ASSOCIATION OF HEALTHCARE INTERNAL AUDITORS
BOARD OF DIRECTORS MEETING
JANUARY 27, 2012
2:00 PM – 5:30 PM EASTERN TIME
AND
JANUARY 28, 2012
8:00 AM – 12:00 PM EASTERN TIME
LOEWS HOTEL PHILADELPHIA
PHILADELPHIA, PENNSYLVANIA
MINUTES
Board Only Website: https://www.resourcenter.net/Scripts/4Disapi1.dll/4DCGI/members/boardsite.html
ITEM
WHO
ACTION
DEADLINE
Friday, January 27, 2012
1. Call to Order
Present: Joyce Lang, Chair; Bob Michalski, Vice
Chair; Heidi Crosby, Secretary/Treasurer;
Dagmar Herrmann-Estes, Linda McKee, Debra
Muscio, Bryon Neaman, Kelly Nueske, David
Stumph and Michelle Cunningham
Absent: Mike Fabrizius, Past Chair
The meeting was called to order at 2:14 pm (EST).

Welcome New Board Members
Joyce Lang welcomed Dagmar Herrmann-Estes
and Bryon Neaman to their first official meeting as
Board directors. She welcomed Heidi Crosby in her
new role as Secretary/Treasurer.

Review of the Meeting Agenda and Social
Events
Joyce presented the agenda and reviewed the
schedule of activities.
2. Hotel Tour
The Board members toured the Loews Hotel space
contracted for the 2012 AHIA Annual Conference.
The following comments will be shared with the
conference planning committee:
-
Evaluate timing between sessions to
accommodate elevator delays
Opening remarks need to include clear
instructions for attendee traffic flow
Michelle
Communicate
considerations for
conference logistics,
included allocating
appropriate time
between sessions to
allow attendees time to
move from floor to floor
and the incorporation of
attendee traffic flow
instructions into
opening general session
remarks.
Complete
3. Approval of Minutes

November 30, 2011 (approved by email)
The November 2011 meeting minutes were
previously approved via email vote and are
available on the Board-only website for reference.
4. Chair’s Report

Overview of Strategic Initiatives (to be
discussed in detail later in the meeting)
Joyce briefly reviewed the color coding system
indicted on the yearend strategic plan update.
Joyce explained that a comprehensive review of
the strategic plan will be the focus of tomorrow’s
meeting.

Discuss Cash Reserves (what is an
appropriate goal and what do we do with
funds that exceed reserve goals)
Joyce requested that the Board consider how
much cash AHIA should hold (reserves) and should
excess be used to benefit AHIA members.
Discussion followed on the appropriate level of
reserves that AHIA should have, in accordance
with the current investment policy and association
standards. Bob reported that the current
investment plan indicates one-year of operating
expenses should be held in reserves.
The Board indentified the need to reassess the
current 12-month amount of operating cash
needed in reserves in order to be in compliance
with the revised policy and to make the
determination on how much funding will be
available for additional member enhancement
programs.
The recommendation to evaluate 2012 FY cash
position was accepted and it was determined that
excess funds will be identified and earmarked for
member enhancements in fiscal year 2013. This
item will be readdressed as part of the 2013
budgeting process.
Discussion followed on areas that could be
enhanced/sustained with excess funds. One item,
among many, for consideration is an increase in
speaker reimbursement levels will be given
Finance
Committee
Determine the updated
amount of 12-month
operating expenses
March 1, 2012
D. Stumph
Include “how do we
define one year’s
operating cash” on the
Feb Exec meeting
agenda
February 16, 2012
October 2012
Board
Reevaluate cash
position and identify
and budget accordingly
for member
ongoing consideration.
Bob clarified that the current investment policy
addresses only a portion of AHIA funds. Bob
reviewed the process of the allocation of all funds,
over and above investments. He reported that
AHIA long-term investments (mutual funds)
currently stand at $288,000.
The disbursement of excess funding discussion
item will be tabled until October 2012.

