HomeMy WebLinkAboutCAO-10-007 - Inventory - Stores Div followup auditREPORT
REPORT TO: Mayor Carl Zehr, Chair
and members of the Audit Committee
DATE OF MEETING: March 22, 2010
SUBMITTED BY: Corina Tasker, Internal Auditor
PREPARED BY: Loretta Alonzo, Internal Auditor
WARD(S) INVOLVED: ALL
DATE OF REPORT: March 8, 2010
REPORT NO.: CAO-10-007
SUBJECT: INVENTORY FOLLOW UP AUDIT
RECOMMENDATION:
For information only.
BACKGROUND:
A controls audit of the Inventory -Stores division was conducted by the Internal Audit division in
February 2008.
It has been requested by the Corporate Management Team that all divisions which have been
audited in the past will participate in a follow up audit at least one year following the completion
of the original audit. The purpose is to assess the outcome of the audit in terms of which
recommendations have been implemented, what the impact to the division has been, and to
identify any new or existing challenges the division is facing. This will help determine if a further
in-depth review is required and will highlight any high risk issues proactively.
REPORT:
This staff report serves to inform the audit committee of the high level findings from the follow up
audit.
Positive Impacts
Staff report that the audit was a catalyst for positive change and things are improved as a result
of implementing the audit recommendations. They are now confident that adequate controls and
processes have improved their service and accountability.
The following is a list of the positive impacts that have resulted from the audit:
• Addition of a full-time supervisor
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• Conversion to SAP
All major variances are now investigated and resolved
Accounting staff now balance the inventory subledger monthly instead of annually as
in the past
Once the CMF project is completed and the stores and tool cribs are combined there will be
additional efficiencies realized.
Emerging Issues and New Recommendations
The only issues identified in the follow-up are related to either budget or CMF completion.
While SAP has presented challenges in the first year, staff are confident that their proficiency
will increase over time. The lack of budget funding for weigh scales at the CMF is a concern
with respect to controlling salt and aggregates and this may be evaluated again at some future
date.
FINANCIAL IMPLICATIONS:
None
CONCLUSION:
No further review is necessary at this time. It may be beneficial to have internal audit review
processes a year following completion of the CMF integration.
ACKNOWLEDGED BY: Carla Ladd, CAO
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