WNY AUDIT TRAIL

4 WNY CHAPTER ITEMS OF NOTE

9-10 JUNIOR ACHIEVEMENT

11-12 WNY IIA BOARD OF GOVERNORS

OCTOBER 2015

Dear Members,

I am happy to announce that the WNY Chapter has gone Social! In addition to our Chapter website, where you can always find information on Chapter events and the latest IIA news, among other things; the Chapter has launched a LinkedIn account as well.  Connect with the WNY IIA Chapter to receive real-time notifications about events, interesting articles, and more.  Most of all though, the WNY Chapter LinkedIn account makes it easy to connect directly with local internal auditors.  To make a connection, visit the Chapter?s profile here and click ?Connect.?

As internal auditors' responsibilities over the years have increased greatly, thorough planning and management of projects has become a valuable and very useful skill for auditors. To help you develop or build on your skills already, on November 18th the Chapter will be hosting a half-day seminar on Project Management. This will be an in-depth seminar, examining various techniques for project management within an internal audit department, as well as within an organization.  For registration details, see the flyer at pg. 2.

Lastly, just a reminder that the Chapter is accepting applications for our annual scholarship until November 6th. If you are currently enrolled in an academic program or know a student who might be interested, please refer to pg. 4 for more information on how to apply.

Happy Halloween to all,

Mariya Balicki, CPA, CIA, CGMA Make sure to visit the WNY IIA Chapter LinkedIn account and connect with your local Audit professionals!

GET CONNECTED!!!

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Stephen Whitehead is a highly accomplished, results-oriented Project Management

Office (PMO) Leader, with significant experience in PMO approach development,

implementation and management. Mr. Whitehead has multi-industry experience

designing, developing, implementing and managing PMOs, and providing technology

solutions for complex business problems. He is a trench hardened expert in managing

technology departments, project management teams, financial operations, and cross-

functional teams, defining business requirements and managing multiple projects in a

portfolio driven business environment. Mr. Whitehead was the CFO and VP of Project

Management at Adeptiv Solutions, LLC; the Director of the IT PMO at Roswell Park

Cancer Institute; and, most recently is Principal at Whitehead Solution Partners, a

Project Management Consultancy.

November 18, 2015 7:30 – 8am: Registration & Breakfast 8am – 12pm: Presentation [4 CPEs]

Presented by Stephen Whitehead

The Millennium Hotel 2040 Walden Avenue Buffalo, NY 14225 $65 Members $75 Non-members

Project Management Workshop

To register for this event, please send an email to iiawnychapter@outlook.com by November 13th and include your name, company, member status (member/non-member) and email.

• Undertaking a Successful Project Audit

• Typical Project Characteristics.

• Usual Risks that Hinder Project Performance.

• The Negative of Outsourcing Project Management. What is the Solution?

• The Elephant in the Room – Understanding the Challenges of Project Risk.

• How a Well Run PMO can assist IA in completing their Audit?

• What should be expected of the PMO?

• What to Look for from a PMO Professional?

• How Overall Projects Costs are Under Considered.

• How Organizational Interdependencies can affect the Project.

• The Hidden Nature of Time & Resource Management.

• Understanding Project Performance through Key Metrics.

• The Project Business Case Translated – What is its Relevance to the Audit?

• Business Requirements, What are they and Why are they so Important?

• Balancing Project Priority with Organizational Capacity and Resource Availability.

• Aligning Project Demand with Resource Capacity.

• Effective Ways of Delivering Projects in a Lower Cost Manner?

• How important is PM Training in Delivering Effective Projects?

• Project Management Maturity – How it determines What You Should Audit and a Sample PM

Maturity Model.

• How Can Internal Audit Take a Leadership Role in Improving Project Success?

• How Do We Measure Project Success?

• The New Lower Cost Higher Efficiency Project Management Delivery Model

• The Relationship between PM Training and Project Success?

• PM Coaching a Valuable Asset to Internal Audit and Their Project Recommendations.

• How to Make Your IA Department a PM Centric Organization?

• Audits are Projects – Why not manage them as Such?

• Implementing a Project Portfolio in Your Internal Audit Department. Why it can become a

Visual Dashboard to Upper Management.