Other
Joyce requested that Board members be
conscientious when emailing about board
business – so as not to inundate others with nonessential communications. She requested that if
action is required, that it be clearly indicated in
the subject line of the email and that “reply all” is
used conservatively.
5. Financial Report

YTD 2011 Dashboard Report (*)
Heidi presented the 2011 yearend dash board
report and reviewed membership stats,
educational events reviews and revenue.

December 2011 Financial Statements (*)
Heidi presented the preliminary December 2011
yearend financial reports and indicated that it was
a good year for AHIA. She reported that while
adjustments to the financial statements are
expected to be minimal, it is likely that some
adjustments will be required following completion
of the year-end audit. She presented the following
summary of financial position.
Balance Sheet:
The balance sheet continues to show a strong cash
and overall asset position.


Total assets are $588,039 compared to
$582,646 at this time last year.
Net revenue for the year is $34,888. This is
less than budgeted by nearly $41,000. The
culprits for the lower than budgeted
surplus are primarily the high costs
associated with the 2011 conference and
the investment losses experienced for the
enhancement programs
in the 2013 budget
Board
Give ongoing
consideration to
increasing speaker
reimbursement levels
October 2012


year.
Total cash in checking is $165,248.
Deferred dues for 2012 amount to
$92,487 with an additional $7,980
deferred for 2013 and 2014.
Profit & Loss Statement (P&L):

Income Highlights:
o Total dues receipts for the year
were $218,329, 99.3% of the
annual goal. The discrepancy in
the number of members
compared to the revenue is likely
due to a higher percentage of
institutions taking advantage of
group membership rates. That
being the case, we missed the goal
for the year by only about $1,500.
o Total revenue for the year
exceeded budget by .37%.
o Income areas that did well this
year include: dues, the annual
conference, communications sales
(job ads and other advertising),
mailing list sales, and equipment
rental.
o Regional seminars, “Spring
Summits” (aka the EMR Summits),
and Webinars ended the year well
below projections. In the case of
the Webinars, fewer offerings
were provided than originally
projected.
o There were no other significant
revenue variances for the year.

Expense Highlights:
o Total expenses are more than
5.5% over budget for the year.
This again is primarily due to the
high costs associated with the
2011 conference.
o As discussed previously,
conference expenses this year
were 45% higher than budget.
o Net income for the conference
was $64,903 compared to a
budgeted surplus of $90,965; a
budget shortfall of $33,012.
o There were no significant expense
variances under ordinary
expenses to report to date.

Investments:
December was another down month for
the investments showing a loss of
($1,561). YTD investments are down by
($12,438).

Surplus/Deficit/Comments:
Given the low level of revenue generating
activity in December 2011, we actually
ended the year with a higher surplus than
originally anticipated. Before taking into
account the investment losses, the yearend surplus for ordinary income was
$48,326.

2011 Financial Audit Plan
Dave reported that the audit will begin in early
April 2012 and is expected to be finished by the
May 15 deadline. He reported that a special
Executive Committee meeting will be arranged to
discuss the results and that more information will
be forthcoming on the exact schedule. Dave
reported that as part of the audit process the AHIA
Treasurer, Heidi Crosby, will be interviewed
privately.

Updated Speaker Compensation Policy
(approved by email)
o
Consider speaker compensation
for members of the Program
Planning Committee
Dave reported that the recently approved Annual
Conference speaker reimbursement policy needs
further clarification on how to compensate Board
members and Conference Planning Committee
members who serve double duty as an active AHIA
volunteer and conference presenter.
The recommendation was made that the
conference committee chair be given the
responsibility of allocating the budgeted speaker
reimbursement funds with his or her discretion.
After discussion, it was determined that any
board/committee member also speaking at the
Annual Conference will be compensated
accordingly for both roles.

