Your Trusted Partner for Audit Analytics
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Host: Peter Millar, Director of Technology Application
ACL Services
Presenter: Hunter Rackley (ACDA), IT Auditor
Ivy Tech Community College
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Peter Millar Director, Technology Application
PBMillar
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Hunter Rackley IT Auditor, Ivy Tech Community College
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Think in Terms of People & Process
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Background
About the College:
– Indiana’s largest public postsecondary institution
– The United States’ largest singly-accredited statewide community college
system
– Serve nearly 200,000 students annually
– Divided into 14 regions
Regarding data analytics
– Banner ERP & Oracle database
– ACL Desktop: 2009
– AuditExchange (AX): 2010
– AX Exception: 2011
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How We Use Data Analytics
In our audits:
– Ad hoc
– Repetitive
For management:
– Ad hoc
– Continuous monitoring
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Ad Hoc Examples
College’s “drop for non-payment” policy
– Involved collaboration between:
» Financial Aid
» Accounts Receivable
» Student Affairs
» Internal Audit
R2T4
– Incorporated data from the DOE
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Automated – Financial Aid
Exit Counseling [monthly]
– Identifies students who should be flagged for exit counseling but have not been, i.e. those who meet all of the following criteria: (1) enrolled less than 6 hours in selected aid year's fall or spring term; (2) received any Subsidized Stafford, Unsubsidized Stafford, or PLUS loans; (3) have not been flagged for exit counseling.
FWS [biweekly]
– Identifies all FWS recipients who have been paid more than their offered funds for the specified term.
FWS Tracking [biweekly]
– Identifies all FWS recipients who have been paid between 75% and 100% of their offered funds for the specified term.
SEOG [monthly]
– Identifies students who received SEOG while they had an EFC > 0.
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Automated – Accounts Receivable
Errant Late Fee [monthly]
– Identifies students who were assessed late fees during a term in which they
had no tuition charges.
Hold Codes [monthly]
– Identifies students who no longer have an outstanding balance but still have
an AR-type hold on their account.
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Automated – Purchasing
Purchasing Card (P-Card) [monthly]
– Multiple Cards
– Single Purchase Limit
– Duplicate Charges
– Split Transactions
– Large, Even-Dollar Transactions
– Weekend Transactions
– Holiday Transactions
– Fuel
– Tax Services
– Charitable Organizations
– Third Party Payment Processors
– Other Questionable Transactions
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Capabilities
ACL Desktop
– Ad hoc analysis
– On-demand/repetitive analysis
AuditExchange (AX)
– Centralized, shared content
– Faster processing of analytics
– Automation for continuous auditing (CA)
AX Exception
– Continuous monitoring (CM) for management
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Benefits of AX & AX Exception
Management (only with AX Exception)
– Current results on a recurring basis
– Exceptions can be corrected before an audit
Internal Audit
– Eliminates dependence on IT for reports
– Yields 100% testing of the audit population
– Reduces manual testing
– No man-hours needed to run automated analytics
IT
– No man-hours needed to fulfill audit requests
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AX & AX Exception Install/Config
IT concerns:
– Data access
– System load
ACL involvement:
– Workflow design
– Worked with IT to install and configure
– Developed two analytics
– Training
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AX Exception Entities & Roles
Entities
– 15 – one for each region plus one for the central administrative offices (CO)
Roles
– Primary Reviewer (region, generally)
– Secondary Reviewer (CO)
– Internal Audit
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AX Exception Actions
For Primary Reviewers:
– Close
» Corrected
» Resolved
» Allowable
» Previously Reported
– For Review
– False Positive
– Wrong Region
Additional actions for Secondary Reviewers & Internal Audit
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Exception Notification
Timeline Action
New exceptions generated Email notification sent to primary reviewers
Exceptions have been open in same state for 1
week
Email notification sent to primary reviewers
Exceptions have been open in same state for 2
weeks
Email notification sent to primary reviewers,
secondary reviewers, & IA
Every day thereafter Email notification sent to primary reviewers,
secondary reviewers, & IA
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Getting Management Support
Working with operational leaders
– Have ideas that help both you and them
– Seek feedback and additional ideas
– Show that you’re adding value
Presentation to Audit Committee
Presentation to Senior Leadership Council
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Future Goals
Integrate data analytics across entire audit plan
Expand continuous monitoring
– More for Finance
» More for Purchasing
» Accounts Payable
» Payroll
– More for Financial Aid
– Human Resources
– IT
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Q & A
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