Core Control Audit of the Canadian Intergovernmental Conference Secretariat
October 2011 Office of the Comptroller General Objective and scope The objective of this audit was to ensure that core controls over financial management[1] within the Canadian Intergovernmental Conference Secretariat (CICS) are effective and result in compliance with corresponding legislation, policies, and directives. The scope of this audit included an examination of a sample of transactions from each of the policies and directives indicated in Appendix A of this report. The transactions were taken from April 1, 2010 to March 31, 2011. This audit was conducted in accordance with the International Standards for the Professional Practice of Internal Auditing.[2] Why this is important Canadians expect the federal government to be well managed and to be accountable for the prudent stewardship of public funds, the safeguarding of public assets, and the effective, efficient and economical use of public resources. They also expect reliable and transparent reporting on how the government spends public funds to achieve results for Canadians.[3] The Financial Administration Act designates deputy heads as accounting officers for their department or agency. As accounting officers, deputy heads are accountable for ensuring resources are organized to deliver departmental objectives in compliance with government policy and procedures; ensuring that there are effective systems of internal control; signing departmental accounts; and performing other specific duties assigned by law or regulation to the administration of their department or agency. Audit conclusion Core controls over financial management within the Canadian Intergovernmental Conference Secretariat are conducted in a manner compliant with the requirements contained in ten of eleven policies, directives[4] and corresponding legislation tested. Recommendations As part of this audit the Agency received detailed recommendations with respect to improvements that should be made. Recommendations were made to ensure that contracting processes are standardized across the organization. Further recommendations were made to ensure that expenses are pre-approved and that account verification, payment and settlement are done on a timely basis. Management action plans Management has accepted the audit findings and has developed an action plan to address the detailed recommendations. The Canadian Intergovernmental Conference Secretariat has provided the Office of the Comptroller General with the management action plan to address actions taken towards the findings. The management action plan is available on the Canadian Intergovernmental Conference Secretariat’s website. The results of the audit and the management action plan have been discussed with the Secretary of the Canadian Intergovernmental Conference Secretariat and the Small Departments and Agencies Audit Committee. The Office of the Comptroller General will follow-up on the management action plan until all findings are resolved. Brian M. Aiken, CIA, CFE Assistant Comptroller General Internal Audit Sector, Office of the Comptroller General Appendix A: Policies and Directives Tested Policies and Directives Tested Compliance Directive on Delegation of Financial Authorities for Disbursements Partially met Directive on Expenditure Initiation and Commitment Control[1] Partially met Directive on Account Verification[2] Partially met Directive on Acquisition Cards Met with exception Directive on Accountable Advances Met with exception Contracting Policy Partially met National Joint Council Travel Directive […]
by Mario Giasson
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CICS Management Action Plan
Management Action Plan Core Control Audit of the Canadian Intergovernmental Conference Secretariat (CICS) Canadian Intergovernmental Conference Secretariat’s Opinion of the Audit Report: The organization has reviewed the findings and recommendations and that as far as the scope of this audit is concerned these accurately reflect the state of control over financial management, contracting, travel & hospitality and human resources for the 2010-11 financial period. In 2010-11 CICS adopted a new departmental financial management system (from Freebalance to GX) and implemented some new processes that should improve its management practices and monitoring. Also, a new Policy Framework was developed and established. Management is confident that these measures and this action plan will reinforce CICS’ sound financial management practices. Audit Entity Sign Off on the Management Action Plan André M. McArdle Secretary Canadian Intergovernmental Conference Secretariat Signature Date Recommendations Priority Response and Planned Actions Responsibilities (position title responsible for the action) Timelines (actual planned dates of implementation) 1. The CICS should ensure that signature specimen cards are updated on an annual basis and reflect the authorities granted in the Delegation of Financial Signing Authorities Instrument. LOW Response: Management agrees with the recommendation. Planned Actions: Review and improve the delegation instrument by adding greater detail and supporting it with a new Manual on Delegation of financial signing authorities that will provide further information for delegates with details on monetary limits. Develop and implement new signature cards with expiry dates that will show delegated authority and that will be reviewed annually. DCFO September 2011 September 2011 2. The CICS should ensure that funds commitment availability is certified before expenses are incurred. MEDIUM Response: Management agrees with the recommendation. Planned Actions: Develop a new Policy on Budget Management with a Guide for managers. Training sessions to managers and their assistants would be created to ensure responsibilities are understood. Revise procedures on expenditure initiation and establish a checklist for managers. Implement compliance monitoring and error reports to ensure error rate is no greater than 5%. DCFO Fall 2011 for the development of the policy and training in January/ February 2012 December 2011 December 2011 3. The CICS should ensure that account verification and payment and settlement are performed on a timely basis. MEDIUM Response: Management agrees with the recommendation. Planned Actions: Develop a new Policy on Budget Management with a Guide for managers. Training sessions to managers and their assistants would be created to ensure responsibilities are understood. Improve monitoring with new monthly report on interest on overdue accounts payable. Implement compliance monitoring and error reports to ensure error rate is no greater than 5%. DCFO Fall 2011 for the development of the policy and training in January/ February 2012 September 2011 […]
by Mario Giasson
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