ASSOCIATION OF PUBLIC PENSION FUND AUDITORS
PROFESSIONAL DEVELOPMENT CONFERENCE
Cleveland, Ohio
May 3 – 5, 2004
Earn up to 17.5 CPE Credits Register Now See Details Inside
About Your Sponsor
The APPFA Professional Development Conference is designed to further enhance participants’ auditing skills and provide a forum for the exchange of ideas and concepts. At the conference, the participants will attain an overview of the topic areas. Attendees should have a basic knowledge of accounting and auditing procedures, practices and theory. There is no experience requirement and no advance preparation is needed. Participants attending this seminar will receive an attendance certificate following the completion of this program. Auditing and accounting professionals may qualify for 17.5 hours of Continuing Professional Education (CPE) by attending this conference, which is designed to comply with the AICPA’s Statement on CPE Standards.
APPFA is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417, (615) 880-4200, Web site:www.nasba.org.
Agenda
Sunday – May 2
Reception 6:00 – 8:00 pm
Monday – May 3
Continental Breakfast 7:30 – 8:30 am
Introduction & 8:30 – 8:45 am
Logistics
Welcome and Opening 8:45 – 9:45 am
Comments
William Estabrook, Executive Director, Ohio Police and Fire Pension Fund, and Damon Asbury, Executive Director, State Teachers Retirement System of Ohio
Roll Call of the 9:45 – 10:30 am
States
Break 10:30 – 10:45 am
Roll Call of the 10:45 – 12:00 pm
States (continued)
Lunch 12:00 – 1:15 pm
Risk Management for
Pension Funds 1:15 – 3:15 pm
Break 3:15 – 3:30 pm
Electronic Signatures 3:30 – 5:00 pm
Tuesday – May 4
Continental Breakfast 7:30 – 8:30 am
“Four Quadrant Thinking”
in leading change: A change
management strategy
and more 8:30 – 10:00 am
Break 10:00 – 10:15 am
Investment Performance–
Panel Discussion 10:15 – 12:00 pm
Lunch 12:00 – 1:15 pm
GRS Actuarial a 1:15 – 2:45 pm
Presentation
Break 2:45 – 3:00 pm
Ethics Presentation 3:00 – 4:45 pm
Picnic at Baseball Game 6:00 pm
Cleveland Indians vs.
Boston Red Sox
Wednesday – May 5
Continental Breakfast 7:30 – 8:30 am
Audit Committee- Panel 8:30 – 9:45 am
Discussion
Break 9:45 – 10:00am
Best Practices- CAFR 10:00 – 11:30am
Reporting
Conference ends 11:35am
Session Descriptions and Presenters
Welcome and Opening Comments
William Estabrook, Executive Director of Ohio Police & Fire Pension Fund, and Damon F. Asbury, Executive Director of State Teachers Retirement System of Ohio
William J. Estabrook is the Executive Director of the Ohio Police and Fire Pension Fund (OP&F), where he is responsible for the strategic, financial and operational oversight of OP&F and its staff of 180 employees in six departments, as well as the financial viability for pension and health care benefits for more than 50,000 retirees, active members and survivors. He joined OP&F as Executive Director in May 2001 and also served as OP&F’s Interim Executive Director for a 6-month period in 1997.
Mr. Estabrook has over 30 years of experience in the public sector, managing large cities and government agencies across the country. Prior to joining OP&F, Estabrook served as the City Manager of Miramar, Florida for three years. His responsibilities there included overseeing 700 employees and an annual budget of $120 million. In addition, he was accountable for economic development duties, resulting in 3,400 new job opportunities for the city and $580 million in commercial development. The Miramar-Pembroke Pines Chamber of Commerce honored him with the prestigious Pinnacle Award in 2000.
Mr. Estabrook’s diverse background combines an impressive blend of small town roots, an extensive education, and big city work experience. After graduating from high school in Huntingburg, Indiana, he serves as a hospital corpsman in the US Navy for nearly four years. During his military service years, which included a 13-month combat tour in Vietnam, he was awarded the US Navy commendation with Combat “V” for Valor.
Following his full time tour with the military, he returned to his home state to attend Indiana State University where he received his Bachelor of Science and Master of Public Administration degrees. The following year he completed the Indiana University Executive Management Program.
