Maximus, Inc. · NYSE:MMS
Maximus — MAXIMUS Higher Education Internal Controls Webinar (April 2017)
12 slides from Maximus's conference presentation, Apr 25, 2017
Slide 1: Internal Controls and Sponsored Programs
4/28/2017 Internal Controls and Sponsored Programs Kris Rhodes, Director Higher Education 1 Why do we need Internal Controls? 2 1
Slide 2: Internal Controls Why? / Internal Control Objectives per 2 CFR 200.61
4/28/2017 Internal Controls Why? • Required under 2 CFR 200 • Focus resources on achieving organizational objectives • Improve consistency • Streamline work processes • Help identify control/process issues • Help manage and reduce risk • Reduce opportunities for fraud • Help us use limited resources
Slide 3: 2 CFR 200.62 Internal control over compliance requirements
4/28/2017 2 CFR 200.62 Internal control over compliance requirements for Federal awards A process implemented by a awardees to provide reasonable assurance regarding the achievement of the following objectives for Federal awards: (a) Transactions are properly recorded and accounted for, in order to:
Slide 4: Expectation for Internal Control: Costs vs. Benefits
4/28/2017 Expectation for Internal Control: Costs vs. Benefits Cost is not an acceptable reason alone to avoid implementation of responsible internal controls. Internal Controls models recognize the need to balance resources across the organization and encourages organization to focus on those o
Slide 5: 5 Components of Internal Control
4/28/2017 5 Components of Internal Control 1. Control Environment – set of standards, processes, and structures that provide the basis for carrying out internal control 2. Risk Assessment – process for identifying and analyzing risks to achieving entity’s objectives 3. Control Activities – actions e
Slide 6: Step 1: Assessing Risk
4/28/2017 Step 1: Assessing Risk • Single Audit • Internal Assessment • External Assessment • Review of monitoring activities • Review of recent federal OIG audits • Do it annually 11 Step 2: Responsibly Building Internal Control Guidance • What are our risk areas that need policies/procedures? • Wh
Slide 7: Step 3: Communicate Expectations
4/28/2017 Step 3: Communicate Expectations • Distribute new or changes to existing policies, if critical add an acknowledgement or confirmation of receipt requirement • Provide training • Provide resources on how to carry out the expectations 13 Building Blocks for Your Internal Control Environment
Slide 8: Step 4: Monitor
4/28/2017 Policies Not Required, but Recommended Policies which are not specifically required by federal regulations, but which are necessary for organizational operations and risk mitigation include: • Equipment management • Award closeout • Project modifications and rebudgets • Record retention •
Slide 9: Monitoring Tools for Pre Award?
4/28/2017 Monitoring Tools for Pre Award? • Internal receipt and submission deadline reports • Electronic system rejections (particularly in relation to organizational seniority) • Timeliness of staff review and submission • Secondary review within pre award, sampling as part of performance monitori
Slide 10: Post Award Nonfinancial Monitoring
4/28/2017 Post Award Nonfinancial Monitoring • Reconciliation of progress report requirements and transmittals • International students assigned to research projects • Restricted agent usage in research • Protocol expirations associated with funded projects • High risk purchases (animals, controlled
Slide 11: Key Takeaways
4/28/2017 Enhancing Internal Controls Getting Down to the Work of Improving Performance and Mitigating Risk Written Communication Corrective Risk Monitoring Reporting Guidance / Training Action Who What Why How 21 Key Takeaways Assess your risks Focus internal control infrastructure building on
Slide 12: Questions
4/28/2017 Internal Control A Sponsored Programs Expectation and Responsibility Questions 23 12
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