Project Management Workshop

Topics To Be Discussed – November 18, 2015

The WNY Chapter of the IIA welcomes the following new members:

Maria Marzec of M&T Bank and Emily Comfort of Tops Markets.

WNY CHAPTER ITEMS OF NOTE

Project Management Workshop presented by Stephen J Whitehead

November 18, 2015

Millennium Hotel

Cost: $65 members, $75 non-members

4 CPEs

Registration/Breakfast: 7:30am ? 8am

Presentation: 8am ? 12:00pm

SCHOLARSHIP INFORMATION

The annual Western New York Chapter of the Institute of Internal Auditors (IIA) scholarship is now open for interested applicants. The Chapter will be awarding two eligible participants $1,000 each and a one year membership of the IIA. Application, including all required forms and information must be submitted no later than November 6, 2015, in order to be considered for an award for the 2015-2016 academic year. The application can be found on our website here.

NOVEMBER EVENT

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The WNY Chapter of the IIA would like to congratulate the following members for obtaining certifications:

Jennifer Benson of Columbus McKinnon, Ashley Blecha of M&T Bank, and Amber Buttles of Citigroup for attaining the designation of Certified Internal Auditor and Ellen Janicki of M&T Bank for achieving the Certification in Risk Management Assurance.

Congratulations!!!

20% OFFFOR CHAPTER MEMBERSPROMOTION CODE: CHAPTERExpires Oct. 31, 2015

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Chapter members can save the entire month of October on every eBook published by The IIARF. Place your order online and receive your book in seconds, anywhere in the world!

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Visit www.theiia.org/bookstore to browse these titles; look for the logo.

Fantasy Island: Lessons Learned From DraftKings and FanDuel

An updated WNY IIA member l ist has been posted to the website under Member Library. This is only accessible to WNY IIA members and requires log in using member ID/ password to access. Information on the member l ist is based on data maintained in IIA membership databases and identifies only those members who did not opt out of the directory. If changes are required, please log onto the IIA site or contact IIA membership services to update your member profi le. Regarding member certification, only those accredited by the IIA will be listed.

NOTE

By: Richard Chambers

October 15, 2015 ?

Another week, another example of internal control failures hurting an organization and industry.

Details of the scandal engulfing the online fantasy sports company DraftKings should be common knowledge by now. A DraftKings employee admitted to the early release of data not generally available to the public and won US$350,000 on a rival site, FanDuel, that same week. The comparisons to insider trading quickly ? and logically ? followed. It didn't take long for critics to start asking why a major player in the largely unregulated, multibillion-dollar fantasy sports industry didn't have stronger controls in place to restrict access to protected information or ban its employees from participating in fantasy games elsewhere. In the wake of the bad publicity, I couldn't help but wonder: Are there no "lines of defense" in fantasy football? One thing is clear: In the absence of such controls, regulators are more likely to step in and impose their own rules.

The lesson from this latest corporate blunder should be crystal clear: A well-designed system of internal controls is fundamental to reducing business risks.

It is important to have an understanding of how the rapidly growing fantasy sports industry works to grasp the magnitude of the imbroglio and how it might have been avoided through sound internal controls.

The industry was born from amateur fantasy leagues, where players assemble teams populated with real athletes. Points are earned based on how the athletes

perform in real life, and winners are determined based on whose fantasy team accumulates the most points.

DraftKings and FanDuel, as well as other companies in online fantasy leagues, set up games in which players pay entry fees to go up against opponents, sometimes numbering in the hundreds. Prize money for the biggest winners can swell to seven figures. Indeed, DraftKings and others can afford to offer generous payouts, because the industry is expected to collect about US$3.7 billion in entry fees in 2015.

So here we would seem to have the perfect recipe for trouble: Take an in-demand commodity, add a helping of proprietary and valuable data, mix in the opportunity for large financial gains, and add a dash of resistance to or ignorance of internal control processes. Voila! We have cooked up the scandal du jour.

It's not my intent to make light of a serious situation, but the current DraftKings mess was totally predictable. While DraftKings and FanDuel announced permanent bans on employees participating in fantasy leagues within days of the scandal breaking, the damage had already been done to their brands and reputations.

