Contributor:
Tiffany McCoy, Manager, Risk & Cybersecurity Services
A large educational institution (the Institution) faced growing oversight requirements, evolving operational risks and increasing compliance demands. With budget constraints limiting its ability to hire and retain specialized internal audit talent, the Institution sought a scalable approach to compliance and risk management.
Through our collaborative firm model, Cherry Bekaert helped the Institution gain affordable access to the technology, talent and technical knowledge needed to strengthen oversight capabilities, improve processes, support long-term operational effectiveness, and even secure millions in tax credits and incentives.
When Compliance Demands Outpace Resources
The Institution initially engaged Cherry Bekaert to provide Outsourced Internal Audit Services after determining it could not fully staff its internal audit function internally based on the cost of staffing and on the competitiveness in salaries across the marketplace. As a government and grant funded institution, the Institution found it difficult to compete with for profit organizations to attract and retain talent based on salary. State-mandated controls testing required significant attention, and leadership needed experienced resources to help execute key audit activities while supporting compliance requirements.
As work progressed, additional needs emerged. The Institution also required assistance with:
- Oversight of contractor and subcontractor expenditures
- Contract compliance audits
- Employee hotline investigations
- IT-related control reviews and cybersecurity risks
- Specialized advisory support on emerging operational issues
The Institution needed access to a broad range of capabilities that could adapt alongside its changing organizational priorities and compliance landscape.
Building a Flexible Extension of the Organization
Cherry Bekaert began the engagement by supporting the Institution's internal audit responsibilities and state-required controls testing. Over time, the relationship evolved into a broader risk and compliance engagement driven by annual risk assessments which identified the
Each year, the outsourced technical team assigns the individuals who have the technical knowledge and experience to perform the required work to conduct risk-based reviews on the three identified risk areas. Via, Cherry Bekaert evaluates whether controls are appropriately designed and operating effectively while also serving as a trusted advisor and helping to identify opportunities to improve efficiencies, cut costs and strengthen processes. By selecting samples based on population and control type across areas including student enrollment, student eligibility, enrollment reporting, Return to Title IV, cash, tuition and fees, and IT general controls (ITGCs), the team tests the design and implementation of in-scope controls and delivers process improvement recommendations as needed.
As new needs arose, the Institution also leveraged additional Cherry Bekaert capabilities, including:
- Forensic and investigative support
- Contract compliance auditing
- Tax advisory guidance
- COVID-era tax credit and incentive support
- Operational and workforce-related advisory services
- Cybersecurity and IT control perspectives related to audit scopes
This approach allowed the Institution to access specialized resources as needed without the ongoing cost of maintaining a fully staffed internal audit department with dedicated compliance, IT audit and risk professionals.
Turning Audit Insights Into Action
One of the defining characteristics of the engagement has been the Institution's commitment to acting onAudit results and process improvement opportunities are regularly presented to the board, which maintains an active understanding of organizational operations and supports management efforts to strengthen processes when opportunities are identified.
Over the years, management has consistently implemented recommendations and embraced opportunities to improve operational efficiency and enhance internal controls. This collaborative approach helped create a culture of continuous improvement rather than a simple compliance exercise. As a result, the Institution has steadily matured its processes across financial, compliance and IT-related areas.
Results That Continue To Compound
The long-standing relationship has delivered both measurable and operational outcomes.
Key Results
- Secured over $2 million in tax credits and related incentives through specialized tax support
- Reduced audit findings over time through implementation of recommendations and process improvements
- Achieved a recent audit cycle with no reportable findings, resulting only in process improvement recommendations
- Strengthened governance through active board engagement and oversight of audit results
- Expanded access to specialized risk, audit, tax, forensic and IT resources without increasing internal staffing requirements
A Long-term Resource for Evolving Needs
What began as an outsourced internal audit engagement has evolved into a trusted relationship that adapts as organizational priorities change.
By combining risk-based auditing, compliance support, IT perspectives and access to specialized advisory resources, Cherry Bekaert has helped the institution maintain strong oversight while operating within budget realities. The organization continues to leverage the relationship as a flexible resource for addressing new challenges, strengthening processes and supporting its mission with confidence.
Your Guide Forward
At Cherry Bekaert, we help organizations address complex challenges, strengthen operations and prepare for what's next. With industry-aligned professionals, specialized technical resources and a collaborative approach, we deliver solutions that support long-term success and organizational resilience.
Related Insights
- Podcast: The Client's Guide to Data Analytics in Internal Audit
- Article: A Guide to Outsourcing the Internal Audit Function
- Article: Five Things To Look For When Selecting Internal Auditor
