HomeMy WebLinkAboutFCS-13-006 b - Year In Review - Audit Status ReportREPORT TO:
Staff Report
Finance and Corporate Services Department
DATE OF MEETING:
SUBMITTED BY:
PREPARED BY:
WARD(S) INVOLVED:
DATE OF REPORT:
REPORT NO.:
SUBJECT:
RECOMMENDATION:
For information only.
BACKGROUND:
wvmkitrhener ra
Audit Committee
March 4, 2013
Corina Tasker, Internal Auditor, 519 - 741 -2200 EXT 7361
Corina Tasker, Internal Auditor, 519 - 741 -2200 EXT 7361
ALL
February 26, 2013
FCS -13 -006
2012 YEAR IN REVIEW —AUDIT STATUS REPORT
This report provides a summary of the Internal Audit activities during the 2012 calendar year
compared to the Audit Committee approved work plan. The 2012 internal audit work plan was
approved by the Audit Committee on November 14, 2011 and can be referenced in report FCS-
11 -189. Detailed audit reports relating to each item have been or will be presented to Audit
Committee during past or future quarterly status updates and are thus not included here.
REPORT:
56% or 5 of 9 planned 2012 activities were completed, 1 was deferred, 1 was cancelled due to
workload and resource constraints, and 2 were still in progress at year end. An additional 2
reviews were completed above and beyond the approved work plan based on management
priorities:
1) There was capacity at the beginning of 2012 to add in the follow -up audit of the
purchasing card program.
2) In July management requested a service delivery review of the Kitchener Utilities
dispatch function. This was an urgent request which took priority over existing work plan
items. The review was very involved and took a great deal of time to complete. This
meant that the annual cash counts needed to be cancelled for 2012. Given the positive
results from the 2011 and 2010 cash audits and the low value of the assets the auditor
did not feel this presented a risk to the corporation to skip this audit for one year. In
addition, the resourcing review of the Revenue division needed to be deferred.
The Emergency Management Program review was still in progress at year end since it was
started late due to the addition of the dispatch review. It is anticipated that this will be complete
by May 2013.
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The Operations review was still in progress at year end. The initial expression of interest which
was put on the street in January 2012 did not yield any suitable candidates due to the extensive
scope of the audit and upset limit for the project. The scope was then narrowed and a new
expression of interest was opened. The successful consulting team met with staff to kick off the
review in mid - August. Once the project was underway it was found that the City lacked the
specific data required by the consultants. There have been subsequent negotiations with the
consultants to modify the work plan to allow them to deliver on the original objectives of the
project. The new estimated end date for this project is September 2013.
The following chart shows the status of each of the approved 2012 work plan items as well as
the additional work completed:
Topic
Type of °Audit
Status
Follow --up Audits:
Follow -up audit
Complete
Stores
Follow -up audit
Complete
Compliance Audits:
User Fee Changes
Compliance
Complete
Controls Audits:
Cash counts
Controls
Cancelled
Physical Inventory
Count verification
Complete
Comprehensive Audits:
Integrated Planning
Process and structure
review
Completed by consultant
Emergency Plan
Comprehensive
In progress
Revenue
Resourcing review
Deferred
Operations Review
Comprehensive
In progress
CSD Administration
Process Review
Complete
Ad hoc:
Confidential Investigations
None
None
Additional Unplanned Work
Performed
Purchasing Card Program
Follow -up audit
Complete
Kitchener Utilities Dispatch
Service Delivery review
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
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— 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.
FINANCIAL IMPLICATIONS:
RE,
COMMUNITY ENGAGEMENT:
N/A
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO, Finance and Corporate Services
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