To be sure, the fallout was fast and painful:

ESPN initially announced it would end DraftKings' sponsorship of certain programming, and later said it would stop running its ads. The New York attorney general's office announced it was looking into whether employees of DraftKings and FanDuel had an unfair advantage. A Kentucky man is seeking class-action status for a federal lawsuit that accuses DraftKings and FanDuel of negligence, fraud, and false advertising.

Should DraftKings executives be criticized for not anticipating such problems? Considering the industry is largely unregulated, has seen remarkably rapid growth, and handles huge sums of capital on a weekly basis, the answer is an unequivocal "yes." Beyond the obvious lesson in the benefits of having a well-designed internal control system, the DraftKings scandal indirectly provides yet another good example of the need for mandatory internal audit programs at publicly traded companies.

While DraftKings is not currently publicly traded, it is a textbook example of how limited or poorly designed int?ernal controls can quickly be overwhelmed by the pressures of rapid business success. One of the criticisms of mandatory internal audit programs is that start-ups lack the resources to support them. But without such an investment, organizations are at greater risk of making much costlier mistakes in the future.

It's all about the old expression, "Pay me now, or pay me later."

See original article here.

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Program Information

Location: Utica College, Carbone Auditorium in the Economic Crime and Justice Studies Building (ECJS), 1600 Burrstone Rd., Utica NY 13502-4892.

Cost (including lunch): $80--IIA members; $95—non- members; $25--retirees/students (students are free if not attending lunch).

RSVP by October 19th to: lynn.wilber@cfglife.com, or 315-471-5656 x 7498, include whether you are a member, non-member, retiree, or student attending lunch. Pay by check made out to CNYIIA, at the door or mailed to Lynn Wilber, Columbian Financial Group, PO Box 1056, Syracuse, NY 13201-1056. Cancellation after October 19th incurs the cost.

CPE: This event qualifies for 6 CPEs (CIA & CPA) in the category of Auditing. The IIA CNY sponsor ID number for NYS is 002212. CPE requirements vary from state to state. Contact your state’s board for information concerning your state’s specific requirements.

Agenda 08:45am Registration/Coffee & Pastries 09:00am

Overview of Forensic Accounting/Fraud Investigations. Tim Shanahan, Special Agent/Polygraph Examiner, IRS Criminal Investigation-National Forensic Lab. An overview of the disci-pline of forensic accounting and fraud investigations from both a practical and theoretical perspective.

10:00am Break—Coffee and Networking 10:15am

Interviewing in White Collar Cases: Including Kinesic Interviewing and Emerging Credibility Assessment Techniques. Tim Shanahan will review the knowledge, skills and abilities needed to conduct proper interviews and decipher truth from deception in fraud investigations. Speech and body language analysis, polygraph, facial micro-expressions, thermal imaging, voice recognition, pupillometry and various methods of brain “mapping”, will be discussed.

11:15am The Devil You Know: Economic Crime is Still an Insider’s Game. Stephanie Nesbitt, Assistant Professor, RMI & Director- MBA and RMI Programs, Utica College. Many times when we think of economic crime and cyber issues, we are overly focused on individuals who are external to our organization. Stephanie will step inside the organization and take a look at recent insider crimes and what they say about our regulatory structure, compliance, and risk thinking.

12:15pm Lunch in the Concourse section of the Library 01:00pm

FBI National Cybersecurity Program Overview. Michael Keller, Special Agent, Cyber Intrusion Unit of the FBI, will discuss the national effort the FBI leads to investigate high-tech crimes, cyber-attacks, computer intrusions, and major cyber fraud. He will share insights on the current threat landscape, local resources, collaborative efforts, and information sharing as part of the FBI’s program.

02:00pm Refreshments/Networking Break 02:15pm

Cybersecurity Today. Gerald R. Gagne, CPA, CISA, Risk Management Services Practices, Wolf & Company, P.C. Cybersecurity threats put not only each organization at risk but also place the Nation’s economy at risk. Similar to financial and reputation risk, cybersecurity risk affects your organization’s bottom line and harms the ability to conduct business. This presentation will provide attendees with information on what they need to start to build a strong cybersecurity program.