Mr. Estabrook has extensive experience in county and city management. This phase of his career spanned nearly 13 years beginning as County Administrator of Greenville County, South Carolina and ended with his most recent post as City Manager of Miramar, Florida. During that time he held positions as County Administrator of Manatee County, Florida and City Manager of Dayton, Ohio.
Mr. Estabrook and his wife, Nancy, currently reside in Dublin, Ohio. They share two grown children and three grandchildren.
Damon F. Asbury began his career at the State Teachers Retirement State of Ohio (STRS Ohio) in July 2000 when he was designated Deputy Executive Director – Administration. He officially took over the position in January 2001. On Feb. 18, 2004, he was named STRS Ohio’s executive director.
Prior to coming to STRS Ohio, Asbury served as the Superintendent of the Worthington City Schools from 1991-2000. He was with the Columbus City Schools from 1967-1991, where he held several leadership positions, including interim superintendent, associate superintendent of Management Services and assistant superintendent of schools – Business and Support Services. He is a former lecturer for the Department of Educational Policy and Leadership at The Ohio State University and past president of the Buckeye Association of School Administrators (BASA).
He as earned numerous awards, including the Distinguished Service Award from BASA in 2001 and the Excellence in Educational Leadership Award from the University Council for Educational Administration 1998. He has earned the status of registered school business administrator and holds Ohio certificates as a superintendent, educational specialist and school psychologist. He has successfully completed the Money Management Fundamentals Program offered by the Wharton School, University of Pennsylvania, and participated in the Harvard Balanced Scorecard Collaborative.
Dr. Asbury received his doctorate from The Ohio State University in Psychology – School, Educational, Developmental and Exceptional Children. He also holds bachelor’s and master’s degrees in school psychology and exceptional children from OSU. Dr. Asbury has completed post-graduate work in school administration and organizational development.
Roll Call of the States
In this session, a representative from each participating organization will speak to the group about current audit areas, ongoing projects and recent legislation affecting their pension fund. They will discuss how they accomplished the results and how they overcame hurdles. This session facilitates networking and is extremely beneficial in locating peers that are working on similar projects and facing similar challenges.
Moderator: Marci Sundbeck, Employees Retirement System of Texas
Risk Management for Pension Funds
Risk management should be an integral part of the investment process yet it is often considered separately or ignored altogether. At a time when states are scaling back their budgets, pension liabilities are growing, and market conditions are volatile, implementing or improving an already established risk management process is essential. This presentation will include a discussion of the risk management process, derivative instrument risk management and the auditor’s role in evaluating and monitoring traders and outside consultants.
Presenter: Dr. Susan M. Mangiero, BVA, LLC
Dr. Mangiero has conducted business analysis, valuations, and deal evaluations and structuring for over 15 years. A Chartered Financial Analyst, she earned the designation of Accredited Valuation Analyst from the National Association of Certified Valuation Analysts and is certified by the Global Association of Risk Professionals as a Financial Risk Manager. She is a Candidate Member, American Society of Appraisers. She holds a Ph.D. in finance with a minor in math from the University of Connecticut, a MBA in Finance from New York University, a MA in Economics from George Washington, a BA in Economics from George Mason University and graduate work in computational finance at Carnegie Mellon University.
Dr. Mangiero’s industry experience spans several areas, including asset-liability management, capital markets, economic assessment, financial statement analysis, risk management, statistical modeling and valuation. She worked with mid-size and regional clients as a vice president at several global banks, project manager for a large consulting firm, treasury professional for a Fortune 50 multinational corporation, finance consultant to policy making organizations and board member for several non-profit groups. Litigation support work includes financial valuation, assessment of economic damages, rebuttal of opponent’s testimony, statistical evaluation and creation of instructional materials for jury members or judges.
Her book about pensions, endowments and foundations is due out early 2004 and adds her already long list of publications that includes articles for Investment Lawyer, Valuation Strategies, RISK Magazine, Financial Services Review and Bankers Magazine. She has written chapters for the Litigation Services Handbook: The Role of the Financial Expert, the Handbook of Interest Rate Risk Management and Cases in International Finance.
