Florida Board of Governors
The Value of an Effective
Compliance Program
November 3, 2010
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Value of an Effective Compliance Program
Measuring Success
Why Measure Compliance?
 Increased
Scrutiny on Boards and Governance
Effort
 Proliferation
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of Laws and Regulations
 Increased
Fines/Penalties for Noncompliance
 Increasing
Complex Environments/New Threats
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Value of an Effective Compliance Program
Measuring Success
Audits by Third Parties
Survey of Board Effectiveness
External Quality Assessments of Compliance
Program – Institute of Internal Auditors
 Develop and maintain a quality assurance and
improvement program
 Periodic assessments, ongoing monitoring,
and compliance assurance
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Value of an Effective Compliance Program
Value Proposition
Robust Compliance Program = Internal Controls
to ensure Compliance with laws and regulations
Promotes efficient and collaborative compliance
activities
Minimizes instances of noncompliance
Reduced fines/penalties if instances of
noncompliance are detected
Early identification of systemic compliance issues
Enterprise view of compliance
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Establishing a Framework for
Identifying Adverse
Trends
Develop Summary of Lessons Learned and Risk
Issues
Develop A Dashboard of Early Indicators
 Identify
and report high risk areas, audit trends
and University financial trends to the Board of
Governors
 Recommendations that allow management to
benchmark and monitor and mitigate shared risks system wide
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Trend Analysis – Example
Findings by State University
Schedule of Expenditures of Federal Awards
Student Financial Aid Cluster
18
Research & Development Center
16
Special Education - Grants for Infants & Families
with Disabilities
14
Temporary Assistance for Needy Families
12
Totals
10
8
6
Number of
Material Findings
4
2
0
FAMU
#1
6
FAU
#2
FGCU
#3
FIU
#4
FSU
#5
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NCF
#6
UCF
#7 UF
#8
UNF
#9
USF
#10
UWF
#11
Trend Analysis - Example
A133 Audit Issues
Findings By State Universities in Florida
(Source AG A133 Audit for 6/30/xx "Index of Findings by State Universities and Community Colleges." )
University
Finding Type
Schedule of
Expenditures of Federal
Awards
Student Financial Aid
Cluster
Research &
Development Center
1
2
3
1
1
12
2
4
1
4
5
6
7
8
1
4
9
0
1
6
1
2
1
1
1
7
17
25%
4
6%
4
9
2
1
6% 13%
3%
1%
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7%
41
59%
5
2
1
20
29%
1
1
2
3%
1
1
1%
100%
4
8
5
3
1
6
Temporary Assistance
for Needy Families
Totals
Totals
1
4
Special Education Grants for Infants &
Families with
Disabilities
11
8
6
6
4
69
12% 12%
9%
9%
6%
100%
Value of an Effective Compliance Program
The Next Level:
Enterprise Risk Management
Managing Risk Before It Manages You
Provide reasonable assurance that potentially
significant risks have been identified
Strategic level objectives linked to controls
Key decisions are being made with the evaluation
of risk/reward tradeoffs
Risks are managed on an aggregate basis
Individual universities across the system are
managing risks in the same manner
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Thank You!
Contact Information
Thomas M. King CPA
Vice President – Florida Market Leader
(904) 208-5660
[email protected]
Thank You!
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