03:15pm Optional Tour of the Forensic Facility in the Utica College ECJS Building

4th Annual Economic Crime & Cybersecurity Seminar

October 28, 2015 At Utica College

Presented by CNYIIA & Utica College

Economic Crime & Cybersecurity Seminar - Speaker Bios:

Gerald R. Gagne, CPA, CISA. Jerry leads the Risk Management Services Practice at Wolf & Company, P.C., where he is responsible for the successful delivery of risk management services. Jerry also serves on the Firm’s executive committee where his responsibilities include leading the Firm’s overall strategic direction. Prior to joining Wolf in 2001, Jerry held senior management positions at an international accounting firm and in private industry. Jerry’s expertise includes IT risk assessments, customer information privacy reviews, application and network security reviews, internet intrusion studies, war dialing and social engineering. Under Jerry's direction, the IT Assurance Group also provides third-party reviews of service bureaus' control systems including SSAE 16 audits and helps in the development of IT security policies and procedures. Additionally, he has managed engagements to assess system controls, technical security, information security and privacy, application controls and software implementation as well as performing data analysis and audit support projects. Jerry is a graduate of University of Massachusetts, Dartmouth and frequently presents IT security topics to business associations.

Michael Keller Special Agent Michael Keller has been with the FBI five years and primarily focuses on National Security Cyber Intrusions. Prior to joining the Bureau, he worked in the IT industry for approximately 10 years and has a bachelor’s degree in Computer Science. Stephanie R. Nesbitt, J.D., MBA. Stephanie is an Assistant Professor of Risk Management and Insurance, and Director of the MBA and RMI Programs at Utica College. She received her J.D. from the University at Buffalo School of Law, M.B.A. from Syracuse University, and B.A. in Speech Communication from Ithaca College. Prior to joining the Utica College faculty in August 2012, she spent 18 years working in industry as a risk manager and practicing attorney. Stephanie has been a featured speaker at several national, state-wide and regional industry conferences on topics such as insurance cost allocation methods, the impact of risk management on healthcare quality, individual and team accountability to improve healthcare quality, and HIPAA and patient privacy. She is a member of the New York State Bar Association and is licensed to practice law in the state of New York. At Utica College Stephanie teaches both graduate and undergraduate students. Although her official academic "home" is RMI, she also teaches in the areas of management and economic crime. In short, Stephanie loves to teach, and her professional career in industry combined with her academic background give her the flexibility to teach in many areas of Utica College's business curriculum. Stephanie’s research interests lie in the development and implementation of business education programs and manner in which we teach ethics in business education. Tim Shanahan Having been appointed as a special agent in 1994, Tim was selected as a Forensic Polygraph Examiner for IRS Criminal Investigation in July, 2008. He is on the staff of the IRS Criminal Investigation National Forensic Laboratory located in Chicago, IL and he currently works in the Rochester, NY Post of Duty. As one of only two IRS Forensic Polygraph Examiners in the United States, Tim coordinates and implements the use of polygraph services to evaluate testimonial evidence and assist in the resolution of complex financial and related criminal cases worldwide. He has had extensive training in advanced interview techniques, to include kinesic interviewing and statement analysis.

Tim was named to the position of special agent in 1994 and has worked in progressively responsible positions throughout his career. Tim assumed collateral duties as a firearms and use of force instructor in 1997, and from 2003 through 2015 he was the Field Office Use of Force Coordinator where he was responsible for the firearms proficiency and use of force training for IRS special agents throughout New York State. He was appointed the New York Field Office Public Information Officer (PIO) in October, 2000. As the PIO, Tim is responsible for planning, coordinating, and implementing the strategic communications plan of IRS Criminal Investigation in the New York Region. This includes internal and external communications, to include interaction with television, radio, internet, and print media publications.

Tim has a BBA in Accounting from the University of Notre Dame, and a Masters Degree in Public Administration from the State University of New York, College at Brockport. He is currently pursuing a PhD in Global Leadership and Organizational Management from the Indiana Institute of Technology in Ft. Wayne, IN. He is a Certified Fraud Examiner, Certified Forensic Interviewer, and a member of the American Polygraph Association.

Prior to joining the Internal Revenue Service, Tim was employed as an Accountant for Seneca Foods Corporation, and served four years active duty as an officer in the United States Marine Corps. He is a native of Long Island, NY.

Change Lives. Volunteer for Junior Achievement!

