Okaloosa County BOCC — December 31, 2012 — BCC Internal Auditor

OKALOOSA COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS ROLE OF BCC INTERNAL AUDITOR  Mission of BCC Internal Auditor 2 For activities relating to the responsibility of the Board of County Commissioners, the Internal Auditor, would be engaged to: ¨ Improve internal controls. ¨ Minimize future fraud. ¨ Foster and document best practices.  Authority of the BCC Internal Auditor 3 ¨ The Internal Auditor would report directly to the Board of County Commissioners. ¨ However the position would work with the County Administrator, Department Heads, the Clerk of Courts and the Clerk’s employees due to their relationship as accountant to the Board. ¨ Management team input (Board and Clerk Finance) will also be critical in the risk assessment process. 4 Scope of Work The Internal Auditor would perform an annual risk assessment. The purpose is to identify all auditable activities of the Board of County Commissioners and to evaluate each activity based on risk factors.  Auditable activities may include: 5 ¨ Laws, rules, regulations, policies, procedures, and practices. ¨ General ledger account balances. ¨ Information systems (manual and computerized). ¨ Major contracts, programs, or legal entities. ¨ Organizational entities. ¨ Functions such as purchasing, human resources and grants and contract monitoring. ¨ Transaction systems for activities such as revenue collection, complaint management, purchasing, disbursements, inventory, payroll or facilities and equipment management. ¨ Task forces, committees or work groups.  Risk Factors: 6 The criteria used to identify the relative significance of and likelihood that, conditions and/or events may occur that could adversely affect the organization. They may include: ¨ Management’s confidence in their system of internal control. ¨ Complexity of Operations. ¨ Major changes in the Operations, Programs, Systems or Controls. ¨ Financial Impact. ¨ Management Concern. ¨ Public Perception. ¨ Results of previous audits.  Scope of Work (cont.) 7 ¨ Risk assessment and annual work plan would be presented to Board of County Commissioners for approval. ¨ Time would be reserved in the work plan for special projects and follow up on previous audits completed. ¨ Work requests could be made by other Constitutional Officers. ¨ With only one internal auditor it’s likely only 3-4 projects a year can be accomplished. However they will be the activities weighted with the highest risk.  Reporting of the Results 8 ¨ Additional structure needs to be defined around auditing process and reporting. ¨ Formal written reports will be presented to the Board of County commissioners at completion of each internal audit. ¨ Process will be structured to allow input and management responses from auditees incorporated into reporting.  Qualifications and salary range for the 9 BCC Internal Auditor ¨ Bachelor’s degree in accounting. ¨ CPA (Certified Public Accountant) or CIA (Certified Internal Auditor) designation. Both certifications preferred. ¨ A minimum of 6-8 years of internal audit field experience in governmental entities. ¨ The position relies on extensive experience and judgment to plan and accomplish goals. ¨ Estimated salary of $65,000 to $80,000 plus benefits.  Next steps: 10 ¨ Policy document on function, structure, reporting. ¨ Creation of formal job description. ¨ Determination of selection process.