/ association of healthcare internal auditors
board of directors meeting
March 28, 2012
2:00 PM – 3:30 pm Eastern Time
Conference Call

MINUTES

Board Only Website:

Item / Who / Action / Deadline

1.Call to Order

Present: Joyce Lang, Chair; Mike Fabrizius, Past Chair; Bob Michalski, Vice Chair; Heidi Crosby, Secretary/Treasurer; Dagmar Herrmann-Estes, Linda McKee, Debra Muscio, Bryon Neaman, David Stumph and Michelle Cunningham

Absent:Kelly Nueske
The meeting was called to order at 2:04 pm (EDT).

2.Approval of Minutes

  • January 27-28, 2012
The January 27-28, 2012 meeting minutes were previously approved via email vote. Joyce reported that the February 2012 Executive Committee meeting was cancelled, so there are no minutes to approve.

3.Chair’s Report

  • Protiviti Survey Update
Mike Fabrizius reported that AHIA has been collaborating on anInternal Audit Capabilities and Needs Survey with Protiviti since last year. Mike participated in the development and review – but Protiviti was chiefly responsible for the research and development. The intention for our participation was primarily to market AHIA by co-branding the report.
Michelle reported that she has been in discussions with the Protiviti marketing staff to determine how to best disseminate the information. The following items are being considered:
1)May 31 Webinar (AHIA will promote - no charge to attendees, held on Protiviti’s webinar platform, AHIA will offer CPE)
2)Possible AHIA Annual Conference session in the leadership track
3)Information posted to AHIA’s website/or Audit Library
4)Mention in AHIA’s E-News
ABOUT THE SURVEY:Each year, Protiviti conducts its Internal Audit Capabilities and Needs Survey to assess current skill levels of internal audit executives and professionals, identify areas in need of improvement and help stimulate the sharing of leading practices throughout the profession. This year, survey respondents answered close to 200 questions in the following categories: General Technical Knowledge, Audit Process Knowledge, Use of Technology in Auditing Business Process Controls, and Personal Skills and Capabilities. The results, which are based on information provided by all respondents (who numbered more than 800), are contained within the master report. In each category, respondents were asked to assess, on a scale of one to five, their competency in the different skills and areas of knowledge, with one being the lowest level of competency and five being the highest. They were then asked to indicate whether they believe they possess an adequate level of competency or if there is need for improvement, taking into account the circumstances of their organization and the nature of the healthcare industry.
Respondents from healthcare providers – who compose more than 13 percent of the survey participants – also answered questions in a fifth section featuring technical knowledge areas specific to the healthcare industry. The intent of this report is to equip internal audit executives and professionals in the healthcare industry with more targeted insights – through a combination of survey results analysis and practical insights from AHIA and Protiviti – about the unique challenges within their domains.
  • Professional Practices and LSU Survey Responses
Joyce reported that as of today the Professional Practices survey (focus on identifying experts for the Subject Matter leadership program and topics as emerging issues) has received 93 responses.
The LSU survey has received only 73 responses, which was disappointing to the editorial committee. It was determined the LSU survey deadline will be extended until Friday, March 30.
We will hold the prize drawing and announce the winners in the next issue of E-News.
  • Open
Joyce reported that the new Action Item tracking report is now posted on the Board only website. Joyce requested that that the Board review the list and report back with status updates on past due items. She requested this be done by April 10, 2012. / Michelle
Board / Send the Protiviti/AHIA Internal Audit Capabilities and Needs Survey to the Board
Review and comment on past due items on the Action Item report. Send comments to Michelle. / COMPLETE
April 10, 2012

