Annual Report 2005 - = 2006

=C2=A0

Part = 1

Section = A

Unit Information

=C2=A0

Unit:Internal Audit

Mission Statement:

To provide the University with constructive feedback = of program controls that encourages continuous quality improvement of = program administration.=C2=A0 Our commitment is to support a responsive = and organizationally healthy University that provides sound, high = quality academic and student life programs.=C2=A0=C2=A0 Internal Audit = functions as an independent resource to provide timely and relevant = audit, review and consulting services that will assist University = programs to effectively discharge their administrative = responsibilities.=C2=A0 As part of the governance and accountability = structure of the University, Internal Audit strives to promote = accountability, integrity, efficiency, and compliance.

=C2=A0

The constructive feedback provided by Internal Audit = focuses on:

=C2=A0

Maintaining and strengthening internal=C2=A0controls = over the finances, assets, and key records at the University.
Enhancing the effectiveness and efficiency of the = management processes of University programs.
Compliance with applicable policies, rules, = regulations and = laws.

=C2=A0

Section B

Unit Goals=C2=A0set within last = year's=C2=A0(2004-2005) Annual Report

Strategic Plan = Goal=C2=A0

With which 1 or 2 goals from the 8 current = strategic plan goals does your 2005-2006 goal best = align?

Unit Goal

=C2=A0

Goal for 2005-2006

=C2=A0

Strategic Plan Goal 8- Ongoing Quality = Improvement

Prepare 3-5 year Audit Plan based on = a risk assessment performed Summer = 2005.

=C2=A0

What=C2=A0actions have been taken to attain this = goal?

The Risk Assessment has been = performed, abd the 3-5 year Audit Plan was released in March 2006. =

=C2=A0

What measures have you taken towards assessment of this = goal?

The audit plan was approved by = President Merwin on March 1, 2006.

=C2=A0

Describe the progress you have made toward attaining this = goal including the anticipated completion date.

Audit risk assessment is completed = and=C2=A0audit plan was released March '06.

=C2=A0

Describe how the results of assessments have been used to = improve student learning or your department's services.

The assessment will be used both by = Internal Audit to select audit projects and by University Administration = to enhance operations.

=C2=A0

Strategic Plan = Goal=C2=A0

With which 1 or 2 goals from the 8 current = strategic plan goals does your 2005-2006 goal best = align?

Unit Goal

=C2=A0

Goal for 2005-2006

=C2=A0

Strategic Plan Goal 7- Community = Leadership; Strategic Plan Goal 8 - Ongoing Quality = Improvement

Maintain relationships with State = Auditor General's Office and Chief Inspector General's = Office.

=C2=A0

What=C2=A0actions have been taken to attain this = goal?

Provided FGCU management = representation letter for FYE 6/05 Financial Audit to Auditor General on = 1/10/06.=C2=A0 Attended August 2005 and February 2006 SUS I/A = meetings.=C2=A0 Attending opening and closing management=C2=A0meetings = for each A/G audit.=C2=A0

=C2=A0

What measures have you taken towards assessment of this = goal?

Provided timely F/S Mgmt Rep letters = to A/G.=C2=A0 Attended 2 SUS I/A meetings.=C2=A0 Coordinated Management = Responses for A/G audit recommendations.=C2=A0=C2=A0 =

=C2=A0

Describe the progress you have made toward attaining this = goal including the anticipated completion date.

These are being performed = timely.

=C2=A0

Describe how the results of assessments have been used to = improve student learning or your department's services.

The Florida Auditor General's office = and the FGCU Internal Audit Department did not duplicate one another's = audits/projects.=C2=A0 This creates conditions under which Internal = Audit optimizes the services it provides.

=C2=A0

Strategic Plan = Goal=C2=A0

With which 1 or 2 goals from the 8 current = strategic plan goals does your 2005-2006 goal best = align?

Unit Goal

=C2=A0

Goal for 2005-2006

=C2=A0

Strategic Plan Goal 7- Community = Leadership

Represent FGCU in the community by = being active and visible in community = organizations.

<= /div>

=C2=A0

What=C2=A0actions have been taken to attain this = goal?

Completed term as Treasurer for FICPA, = SW FL Chapter on 6/30/06, and am serving a=C2=A01-year term as President = Elect from 7/1/05 through 6/30/06.=C2=A0 Attended one IIA Chapter = meeting in Fall '05 and will attend a second meeting in Spring = '06.

=C2=A0

What measures have you taken towards assessment of this = goal?

These activities have been documented = by the FICPA and by the IIA.

=C2=A0

Describe the progress you have made toward attaining this = goal including the anticipated completion date.

