Educating Managers in Internal Controls

1
Educating Managers in Internal Controls

• Third Annual Internal Control Conference
• New York State Internal Control Association

2
Objectives of Session

• Background on Training
• Segmentation Frequency of Training
• Training Methodologies
• Effective Elements of Training
• Learning Objectives Possible Topics
• Resources Available
• Document Training Efforts

3
Background

• Internal Control Task Force Report Sept. 2006
• Report of the Workgroup on Education Training
  (http//www.osc.state.ny.us/agencies/ictf/index.ht
  m, pages 33-43)
• Workgroup charge provide guidance on the
  development of an ongoing education and training
  plan to assist agencies in complying with the
  training provisions of the Internal Control Act
• Implement education and training efforts to
  ensure that officers and employees have achieved
  adequate awareness and understanding of internal
  control standards and, as appropriate, evaluation
  techniques

4
Segmenting Training

• Three distinct groups
• Executive
• Middle Management
• Line Staff
• Training curricula specific to target audience to
  achieve optimum benefits (know your audience!)

5
Frequency of Training

• Dependent on the segment and the method of
  training
• Quick Hit Method
• For all target levels
• Brief in nature to promote general awareness
• E-mails, newsletters, pamphlets
• Instruction-Based Education
• Similar to todays training
• Once every 2 years for mid-managers and line
  staff
• Annually for executives

6
Training Methodologies

• Instruction-based Education
• Classroom training
• Web-based training
• Facilitated forums
• Advantages Disadvantages to each type of
  training

7
Elements of Effective Training

• Tailored to segmented group or specific function
• Use pertinent examples
• Keep it short
• Demonstrate a passion for internal controls
• Add lots of impact
• Add some humor
• Make it interactive
• Use a external expert if necessary

8
Learning Objectives

• Basic components of sound internal control
  program i.e COSO
• Techniques for evaluating internal controls, risk
• Promoting internal control awareness, employees
  responsibilities for internal controls
• Heighten sense of professional ethics,
  recognizing potential for questionable dealings

9
Learning Objectives

• Appendix in the Internal Control Education and
  Training guide suggests learning objectives by
  segments
• Middle managers segment has the broadest range
  of topics

10
Possible Topics

• Understanding the difference between, and how to
  conduct
• vulnerability assessment
• internal control reviews
• internal audits
• management testing internal controls.
• How to document internal controls
• Process flowcharts
• Narratives

11
Possible Topics

• States Internal Control Act DOB Item B-350
• Standards for Internal Controls in NYS (OSC)
• Definitions
• Fraud prevention awareness
• Communication
• Specific training on compliance matters

12
Resources Available

• NYSICAs web site www.nysica.com
• OSCs web site for outreach training -
  www.osc.state.ny.us/agencies/outreach/index.htm
• Network with other State Agencies

13
Document Training

• Agencys internal control program should address
  its policy and expectation for internal control
  education training
• Mandatory vs. voluntary participation
  attendance
• Publish schedule of training events topics
• Attendance records, web-site hits
• Orientation for new employees