LLNL AUDIT PLAN

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• Publié par: Omko
• Nombre de lectures: 7
• Langue: English

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UNIVERSITY OF CALIFORNIA

INTERNAL AUDIT PLAN

2001 NARRATIVE & ASSUMPTIONS

(Lawrence Livermore National Laboratory)

______________________________________________________________________________

1.

Available Hours—

The FY 2001 Annual Audit Plan is based on 15,600 available hours (7.5

FTE’s).

The FTE total is comprised of 6.0 FTE internal auditors, 1 FTE Audit Manager, and

.5 FTE A&O Director.

This represents an increase of .5 FTE over last year.

2.

Indirect Hours—

The total budgeted indirect charge percentage is 14.86%, which is under

the UCOP Guideline of 15.00%.

No unusual variances are anticipated.

Professional

development for Laboratory planning purposes includes training hours specific to the

Laboratory, the DOE, and other specialized training that may not be typically acquired as CPE

for purposes of meeting professional standards and certification requirements. Therefore,

hours budgeted in this category exceed a minimum standard of 40 hours per staff member.

Audit management time is allocated evenly to direct and indirect hours at the same rate as

charged by the audit staff.

3.

Audit Program—

63.50% of Total Net Available Hours are allocated to this years audit

program.

Audit topics are primarily composed of high-risk audit topics compiled from this

year's risk assessment exercise.

Six of the top ten high risk audit topics, and seven of the next

top ten high risk ranked audit topics are covered in this year’s audit plan.

Four of the

remaining top ten, and two of the remaining next top ten audits were either in progress at the

time of this plan submission or recently completed.

This year, we will not be required to

perform the CFO Payroll audit as was mandated in the past by the OIG.

However, we will

continue to perform the mandated Cost Allowability audit.

We are confident that this year’s

risk assessment exercise provides a reliable identification of high-risk areas.

For FY 2001,

time devoted to Planned Carryforward Audits, work in progress at year end (4.10%) is

significantly lower than amounts reported in last year’s plan.

Accordingly, this year’s plan

reports an increase in time devoted to Planned Audits – Current Year (50.70%) over last year.

Supplemental Audits represents (8.70%) of net available hours.

Reducing audit budgets for

audits has increased breadth of coverage in this year’s plan.

We plan to continue use of

facilitation in our audits to generate project risk assessments, focus on business objectives,

improve audit planning and scoping, and shorten audit reports.

This year, one full FTE has

been allocated for IT audit topics.

This is an increase of .5 FTE’s over last year.

In addition,

we plan to rely to a greater extent on integrated auditing performed by general internal

auditors.

One information systems audit topic ranked as high risk has been included in our

plan.

We will assess the need to adjust the plan should we receive any requests during the

year from the DOE, OIG, Laboratory management, or UCOP exceeding this level.

4.

Advisory Services— Advisory Services, Investigations, and External Audit

Coordination—

The percentage of time devoted to Advisory Services has decreased slightly

from last year to 12.22% of net available hours.

It is anticipated that effort in this category

will be divided among three primary areas: support of the Appendix F – Self-Assessment

Program; support of internal systems development and reengineering initiatives; and

performance of CRSA workshops.

5.

Investigations—

N/A

6.

Support Activities—

The percentage of time budgeted for Support Activities (9.42%) is a

slight increase over last year.

The largest component of this category is Audit Planning,

composed primarily of the annual risk assessment exercise.

This year, we will be conducting a

comprehensive risk assessment, including facilitated workshops and email surveys.

Time has

also been allocated to: (1) Audit Committee Support, to reflect time anticipated for the newly

formed Laboratory Internal Audit Working Group; (2) Systemwide Audit Support, to reflect

anticipated participation on University work groups; (3) Computer Support, for maintenance

of our systems hardware and software; and (4) Quality Assurance, in anticipation of

participation of UC and DOE Peer Reviews.

In addition, the Audit Manager has been re-

elected to serve on the DOE Contractor Audit Managers Professional Standards Sub-

Committee.

7.

Total Direct Hours & Percent—

This year’s annual plan reflects an 85.14% direct hour

charge percentage, slightly exceeding the 85.00% UCOP Guidance, but slightly lower than

last year.

To emphasize our commitment to meeting the audit plan, each auditor is assigned a

direct hour charge rate.

Each auditor is also expected to maintain projects within amounts

budgeted, both hours and schedule.

These metrics are used for the purposes of evaluating

employee performance.

8.

Time Phasing Assumptions—

Time phasing was used where possible.

Holidays were spread

according to local schedule, and sick leave and vacation were spread based on anticipated

usage; i.e., higher sick leave usage in winter and spring months, with more vacation devoted

to summer and winter months.

Special Project time planned for the Laboratory Appendix F –

Self-Assessment project was time phased to correspond with the actual schedule, during the

summer months.

