HomeMy WebLinkAboutFCS-11-189 - 2012 Internal Audit Work plan & PresentationS~r~ff Re~ c~r~
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I~~rt,~~nT~,~ Finance and Corporate Services ~eparfinent
REPORT TO:
DATE OF MEETING:
SUBMITTED BY:
PREPARED BY:
WARD(S) INVOLVED:
DATE OF REPORT:
REPORT NO.:
SUBJECT:
RECOMMENDATION:
Audit Committee
November 14, 2011
October 4, 2011
FCS-11-189
2012 INTERNAL AUDIT WORK PLAN
www.kitchenerca
That the 2012 Internal Audit work plan be approved as outlined in report FCS-11-189
dated October 4, 2011.
BACKGROUND:
Council policy I-66, Audit Committee Terms of Reference, states that the Audit Committee will
approve the annual internal audit work plan. This report provides a summary of the
recommended work plan. Input for the plan was gathered from the CAO, deputy CAO's,
directors, Council and the Internal Auditor.
The following types of audits can be conducted by the Internal Auditor:
Compliance audits test current activity for adherence to policies, procedures and legislation.
Control audits evaluate processes for potential control weaknesses.
Comprehensive audits are complete program reviews which may include evaluating customer
satisfaction, efficiency and effectiveness, controls, value for money, divisional culture,
organizational structure, and resourcing levels.
Follow-up audits assess the outcome of previous audits in terms of which recommendations
have been implemented, what the impact to the division has been, and to identify any new or
existing challenges the division is facing.
Confidential investigations attempt to validate complaints from the public, staff or Council
relating to alleged theft, fraud, breach of conduct, confidentiality, privacy or other policies.
Report FCS-11-189 1
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S~r~ff Re~ c~r~
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I~~rt,~~nT~,~ Finance and Corporate Services ~eparfinent
REPORT:
www.kitchenerca
The chart below shows the recommended 2012 internal audit work plan. A brief description of
each is included after the chart.
Topic Type of Audit Estimated Duration Preferred Timing
Follow-up Audits:
Stores Follow-up audit 2 months 1St Quarter
Compliance Audits
User Fee Changes Compliance 1 month Flexible
Controls Audits:
Cash counts Controls 2 months Flexible
Physical Inventory Count verification 1 day 4t" Quarter
Comprehensive
Audits:
Integrated Planning Post mortem 3 months 2nd Quarter
Emergency Plan
(internal and external) Comprehensive 6 months Flexible
Revenue Resourcing review 4 months Flexible
Operations Review Comprehensive 6 months 1St Quarter
CSD Administration Process Review 2 months 1St Quarter
Ad hoc:
Confidential
Investigations TBD TBD TBD
Report FCS-11-189 2
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I~~rt,~~nT~,~ Finance and Corporate Services ~eparfinent w~t+w.kitthenerca
Inventory -Stores -follow-up audit
Note: deferred from 2011 work plan
The original controls audit was conducted in 2008, with afollow-up audit being conducted in
2010. This additional follow-up audit will be conducted to assess the control mechanisms
installed at the new KOF location.
User Fees -controls /compliance audit
This review would look at the following issues related to user fees:
1. Are Council approved rates being charged?
2. Are all fees included and approved on the User Fee Schedule?
3. Are taxes coded correctly on fees (compliance)?
Cash Counts -controls audit
Each year Internal Audit performs surprise cash counts at all of the community centres,
cemeteries, pools, arenas, golf courses and the Market to ensure that cash handling policies are
being followed, proper documentation is in place, and there is no evidence of theft.
ical Inventorv -count verification
Internal audit will verify a sample of stock which has been counted through the annual physical
inventory count to ensure counts are accurate.
Integrated Planning Process Review
A review of the process, roles and responsibilities and effectiveness of the first year of integrated
planning will be conducted. The review will capture what worked well and where improvements
could be made in future planning cycles.
Emergency plan (internal and external) -comprehensive audit
Note: deferred from 2011 work plan
Both the internal and external emergency plans will be reviewed for completeness and tested for
practicality.
Report FCS-11-189 3
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I~TCn>~nT~~ Finance and Corporate Services Department w~t+w.kitthenerca
Revenue Division Resource Review
This review will look at staff capacity, business processes, and potential service improvements in the
Customer Service Representative section. This will be a joint review with the Manager of Service
Coordination and Improvement, Finance and Corporate Services department.
Operations Review -comprehensive audit
The review will examine processes, service level definitions, and best practices with the end goal of
finding efficiencies, cost savings and affordable service levels within the operations division. This
review will be conducted jointly by an external consultant and an internal project team due to the size
of the review and the specialized knowledge of operations processes that is required. The
consultant will take direction from and report findings and recommendations through the Internal
Auditor.
CSD Administration -process review
This review will examine processes in the administration area to look for efficiencies. Normally this
work would be undertaken by the Manager of Service Coordination and Improvement. However, the
staff roles being examined report to the Manager of Service Coordination and Improvement.
Therefore Internal Audit has been requested to perform this work as an independent 3rd party.
Confidential investigations
Complaints of alleged theft of City assets, fraud, breach of conduct, confidentiality, privacy or
other policies may emerge throughout the year from the public, staff or Council. Appropriate
investigations will be conducted in a timely manner as required.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Work falls within the Efficient and Effective Government plan foundation area of the Strategic
Plan. The goal of Internal Audit work is to protect the City's interests and assets through
- ensuring compliance with policy, procedures and legislation
ensuring adequate controls are in place to protect our assets
- ensuring our operations are as efficient and effective as possible
This helps support the financial goal of long term financial stability and fiscal accountability to
our taxpayers. The work also supports the public sector leadership goal of positioning the
municipality as a leader in public sector policy, processes, and systems.
Report FCS-11-189 4
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FINANCIAL IMPLICATIONS:
N/A
COMMUNITY ENGAGEMENT:
N/A
www.kitchenerca
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO, Finance and Corporate Services
Report FCS-11-189 5
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