Springfield Audit Trails

Transcription

1 Springfield Chapter Springfield Chapter of The Institute of Internal Auditors Springfield Audit Trails Platinum Chapter & January 2012 First Gold Chapter President s Message Denise Behl, CIA Happy New Year! Hope everyone enjoyed their holidays. As we begin looking forward to 2012, our chapter has some highly rated speakers lined up. Kicking off in January will be Connie Valencia training us on Risk Assessments and IT Compliance, followed by Jeffrey Berk in February, and Steve Minder in March. Each of these training seminars will be full day events held at the Northfield Center. Our chapter has already achieved Gold status for this year! The annual award ensures that we remain a Platinum chapter. Congratulations to all the officers for their hard work! Training Risk Assessments & IT Compliance Staci Crane, CISA Connie Valencia and Angela Polania will be teaching our training course on January 27, Both Connie and Angela work for Elevate Consulting, which is an Accounting and Information Technology consulting firm headquartered in Southern Florida. The training will focus on IT Compliance and Risk Assessment. The Risk Assessment session will be about an objective based framework. Our chapter has strived to keep costs down for our members in the hope of increasing attendance while still providing top-notch speakers. You will see that in order to continue to provide our chapter with excellent speakers this chapter year we have slightly increased our seminar fee for the next three trainings, to just over $13 per CPE. As a not-for profit Chapter, we will evaluate our financial position prior to the April and May seminars with the hopes of being able to offer these remaining training opportunities at a reduced cost to you. Thank you for your continued support of the Springfield Chapter. Hope to see you at the next meeting on January 27. Risk Assessments & IT Compliance Speaker: Connie Valencia Date: January 27, 8:00a 3:00p Place: Northfield Center CPE: 7 hours CPE Cost: Members: $100 Non-Members: $125 Register: Joelle Egger Springfield.IIA@comcast.net The IT Compliance session will focus on topics such as: IT SOX assistance, IT General Computer Controls Review, Regulatory Compliance IT audits (HIPPA, GLBA, etc.), Application Security Reviews, and Network Security Assessments. The seminar will be from 8:00 a.m. to 3:00 p.m. with a half-hour for lunch at noon, thus providing us with 7 hours of CPE. Chapter President Denise Behl presents the IIA Platinum Award for to last year s Chapter President Coleen Jordan. (Picture by Cary Franks) See you at the seminar! 1

