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Staff Report
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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)