Audit planning was also time phased to the 2

nd

and 3

rd

quarter of the

Laboratory fiscal year.

Planned Carryforward Audit hours were allocated to the 1

st

and 2

nd

quarter of the Laboratory fiscal year.

Lastly, Professional Development hours were time

phased to account for the All-Auditors Conference in the 1

st

quarter of the Laboratory fiscal

year.

Direct audit plan hours by quarter was the byproduct of actual available hours by

quarter, less time allocated/time phased to all other categories by quarter.

9.

Other Matters—

A major obstacle for the Laboratory in completing the plan as submitted is

timing and response to external drivers.

Submitting the plan five and a half months in advance

of the fiscal year makes it difficult to predict with any reasonable level of certainty unforeseen

demands which may impact work on the plan.

In addition, we are uncertain at this time about

the level of effort DOE and the OIG may place on us, in response to changing DOE

stewardship responsibilities and OIG participation in CFO financial auditing.

Internally, the

Laboratory is committed to reducing general & administrative costs, which impacts our ability

to filling open vacancies and generally translates to doing more with less. While we anticipate

devoting audit resources to all audits included in this plan, we also recognize that

circumstances beyond our control could result in audit schedule “slippage.”

As such, our goal

is to have fully completed at least 80% of all planned topics by fiscal year-end, with the

remaining topics in progress at year-end.

In addition, this year’s audit plan topics were

identified at a relatively high level (Tier 3).

To complete the breadth of coverage called for in

this plan, we will be focusing on selected operational and business risks within each topic and

will not be providing assurances of topic coverage as a whole.

As this plan demonstrates, we

are committed to scoping down our audits and focusing on only the most significant risks that

can be covered within the available budget hours.

We anticipate a shift in our traditional audit

approach with more emphasis on up front planning and facilitated risk assessment to identify

only those areas worthy of audit testing.

Accordingly, we expect audit testing to be

optimized.

This year’s audit plan is a stretch goal, predicated on our ability to change our

traditional auditing approach paradigm.

UNIVERSITY OF CALIFORNIA

SCHEDULE 1

INTERNAL AUDIT PERSONNEL

FY 2001

LLNL

I.

Authorized Personnel

Profess.

Admin.

Total

Number of Authorized Personne

7.5

1

8.5

(Provide detail of any changes, e.g. date,

classification level, etc. Provide separate

narrative on any reductions.

Assoc.IAD

Prof.

II.

Actual FTE's

IAD

or MGR.

Staff

Total*

Beginning of Period

0.5

1

6

7.5

Anticiapated Additions**

Estimated Separations**

End of Period

0.5

1

6

7.5

*

Footnote the approximate number of professionals assigned to Health Sciences during the period on an FTE basis.

** Use assumed start and leave dates to calculate weighted average FTE's below.

III.

Gross & Net Available

Hours Calculation

Total Year

1st

2nd

3rd

4th

Hours

Quarter

Quarter

Quarter

Quarter

Weighted Avg.

FTE's**

7.5

7.5

7.5

7.5

7.5

Hours in the period

2080

520

520

520

520

Sub-Total

15600

3900

3900

3900

3900

Other Resources:

Overtime

Contract Labor/Interns

Recharge In or (Out)

Admin. & Other

Sub-Total

0

0

0

0

0

Gross Available Hours

15600

3900

3900

3900

3900

Less Non-Controllable Hours

2549

825

611

532

581

Non-Controllable Percent

Total Net Available Hours

(1)

13051

3075

3289

3368

3319

(1)

Must tie to "Total Net Available Hours" on Schedule 2 - Annual Resource Allocation

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UNIVERSITY OF CALIFORNIA

INTERNAL AUDIT ANNUAL RESOURCE ALLOCATION

SCHEDULE 2

FY 2001

LLNL

Distribution of Net

Available Hours

UCOP %

Plan

Total Year

1st

2nd

3rd

4th

Guideline Percent

Hours

Quarter

Quarter

Quarter Quarter

Indirect Hours

Administration

5--10%

9.80%

1279

340

315

315

309

Professional Development

2--5%

5.06%

660

200

145

155

160

Other

0--3%

Total Indirect Hours

1939

540

460

470

469

Total Indirect Percent

15%

14.86%

14.86%

17.56%

13.99%

13.95%

14.13%

Direct Hours

Audit Program

Planned Audits - Current Year

6613

1367

1745

1882

1619

Planned Carryforward Audits

540

440

100

0

0

Suppl. Audits - Current Year

10%

8.70%

1135

283

284

284

284

Total Audit Program

8288

2090

2129

2166

1903

Total Audit Percent

40--60%

63.50%

67.97%

64.73%

64.31%

57.34%

Advisory Services

Consultations/Spec. Projects

907

80

130

147

550

Systems Dev., Reengineering Teams, Etc.

