Annual Internal Audit Plan for 2019-2020
Overview
Dallas College Internal Audit conducts risk-based assurance engagements and investigations. The risk-based assurance engagement is an objective examination of evidence to provide an independent assessment of governance, risk management, programmatic effectiveness and the control systems within the College.
Additionally, as may be necessary by events occurring during any fiscal year, investigations are performed based upon requests received from key College management personnel and as may be necessary in response to a complaint or concern raised via the College's Fraud Hotline.
Risk Assessment Process
Internal Audit utilized a survey process to solicit feedback from the Board of Trustees, Senior Management and the College Leadership Teams to develop this annual Audit Plan.
The survey collected information based upon the Dallas College Strategic Priorities as to the Mission of the College (Engagement and Impact Categories and Thematic Priorities); and considered the impact of Individuals, Communities, Employers, Organizations, Student Success, Employee Success, Community Engagement, Institutional Effectiveness on each of the following Dallas College Strategic Priorities:
Impact Income Disparity Throughout our Community
- Target underserved communities and individuals with outreach strategies aligned with cultural contexts
- Demonstrate the necessity and value of Dallas College education for living wages and careers
- Provide education and scholarship support for skills development for high demand jobs including short-term training options leading to longer term career development
- Strengthen the education pipeline through engagement with parents and students as well as through partnerships with school districts, community organizations, universities, and employers
Streamline Navigation to and Through Our System and Beyond
- Design and implement student-centric guided pathways linking K-12, Dallas College, universities, and employers
- Create consistency in information and processes
- Remove barriers to participation and persistence
Implement the Integrated Higher Education Network
- Invest in technology and software support
- Redesign and staff organizational structures to support the network
- Remove barriers to network deployment including assessing short-term and long-term facilities' needs
- Reward performance within the network at the individual and organizational level
Serve as the Primary Provider in the Talent Supply Chain Throughout the Region
- Align with business and industry workforce requirements
- Support development, expansion and relocation of small, medium and large businesses
- Respond nimbly to skills gaps
Create a Diverse and Inclusive High-Performing Work and Learning Environment Leading to Employee and Student Success
- Attract, develop, and retain a high-quality staff that reflects the communities we serve
- Develop and implement a diversity and inclusion strategic plan
- Design and initiate higher education guided career pathways programs for faculty, staff and administrators
- Review and revise the employee evaluation system to incorporate best practices in feedback and recognition throughout the year
Each survey respondent then had the opportunity to evaluate risk based upon the following (applicable) areas:
Operational:
Code of Conduct, College Policy Compliance, Fixed Asset Control, Injury, Illness, Protection Plan, Litigation Management, Physical Security, Records Management, Regulatory Compliance, Reputation Risk, Risk Management/Loss Prevention, Constituency Relations, College Governance
Revenue:
Tuition Revenue, Cashiering Function, Billing Function, Accounts Receivable, Cash Receipts/Applications, Credit Collection/Bad Debts, Revenue Recognition
Expenditure:
Accounts Payable/Cash Disbursements, Capital Assets, Facilities Leases, Purchasing/Purchase Order, Receiving, Time and Expense Reporting, Travel Expense
Treasury/Investments:
Cash Management, Investment Management, Financing Arrangements, Regulatory Compliance
Budgeting/Forecasting:
General Ledger Closing, Management Reporting/MIS, Contracts and Grants Accounting
Information Technology (Campus Computing):
Application/Database Management, Business Continuity Planning, Data Privacy and Security, Key Business Application Management, Network Management, Project Management, System Strategy/Planning, Software Purchasing, Software Licenses
Payroll/Personnel:
Compensation & Benefits Management, Employee Evaluation/Satisfaction Monitoring, Employee Records Management, Payroll Processing, Talent Recruitment/Retention, Training
Other:
Student Financial Aid, Facilities Management, Public Safety and Security, Student Information Privacy and Security, Marketing Communications & Public Information, Institutional Research
Core Audit Plan
Dallas College Internal Audit has identified certain critical areas for inclusion in the Core Audit Plan to ensure that adequate coverage is provided over a reasonable time. The critical areas for Core Audit Plan inclusion are:
- Colleges
- College Operations
- Grants (Audits and Compliance Monitoring)
- Financial Management
- Information Security & Technology
- Student Services
Fiscal Year 2019-20 Audit Plan
The 2019-20 Audit Plan focuses on delivering value to Dallas College with an emphasis on the following risk areas: strategic, operational, programmatic, financial, compliance and IT. If new topics emerge during the Audit Plan period that require more immediate attention, reconfiguration of the plan can be undertaken to accommodate these changes. Dallas College Internal Audit’s goal is to complete 85 percent of the Audit Plan. As each audit is undertaken, risks will be re-evaluated to ensure proper audit coverage with due consideration given to confidentiality, integrity, and availability.