She is a frequent public speaker for groups that include the National Association of Forensic Economics, Association for Financial Professionals, Financial Management Association, Association of Individuals Investors, Stamford Society of Investment Analysts and the New York Institute.
Dr. Mangiero is a member of the Institute of Business Appraisers, Association for Investment Management and Research, Financial Executives International, National Association of Certified Valuation Analysts, Association for Financial Professionals, American Society of Appraisers, institute of Internal Auditors, American Bar Association and Connecticut Bar Association.
Electronic Signatures
The session will include:
1. Overview of digital signatures and public key infrastructures (how they work, why use them, under what circumstances)
2. Current Implementation Issues
3. Alternatives to Digital Signatures/PKI
4. Audit and Control Issues
5. Sample Audit Program
Presenter: Kevin Savoy MBA, CPA, CISA Audit Director – Information Systems Security Commonwealth of Virginia
Kevin Savoy is Audit Director, Information Systems Security team, for the Auditor of Public Accounts, Commonwealth of Virginia. He is responsible for a team of information systems security auditors who perform client-server, mainframe, telecommunication, and general control audits of Virginia state agencies and universities.
Prior to joining the APA seven years ago, Kevin worked for RXNET Pharmacy Systems and QS1 Data systems over a ten-year period. In these positions he was responsible for all phases of automating retail and hospital pharmacies.
He often speaks on current technology audit issues such as UNIX, Virtual Private Networks, Routers and Firewalls, Computer Forensics, Mainframe Security, and Internal Controls.
Kevin has a B.S. Degree in Forest Management from Virginia Tech, a Post Baccalaureate Certificate in Accounting and an MBA from Virginia Commonwealth University.
“Four Quadrant Thinking” in Leading Change: A change management strategy and more.
Organizational change is a way of life. Progressive organizations are challenged to maintain performance while experiencing the change process. Often, employees are consumed by denial, fear, anger, and other emotions including confusion. Such reactions can render your staff incapacitated and their performance weakens. This is a time for effective leadership; this is a time for leadership to surface and manage the change process.
Understanding your staff’s preference for thinking will allow for not only a smoother transition from one performance expectation to another, but will allow for rebuilding more effective teams or staff. This session will explore the meaning of “whole brain thinking” as a technique for managing change and building greater capacity within the existing human capital of the organization.
Presenter: Dr. Terry Boyd, Franklin University
Dr. Boyd is Program Chair for the Master’s in Human Services Management and Human Resources Management undergraduate programs at Franklin University. He also has served as Director of Human Resources for US Health Corporation (currently known as Ohio Health) where he was responsible for human resources functions of more than 15,000 employees. Dr. Boyd has held several positions with the city of Columbus under the mayoral leadership of Dana “Buck” Rinehart. In addition to his teaching duties, he also provides training and consulting on human resources issues.
Dr. Boyd was recently elected to the Columbus Public School Board, and also serves as President of the Trustee Board of the Columbus Metropolitan Library. He earned a Ph.D. and a Master of Science degree from the Ohio State University, and a Bachelor of Science from Defiance College in Defiance, Ohio.
Investment Performance-Panel Discussion
This panel will provide different perspectives and answer questions from the following points of view:
- External auditor overview of critical investment performance audit review steps, and to ensure incentive compensation agreement payments are correct
- Investment staff requirements for ensuring accurate investment performance
- Internal Auditor may review several aspects of investment performance reporting. These areas include segregation of duties, use of appropriate standards and benchmarks, reperformance of specific calculations, completeness of performance presentations, consistency of reports made through various channels, compliance with laws requiring performance reporting, and fees paid for performance.
Panel Members: Rajan Chari, Deloitte & Touche; G. Kevin Spellman, Ohio STRS; Bob Benson, CalPERS
Rajan Chari is a senior manager with Deloitte & Touche LLP and is based in the Midwest. He has served a wide variety of investment management clients, including investment advisors, mutual funds, and private investment funds. Rajan has extensive experience with the AIMR-PPS, providing performance record consulting and examination to clients. Within Deloitte & Touche LLP, Rajan has assisted with the development and testing of applications used by the firm’s practitioners. Rajan has also co-authored articles for the firm’s investment management publications and has been a frequent speaker at industry conferences and on web casts.