Junior Achievement of WNY (JA) is in need of classroom volunteers at WNY elementary, middle,

and high schools! By becoming a JA volunteer, you can give local kids the power to shape their

world, see their future, and let their dreams take flight. JA programs focus on financial literacy,

entrepreneurship, and career & work readiness. JA provides the materials and training. You

provide the time. It’s easy for you, life-changing for them.

Time Commitment: Volunteer commitment ranges from

presenting three to seven 40 minute classroom sessions. A

one-hour training is also provided to all new volunteers.

Class Time & Schedule: Various class times are

available during the school day. The exact schedule is

determined between the teacher & the volunteer.

Volunteers Present: JA’s professionally developed

curriculum provides students in grades K-12 the knowledge

and skills they need to own their economic success, plan for

their futures, and make smart choices. No teaching

experience is necessary- JA provides lesson plans and

accompanying materials. Volunteers are also encouraged to

share their “real word” experiences with students. Each

program differs in content and is age-appropriate. To learn

more about JA programs, visit:

http://www.jawny.org/program-offerings.

Current Volunteer Opportunities: JA receives requests from teachers to have a JA program

throughout the school year. Our list of open classes is always changing! For a list of current classes that

need volunteers, please go to: http://www.jawny.org/current-volunteer-opportunities.

Get Involved: To volunteer in any of our classrooms or to sign up for a JA training session, contact

Justine Waldron at Junior Achievement at (716) 853-1381, ext. 16 or jwaldron@jawny.org. For more

information about Junior Achievement and the students we serve go to www.jawny.org today!

Junior Achievement of WNY Program List: Kindergarten – 12th

grade

*The programs listed below are some of our most popular; for a complete list please go to www.jawny.org.

JA Ourselves™ (Kindergarten) introduces the economic roles of individuals. Students are introduced to basic

personal economic issues and the roles individuals play as workers, consumers and family members.

JA Our Families™ (First Grade) emphasizes how family members' jobs and businesses contribute to the well-being

of the family. It introduces the concept of needs and wants and investigates the ways families plan for and acquire

goods and services.

JA Our Community™ (Second Grade) examines responsibilities of and economic opportunities available to citizens

within a community.

JA Our City™ (Third Grade) studies the characteristics of cities and how people and businesses in cities manage

their money. Students conduct business operations, make city-planning decisions and examine economic

development issues.

JA Our Region™ (Fourth Grade) explains the economic/business resources found in state and regional economies.

Students learn about state economies, the economic resources of regions and decisions businesses must make.

JA More than Money® (Grades 3-5) meets the needs of a diverse group of students by providing engaging,

academically enriching, and experiential learning sessions in economic education. Students are encouraged to use

innovative thinking to learn money-management skills that support positive attitudes as they explore and enhance

career aspirations.

JA Economics for Success® (Grades 6-8) provides practical information about personal finance & the importance

of identifying education & career goals based on a student's skills, interests, and values.

JA It's My Business!® (Grades 6-8) emphasizes entrepreneurship while providing a strong focus on social studies,

reading, and writing skills. Students are encouraged to use critical thinking to learn entrepreneurial skills that

support positive attitudes as they explore and enhance their career aspirations.

JA It's My Future™ (Grades 6-8) provides practical information about preparing for the working world while still

in middle school. Students explore potential careers, discover how to plan for a job, and learn how to keep it while

developing personal-branding and job-hunting tools.

JA Be Entrepreneurial® (Grades 9-12) focuses on challenging students, through interactive classroom activities,

to start their own entrepreneurial venture while still in high school. JA Be Entrepreneurial provides useful,

practical content to assist students to transition into becoming productive, contributing members of society.

JA Career Success™ (Grades 9-12) equips students with the tools and skills required to get and keep a job in high-

growth career industries.

JA Personal Finance® (Grades 9-12) students recognize the fundamental elements of their personal finances:

earnings, saving and investing, budgeting, credit, risk management, and giving. They apply these fundamental

elements to a personal financial plan that allows them to set specific goals for their lifelong financial needs and

desired quality of life.