Investment Policy
M. Cunningham
Add speaker
reimbursement
selection check box and
presentation KEYWORD
request to speaker
agreements
February 15, 2012
Bob Michalski presented the revised draft of the
investment policy statement. He referenced page
8, specifically the section on target weights. He
explained that target weight is the desired weight
for each asset class. The minimum and maximum
weights are designed to allow for normal market
fluctuations and to allow for temporary
over/under weight allocations that are believed to
be desirable. Bob reported that the policy is still a
work in progress – as demonstrated by the
number of asset class target weights listed as “to
be determined.”
Bob presented the “Importance of an Investment
Policy” document and recommended that the
Board review this document for an explanation
and rationale of the proposed changes to the
investment policy.
Bob presented “Summary of Allocation Study”
document and explained that the AHIA investment
adviser recommended that we our adjust asset
allocation - the Executive Committee was
surveyed to this effect on organizational risk
tolerance levels. Based on the survey results, the
advisor’s recommendation is to move to Model 3.
Bob requested general agreement from the Board
on asset allocation, so that the adviser can move
forward and finalize the policy for approval.
MSC to adopt Model 3 of the asset
allocation/distribution of annual returns.
6. Chair-Elect’s Report

Membership survey plans
Bob requested the Board’s consideration of
allowing the MAC committee to conduct a
membership survey to assess needs and benefit
preferences. He reported that the last
membership survey was conducted 3 years ago in
2009.
Discussion followed on the number of
committee’s requesting survey approval (per the
Committee update reports) and on vetting the
number of surveys sent to members. Dagmar
reviewed best survey practices and the science
D. Stumph
Alert the advisor of the
Board’s adoption of
Model 3 of the
investment allocation.
Complete – the
adviser is preparing
the revised
investment policy
for approval
involved in effective survey development –
including limiting the surveys to 20 questions and
disseminating twice per year. Clarification was
given that the LSU/AHIA survey targets only CAEs.
It was determined that discussion on this item
would be tabled until Board discussion on the
Committee reports has occurred.
7. Past Chair’s Report

Nominating Process/Plans
No report.
8. Executive Director’s Report

Future Annual Conference Locations
o 2014: Austin, TX (contract
completed)
Dave reported 2014 contract has been signed and
that the 2014 AHIA Annual Meeting will be held at
the Hilton in Austin, Texas.
o
2015: Thoughts
Dave requested the Board’s feedback on a
location for the 2015 Annual Conference. Dave
proposed that the Pacific Northwest could be a
consideration – as the last several meetings have
been located as follows:
2010 – Baltimore, MD
2011 – San Diego, CA
2012 – Philadelphia, PA
2013 – Chicago, IL
2014 – Austin, TX
It was determined that Seattle and Portland will
be approached as prospective locations for the
2015 conference.

AAMAS 2012 Conference (April 11-14,
2012, Phoenix, AZ)
Dave reported that he and Joeal Venkatesan will
staff the trade exhibit booth to promote AHIA and
explained that AAMAS is a partner organization
with AHIA and we exchange complimentary
D. Stumph
Prepare and send RFPs
to Portland and Seattle
hotel locations.
April 1, 2012
D. Stumph
Make 2015 location
recommendations to
the Board
August 2012
exhibit booth space as part of our agreement.
Kelly offered a history of AHIA involvement with
AAMAS.