Completed Treasurer term in 6/05 and will complete President Elect = term on 6/06.

Renewed my CPA license in December 2005.=C2=A0 Will renew my CIA = certificate when it is due.

=C2=A0

Describe how the results of assessments have been used to = improve student learning or your department's services.

Introduced FGCU to a prospective = graduate student in Fall 2005 who is the son of someone who has known me = from my community activities.=C2=A0 Arranged a dinner for several = community friends to attend the March '06 Community Speaker = engagement.

=C2=A0

Strategic Plan = Goal=C2=A0

With which 1 or 2 goals from the 8 current = strategic plan goals does your 2005-2006 goal best = align?

Unit Goal

=C2=A0

Goal for 2005-2006

=C2=A0

Strategic Plan Goal 8 - Ongoing = Quality Improvement

Perform 1 audit on a segment of the = information = system/technology.

=C2=A0

What=C2=A0actions have been taken to attain this = goal?

As of 1/10/06:=C2=A0 Attended CAAT training for ACL software in = August/September 2005.

Arranged a Web-Site conference in Jan 06 for I/T and I/A = staff.

=C2=A0

What measures have you taken towards assessment of this = goal?

Audit will be selected after the = 3-year Audit Plan is approved.

=C2=A0

Describe the progress you have made toward attaining this = goal including the anticipated completion date.

Audit will be selected after the Audit = Plan is approved.

=C2=A0

Describe how the results of assessments have been used to = improve student learning or your department's services.

To complete after audit is completed = and report released.

=C2=A0

Strategic Plan = Goal=C2=A0

With which 1 or 2 goals from the 8 current = strategic plan goals does your 2005-2006 goal best = align?

Unit Goal

=C2=A0

Goal for 2005-2006

=C2=A0

Strategic Plan Goal 8 - Ongoing = quality Improvement

In addition to the Information System = audit identified above, perform 1 to 3 major audits each = year.

=C2=A0

What=C2=A0actions have been taken to attain this = goal?

As of March 2006, Risk Assessment is = completed and released.=C2=A0=C2=A0A second Internal Audit professional = staff position is being considered for FY beginning = 7/1/06.

=C2=A0

What measures have you taken towards assessment of this = goal?

Will perform audit after Audit Plan is = approved.

=C2=A0

Describe the progress you have made toward attaining this = goal including the anticipated completion date.

To complete after audit is completed = and report released.

=C2=A0

Describe how the results of assessments have been used to = improve student learning or your department's services.

Will complete after audit is completed = and report released.

=C2=A0

Strategic Plan = Goal=C2=A0

With which 1 or 2 goals from the 8 current = strategic plan goals does your 2005-2006 goal best = align?

Unit Goal

=C2=A0

Goal for 2005-2006

=C2=A0

Strategic Plan Goal 8 - Ongoing = Quality Improvement

Perform 1 to 5 Limited Scope Audits = annually as required/identified.=C2=A0 A Limited Scope Audit is=C2=A0an = audit with a narrow predefined focus/scope that is based on = information/facts identified during an initial planning phase of the = audit.

=C2=A0

What=C2=A0actions have been taken to attain this = goal?

In Fall 2005, Internal Audit completed = a Limited Scope Audit and released the audit report.=C2=A0 In Spring = 2006, Internal Audit is performing 2 Limited Scope = Audits.

=C2=A0

What measures have you taken towards assessment of this = goal?

In Fall 2005, Internal Audit completed = a Limited Scope Audit and released the audit report.=C2=A0 In Spring = 2006, Internal Audit is performing 2 Limited Scope = Audits.

=C2=A0

Describe the progress you have made toward attaining this = goal including the anticipated completion date.

In Fall 2005, Internal Audit completed = a Limited Scope Audit and released the audit report with recommendations = and management responses.

=C2=A0

Describe how the results of assessments have been used to = improve student learning or your department's services.

The completed audits provide = recommendations to strengthen the documentation of specific = expenditures.=C2=A0 The implemented recommendations strengthened related = controls over expenditures.

=C2=A0

Section C

Program or Service=C2=A0Specific = Assessments

=C2=A0

What program or service specific assessment occurred in the = current academic year?

Risk Assessment was completed in = November 2005.=C2=A0 The report and related Audit Plan were released = March 2006.

=C2=A0

How were the results of the assessment used to improve = programs or services?

Goals for Internal Audit for the next = 3 years will include items identified in the November 2005 Risk = Assessment.