2015-2016 Board of Governors

* - Denotes Board of Governor Position per By-laws

Position Name Contact Information

President* Mariya Balicki, CPA, CIA

M&T Bank

(716) 842-5971 mbalicki@mtb.com

Vice President* Ashley Kinnear, CISA

M&T Bank (716) 842-5558 akinnear@mtb.com

Treasurer* Steve Doe, CPA

M&T Bank (716) 842-5839 sdoe@mtb.com

Secretary* Daria Adolph, CIA, CMA

Derrick Corporation (716) 206-9019 daadolph@derrick.com

Immediate Past President* Leonard Soldano, CISA, CTGA, ISA, PCIP

M&T Bank

(716) 839-6947 lsoldano@mtb.com

Second Past President * Deborah Kassirer, CPA, CIA, CRMA, CCSA

Roswell Park Cancer Institute

(716) 845-5788 Deborah.Kassirer@RoswellPark.org

Third Past President * Deborah Schmitt, CPA, CIA

National Fuel

(716) 857-6941 krugerd@natfuel.com

Academic Relations Co-

Chairs*

Heidi Martin - PwC

Kate Sheer - M&T Bank

(716) 855-5925 heidi.a.martin@us.pwc.com (716) 842-5636 ksheer@mtb.com

Advocacy Chair* Marcos Manunta, CIA - New Era Cap

Timothy Battaglia, CIA - New Era Cap

(716) 604-9000 ext.1455 Marcos / ext.1461 Tim marcos.manunta@neweracap.com /

tim.battaglia@neweracap.com

Associate Trustee* Maureen Cilano, CPA, CRMA, CCIPA

Evans Bank

(716) 926-2000 ext. 1362 mcilano@evansbank.com

Budgeting & Reporting

Committee Chairperson

Lisa Bialek

M&T Bank (716)842-2321 lbialek@mtb.com

Financial Controls

Committee

Brittany Barr - First Niagara

Stacey Chaffee - First Niagara

Brian Steinmetz - First Niagara

(716) 848-8457 Brittany.Barr@fnfg.com (716) 848-8477 Stacey.Chaffee@fnfg.com (716) 851-8380 Brian.Steinmetz@fnfg.com

Certifications Chair & CIA

Chairperson*

Maureen Dunn, CCSA - Evans Bank

Jeffrey Barnett, CIA, CCSA - Benderson Develop-

ment

(716) 926-2005 Maureen/ (716) 878-9658 Jeff mdunn@evansbank.com jeffbar-

nett@benderson.com

Meetings & Attendance

Coordinator*

Margaret McWilliams, CIA, CISA, CRISC National Fuel

(716) 857-7019 mcwilliamsm@natfuel.com

Membership Chairperson* James Bandinelli - M&T Bank

Justin Bonk, CIA, CFE, CISA - Freed Maxick CPAs P.C.

(716) 842-5618 jbandinelli@mtb.com (716) 332-2680 Justin.Bonk@Freedmaxick.com

Newsletter Chairs Jeremy Fay, CISA M&T Bank

Amber Buttles, CIA - Citigroup

(716) 842-2323 jmfay@mtb.com (716) 730-8242 amber.buttles@citi.com

Seminar and Events

Co-Chairs*

Stephanie Coughlin - Evans Bank

Michael Buziak - First Niagara

Patricia Johnson - Canisius College

Ashley Hubbard - M&T Bank

(716) 926-2040 x3723 scoughlin@evansbank.com

(716) 848-8469 michael.buziak@fnfg.com (716) 888-5947 johnsonp@canisius.edu

(716)842-5046 ahubbard@mtb.com

Website and Survey Admin-

istration Chair*

Ellen Janicki, CIA, CRMA

M&T Bank (716) 842-2316

ejanicki@mtb.com

2015-2016 Board of Governors, Continued

Board Member* Micheal Ohlweiler, CPA

Partner, KPMG LLC

(716) 796-6039 mlohlweiler@kpmg.com

Board Member* John D'Angelo

General Auditor, M&T Bank

(716) 842-5551 jdangelo@mtb.com

Board Member* Eugene Cullen, CCSA, CRMA

VP of IA and Advisory Services, Roswell

(716) 845-8374 Eugene.Cullen@RoswellPark.org

Northeast District Advisor Lynn Theriault lynn.theriault@caltech.edu

Northeast District #3 Lindsay Prichard (585) 423-8946

lindsay.prichard@xerox.com

Chapter Support - IIA HQ Donna Wiley Donna.wiley@theiia.org