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