4.Financial Report

  • YTD 2012 Dashboard Report (*)
  • Review format and content – is it all useful? Anything else?
Heidi presented the dashboard report. She commented on revising the membership graph to determine if the graphic can include last year’s membership data to ensure we are on track.
Discussion followed on how the board should interpretthe lessons learned from this report, specific to the educational offerings. The dashboard report is intended as an organizational snapshot ONLY.
Event evaluations were discussed and how the information is disseminated for the Board review to distill lessons learned and future member benefit and educational planning. It was determined that Board liaisons are responsible for reviewing and distilling the information and lessons learned for the Board’s consideration. There is currently no process in place for the Education Committee to review this information.
After discussion, it was decided that the dashboard report agenda item will be moved to the chair’s report as a standing item.
  • February Financial Statements (*)
Heidi reported that she would like to report on 2 months of financials at each Board meeting. She prefers to make her comparisons based on year-end info – rather than same period last year.
Heidi presented the financial information through February 2012. She noted that the February 2012 statements are preliminary. While adjustments are expected to be minimal resulting from the audit that is set to take place next month, it is likely that some will be required that could affect the starting balances for 2012.
Balance Sheet:
The balance sheet continues to show a strong cash and overall asset position.
  • Total assets are $630,334 compared to $588,629as of December 2011.
  • Net revenue for February was $124,068.
  • Total cash in checking is $190,964.
  • Deferred dues for 2013, 2015, and 2015 amounts to $23,230.
Profit & Loss Statement (P&L):
  • Income Highlights:
  • Total dues receipts for February include $10,358 and total dues revenue YTD is $139,712. It is important to remember that at the beginning of the year, all of the deferred dues that were received in 2011 belonging to 2012 are recognized.
  • Total dues to date are at 61.9% of the annual goal.
  • Total YTD revenue is at 26.7% of the annual budget.
  • Income areas that are doing well so far this year in addition to dues include webinars and conference sponsorship, and exhibits.
  • There were no other significant revenue items to date to report.
  • Expense Highlights:
  • Total expenses remain well below pace at 10% of budget for the year.
  • Prepaid expenses for the 2012 conference – Conference Planning Committee meeting expenses are at 21% of budget. This relates to prepayments and deposits that have been required.
  • Governance – Board of Directors expenses were at 25.7%, which is related to the January Board meeting.
  • Total administrative expenses are below pace for the year at 15.4%.
  • There were no significant expense variances under ordinary expenses to report to date.
Investments:
There was a gain on investments for February of $6,930.
  • Investment Strategy & Policy Updates
Heidi reported that Bob, Dave and she met with the investment advisor. Heidi requested clarification on the amount of liquid funds required to be held in reserves. (Should cash investments equal to total operating budget?).
Joyce requested a monthly cash in-flow and out -flow projection report (“burn rate” or cash flow analysis report) so that a determination can be made. It was requested that the Annual Conference be included in this report.
Ongoing consideration will be given to this matter upon review of the cash flow analysis report and assessments of AHIA risk tolerance.
  • 2011 Financial Audit Plan
The audit will begin at AHIA headquarters on April 9, 2012. / David
Michelle
Debra and Michelle
David
David
Finance Committee / Revise membership graph on dashboard to include past years’ data
Add the topicsfor webinars for educational events on the dashboard
Develop process to disseminate evaluation results with Education subcommittees and insure incorporation in Board reporting
Ensure the “Dashboard Report” is added to the Chair’s Report on all Board meeting agendas
Create burn rate (cash flow analysis) report for Board’s review –so that liquidity can be defined
Make recommendation to Board on number of months operating cash amount to hold in reserves. / April 24, 2012
April 24, 2012
July 30, 2012
Ongoing
April 20, 2012
May 23, 2012

5.Chair-Elect’s Report

  • Strategic Initiatives for 2012 – Update (*)
Bob presented the most recent draft of the 2012 Strategic Plan and requested formal approval, so that the information can be disseminated to the Committees. Bob posed the question of whether Item 1.d. is relevant. It was determined that Item 1d be removed from the plan.
The revised strategic plan will be sent to the Board for approval via email – deadline April 4. / Michelle / Send the revised 2012 AHIA Strategic Plan to the Board for an email approval vote / COMPLETE

6.Past Chair’s Report

  • Nominating Process/Plans
Mike reported that he and Joyce have identified 2 potential candidates for the 2012 Nomination Committee. Joyce reported that she connected with one individual and awaits a final response.
Mike reported that he will soon assemble the Nomination Committee for a meeting and that the communications strategy has been outlined – beginning with the official call for nominations on May 1, 2012.