HCCA 2012 Conference (April 29 – May 3,
2012, Las Vegas, NV)
Dave reported that he and Debra Muscio will staff
the trade exhibit booth space at the HCCA
conference.
After discussion, it was determined that a $100
drawing will be offered at the AHIA exhibit booths
at both conferences to help us gather prospective
member/sponsor contact information.
D. Stumph /Staff
Prepare exhibit booth
and AHIA collateral
materials for shipping,
prepare drawing and
report results
April 1, 2012
Debra Muscio
Contact Bob to discuss
his needs
March 1, 2012
Education
Committee/Audit
Roundtable
Subcommittee
Develop Audit/CAE
Roundtable
Sponsor/Facilitator
guidelines
July 2012
Kelly Nueske
Communicate the
Board’s 2012 committee
survey schedule to the
MAC – Fall 2012
Membership needs
assessment survey
February 21, 2012
9. Consent Agenda - Committee Reports:
 MAC (*)
 Professional Practices (*)
 Technology (*)
 Publications (*)
 Education
o Annual Conference (*)
o CAE Workgroup (*)
o Regional Seminars
o Webinar
Joyce presented the Committee reports for review
and approval.
MSC to approve the non-action items as
presented.
10. Action Items from Committee Reports:
Joyce requested discussion on the following
committee report action items:
Audit/CAE Roundtables:
Bob Lund from the CAE subcommittee is
requesting a formalized committee with active
members. Discussion followed on the need to
rotate the sponsorship between vendors.
Member Surveys:
Both the MAC and Professional Practices
Committees are requesting to conduct
membership and readership surveys respectively.
Discussion followed about combining efforts.
Publications Committee:
Linda McKee presented the Publications
Committee report. She reported that the Editorial
Subcommittee is requesting incentive prizes for
participation in and completion of the LSU/AHIA
survey.
Bryon Neaman
Communicate the
Boards 2012 committee
survey schedule to the
PPC
February 14, 2012
M. Cunningham
Prepare survey prizes
and corresponding
messaging for LSU
survey
Upon completion of
survey – March
2012
Linda McKee
Communicate the LSU
survey request status
and participation
incentives with the
Editorial Subcommittee
March 14, 2012
M. Cunningham
Update the AHIA
website to reflect the
deadline
COMPLETE
M. Cunningham
Update the
Communication Plan to
reflect the new deadline
and draft strong,
consistent messaging
for Annual Conference
promotions
MSC to award prizes for survey participation as
follows
 (1) Full Annual Conference
registration
 (4) Webinar registrations
Discussion followed on the Editorial
Subcommittee’s request to the Conference
Planning Committee to allocate time to present
the results of the bi-annual LSU/AHIA survey.
The Conference Planning Committee determined
that LSU’s Dr. Jared Soileau will be approached to
expand the presentation to a 50-minute session,
inclusive of information healthcare trends,” on
Wednesday, August 29 in the leadership track.
MSC to accept the following committee reports
as presented.





Technology
Publications
Education
MAC
Professional Practices
o
Annual Conference (*)
 Approve tiered fee
schedule based on when
one registers for the
conference
Discussion followed on adding an additional
registration pricing tier to 2012 AHIA Annual
Conference registration fees. After discussion, it
was determined that no additional 3rd tier will be
added, however, the early bird registration fee
deadline has been moved up to June 30, 2012.
Those not registering prior to June 30 will pay the
late conference rate.

Professional Practices
o Approve the PPC Charter (*)
Joyce presented the PPC committee charter for
review and discussion.
MSC to approve the charter as presented, with
IN PROCESS
grammatical corrections.
o
Bryon Neaman
Communicate Charter
approval to Committee
February 14, 2012
Consider the Annual Survey
Approach (Capture emerging
issues, member needs, and
member skills)
This item was tabled pending the review of the
strategic plan review and update.
The meeting concluded at 5:37 pm (EST) for the
day.
ITEM
Saturday, January 28, 2012
The meeting resumed at 8:28 am (EST) on Saturday,
January 28, 2012.
11. Review and Update of Strategic Initiatives (*)

Determine Current Project Status
Joyce reviewed the strategic plan by goal and
action. Items accomplished and items remaining
were reviewed in detail.

Approval of the 2012 Strategic Objectives
and Goals
Joyce presented the 2011 objectives for review:
OBJECTIVE 1: Provide increased education
and resources to support member needs
OBJECTIVE 2: Improve AHIA’s profile
through improved marketing and
communications
OBJECTIVE 3: Enhance member’s
knowledge and use of technology
OBJECTIVE 4: Increase volunteerism
throughout AHIA
OBJECTIVE 5: Increase membership by 5%
per year
It was determined that the strategic objectives will
remain as such for calendar year 2012. PLEASE SEE
WHO
ACTION
DEADLINE
ATTACHMENT FOR STRATEGIC PLAN REVISIONS.
Discussion followed on several “goals” that will
require new committee action including:



