Backup Documents 09/09/2014 Item #15 ` 15 c.52—'
s OchsLeo
From: OchsLeo
Sent: Tuesday, May 07, 2013 5:09 PM
To: HillerGeorgia; Dwight E. Brock
Cc: Crystal K. Kinzel; IsacksonMark
Subject: FW: Internal Audit Protocols
Importance: • High
Commissioner Hiller and Mr. Brock,
Please find attached my suggested protocol for the process and presentation of internal audits for my agency. I would
welcome your review and suggestions so we may move forward in an effective and efficient manner. I know the Clerk is
anxious to get the two audits that were continued pending an agreement on a protocol back on the agenda for the 5/28
meeting. I will make myself available at your convenience to review and discuss. Thanks.
VR,
Leo
d t9-a
Internal Audit
Protocols.docx
Under Florida Law,e-mail addresses are public records.If you do not want your e-mail address released in response to a public records request,do not send
electronic mail to this entity.Instead,contact this office by telephone or in writing.
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Suggested Internal Audit Protocols
Annual Work Plan (Internal Audit (IA) to Board)
• Requests for audit topics from Board and staff
• Prepare and publish
• Should be risk-based (proposed audits prioritized)
• Leave time for unscheduled audits TBD as needed
Engagement Letter (IA to department director and/or division administrator)
• Objectives of the audit
• Scope of the audit including time period to be reviewed/sampled
• Initial dates on site, including kickoff meeting
• Documentation required for the audit to commence
Kickoff Meeting or Entrance Interview with department to be audited
• Review general scope of and reason for audit
o Objectives
o Methodology
o Level of staff support anticipated
o Preliminary list of documents to ready for review during initial field work
o Points of contact (lead staff liaison and lead auditor)
Conduct Audit
• Report unexpected areas of major concern to director and/or administrator
• Report significant changes in scope to director and/or administrator
• Rate the findings (or perhaps overall audit) on a 1-3 or 1-4 scale as:
1. Controls operating as intended
2. Controls generally operating as intended with some observations for
improvement
3. Controls with significant failures
4. No controls/material failures with large fiscal impacts; or
ALTERNATIVE TO 1-4: GREEN RED ratings with GREEN being
where performance meets or exceeds requirements, requiring
moderate improvement to meet standards and RED requiring significant
improvements to meet standards.
Conduct Exit Interview with Director and/or Administrator to discuss initial
observations, potential audit findings and prospective recommendations.
Present Draft Report within a reasonable timeframe (within 60 days of
engagement)
• Review draft with Director and/or Administrator
• Discussion ( IA and department) re potential effectiveness of proposed
corrective actions
• Responses/corrective measures developed by audited department
• Provide ample time for written management response to the draft report (10-15
business days)
15 Q52--
IA releases final audit 2 weeks prior to presenting to BCC. IA reviews presentation
with department prior to BCC presentation.
BCC Presentation
• IA presents findings on regular agenda for IA's rated 3 or 4(see above).
• Department presents corrective actions (planned and already implemented)
• Follow up time frame agreed to by BCC, IA, Department
• IA's rated 1 or 2 placed on consent agenda(can be moved to regular if desired
by individual commissioner).
Follow-Up
• Department develops and implements corrective actions
• Department self evaluates and submits report/data to Internal Audit per agreed
upon timeframe
• IA reviews and shares with Clerk of Courts
• Clerk of Courts determines whether to re-audit any/all internal findings and
notifies management of any impending actions
• IA issues follow up opinion , which could include department continuing to
provide evidence of correction being sustained or further improved upon
• If re-audit is elected, schedule for return visits and new audit plan is developed
• Possible annual report to the Board on follow up actions regarding each audit
5/6/13
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• RECEIV �
C(9llllt of Collier Office of the County Manager
CLERK OF THE CIRCUIT COURT AUG 2 0 2011)
COLLIER COUNTY COU1VHOUSE Action
3299 TAMIAMI TRL E STE 403 Dwight E.Brock-Clerkof Circuit Court P.U.BOX 413044
NAPLES,FL 34112-5324 ;f NAPLES,FL 34101-3044
Clerk of Courts • Comptroller • Auditor•Cu1 tddian of County Funds
August 20,2014
Collier County Board of County Commissioners HAND DELIVERED
Leo Ochs,County Manager
Jeff Klatzkow,County Attorney
_Re: _:Request for suggestions on areas for Internal Audit Plan in Fiscal Year(FY)2015
Dear Commissioners,Mr.Ochs and Mr.Klatzkow;
• The Clerk's Office is currently drafting an Internal Audit Plan for FY 2015. While there are audits
currently in progress that will carry over into FY 2015,we encourage and appreciate your suggestions on
other areas or departments you believe may require a prioritized status. As resources are available, we
will begin new audits and/or reviews.
Feel free to suggest as many areas or topics as you deem necessary; however, please indicate the level of
concern or interest by focusing on areas which you consider to pose the highest potential risk or
likelihood of misappropriation or theft of County assets, internal control weaknesses, or fraud. The
Internal Audit Department is committed to assisting the County in continuously improving the control
environment throughout the County. Our desire is to continue to build healthy relationships with County
staff that will continue to promote open communication with our department.
We would like to have your response and suggestions by the close of business on Friday,
September 5, 2014. If you do not have any suggestions please indicate this in a written response. In the
meantime, should you wish to discuss this matter further, please feel free to call me directly at
239-252-2283.
Very truly.yours;
fit/4-
ames D. Mol naar, Esq.
Internal Audit Manager •
Clerk of the Circuit Court
JDM/jdm
Cc: Hon.Dwight E.Brock
Crystal K.Kinzel,Director of Finance and Accounting
•
Phone-(239)252-2283 Fax-(239)252-2074
Website-www.CollierClerk.com Email-James.Molenaar�nicollierclerkcom
, .
15S '61/
1
Office of the County Manager
°`, Leo E nom Ochs, Jr.
rq f(tJkl\l h'.
= ."' 3299 Tamiami Trail East,Suite 202•Naples Florida 34112-5746•(239)252-8383•FAX:(239)252-4010
September 5, 2014
Mr. James D. Molenaar, Esquire
Internal Audit Manager
Clerk of the Circuit Court
3299 Tamiami Trail East
Suite 403
Naples FL 34112
Dear Mr. Molenaar,
Thank you for the invitation to make suggestions regarding the focus of potential internal audits
for FY 2015. The Clerk's commitment to fiscal integrity and safeguarding public funds is
appreciated,recognized and shared. At this time,there are no specific audit recommendations
from the County Manager's Agency. My staff and I look forward to working with your team to _
successfully conclude those internal audits that are currently outstanding, as well as those
scheduled for FY 15.
With that objective in mind, I respectfully request you consider adopting a formal internal audit
protocol document that clearly outlines the process and milestones associated with most
engagements, if you have not already done so. In furtherance of this suggestion, I have enclosed
a draft internal audit protocol document that was originally emailed to Commissioner Hiller and
Mr. Brock last year. I am uncertain as to the disposition of this suggestion and would welcome
an opportunity to further discuss its viability at your earliest convenience.
Thanks again for the opportunity for input. I look forward to your call.
Sincerely,
-f__ 2_,:n. 0. ,
Leo E. Ochs, Jr. _
County Manager .
CC: Commissioner Georgia Hiller, Esquire ✓
Dwight E. Brock, Clerk of the Circuit Court