2 5 Years Ago January 2007 Tina Neely, CIA, CGAP served as the Chapter s President. The January meeting was held at the Northfield Center. A full-day seminar was presented by Nejolla Korris, CEO of the Sponsorship Group Ltd., Edmonton, Canada titled Investigative Tools for Auditor, Analyzing What People Say: Linguistic Lie Detection. The Guest Message was provided by Cori Fuchs, Chapter Treasurer who reported upon the Chapter Achievement Program which has been designed by IIA to promote its specific objectives. Congratulations were extended to: John Cressman, Chief Internal Auditor for the Governor s Illinois Office of Internal Audit (IOIA), who took a new position outside of State government and to Carol Kraus who succeeded John as the new IOIA Chief Internal Auditor. Harry Thurau, CIA and Chapter Historian, on his retirement which became effective December 31 st. 10 Years Ago January 2002 Brian Bond, CPA, was the Chapter President. This month the Chapter held a two-day seminar at the Northfield Center. Day one was Risk Assessment, presented by Barbara Clark, Manager of Government and Chapter Programs for The IIA in Altmonte Springs, Florida. The lunch presentation was titled Stress Reduction presented by David Boyd, Benefits Auditor for CMS. Day two was titled Best Practices, presented by James Roth, PhD, CIA, CCSA, President of Audit Trends, a training firm devoted to identifying and communicating the best of current internal audit practice. This month s member profile was on Carole H. Carter, CPA, CIA, Director of Internal Auditing, Western Illinois University. Chapter member Larry Stone, CISA, CCP was teaching a course this semester called Information Systems Auditing, at the University of Illinois Springfield. 15 Years Ago January 1997 Larry Ragel, CPA, was the Chapter President. This month s meeting was supposed to be held at the Ramada Inn but was cancelled due to weather conditions. 20 Years Ago January 1992 Ronald Omer was the Chapter President. This month s meeting was held at the Best Western. The pre-meeting seminar speaker was Gila J. Bonner, President of the Boner Group, Inc., who spoke on Communication Skills for Auditors. Theresa Harrell and Lesslie Morgan, CPA, CIA, CISA, CGFM Jeff Thompson presenting our October seminar (Picture by Cary Franks) 2 William Pedersen were united in marriage on November 23, They are both CPA s and members of our Chapter. Theresa is an internal auditor for the State Board of Education and William is an auditor for the U.S. Department of HHS, Office of the Inspector General. 25 Years Ago January 1987 Dan Bedell, CIA, was the Chapter President. This month s meeting was held at the Sheraton. The pre-meeting seminar topic was a discussion on Microcomputers in the State Agency Environment, presented by Bob Schwarz, CISA, Illinois Department of Public Aid, and John Anderson, of CMS. The dinner program speaker was Rep. James F. Keane, Illinois House of Representatives, who spoke on the The Legislative Audit Function. People changing jobs this month were Ed Schofield, CISA, CIA, who became an EDP auditor for the Department of Revenue; Judy Parker, who moved within DCCA to the Office of Budget; and Ric Rowe who was promoted to audit manager at the Office of the Auditor General. 30 Years Ago January 1982 Rudy Davenport was the Chapter President. The January meeting was held at the Hilton s Top of the Arch in Springfield. The pre-meeting seminar was titled Auditor Ethics and Independence, presented by Raymond Smith, CPA and accounting instructor at the Lincoln Land Community College. The after-dinner speaker was Marilee Lindley, Sangamon County Auditor who spoke on My First Year on the Money Management Merry-Go-Round. Beginning this year, all CIA s were required to obtain at least 100 hours of continuing professional development credits within 3 years in order to provide assurance that they had maintained their proficiency. Accordingly, the Chapter expanded its pre-meeting seminars to the required minimum of 50 minutes. The following new members were welcomed to the Chapter: Mark Wade Internal Auditor with Gem City Savings and Loan Association of Quincy, Illinois. Geoffrey Gaar Senior Compliance Auditor with the Illinois Department of Commerce and Community Affairs. Scott Gubin Internal Auditor with the Illinois Institute of Natural Resources. Jon Pope, CPA Internal Auditor with the Illinois Teachers Retirement System.