7.Executive Director’s Report

  • Communications Plan – Upcoming Items
Michelle reported that the communications plan is a living document and has been changing along with the circumstances (i.e. rescheduling of education events, waiting for content, etc…). She reported it remains a work in progress – but has helped keep communications on track.
Michelle reported that the following items are slated or in process for promotion in April 2012:
  • E-News (April 18) – Member benefit spotlight on Education
  • Annual Meeting spread prepared for New Perspectives
  • Annual Conference email campaign will launch April 2 – weekly promotions will follow each week
  • Annual Conference speaker confirmations are going this week. Rejections will be sent April 11.
  • Call for MAC Award nominations (Founders Award, AHIA award, etc…)
  • Regionals: Chicago and WSCPA Health Conference
  • Webinar: ICD-10
  • Call for volunteers
  • Annual Conference Roundtable promotion
  • DRAFT: AHIA non-renewal survey for MAC
Michelle reported that the following items are slated for promotion in May 2012:
  • E-News (May 16) – Member Benefit Spotlight on AuditNet
  • Annual Conference Sponsorship push
  • Ongoing Annual Conference promotion
  • Call for Conference Moderators
  • Call for AHIA Board of Director Nominations (Treasurer only)
  • AHIA Award nominations reminder
  • Regional: WSCPA (May 18) and San Francisco (June 1)
  • Webinar: Manage Risk! Internal Auditor Opportunities to Mitigate Risk and Indentify Improvements within the HR Function
  • Annual Conference press release to industry trades
  • MAC Video Scripting
Board input and additions are always welcome.

8.Action Items from Committee Reports:

Joyce requested to know the timing of the call for reports. The reports are requested the first week of the month of the Board meeting and what we have received is indicated on the agenda with (*).
  • MAC
No report.
  • Publications:
  • Editorial (*)
Joyce requested to know the status of revising the NP publication schedule and wanted to ensure the editorial committee makes publication timeliness its first priority. Linda reported a RFP is in development.
  • E-News (*)
  • ACTION: Formatting for mobile phones
Michelle reported that several AHIA committee and subcommittees are interested in mobile app development. The Website Subcommittee will be implementing the mobile optimization of the AHIA website as a first step. Once we have implemented we will move forward with consideration of committee/subcommittee requests.
  • White Paper (*)
Linda reportedthat Glen Mueller is requesting legal assistance to review the PwC white paper contract. David reported that AHIA legal counsel is available and he will work directly with Glen to make arrangements
  • Education
  • Annual Conference (*)
  • Regional Seminars (*)
  • CAE Workshops
  • Webinars
  • Professional Practices (*)
Bryon reported that the committee is focused on upgrades to the audit library and imminent Subject Matter/Emerging issues survey results. They will require legal counsel on the copyright recommendations for the library.
  • Technology (*)
  • Website
/ David / Follow up with Glen Muellerconcerning legal representation to review White Paper agreement / April 11, 2012

9.Unfinished Business

  • E-Learning Task Force Update
Heidi reported that the e-Learning subcommittee held preliminary discussion on considerations for development, feasibility and member need. We will meet in May. Next steps include:
  • Develop member needs assessment survey questions
  • Develop call for volunteers to assemble exploratory team
  • Develop process to identify eLearning content and talent
  • Research implementation costs – future funding

10.New Business

Michelle reported that association management industry standards are now recommending that 8% to 12% of the total operating budget should be allocated to technology development/ maintenance to achieve maximum relevancy in the marketplace. This standard should be given consideration for fiscal year 2013.

11.Adjourn

MSC to adjourn the meeting at 3:34 pm EDT.The Next meeting will be held on Wednesday, May 23 at 2:00 pm (EDT).

(*) See AHIA Board Member Only website for documents