Section D

Unit Contribution to President's Performance = Measures

=C2=A0

Please review the President's Performance Measures for = 2005-2006. Did your unit contribute to any specific performance goals = for the President? (If so, please indicate whether the measure = set was attained and to what degree.)

=C2=A0

Part 2

Section A

Unit Goals=C2=A0for Coming Year = (2006-2007)

=C2=A0

Str= ategic Plan Goal=C2=A0 With which 1 or 2 goals from the 8 current = strategic plan goals does your 2006-2007 = goal best align?	Unit Goal =C2=A0 Goal for 2006-2007
Goal 7 - Community Leadership Goal 8 - Ongoing Quality Improvement	Maintain relationships with State = Auditor General's Office and Chief Inspector General's = Offices

=C2=A0

What action(s) will you undertake to achieve the = goal?

Provide FGCU management representation = letter for FYE 6/06 Audits to Auditor General.=C2=A0 Attend August 2006 = and February 2007 SUS I/A meetings.=C2=A0 Attend management meetings for = A/G audits.

=C2=A0

By what means will you assess goal = achievement?

Provide timely=C2=A0Management Rep = letters to A/G.=C2=A0 Attendance at 2 SUS I/A meetings.=C2=A0 Coordinate = Management Responses for A/G audit recommendations.

=C2=A0

How will you know if you have successfully attained each = goal?

The Management Rep letters and = Management Responses will be timely provided to the Florida Auditor = General.=C2=A0 Will attend SUS I/A meetings.

=C2=A0

How will the results of the above assessments be used to = improve student learning or services?

The Florida Auditor General's office = and FGCU Internal Audit will not duplicate one another's work.=C2=A0 = This creates conditions under which Internal Audit optimizes the = services it provides.

=C2=A0

Str= ategic Plan Goal=C2=A0 With which 1 or 2 goals from the 8 current = strategic plan goals does your 2006-2007 = goal best align?	Unit Goal =C2=A0 Goal for 2006-2007
Goal 7 - Community = Leadership	Represent FGCU in the community by = being active and visible in community = organizations.

<= /div>

=C2=A0

What action(s) will you undertake to achieve the = goal?

Serve a 1-year term as = President=C2=A0of SW FL Chapter of the Florida Institute of CPAs from = 7/1/06 thru 6/30/07.=C2=A0 Attend two Institute of Internal Auditors = Chapter meetings.

=C2=A0

By what means will you assess goal = achievement?

Completion of=C2=A0President's term in SW FL Chapter of = FICPA.

Attendance forms from two IIA Chapter = meetings.

=C2=A0

How will you know if you have successfully attained each = goal?

1. These activities will be documented by the FICPA and the = IIA.

2. SW FL Chapter of FICPA will provide financial support to = Accounting Department in the College of Business through the FGCU = Foundation.

=C2=A0

How will the results of the above assessments be used to = improve student learning or services?

Participation in these community = activities provide visibility to FGCU, and the SW FL Chapter of the = FICPA provides financial support for the FGCU Accounting Department of = the College of Business and also provides scholarships for Accounting = Majors.=C2=A0 The local Chapter of the IIA also provides a scholarship = to an FGCU student.=C2=A0

=C2=A0

Str= ategic Plan Goal=C2=A0 With which 1 or 2 goals from the 8 current = strategic plan goals does your 2006-2007 = goal best align?	Unit Goal =C2=A0 Goal for 2006-2007
Goal 8 - Ongoing Quality = Improvement	Perform 1 or 2 audits on a segment of = the information = system.

=C2=A0

What action(s) will you undertake to achieve the = goal?

Identify an area of the university's = information system that would benefit form an audit, and perform the = audit.

=C2=A0

By what means will you assess goal = achievement?

Written and distributed audit report = that includes management responses.

=C2=A0

How will you know if you have successfully attained each = goal?

Audit report will be written and = distributed that includes management responses to audit findings and = recommendations.

=C2=A0

How will the results of the above assessments be used to = improve student learning or services?

Addressing findings from audits will = strengthen operations of the selected units.

=C2=A0

Str= ategic Plan Goal=C2=A0 With which 1 or 2 goals from the 8 current = strategic plan goals does your 2006-2007 = goal best align?	Unit Goal =C2=A0 Goal for 2006-2007
Goal 8 - Ongoing Quality = Improvement	Perform 1 to 5 Limited Scope Audits = and/or Management Review Projects = annually.

=C2=A0

What action(s) will you undertake to achieve the = goal?

Identify areas of the university that = would benefit from an audit.=C2=A0 Perform the audit or review projects, = which includes analyzing outcomes of and controls over specific areas of = the university.

=C2=A0

By what means will you assess goal = achievement?