3 Al Capone and Fast Eddie: 2 Stories Both True This article was ed to me by a friend; both stories need to be read together until the last line STORY NUMBER ONE: AL CAPONE Many years ago, Al Capone virtually owned Chicago. Capone wasn't famous for anything heroic. He was notorious for enmeshing the windy city in everything from bootlegged booze to prostitution to murder. Capone had a lawyer nicknamed Easy Eddie. He was Capone's lawyer for a good reason Eddie was very good! In fact, Eddie s skill at legal maneuvering kept Big Al out of jail for a long time. To show his appreciation, Capone paid him very well. Not only was the money big, but Eddie got special dividends, as well. For instance, he and his family occupied a fenced-in mansion with live-in help and all of the conveniences of the day. The estate was so large that it filled an entire Chicago city block. Eddie lived the high life of the Chicago mob and gave little consideration to the atrocity that went on around him. Eddie did have one soft spot, however. He had a son that he loved dearly. Eddie saw to it that his young son had the best clothes, cars, and a good education. Nothing was withheld. Price was no object. And, despite his involvement with organized crime, Eddie even tried to teach him right from wrong. Eddie wanted his son to be a better man than he was. Yet, with all his wealth and influence, there were two things he couldn't give his son; he couldn't pass on a good name or a good example. One day, Easy Eddie reached a difficult decision. Easy Eddie wanted to rectify wrongs he had done. He decided he would go to the authorities and tell the truth about Al Scarface Capone, clean up his tarnished name, and offer his son some semblance of integrity. To do this, he would have to testify against The Mob, and he knew that the cost would be great. But, he testified. Within the year, Easy Eddie s life ended in a blaze of gunfire on a lonely Chicago Street. But in his eyes, he had given his son the greatest gift he had to offer, at the greatest price he could ever pay. Police removed from his pockets a rosary, a crucifix, a religious medallion, and a poem clipped from a magazine. The poem read: The clock of life is wound but once, and no man has the power to tell just when the hands will stop, at late or early hour. Now is the only time you own. Live, love, toil with a will. Place no faith in time. For the clock may soon be still. STORY NUMBER TWO: BUTCH O HARE World War II produced many heroes. One such man was Lieutenant Commander Butch O Hare. He was a fighter pilot assigned to the aircraft carrier Lexington in the South Pacific. One day his entire squadron was sent on a mission. After he was airborne, he looked at his fuel gauge and realized that someone had forgotten to top off his fuel tank. He would not have enough fuel to complete his mission and get back to his ship. His flight leader told him to return to the carrier. Reluctantly, he dropped out of formation and headed back. As he was returning to the ship, he saw something that turned his blood cold; a squadron of Japanese aircraft was speeding its way toward the American fleet. The American fighters were gone on a sortie, and the fleet was all but defenseless. He couldn't reach his squadron and bring them back in time to save the fleet. Nor could he warn the fleet of the approaching danger. There was only one thing to do. He must somehow divert them from the fleet. Laying aside all thoughts of personal safety, he dove into the formation of Japanese planes. Wing-mounted 50 calibers blazed as he charged, attacking one surprised enemy plane and then another. Butch wove in and out of the now broken formation and fired at as many planes as possible until his ammunition was spent. Undaunted, he continued the assault. He dove at the planes, trying to clip a wing or tail in hopes of damaging as many planes as possible to render them unfit to fly. Finally, the exasperated Japanese squadron took off in another direction. Deeply relieved, Butch s tattered fighter limped back to the carrier. Upon arrival, he reported in and related the event surrounding his return. The film from the gun-camera on the plane told the tale. He had, in fact, destroyed five enemy aircraft. It showed the extent of Butch s daring attempt to protect his fleet. This took place on February 20, 1942 and for that action Butch became the Navy's first Ace of WW II, and the first Naval Aviator to win the Congressional Medal of Honor. A year later Butch was killed in aerial combat at the age of 29. His home town would not allow the memory of this WW II hero to fade, and today, O'Hare Airport in Chicago is named after this great man. So what do these stories have in common? Butch O'Hare was Easy Eddie's son. 3

4 Springfield IIA Chapter PROGRAM SCHEDULE Date Speaker Topic/Program Hours CPE Members Non- Members 09/27/11 to Various State Internal Audit 8:30-4:30 14 $70 $70 09/28/11 Advisory Board (Gov t) 10/27/11 Joint with ISACA Jeff Thompson Vulnerability Assessment and Cybercrime 12:30-4:30 4 $35 $50 11/08/11 (Tuesday) at IEMA 2200 S. Dirksen Chief Audit Executives Audit Roundtable 2:30-4:30 2 $0 $0 11/17/11 Chris Bauer Professional Ethics 8:00-12:00 4 $50 $75 01/27/12 Friday Connie Valencia Risk Assessments and IT Compliance 8:00 3:00 7 $100 $125 02/16/12 Jeffrey Berk Champions of Change 8:30-4: $100 $125 03/22/12 Steve Minder Audit Program Development; Diagnosing the Enablers of Fraud; and Breaking the Fraud Triangle 8:00-4: $100 $125 04/10/12 at IEMA 2200 S. Dirksen 04/19/12 Joint Meeting with Central Illinois Chapter Chief Audit Executives To be Determined Audit Roundtable 2:30-4:30 2 $0 $0 To be Determined TBD 7.5 TBD TBD 05/18/12 Leita Hart The Art of the Finding" 8:00-4: TBD TBD Cancellations should be made at least 24 hours before the meeting to avoid a charge. Meetings will be held at the Northfield Center, unless noted differently. 4

