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HomeMy WebLinkAboutFCS-12-024 - 2011 Year In Review - Audit Status ReportREPORT TO:Audit Committee DATE OF MEETING: March 5, 2012 SUBMITTED BY: Corina Tasker, Internal Auditor, 519-741-2361 PREPARED BY: Corina Tasker, Internal Auditor, 519-741-2361 WARD(S) INVOLVED: ALL DATE OF REPORT: February 13, 2012 REPORT NO.: FCS-12-024 SUBJECT: 2011 YEAR IN REVIEW – AUDIT STATUS REPORT RECOMMENDATION: For information only. BACKGROUND: The 2011 internal audit work plan was approved by the Audit Committee on March 7, 2011 and can be referenced in report FCS-11-023. 2011 Internal Audit staffing included the following resources: 1 full time contract position – January 1 to April 30 1 part time permanent position, 20 hours per week – January 1 – December 31 REPORT: The following table provides a summary of the Internal Audit activities during the 2011 calendar year compared to the Audit Committee approved work plan. 81% or 13 of 16 planned activities were completed, 2 were deferred until 2012 due to workload and resource constraints, and 1 was deemed to be no longer necessary. An additional 2 process reviews, the creation of 4 risk registers and monitoring of 12 risk registers were completed above and beyond the approved work plan. Although the work plan only contained internal audit activities, work continued in the area of risk management up until August 9, 2011 when it was transitioned into the organization. The transition took longer than originally anticipated and therefore the internal audit work plan suffered. Two work items were incomplete at year end and were approved to be deferred to the 2012 work plan including: Emergency Plan comprehensive audit Stores follow up audit ï ó ï The management expense audit was no longer necessary given the work done earlier in the year on the purchasing card audit and 2012 work being done by accounting related to purchase requisitions. The following table shows the status of each of the approved work plan items as well as the additional items completed. TopicType of AuditStatus Follow-up Audits: Community Centres Follow-up audit Complete Employee parking Follow-up audit Complete Inventory-Stores Follow-up audit Deferred Compliance Audits: Purchasing cards Compliance / Controls Complete Human Resources – hiring Controls / Compliance Complete transparency Field technology use ComplianceComplete Management Expenses ComplianceNot required Controls Audits: Cash counts ControlsComplete Physical Inventory Count verification Complete Infrastructure Stimulus Funding Controls Complete Projects Parking division ControlsComplete RevenueControlsComplete Accounting controls Consultation Complete Building Permits ControlsComplete Comprehensive Audits: Legislated Services Comprehensive audit Complete Emergency Plan (internal and Comprehensive audit Deferred external) Ad hoc: Confidential Investigations NoneNone ï ó î Other Work Performed Risk Management Creation of 4 new risk Complete registers Risk Management Monitoring 12 risk Complete registers Rental Water Heaters Process mapping Complete Fleet – equipment review Process mapping Complete 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. FINANCIAL IMPLICATIONS: N/A COMMUNITY ENGAGEMENT: N/A ACKNOWLEDGED BY: Dan Chapman, Deputy CAO, Finance and Corporate Services ï ó í