HomeMy WebLinkAboutFCS-13-184 - 2014 Service Review & Internal Audit Work PlanStaff Report
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REPORT TO: AUDIT COMMITTEE
DATE OF MEETING: December 9, 2013
SUBMITTED BY: Corina Tasker, Internal Auditor, 519 - 741 -2200 EXT 7361
PREPARED BY: Corina Tasker, Internal Auditor, 519 - 741 -2200 EXT 7361
WARD(S) INVOLVED: All
DATE OF REPORT: December 1, 2013
REPORT NO.: FCS -13 -184
SUBJECT: 2014 SERVICE REVIEW AND INTERNAL AUDIT WORK
PLAN
RECOMMENDATION:
That the 2014 Internal Audit work plan be approved as outlined in report FCS -13 -184
dated December 1, 2013.
BACKGROUND:
Under the Audit Committee terms of reference it is the Audit Committee's responsibility to
provide recommendations for areas of focus and types of audits as well as approve the annual
internal audit work plan.
In 2012 the Audit Committee approved a process to prioritize all City services for review. The
integrated work plan encompasses not only the work of Internal Audit but also that of other staff
across the corporation with responsibility for service review work.
By planning service review work corporately it ensures that there is no duplication of effort and
that work is integrated across departments where required.
This report shows the 2014 integrated service review work plan as well as the Internal Audit
work plan. Only the Internal Audit work plan requires Audit Committee approval.
REPORT:
Service Review Goal
The Effective and Efficient Government strategic foundation of the City's Strategic Plan places a
priority on sound financial management, asset management and organizational governance,
among other themes. The overarching goal of service reviews is to protect the City's assets
and interests, which supports these Strategic Plan themes. This includes, but is not limited to,
protecting the long term health of the organization, its financial and physical assets, its
reputation, its ability to perform critical services and the safety and well -being of employees and
citizens.
2-1
The way that staff achieves this goal is through three main categories of review work:
1. Ensuring operations are efficient and effective as possible
• Are we doing the right things?
• Are we doing things in the right way?
• Are we making the best use of our limited resources?
2. Ensuring controls are adequate to protect assets from loss
• Have risks been adequately identified and mitigated?
• Are there structures and processes in place to prevent or detect loss, theft,
fraud?
3. Monitoring compliance with policy, procedures and legislation
• Have staff been adequately trained on what is expected of them?
• Are staff following the rules to ensure work is accurate, reliable, timely, efficient,
effective, safe, and legal?
• Are staff putting the corporation at risk in any way through their actions or
inactions?
This review work is carried out by internal audit, along with staff in the City's various
departments, to review both internal and customer facing services using a variety of tools.
These may include:
• Service delivery reviews
• Process mapping, including assessing adequacy of controls
• Time studies
• Value for money analysis
• Organizational structure review
• Review of workplace culture
• Risk assessments
• Policy review
• Compliance audits; and
• Physical inventory and cash counts
The identified risks and opportunities associated with a particular service determine which type,
or combination of types, of review is most appropriate for that service. This will also determine
who is best equipped to perform the review. Sometimes this will be internal audit and other
times it will be staff within the departments.
2-2
2014 Internal Audit Work Plan
The 2014 internal audit work plan includes service reviews assigned from the prioritized list, as
well as controls audits and recurring internal audit activities. Audit Committee is asked to
approve the 2014 Internal Audit work plan shown below as per the Audit Committee terms of
reference.
If Council priorities are not reflected in this work plan the order of reviews may be discussed and
the Audit Committee can give direction to staff.
Audit Area I Type of Review
Community Resource Centres Comprehensive
Supply Services Comprehensive
Integrated Planning Post- mortem
Market Capacity
Deposits I Controls
Physical Inventory Count verification
Cash counts Compliance audit
Confidential Investigations As required
2014 Integrated Service Review Work Plan
The 2014 integrated service review work plan is included in the chart below for information only.
The service reviews from the internal audit work plan above are included in this integrated work
plan.
Service
Type of Review
Resource(s)
Community Resource Centres
Comprehensive
Audit, CSD
Supply Services
Comprehensive
Audit, FCS
Integrated Planning
Post- mortem
Audit
Market
Capacity
Audit
Facilities Management
Impact analysis / process
INS
Storm water utility
Risk assessment
INS
Human Resources
Process
FCS
Contracts
Process
FCS
2-3
Reporting
All service reviews assigned to Internal Audit will be brought forward through the Audit
Committee in audit status reports on a quarterly basis as has been done in the past.
All service reviews assigned to other resources will be brought forward through the Audit
Committee in an annual summary report in conjunction with Internal Audit's year in review
report. The report will contain the status of the reviews and any major findings or
recommendations but will be much smaller in scope and detail than the internal audit reports. If
further explanation or detail is required by Council this can be provided upon request.
Any reports which require a decision by Council will be brought forward to the appropriate
committee with a detailed report. For example, if recommendations within the report indicate
that a service should be discontinued, changed significantly or additional funding is required
then it would be brought forward for Council approval.
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 service reviews is to protect the City's interests and assets through
— ensuring operations are as efficient and effective as possible
— ensuring adequate controls are in place to protect assets
— ensuring compliance with policy, procedures and legislation
This supports the financial goal of long term financial stability and fiscal accountability to
taxpayers.
FINANCIAL IMPLICATIONS:
None
COMMUNITY ENGAGEMENT:
Members of the community have been informed of this report through the posting of this report
on the internet on December 4, 2013.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO, Finance and Corporate Services
2-4
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