5 As you know, a number of State employees retired in The last time so many employees retired was 10 years ago when the 2002 Early Retirement Initiative (ERI) was offered to reduce the State s payroll. A total of 11,039 employees retired at that time. And the time before that when many employees retired was another 10 years earlier in 1991 when the State offered the first ERI; over 4,600 retired. Due to these retirements, Illinois has the lowest number State employees per capita. Some retirements this time were due to anticipated changes in the union s contract which expires in July For example, employees need to work 20 years to get full medical insurance after retirement. This may change in the next union contract. Likewise, most employees generally pay 4% of their salary to earn a pension equal to half their salary after 30 years. This may become 9.29% in 2013! For an article on other states pension issues, see the following link that was provided by Jim Dahlquist: From the Editor LESSONS LEARNED Begin drafting the report early. Writing a clear and simple report takes time. If you read anything that you easily understand, it s because the author had the time to simplify the report. Read the draft report out loud. When you read a draft report out loud, like a newscaster, you may be surprised at how it sounds. It will give you a chance to fix it, such as correcting your inflection. You will also hear descriptive words that are extra and can be deleted. Reference the draft report. Ask a person who has not worked on the report (called an independent referencer by the GAO Government Auditing Standards) to check all the facts in your draft report. They will catch more things than you realize as you are too close to your draft. CHAPTER OFFICIALS OFFICERS PRESIDENT Denise Behl, CIA DBehl@isbe.net Administration (CAP-ologist) Larry L. Stone, CISA, CCP, CRPC Audit Denise Shireman-Caldwell, CPA Nominating Denise Behl, CIA Larry L. Stone, CISA, CCP, CRPC H. Jay Wagner, CIA, CISA st VICE PRESIDENT Staci Crane, CISA Staci.Crane@Illinois.gov Programs & Seminars Staci Crane, CISA Continuing Education Denise Behl, CIA Seminar Registration Joelle Egger nd VICE PRESIDENT Amy Lyons Amy.Lyons@Illinois.gov Academic Relations Leonard Branson, Ph.D Admissions/Membership Staci Crane, CISA Associate Trustee/Tech. Larry L. Stone, CISA, CCP, CRPC CIA Program Denise Behl, CIA SECRETARY Joelle Egger Springfield.IIA@comcast.net Directory, Distribution, & Public Relations Denise Behl, CIA Joelle Egger Newsletter Mohammed Ameen Dada, CGFM Photographer Cary Franks, MS MIS Webmaster H. Jay Wagner, CIA, CISA TREASURERS Amy Walter Amy.Walter@Illinois.gov Patrick Rynders oag33@mail.state.il.us Awards Patrick Rynders Historian Lesslie D. Morgan, CIA, CPA, CGFM, CISA GOVERNORS Term Expiring: 2012 Cary Franks, MS MIS Deanna J. Marvin, CIA, CGAP, CISA Bill Sampias, CISA, CFSA Doug Tinch, CIA, CPA, CISA, CISSP Stephen D. Kirk, CIA, CGAP Lesslie D. Morgan, CIA, CPA, CGFM, CISA Barbara Ringler, CPA Rusti Cummings, CPA Mohammed Ameen Dada, CGFM H. Jay Wagner, CIA, CISA PAST PRESIDENT Coleen Jordan, CIA, CPA Larry L. Stone, CISA, CCP, CRP The Board of Governors consists of all Officers, Governors, and the President(s) in the past two years who are chapter members. 5

6 BEST AND WORST RUN STATES In a ranking on how well states are run, Illinois was ranked at 43 rd last year. This year, Illinois has dropped further in the rankings and is now ranked as the secondworst run state in the country. The State of Illinois performs poorly in most categories but is worst when it comes to its credit rating. Illinois has a credit rating of A+, the second worst given to any state behind only California. The State has been on a credit watch since 2008 because of budget shortfalls and legal challenges against then-governor Rod Blagojevich. The State debt per capita was $4,424 (13 th highest). The percent of people without health insurance was 14% (23 rd lowest). The percent of people below the poverty line was 13% (25 th ). The State s unemployment rate was 10% (10 th highest). Chapter President Denise Behl presenting the CIA certificate to Jack Rakers. (Picture by Cary Franks) Springfield Chapter The Institute of Internal Auditors P.O. Box 205 Springfield, IL