Dallas College Internal Audit utilizes numerous electronic information systems (e.g., document images, financial, data analytics warehouses) in the performance of our audit projects.
| Planned Engagement | Overview | Risk Area |
|---|---|---|
| Grant Compliance Monitoring | Dedicated resource performing ongoing monitoring of Grants for compliance with grant regulations and provisions and College policies and procedures so management can take proactive corrective action. | Grants |
| Physical Assets Inventory Observation | Observe and test physical inventory and procedures pertaining to changes in inventory records. | Financial |
| Cash Counts | Review and test control over cash on hand accounts and Compliance with business procedures. (Unannounced) | Financial |
| Richland Collegiate High School | Audit for compliance with Texas Education Agency attendance verification requirements. | Student Services |
| Information Technology General Controls - Locations | Audit for general controls and environment of the information technology operations at College Locations. | Information Security - Technology |
| Non-Teaching Stipends | Audit for compliance with College policies and procedures. | Financial |
| Tax Sheltered Annuities Contributions | Audit for compliance with IRS Regulations as to the maximum allowable contributions. | Financial |
| Day Teaching Non-Faculty Employees | Audit of expenditures and compliance with College policies and procedures. | Financial |
| Dallas County Promise | Audit of eligibility of student and compliance with College policies and procedures. | Student Services |
| Military-Connected Services | Audit for compliance with Veterans Affairs Regulations and College policies and procedures. Review will include the timeliness of the application of funds received and training of College personnel. | Financial and Student Services |
| Student Travel | Audit for compliance with College policies and procedures regarding student travel trips and expenditures. | Financial and Student Services |
| Athletics | Audit of expenditures and compliance with Athletics organizations and College policies and procedures. | Financial and Student Services |
Grants - United States Department of Education (USDE) Texas Higher Education Coordinating Board (THECB)
| Planned Engagement | Overview | Risk Area |
|---|---|---|
| Brookhaven College | USDE Grant: HSI Title V (15-20) - Audit for compliance with grant regulations and provisions and College policies and procedures. | Compliance - Financial |
| Cedar Valley College | USDE Grant: STEM (P382A150037) – Audit for compliance with grant regulations and provisions and College policies and procedures. | Compliance - Financial |
| Eastfield College | USDE Grant: HSI C-STEM (P031C160113) - Audit for compliance with grant regulations and provisions and College policies and procedures. | Compliance - Financial |
| El Centro College | USDE Grant: HSI STEM IPSS (P031C160035) - Audit for compliance with grant regulations and provisions and College policies and procedures. | Compliance - Financial |
| Mountain View College | USDE Grant: HSI Bilingual Education Center (P031S170019) - Audit for compliance with grant regulations and provisions and College policies and procedures. | Compliance - Financial |
| North Lake College | USDE Grant: TRIO SSS (P042A161469) - Audit for compliance with grant regulations and provisions and College policies and procedures. | Compliance - Financial |
| Richland College | USDE Grant TRIO Upward Bound (P047A171489) - Audit for compliance with grant regulations and provisions and College policies and procedures. | Compliance - Financial |
| District Office | THCEB Grant CB/College Readiness & Success Models (Grant#17431, 19074) - Audit for compliance with grant regulations and provisions and College policies and procedures. | Compliance - Financial |
| District Office | USDE Grant Adult Education and Literacy (Divisions #536082, 536083, 586084) - Audit for compliance with grant regulations and provisions and College policies and procedures. | Compliance - Financial |
Special Projects and Annual Audit Activities
| Activity | Overview |
|---|---|
| Special Projects | Investigate fraud, waste, and abuse allegations. |
| Audit Follow-up | Review status of implementation of prior and outstanding audit recommendations and management corrective action plans. |
| External Audit Coordination/ Work | Manage and serve as the liaison for all external audit services including contracted and regulatory-imposed audits. Perform audit work under the direction of the external auditors as requested. |
| Quality Assurance | Dallas College Internal Audit will undergo an internal mid-year review of its Quality Assurance and Improvement program to assess operations and practices with applicable standards. Additional effort will go into internal assessment to ensure the most effective and efficient procedures are in place and identify means of improving overall performance. |
Performance Audits and Operational Reviews (also known as Management Advisory Reviews)
On August 6, 2019, the Board of Trustees approved the annual Dallas College Fiscal Budget for 2019-20. The approved budget included the addition of up to two full-time equivalents within the Internal Audit Department. Upon hiring of the Chief Internal Auditor, these positions will be recruited and hired, and the following areas are potential opportunities to expand the Internal Audit group into the performance of additional management advisory reviews. These areas are subject to further review and modification by the Dallas College Senior Leadership team and the Chief Internal Auditor.