Provide educational opportunities in a
variety of settings/methods
A recommendation will be developed
regarding an E-Learning course component
to AHIA educational offerings as a longterm goal, specifically designed to benefit
new auditors (curriculum inclusive of the
basics, i.e., terminology). After discussion it
was determined that Heidi and Bryon will
work on preparing an RFP to help us
identify an adult learning expert with whom
we can subcontract for development.
Identify tools and techniques for AHIA to
use in their practice and enhancing
accessibility
Discussion followed on the accessibility of
information resources on the AHIA website
and the search functions. The search
feature is currently designed to compile
information from the Audit Library and the
New Perspectives archive – but not AHIA
education presentations and
supplementary information. It was
determined that we will need to develop a
process to capture keywords from
educational presentations (Annual
Conference, Webinars, Regionals, etc…) and
compile this information into the Audit
Library or some type of clearinghouse, to
ensure members have access to these
available resources through the main
search function.
Implement marketing and member
communications improvements
Joyce reported that an organizational
communications plan for AHIA is in process.
It will be inclusive of all AHIA internal and
external communications for calendar year
2012. The plan matrix breaks down points
of communication by subject matter,
champion, audience type, target date and
delivery method. It was determined that
the plan will be revised to include the CAE
pledge program (contacts to participate in
listservs, social media, Audit Library,
educational opportunities, etc. ) and will
Heidi and
Bryon
Develop RFP to identify Elearning expert to assist
AHIA in the development
of a new auditor ELearning program
November 2012
AHIA Staff
(Michelle
and Ruth)
Develop process to
ensure AHIA educational
resources are captured in
the website’s search
function.
June 2012
M.
Complete phase one of
Cunningham the communication plan
for Joyce’s review. Upon
approval – the “phase 2”
calendar will be created
and sent to the Board for
approval.
March 1, 2012
encompass a strategic membership
recruiting campaign for 2012. The plan will
be disseminated to the Board for review
and revision upon completion.
The communication plan will be modified
and revised to serve as a Board “workplan”
– or timeline.
Discussion followed on the timeliness and
expense of New Perspective. It was
determined that a new design/composition
service will be explored and that the
publication schedule will be refined.
Linda
McKee and
Staff
Meeting with Justine
Dover to discuss
considerations
Linda
McKee,
Editorial
Committee
and Staff
Plan prepared and
April 1, 2012
submitted to Board – plan
outlines publication
timeline and
implementation steps.

Kelly
Evaluate feasibility of expanding AHIA
Nueske
services into the health plan segment.
Discussion followed on the need to target
health insurance plans that are qualified for
Medicare Advantage (CMS). It was
determined that a good approach might be
to identify orgs that have a health plan with
internal audit function (with auditing and
monitoring needs/compliance function) and
engage them to provide education to AHIA
members.

Build EHR/EMR User Groups
Board discussed and agreed that there is
continued interest in building EMR user
groups (e.g., shared list of users to facilitate
contact, periodic roundtables by
conference call). Discussion followed on
whether AHIA should get involved in
offering education for PEOPLE SOFT and
Lawson and/or offer a webinar on the
Security and Internal Controls theme.

Communicate needs and benefits
Dave recommended that succession plans
for each committee leader be developed to
identify new leadership.
Discussion followed on the clarification of officially
recognized AHIA subcommittees and the need to
increase recognition/benefit for AHIA committee
and subcommittee chairs. The following
committees/subcommittees are recognized by
AHIA:
February 15, 2012
Ask Altegra Health if they
can send broadcast
communications to their
insurance members on
behalf of AHIA to help us
identify a champion.
March 15, 2012
Dagmar
Communicate to
Technology Committee
March 15, 2012
Debra
Muscio
Communicate topics to
Education subcommittees.
March 15, 2012
D. Stumph
Send succession planning
model information to the
Board for consideration
February 29, 2012





