STATE AGENCY INTERNAL AUDIT FORUM SAIAF Background

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STATE AGENCY INTERNAL AUDIT FORUMSAIAF
Background HistoryJune 20, 2003

• Dave MacCabe
• Teacher Retirement System

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SAIAF 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

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SAIAF 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

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SAIAF 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

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SAIAF Founding Agencies

• Corrections/Criminal Justice
• Education
• Employment/Workforce
• Health
• Highways Public Transportation
• Human Resources/Human Services

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SAIAF Founding Agencies (Continued)

• Mental Health Mental Retardation
• Parks Wildlife
• Public Safety
• Rehabilitation
• Water Resources/Water Development/
• Environmental Quality
• Youth

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SAIAF History

• Questionnaire Survey (Feb 1983) on state agency
  IA organizations
• -- Auditor experience
• -- Training
• -- Procedures
• -- Methodologies
• Results reported to SACC (Apr 1983)

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SAIAF 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

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Position 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

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Position Statement on Internal Auditing

• IA is a management tool
• Report to executive management
• Audit charter
• Audit policies and procedures
• Applicable auditing standards

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Position Statement on Internal Auditing(Continued
)

• Continuing professional development
• Annual audit plans and audit programs
• Audit coverage (financial, compliance, and
  operational audits)
• Auditor/auditee relationships

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Position 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

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SAIAF 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)

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SAIAF 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

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SAIAF 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)

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SAIAF 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

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SAIAF 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

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SAIAF 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

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SAIAF 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

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SAIAF 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)

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SAIAF 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)

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SAIAF 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)

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SAIAF 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

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SAIAF 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

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SAIAF 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

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SAIAF 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

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SAIAF 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

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SAIAF 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

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SAIAF 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

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SAIAF 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

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SAIAF HistorySAO IA Coordinators

• Carol Noble
• Leslie Ashton
• Larry Vinyard
• Scottie Killingsworth
• Dorothy Turner

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Questions
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Contact Information

• David J. MacCabe, CIA
• Director, Internal Audit
• Teacher Retirement System
• 1000 Red River Street
• Austin, Texas 78701
• Phone [phone]
• Fax [phone]
• E-mail
• david.maccabe_at_trs.state.tx.us