Written and distributed reports that = include management responses.

=C2=A0

How will you know if you have successfully attained each = goal?

Reports will be distributed that = include management responses to findings and = recommendations.=C2=A0

=C2=A0

How will the results of the above assessments be used to = improve student learning or services?

Completed audit projects provide = findings and recommendations that=C2=A0maintain and/or strengthen the = operations of the units chosen for analysis, which in turn provides = efficient use of our assets to provide services to FGCU = students.

=C2=A0

Section B

Resources

=C2=A0

What additional resources have you requested and received a = commitment for during 2006-2007 from your area VP or the President that = is based on your analysis of assessment data for = 2005-2006?

=C2=A0

What additional resource needs do you have for fulfillment = of your goals that you wish for consideration from your area VP or the = President that is based on your analysis of assessment data for = 2005-2006?

SECOND INTERNAL AUDIT PROFESSIONAL=C2=A0- $60,000 Annual Salary = Plus Benefits

The following analysis performed=C2=A0in November 2005=C2=A0of the = Internal Audit staffing level at FGCU (FYE 6/30/05) found that FGCU's = Internal Audit staffing is substantially less than at University of West = Florida (FYE 6/30/05)=C2=A0and University of North Florida (FYE = 6/30/04).

=C2=A0

=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0 = =C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0 = =C2=A0FGCU=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0Uni= v West Fla=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0Univ North = Fla=C2=A0

=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0FYE = 6/30/05=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0=C2=A0=C2=A0% = above=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0 % above

=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0(Base)=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0#=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0FGCU=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0 = #=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0 FGCU

Students=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0 = 6,198=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A09,611=C2= =A0 =C2=A0=C2=A055%=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0 = 14,120=C2=A0=C2=A0=C2=A0=C2=A0128%

Total Annual Revenue=C2=A0(in = thousands)=C2=A0=C2=A0=C2=A0=C2=A0$104,440=C2=A0=C2=A0 = =C2=A0=C2=A0=C2=A0$129,200=C2=A0 24%=C2=A0=C2=A0=C2=A0=C2=A0 = 130,000=C2=A0=C2=A0=C2=A0=C2=A0=C2=A024%

Total = Employees=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0709=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0795=C2=A0=C2=A0=C2=A0 = 12%=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A01323=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0 87%=C2=A0

Internal Audit = Staff=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0= =C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A01=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0 = 4=C2=A0=C2=A0=C2=A0300%=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0=C2= =A0=C2=A0=C2=A0 3=C2=A0=C2=A0=C2=A0=C2=A0=C2=A0200%

=C2=A0

In addition, an analysis both of the internal audit risk assessment = performed in 2005 and of investigative issues that were brought to the = attention of Internal Audit during the 2005-2006 Fiscal Year = determined=C2=A0that Internal Audit was unable to complete several of = the projects planned for the year.=C2=A0 Projects were postponed or = cancelled as complaints/concerns were brought to our attention that = required immediate attention.=C2=A0 While the audits that were based on = the new complaints/concerns were highly beneficial to the university, = these projects substantially hindered the ability of Internal Audit to = complete projects identified in the Annual Plan.=C2=A0 A continuing = challenge for Internal Audit is to balance our staff time between = planned projects and new investigative complaints received during the = year.=C2=A0 Internal Audit requests a second internal audit professional = staff position so that we will have sufficient staffing to plan or work = and work our plan.

=C2=A0

With a second audit professional, = internal audit will be able to more effectively meet the following = Internal Audit Unit Goals:

=C2=A0

1. Perform an audit on a segment of = the information system/technology.=C2=A0 A second internal audit staff = professional and the CAAT software that was purchased in FYE 6/05 would = provide the resources to perform a 100% test of the related financial or = other records in less time than it will take to manually test a small = sample of the records.=C2=A0 While the software is available, without a = second professional, it has not been possible to take the time from = other projects to implement the software. The second position in = internal audit also will provide staff time for two audits in this area = rather than one.

=C2=A0

2. Perform 1 to 5 limited scope audits = or management reviews each year based on the audit plan.=C2=A0 The = second internal audit professional in internal audit also will provide = staff time for additional audit projects.

=C2=A0

Section C

Assessment = Plans

=C2=A0

What assessments are you planning to conduct during = 2006-2007?

Internal Audit plans to survey = auditees to determine their satisfaction with the projects performed by = Internal Audit.

=C2=A0

Section D

Coming Year - Strategic Plan = Contributions

=C2=A0

7.1.1, 7.1.2.a.,; 7.6.1.d, 8.1.2, = 8.2.2