HomeMy WebLinkAboutCAO-2024-510 - 2025 Internal Audit Work PlanStaff Report
Chief Administrator's Office
REPORT TO: Audit Committee
DATE OF MEETING: December 16, 2024
SUBMITTED BY: Corina Tasker, Internal Auditor, 519-783-8154
PREPARED BY: Corina Tasker, Internal Auditor, 519-783-8154
WARD(S) INVOLVED: All
DATE OF REPORT: November 26, 2024
REPORT NO.: CAO -2024-510
SUBJECT: 2025 Internal Audit Work Plan
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RECOMMENDATION:
That the 2025 Internal Audit work plan be approved as outlined in report CAO -2024-
510.
REPORT HIGHLIGHTS:
• The purpose of this report is to outline the proposed assurance and consulting activities
to be conducted by the Internal Auditor in 2025.
• The work plan consists of seven assurance/compliance audits, one status update, and
two consulting engagements.
• There are no financial implications.
• Community engagement included this report posted to the city's website with the
agenda in advance of the council / committee meeting.
• This report supports the delivery of core services
BACKGROUND:
Internal Audit Goal
The overarching goal of internal audit is to protect the City's assets and interests. 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.
Internal Audit Services
To fulfill the above goal, the internal auditor provides two types of service in accordance
with the Institute of Internal Auditors definitions:
Assurance services — which involve the internal auditor's objective assessment of
evidence to provide an independent opinion or conclusions regarding an entity,
operation, function, process, system, or other subject matter; and
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Consulting services — which are advisory in nature and are generally performed at
the specific request of an engagement client. When performing consulting services,
the internal auditor should maintain objectivity and not assume management
responsibility.
Internal Audit Work plan
The assurance services included on the internal audit work plan outlined in this report
consists of topics that have been independently selected by the internal auditor. These
topics fall broadly into one of three categories:
1) Physical assets — such as physical inventory counts
2) Financial resources — such as expense audits
3) Policy compliance — such as hiring transparency
This annual plan consists of compliance and controls audits, confidential investigations, and
any other independent analysis as required. Standard assurance audit topics which are
common to most organizations or other municipalities are included in a recurring 6 -year
plan. Other assurance topics are added as required related to emerging risks, tips, or other
audit findings.
The internal auditor will also provide consulting services related to process reviews,
capacity analysis, organizational structure analysis, risk assessments and value for money
analysis as the need arises. These services are provided to aid staff in continuous
improvement in the design and delivery of City services. These types of reviews are
requested by divisional management, or by Council through discussions with the CAO on
a semi-annual basis. Additional consulting services may be added in the second half of
2025 as requested.
Audit reports on each work plan item will be presented to Audit Committee as completed,
on a quarterly basis.
REPORT:
2025 Internal Audit Work Plan
Audit Committee is asked to approve the 2025 Internal Audit work plan shown below as
per the Audit Committee terms of reference.
Assurance Services:
Audit Topic
Type of Audit
Notes
Deposits
Controls
In progress in 2024
Fire Life Safety
Controls
In progress in 2024
Employer Paid Parking
Compliance
In progress in 2024
Physical Inventory
Count Verification
Annual
SAP Separation of Duties
Controls
Employee Expenses
Compliance
Hiring of Relatives
Compliance
Re -test under new policy
Hiring Transparency
Status Update
Confidential Investigations
Controls, Compliance
As required
Page 51 of 101
Consulting Services:
Topic Type of Analysis
Concrete Maintenance Service Levels
Custodial Services at Community Centres Roles and Responsibilities, Service Levels
Definitions
Compliance audit - A test to determine if staff is following all rules, regulations and
policies associated with the service.
Confidential Investigations — Investigating staff or public complaints about any alleged
staff misconduct including, but not limited to, fraud, theft, or inappropriate behaviour.
Controls audit - An analysis and test of control points within a process to ensure that
fraudulent activity can be eliminated or mitigated.
Count Verification — Sampling physical inventory counts to verify the accuracy of staff
physical inventory counts.
Roles and Responsibilities — A review across functions or roles to determine the best
location for certain tasks to reside.
Status update — A check-in on the status of recommendations and benefits achieved from
previous audits or reviews.
Service Levels — An analysis of current and desired service levels and associated
resourcing and costs to achieve objectives.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Capital Budget — The recommendation has no impact on the Capital Budget.
Operating Budget — The recommendation has no impact on the Operating Budget.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Dan Chapman, CAO
ATTACHMENTS: none
Page 52 of 101
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