov. Clements Executive Order (1987)
- SAO Statewide Report on IA (1988)
- House Speakers Task Force
20SAIAF History1980s
- Governors Task Force on Accounting, Auditing,
Financial Reporting - SAO Internal Policy Statement on IA
- SAO/SAIAF training partnership
- Texas Internal Auditing Act (1989)
- AG Opinion re Texas IA Act (1990)
21SAIAF History1991
- SAO Statewide Review of Internal Auditing
- TPR studied statewide IA functions
- Texas Internal Auditing Act amended
- First SAIAF peer review done at TYC
- SAO Appointed first Internal Audit Coordinator
(Carol Noble)
22SAIAF HistoryEarly to Mid 1990s
- First Texas State IA Conference held
- Small Audit Shop Committee formed
- SAO issued A Report on Evaluating the
Effectiveness of Internal Audit (1994) - SAIAF peer review emphasis/ ground rules
- SAIAF Bylaws passed
- More SAO reports on IA (1997-1998)
23SAIAF HistoryLate 1990s to present
- Continued growth in auditor education courses
offered through SAO - Bylaws revised
- Provided input to IIA HQ on proposed changes to
Standards and IA definition - Revised Peer Review Master Audit Program
24SAIAF HistoryLate 1990s to present
- IIAs Professional Practices Framework
- Collective Wisdom/ Progress through Sharing
- Communication and other issues with SAO healthy
partnership - Input on revision to Texas IA Act
- Revising Peer Review Audit Program
- Working together to achieve common goals
25SAIAF HistoryProfessional Development
- Formed SAO/SAIAF Training Committee to identify
professional development needs - SAO began providing training opportunities for
state agency auditors (1980s) - SAOs External Education Services (EES) now
provides more than 50 auditor training
opportunities per year
26SAIAF HistoryQuality Assurance Reviews
- Developed process and procedures for conducting
peer reviews - Based on IIA Standards and Government Auditing
Standards - Enhanced in September 2000 with publication of
Peer Review Master Audit Program - Now undergoing further revision to incorporate
IIAs Professional Practices framework
27SAIAF HistorySAO Relationship
- Strong, solid, healthy but sometimes rocky
- Mutual respect despite some differences
- Communications issues
- Important business partnership for the benefit of
SAO and the state agencies - Need each other to function more effectively
28SAIAF HistoryOther Initiatives
- Provided input on auditor classification titles
and descriptions - Worked with the IIA Austin Chapter in sponsoring
Texas Internal Audit Week - Input to Legislature on proposed revisions of
Texas Internal Auditing Act - Input to the IIA on proposed changes to the
Standards
29SAIAF HistoryChairpersons
- David MacCabe, Rehabilitation, 1984-1985
- Michael Doggett, Corrections, 1985-1986
- Michael Sheridan, Employment, 1986-1987
- Jim Cannedy, Youth, 1987-1988
- Owen Whitworth, Transportation, 1988-1989
- Royce Bennett, Human Services, 1989-1990
- Patricia Todd, Purchasing General Svcs,
1990-1991
30SAIAF HistoryChairpersons
- Gerald Cates, Human Services, 1991-1992
- Chuck Lyon, Human Services, 1992-1993
- Owen Whitworth, Transportation, 1993-1994
- Kemp Long, Parks Wildlife, 1994-1996
- Gary Brinkley, Railroad, 1996-1998
- Catherine Melvin, Governors Office, 1998-2000
- Fran Carr, Workforce, 2000-2002
- Susan Driver, Comptrollers Office, 2002-present
31SAIAF HistorySAO IA Coordinators
- Carol Noble
- Leslie Ashton
- Larry Vinyard
- Scottie Killingsworth
- Dorothy Turner
32Questions
33Contact Information
- David J. MacCabe, CIA
- Director, Internal Audit
- Teacher Retirement System
- 1000 Red River Street
- Austin, Texas 78701
- Phone (512) 542-6559
- Fax (512) 542-6426
-
- E-mail
- david.maccabe_at_trs.state.tx.us