OFFICE OF THE INSPECTOR GENERAL OFFICE OF THE INSPECTOR GENERAL OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels Budget, Facilities and Audit Committee Budget, Facilities and Audit Committee Thursday, October 9, 2014 Thursday, October 9, 2014
OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels Background Background The The OIG IG Charter Charter states tates that hat the he Board Board of Education ducation shall shall establish establish a fiscal fiscal year year budget budget for for the he OIG OIG taking aking into nto consideration consideration (i) i) the the amount mount the he IG IG requests requests to to perform perform his is mission and mission nd (ii) (ii) the the District’s istrict’s overall verall financial financial condition. ondition. Since Since 2009, 2009, the he OIG’s OIG’s general eneral fund fund budget budget and and staff taff have have been been reduced reduced by 46%. 46%. 2
OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels Budget Impact on OIG Activities Budget Impact on OIG Activities The The OIG IG needs needs to secure secure ongoing ngoing discretionary discretionary funds unds in in order order to adequately adequately plan lan its ts work work and and activities ctivities as required equired by its ts Charter Charter and government and overnment auditing auditing standards. tandards. Securing Securing an an ongoing ongoing discretionary iscretionary funding funding level level will ill also lso enable nable the he OIG to adequately OIG dequately respond espond to to high high risk risk areas areas that hat may ay surface surface throughout throughout the the fiscal iscal year. ear. Restoring Restoring OIG IG discretionary discretionary funds unds to to prior prior year ear levels evels of $300,000 $300,000 will will provide provide the he flexible flexible support support and and resources esources needed eeded for for the he OIG. OIG. 3
OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels Budget Impact on OIG Activities Budget Impact on OIG Activities Further, Further, an an annual annual 5% 5% increase increase to to discretionary discretionary funds unds will will help help the the OIG IG keep keep up up with with the the rising ising costs osts of of technology technology and and training. training. OIG OIG discretionary iscretionary funds funds are re used used primarily primarily for: or: general general office ffice supplies upplies & equipment equipment contract contract services services to to supplement supplement staff taff capabilities capabilities and and expertise xpertise training training to to meet meet CPE CPE requirements requirements for or auditors auditors and and investigators nvestigators information information technology technology resources resources and nd software software database database maintenance maintenance costs costs 4
OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels Budget Impact on OIG Staff Capabilities Budget Impact on OIG Staff Capabilities Budget Budget reductions reductions have have impacted impacted staff staff capacity apacity and nd expertise expertise in each each operational operational unit unit of the he OIG. OIG. Staff Staff restoration estoration can can help elp the he OIG OIG to adequately dequately address ddress high high risk risk and and high igh profile rofile areas areas in each ach of the he following following sections. ections. 5
OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels Internal Audit Activities Internal Audit Activities Budget Budget and and staff taff reductions reductions caused caused the the OIG IG to to lose lose internal internal audit audit staff taff that possessed that possessed strong strong skills skills and and professional rofessional backgrounds backgrounds in areas reas that that continue to continue to pose pose a high igh risk isk for or the the District. istrict. These These areas reas include include charter charter schools, information schools, information technology echnology and and school school finance finance and and programs. programs. Four Four new new positions ositions (1 (1 Audit Audit Manager anager + 1 Principal Principal Auditor uditor + 2 Senior enior Auditors) Auditors) will ill restore estore staff staff capacity apacity in these hese areas areas as well ell as strengthen trengthen OIG OIG capabilities apabilities in the he following: following: follow-up ollow-up audits audits and and enhanced nhanced internal nternal control control reviews reviews and and enterprise enterprise risk risk management management (ERM). ERM). 6
OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels Contract Audit Activities Contract Audit Activities The The OIG IG has has experienced xperienced significant significant backlogs acklogs in contract ontract audit udit projects projects every every year year primarily rimarily due due to to a capacity apacity issue. ssue. Contract ontract auditors uditors are are required required to to postpone postpone or or delay delay planned lanned projects rojects when hen there here is is an an urgent urgent need need or or special special request equest from from the the Board Board of of Education Education or District istrict Management. Management. Two Two new ew positions positions (2 Senior enior Auditors) uditors) to to perform perform special pecial reviews reviews and nd special special projects rojects that hat require equire immediate immediate action ction and nd quick quick turnaround urnaround times imes will address will address this his capacity apacity issue. ssue. This his includes ncludes litigation itigation support, support, forensic orensic accounting accounting and and audit audit support upport for for investigative nvestigative activities. activities. 7
OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels Investigative Activities Investigative Activities Budget Budget reductions reductions and nd attrition attrition have ave deprived eprived investigative nvestigative staff staff of adequate adequate training training and and expertise. xpertise. In addition, ddition, a significant significant amount mount of investigative investigative resources esources are re dedicated dedicated to performing erforming due ue diligence diligence investigations that investigations hat require require quick quick turnaround urnaround times. times. Four Four new new positions ositions (1 (1 Computer Computer Forensic Forensic Examiner Examiner + 2 Investigative Investigative Assistants + 1 Senior Assistants Senior Investigator) Investigator) will will augment augment staff taff resources resources for or the the most most high-risk high-risk areas reas which which include nclude financial financial fraud, raud, financial financial investigations, investigations, forensic orensic accounting, ccounting, computer computer forensics forensics and nd due due diligence diligence investigations. investigations. 8
OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels OIG General Fund Budget and Staff OIG General Fund Budget and Staff Based Based on the he aforementioned, aforementioned, the he OIG OIG submits ubmits that that the the following ollowing funding levels funding evels are re needed needed in in order order to properly roperly fund und and nd operate operate the he Office Office of of the the Inspector nspector General: General: OIG GE G GENERAL F FUND B BUDGET CURRENT RRENT RECOMMENDED REC FY 2015 2015 FUNDING L LEVEL Budgeted eted P Posi siti tions $ 3,847,206 $ 5,170,020 Discretion onar ary Am Amou ount $ 63,180 $ 300,000 TOTAL $ $ 3,910,386 3,910,386 $ 5,470,020 5,470,020 9
OIG Budget and Staff Funding Levels OIG Budget and Staff Funding Levels Any Questions? Any Questions? To learn more about the OIG, please visit the OIG website: To learn more about the OIG, please visit the OIG website: http://achieve.lausd.net/oig http://achieve.lausd.net/oig 10 10
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