Membership and Awards Committee
(MAC) – Debi Weatherford
Publications Committee
o Editorial Subcommittee –
Justine Dover
o E-News Subcommittee –
Renee Jaenicke
o White Paper Subcommittee –
Glen Mueller
Professional Practice Committee
– Dan Clayton
Education Committee
o Webinar Subcommittee –
Russell Harder
o Regional Seminar Subcommittee –
Andrea Claire
o Audit Roundtable Subcommittee –
Robert Lund
o Annual Conference Planning
Committee –
ALL COMMITTEE MEMBERS
Technology Committee – Gail Hormats
Joyce
Notify Committee and
subcommittee chairs that
the will receive
complimentary 2012
Annual Conference
registration in
appreciation of their
service to AHIA
February 29, 2012
Board
Review Bylaws, P&P and
Charters annually
April 2012
Board
Define Annual
June 2012
Conference comp
registration program
(performance
expectations/qualification
process) for Committee
and subcommittee chairs
MSC to extend free 2012 Annual Conference
registration to recognized committee and
subcommittee chairs as stated above.
Discussion followed on the need to institute a
standing monthly or quarterly teleconference for
AHIA committee and subcommittee chairs, to
ensure we are not duplicating efforts and sharing
resources. Ongoing consideration will be given to
this initiative.
Ongoing consideration will be given to reviewing
the Bylaws, Policies and Procedures Manual and
committee charters to ensure all are aligned.
In addition, ongoing consideration will be given to
defining committee and subcommittee chair
performance expectations and a qualification
process for next year’s subcommittee conference
registration program.
12. New Business
None.
13. Unfinished Business
Discussion followed on the number of committee
surveys requested. After discussion it was
determined that based on audience type and timing
the committee’s will be given the following survey
schedule for 2012:

AHIA/LSU Survey (Editorial Subcommittee)
Audience: CAEs Only
Timing: SPRING 2012
Note: The Board has suggestions on
the length of the survey

Audit Library/Emerging Issues and Subject
Matter Leader Survey (Professional
Practices Committee)
Audience: entire membership and
CAEs member/non-member list
Timing: As determined by the
committee
Note: Survey must be brief

Membership Needs Assessment Survey
(MAC)
Audience: All members
Timing: FALL 2012
Note: Board will need to approval
prior to dissemination and all
committee chair input will be
welcome.

New Perspectives Readership Survey
(Editorial Subcommittee)
Audience: All members
Timing: FALL 2012
Note: This WILL NOT be a separate
survey. New Perspectives
readership information will be
included in the membership survey
Concerns about over surveying and duplication of
efforts were discussed. The following guidelines
were established for participation in the Member
Needs Assessment survey. These guidelines will be
communicated to AHIA Committee Chairs:
-
-
Limit section to the 5 most important
questions, time them out over the year – so
that they are not happening on top of each
other and members are not bombarded by
too many surveys at once
Give consideration of limiting open-ended
Board
Liaisons
Communicate 2012 AHIA
Survey schedule and
expectations to assigned
Committees
No later than March
30, 2012
questions
Ongoing consideration will be given to offering
incentives for 2012 survey participation.

2012 Board and Executive Committee
meeting schedules (availability &
preferences)
M.
Prepare and send Board
Cunningham and Executive Committee
Meeting requests/
reminders
After discussion, the 2012 AHIA Board of Directors
regular meeting schedule and Executive Committee
schedule were established as follows:
BOARD OF DIRECTORS
(All)
 March 28, 2012 - 2:00 pm EST
 May 23, 2012 - 2:00 pm EST
 July 25, 2012 - 2:00 pm EST
 AUGUST 29, 2012 - In-person meeting held
in conjunction with the Annual Conference –
details to be determined
 September 26, 2012 - 2:00 pm EST
 November 28, 2012 - 2:00 pm EST
EXECUTIVE COMMITTEE
(Joyce, Bob, Heidi and Mike)
 February 22, 2012 - 2:00 pm EST
 April 25, 2012 - 2:00 pm EST
 June 27, 2012 - 2:00 pm EST
 NO MEETING IN AUGUST - IN PERSON
BOARD MEETING
 October 24, 2012 - 2:00 pm EST
14. Adjourn
MSC to adjourn the meeting at 12:25 pm EST.
Directly following the meeting the Executive
committee conducted the annual management
review of the Resource Center.
(*) See AHIA Board Member Only website for documents
COMPLETE