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HomeMy WebLinkAboutIAS-005-21Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Audit and Accountability Committee Date of Meeting: November 30, 2021 Report Number: IAS-005-21 Submitted By: Catherine Carr, Internal Audit Manager Reviewed By: Trevor Pinn, Director of Financial Services Resolution#: File Number: By-law Number: Report Subject: 2021-2022 Internal Audit Plan Recommendations: 1. That Report IAS-005-21 be received; and 2. That the 2021-2022 Internal Audit Plan attached to Report IAS-005-21, as attachment 1, be approved. Municipality of Clarington Report IAS-005-21 Report Overview Page 2 As per the Internal Audit terms of reference and the Internal Audit policy, an annual workplan is presented to the committee for approval. 1. Background 1.1 The annual internal audit work plan is to be approved by the committee in accordance with the terms of reference and internal audit policy. 2. Internal Audit Workplan 2.1 Attached is the 2021-2022 Internal Audit work plan for the Committee's review. 2.2 There are different types of internal audits each providing valuable information and feedback. In 2021, a Financial Analyst has been assigned to work with the Internal Audit Manager which has helped with the collection, processing and analysis of data. With the reallocation of the Financial Analyst to internal audit, we are working on improving and expanding the internal audit work. 2.2 The Region of Durham internal audit group has been a valued resource. There is a regular group meeting to discuss issues and share general knowledge. 2.3 Included in the workplan is a service delivery of fleet and payroll costing processes in Public Works (project ID 2022-2). An application has been made to the provincial Audit and Accountability Fund (AAF) Intake 3. Notification of approval of applications is expected around the end of January 2022. The final report deadline for this funding stream is October 17, 2022. As required under the AAF, this work must be conducted by a third -party reviewer. The Internal Audit Manager will be the project lead on this service review. 3. Concurrence This report has been reviewed by the Director of Financial Services who concurs with the recommendations. 4. Conclusion It is respectfully recommended that the Committee approves the 2021-2022 Internal Audit workplan. Municipality of Clarington Report IAS-005-21 Staff Contact: Catherine Carr, Internal Audit Manager, 905-623-3379 ext. 2606 or ccarr@clarington.net. Attachments: Attachment 1 — 2021-2022 Internal Audit Workplan Interested Parties: There are no interested parties to be notified of Council's decision. Page 3 Municipality of Clarington INTERNAL AUDIT - CONTACT: Catherine Carr Last update: 25-Nov-21 Est. Final Priority Project ID Type Name Description Rationale Notes Report The use of purhasing cards has been promoted to streamline low value purchases. Review of Purchasing Cards Use Review use of cards, compliance with policy 2020-1 C Purchasing Cards and Policies and any suggested improvements. Near completion 2022 Q1 Completed April 2021, Cash Handling - Petty Review use of petty cash and the compliance annual review 2020-2 C Cash Review of Petty Cash and Policies with \Policy G12 Petty Cash. October 2021 Annual Completed April 2021, Cash Handling - Cash Ensure the cash float balances and that the annual review 2020-3 C Floats Review of Cash Floats funds are kept secure. October 2021 Annual Changes in 2019 to expense forms and qr Review of Expense Reports and payments. Review adherence to new process 2021-1 C Expense Reports Policies and expense policies. To start January 2022 2022 Q2 Review of use of cell phones - Review of the controls on this corporate asset. appropriate staff, usage of cell Review of cell phone policy and staff 2021-2 V Corporate Cell Phones phones compliance. To be started in 2022 2022 Q3 Procurement - Review Review of Bid Solicitation Choices New Purchasing By - of Bid Solicitation and Compliance with Purchasing By- Introduction of Roster Process for Engineering law 2021-077. Audit 2021-3 V Choices law 2015-022 Consulting $5-30K is a new process in 2019. not started 2022 Q4 Ensure integrity of new system. Verification of Consult on MBS software data, eliminate data legacy issues, ensure implementation and create audit proper internal controls for approvals and 2021-4 SI MBS Software framework of data transfer. processes. Ongoing Ongoing Review of Public Works work order process to create a more proactive Public Works Dept - approach rather than the current 2021-5 SDR Process Review reactive process. Not started This is an application for a Service Delivery Review and propose process Rerview throught the Audit and Accountability improvement of job costing for Fund Intake #3. The current processes are various Public Works service administratively inefficient and time consuming segments using existing softwares for staff in several departments. The objective currently in place at the Municipality. is to streamline the process with the goal of Public Works Dept - This would include fleet allocation, reducing admintrative work, providing better Cost Allocation payroll reporting and allocation as controls and improved data for management Waiting for funding process including well as job costing of services reporting, analysis and performance approval estimated in 2022-1 SDR payroll and fleet throughout Public Works measurement. late January 2022 2022 Q4 IT - all departments: Review of IT passwords, access and controls on Review of the IT policies and municipal software as procedures for ensuring proper identified in the 2020 access and authorization of financial statement municipal softwares and modules Brought up in discussions with external To be started January 2022-2 O audit within software. auditors 2022 2022 Q2 Project codes Type codes: 2020-# 2020 = year requested/planned # = project identifier C Compliance V Value for Effort SI Software Implementation SDR Service Delivery Review Other (includes consulting)