A large tribal government sought assistance with internal audit services, specifically in developing an Internal Audit Charter, piloting a risk assessment, developing the internal audit plan and conducting the approved internal audit activities for the remainder of the one-year term. Areas of focus for the internal audit function included improvements to governance, risk management, and internal control (GRC), as well as identification of efficiencies and budget reductions within the organization.
Baker Tilly solution
Baker Tilly developed an Internal Audit Charter under which the internal audit function would operate. Following approval by Tribal Council, Baker Tilly conducted an enterprise wide risk assessment focused on identifying the population of auditable activities and risks to the achievement of organizational objectives. Risks considered were wide ranging, including strategic, financial, operational, compliance, technological, fraud and reputation.
The process included review of key documentation (organizational charts, financial statements, policies, etc.), nearly 60 on-site interviews, discussions with the Tribal Council and executive officers, and observation of organizational strengths. Based on the data gathered from these informative procedures and consideration of industry factors, Baker Tilly measured and mapped risks through a quantitative scoring approach.
A combined analysis of the risk assessment and the tribe’s highlighted priority areas identified potential areas of focus for internal audit projects. These projects include performance measurement (KPI), program/budget evaluation, grant management, procure to pay processing, and ad hoc activities such as research and budget reduction. Ultimately, the internal audit approach focuses on adding value by evaluating and improving the effectiveness of the Tribal government operations, governance, risk management, and internal controls. Baker Tilly’s services will continue to serve as the tribe’s basis for internal audit for the foreseeable future.
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