Audit Resources
The Audit Plan for fiscal year 2019-20 is based on professional staffing of 5 full-time equivalents (FTEs) - Chief Internal Auditor (open position), Assistant Director (currently serving as the Chief, Interim Internal Auditor), 2 Internal Auditors and a Grant Compliance Monitor.
Approximately 75 percent of Dallas College Internal Audit’s available resources are committed to the completion of planned audit projects and investigations.
Dallas College Internal Audit conducts follow-up audit procedures throughout the year to ensure that management is implementing controls as described within their responses to audit report recommendations.
| Planned Engagement | Overview | Risk Area |
|---|---|---|
| Bond Program (2019 - $1.1 Billion) | The purpose of this ongoing review will be to report on the financial/operational status and compliance of the Bond issuance program. | Financial - Compliance |
| Marketing and Communications | The purpose of this review will be to evaluate the efficiency and effectiveness of the Marketing and Communications activities within Dallas College against the stated goals and strategies of the College. | College Operations |
| Innovation – Security Assessments | The purpose of this review will be to evaluate the efficiency and effectiveness of the security assessment process currently implemented at Dallas College. The review will also evaluate the information standards and procedures for compliance with State of Texas laws and regulations. | Information Security -Technology & Compliance |
| Dallas County Promise | The purpose of this review will be to evaluate the controls and effectiveness of the platforms that collect and share data for the organizations in this cohort by reviewing/recommending the data security assessments. | Information Technology |
| Student Information Privacy & Security | The purpose of this review will be to evaluate the controls ensuring compliance with Laws, Regulations and College policies. | Compliance |
| Achieving the Dream | The purpose of this review will be to evaluate the efficiency and effectiveness of the Achieving the Dream movement within Dallas College. | Student Services |
| Level Up | The purpose of this review will be to evaluate the efficiency and effectiveness of the Level Up movement within Dallas College | Student Services |
| Cyber Security Contracts | The purpose of this review will be to evaluate the efficiency and effectiveness of the cybersecurity contracts/vendors currently in place at Dallas College. | Information Security - Technology |
| GRANTS (additional) | The purpose of these reviews will be to evaluate the efficiency and effectiveness of grant controls for compliance with grant regulations and provisions and College policies and procedures. | Grants |
| New Systems Implementation | The purpose of these reviews will be to evaluate the efficiency and effective of controls of new systems being implemented at Dallas College prior to go-live. | Information Security - Technology |
| Student Clubs | The purpose of these reviews will be to evaluate the efficiency and effective of controls over student club organizations at Dallas College. | Student Services |
Audit resources are allocated as follows:
- 53% of the Dallas College Internal Audit’s available resource days are committed to the completion of planned audit projects and follow-up audit procedures.
- 10% to accommodate requests from management and consultations with Dallas College Departments and Colleges.
- 10% to conduct investigations into fraud, waste, and abuse allegations.
- 10% for employee professional development, internal quality improvement projects, and other internal administrative functions.
- 17% for compensated absences such as annual, sick, and holiday leave.