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INTERNAL AUDIT
FALKLAND ISLANDS GOVERNMENT
STANLEY
FALKLAND ISLANDS
Tel: 28409
Fax: 27144
email: [email protected]
Audits presented to PAC meeting on 2 November 2016
Post Office Income
OVERALL OPINION
RECOMMENDATIONS
Satisfactory
HIGH
1
MEDIUM
5
LOW
0
Audit Scope: The audit covered the management and receipt of income due to FIG, GSGSSI and BAT
under the terms of the management agreement between FPS and FIG.
Summary: Terminal dues between the Falkland Islands and the United Kingdom have not been settled
with the Royal Mail since 2013/14. This may have an impact on income due to FIG and FPS. We also
made recommendations to improve the controls over the sale of stamps at Fox Bay, Visa charges and
the formal monitoring of the contract.
Plant and Vehicle
OVERALL OPINION
RECOMMENDATIONS
Limited
HIGH
3
MEDIUM
5
LOW
1
Audit Scope: The audit covered the maintenance and use of FIG’s plant and vehicles.
Summary: Whilst the maintenance of vehicles was well controlled we have raised recommendations
to seek clarification over the requirement for Category G driving licenses to drive plant. We have also
recommendations to improve control over the use of FIG vehicles to ensure they are only used for
official business and not for personal use.
Investment Management
OVERALL OPINION
RECOMMENDATIONS
Satisfactory
HIGH
1
MEDIUM
2
LOW
1
Audit Scope: The audit assessed the adequacy of internal control over the investment process,
including how investment performance was monitored.
Summary: Overall, controls are operating as intended. We made recommendations to improve the
cash flow forecasting process which helps to inform investment decisions. We have also made
recommendations to improve the investment reconciliation and reporting process.
Main Accounting System
OVERALL OPINION
RECOMMENDATIONS
Good
HIGH
0
MEDIUM
2
LOW
3
Audit Scope: The audit covered the use of the Main Accounting System to record and monitor
financial transactions.
Summary: Controls were operating well. We have raised some recommendations to improve the
administration of the accounting system and also to ensure all appropriate reconciliations are carried
out on a timely basis.
Budget Monitoring
OVERALL OPINION
RECOMMENDATIONS
Satisfactory
HIGH
0
MEDIUM
3
LOW
1
Audit Scope: The review covered the process for monitoring department budgets against actual
spend.
Summary: We have made recommendations to improve the profiling of the budgets and to improve
the monitoring and reporting of budget variances.
Payroll System
OVERALL OPINION
RECOMMENDATIONS
Limited
HIGH
7
MEDIUM
12
LOW
2
Audit Scope: The review followed up the recommendations made in previous audit reports as well as
a full review of the control environment.
Summary: A number of previously raised recommendations remain outstanding, these are being
progressed by the Director of Human Resources but some of them will take some time to implement.
As a result of the system weaknesses Human Resources perform a significant amount of additional
checks to ensure that employee’s are paid accurately.
Debtors
OVERALL OPINION
RECOMMENDATIONS
Limited
HIGH
2
MEDIUM
3
LOW
0
Audit Scope: The audit covered the implementation of the debt management policy to ensure debts
were being raised and appropriate action taken to recover outstanding debts.
Summary: Our audit highlighted that longstanding debts were not being pursued in accordance with
the debt management policy. For one department the spreadsheet which is used to raise the invoices
was not complete and there is a risk that invoices may not be raised accurately. Treasury and Legal
Services are to draft a paper for CMT to suggest a way forward to ensure debts are raised accurately
and appropriate recovery action is taken.
IT Facilities Management Agreement 2nd Follow Up Review
OVERALL OPINION
RECOMMENDATIONS
N/A
HIGH
2
MEDIUM
4
LOW
0
Audit Scope: Our recommendations were initially followed-up in September 2015 but due to limited
progress a second follow-up review was performed.
Summary: Of the 7 recommendations raised in our original report only 1 has been implemented.
Action was being progressed against a further 4 recommendations (including both of the high priority
recommendations) and 2 recommendations remained outstanding.
Property and Municipal – Housing Follow Up Review
OVERALL OPINION
RECOMMENDATIONS
Substantial Implementation
HIGH
MEDIUM
0
0
LOW
1
Audit Scope: The review assessed the implementation of the recommendations made in the Internal
Audit report originally issued in July 2015.
Summary: 7 of the 8 recommendations have been fully implemented with only 1 Low Priority
recommendation remaining outstanding. During the course of the follow-up review a further High
Priority recommendation was raised regarding boiler servicing and electrical testing.
Ian Rushworth
Chief Internal Auditor
Falkland Islands Government