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HomeMy WebLinkAboutCAO-19-012 - Fourth Quarter Audit Status ReportNo recommendation required. The following information is being provided as an update and assurance on internal audit matters, in accordance with the Audit Committee Terms of Reference. 3 - 1 Date of original audit: August 19, 2016 Completed: July 29, 2019 3 - 2 Date of original audit: September 28, 2015 (Report #1) and June 15, 2017 (Report #2) Completed: September 11, 2019 3 - 3 3 - 4 3 - 5 Completed – November 3, 2019 3 - 6 (Note that positive numbers represent write-downs and negative numbers represent write-ups.) 3 - 7 (Note that positive numbers represent write-downs and negative numbers represent write-ups.) 3 - 8 012 - 19 - CAO 4TH QUARTER AUDIT STATUS REPORT 3 - 9 y a Call P - Summary nventory I Accounting status updateCommunity Centres status updatePhysical Development Services ReviewOvertime and On progress: n Completed:I 3 - 10 Status Update ACCOUNTING 3 - 11 Accounting adjustments to controls assess Accounting division processes, controls, Sound controls and no evidence of fraudGreat team culture and collaborationRecommendations to streamline processes and minor Original Objective:To culture and the supporting organizational structure Findings / Recommendations:••• 3 - 12 - Number of recommendations 3914106 bank reconciliation automation, online e : various changes to SAP Status of Recommendations In progress: procurement solution, online access to pay stubs Not started Status CompleteIn progressNot startedNot required 3 - 13 Benefits up required. - te business continuity risk tion in staff time a urther follow f Changes to cheque audit process resulting in reduc100+ business processes documented to mitigSeparation of duties audit of SAP access •••NoCompliance topics will be periodically tested. 3 - 14 Status Update COMMUNITY CENTRES 3 - 15 services provided, inherent the Community Centres assess Original Objective:To risks, processes, organizational structure, resourcing and culture within our community centres. 3 - 16 rvisors s e p New & consolidated job titleNeighbourhood LiaisonsDecrease from 6 to 4 su licy – –– Organizational structureRentalsSpace usageNeighbourhood Affiliation Po Report 2•••• Recommendations Division mandateCommunicationsCultureService levelsTraining needsInternal collaboration Report 1•••••• 3 - 17 Report 2 10111 1 Report 1 3990 1 review of facility booking policy and Status of Recommendations In progress: neighbourhood affiliation policy Status CompleteIn progressNot started Not required 3 - 18 Benefits up required. - Survey drivers ff to more effectively support LoveMyHood urther follow a Mandate created to drive goals and objectivesOrganizational structure changes allowing stSupervisor trust now in top 5 Employee CultureImproved collaboration and communication ••••No f 3 - 19 Count Verification PHYSICAL INVENTORY 3 - 20 (done by staff): (done by Internal Audit): Objectives h physical inventory on hand counts are accurate c Count all inventory to ensure financial records matTo count a sample of inventory to verify that staff Physical Inventory •Count Verification • 3 - 21 Methodology floor counts sheet counts - - to to - - Top 20 total valuesTop 20 unit values20 random parts ––– SheetFloorVerified 20% of the total inventory value ••• 3 - 22 $8,720 up of - Findings ount verification c rds i.e. Internal audit counts did not match financial reco – 5 variances foundRepresent 8% of sampleResulted in a writeLow number and value of variances found during •••• 3 - 23 down - 2019$46K down Uncontrollable Stock$73K write - 2018$113K 2017$273K $46K Write Total Adjustments 0.5% of inventory purchased(industry benchmark 2.5%) up - Year Total write down Controllable Stock$27K write 3 - 24 2019 $12,065$32,324$40,532$93$17,853($4,276)($25,665)$72,927 2018$6,258$20,886$42,807$29,782$10,496($195)$3,377$113,413 downs (uncontrollable - Uncontrollable Stock orm Stores staff f Material GroupManholes & catch basinsRoad building materialsRoad maintenance supplies (includes salt)Seed, sod, fertilizerSign shopSteel, aluminum, plateAll other categoriesTotal writestock) Located outsideStaff use the inventory but don’t always in •• 3 - 25 Conclusion Inventory process is in controlAdjustments are negligible •• 3 - 26