353

80

90

90

93

Internal Control & Accountability

335

75

90

90

80

External Audit Coordination

IPA, COI & Other

Total Advisory Services

1595

235

310

327

723

Total Advisory Percent

10--25%

12.22%

7.64%

9.43%

9.71%

21.78%

Investigations--Hours

Investigations--Percent

10--20%

Audit Support Activities

Audit Planning

394

20

180

180

14

Audit Committee Support

200

60

60

40

40

Systemwide Audit Support

200

50

60

45

45

Computer Support

160

30

40

40

50

Quality Assurance

275

50

50

100

75

Total Audit Support

1229

210

390

405

224

Total Audit Support Percent

5--10%

9.42%

6.83%

11.86%

12.02%

6.75%

Total Direct Hours

11112

2535

2829

2898

2850

Total Direct Percent

85%

85.14%

85.14%

82.44%

86.01%

86.05%

85.87%

Total Net Available Hours

(1)

13051

3075

3289

3368

3319

Total Net Available Percent

(2)

100%

100.00%

100.00% 100.00% 100.00% 100.00% 100.00%

(1)

Must tie to "Total Net Available Hours" on Schedule 1 - Personnel

(2)

Must equal 100% or there is an error

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UNIVERSITY OF CALIFORNIA

INTERNAL AUDIT PLAN DETAIL

SCHEDULE 3

FY 2001

LLNL

High Risk?

Planned

Primary

Additional

Auditor

Mgmt

Name/Title of Audit

Yes or No

Hours

Index Code

Index Code(s)

Hours

ross-up (2

Carryover--(WIP)

Laboratory Safety Programs

H1

263 C.a.04

230

263

Energy Program Administration

H3 (H1 in PY)

277 J.a.00.11

242

277

Subtotal Carryover

540

New Audits

Travel

H1

487 E.e.04

425

487

National Security Office Administration

H1

516 J.a.00.16

450

516

Export Controls

H1

487 J.b.03

425

487

Utilities

H2

469 D.d.03

409

469

N Program Administration

H2

516 J.a.00.13.03

450

516

Compensation - Dual Appointments

H2

499 F.b.01

435

499

Accounts Payable - Disbursement Controls

H2

516 E.e.01

450

516

Recharge Activities - Job Order Cost

H2

602 E.k.06

525

602

Cost Allowability FY01

H3

401 J.b.05

350

401

Bank Account Administration and Reconciliation

H2

258 E.d.01

225

258

HR/Payroll Feeder System Linkage

H2

358 G.g.01.01.07

312

358

Accounts Payable System

H3

264 G.g.01.01.32

230

264

Reimbursables Systems Development (RWS)

H1

367 G.e.02.02

320

367

G/L Mass Allocation System Process

H3

373 G.g.01.03

324

372

Audit Followup

500

400

500

Subtotal New Audits

6613

Total Plan Audits

(1)

7153

Planned Advisory Services

0

(Used where known advisory services will address high risk areas

and thus their inclusion here provides a basis for statistical

calculation of coverage of items risk ranked as high.

Other known

Advisory Services (e,g, CSA assistance to controllers) should also

be listed.)

Other Advisory Services as yet unknown should be added

as a lump sum so that a total ties to Schedule 2.

1595

(1)

Must tie to "Planned Audits" on Attachment D (Schedule 2 - Allocation Worksheet)

(2) Management time is allocated to audit projects in arriving at Total Planned Hours using the following factors:

540 Total Planned Carryforward Audit Hours/ 472 Auditor Planned Carryforward Audit Hours

1.1441

6113 Total Planned Audit Hours - Current Year / 5330 Auditor Planned Audit Hours Current Year

1.1469

500 Total Auditor Followup Hours/400 Auditor Followup Hours

1.2500

LLNL Schedules 1 thru 4 Revised.xls7/24/00

UNIVERSITY OF CALIFORNIA

SCHEDULE 4

INTERNAL AUDIT PLAN STATISTICS

FY 2001

LLNL

Annual

I

Coverage of High Risk*

Hours

Number

Goal

In Planned:

Audits

2397

10 (1)

Advisory Services

Investigations

Total

2397

10 (1)

Percentage

N/A

100.00% 80--100%

*DEFINITION OF HIGH RISK

The highest 10 risk scores assigned at the local campus or laboratory.

II

Coverage of Next Tier Risks**

Hours

Number

In Planned:

Audits

2602

9 (2)

Advisory Services

Investigations

Total

26

9 (2)

Percentage

N/A

90.00%

N/A

(Info only)

**

DEFINITION OF NEXT TIER RISKS

The

NEXT

10 highest risk ranked items after the

HIGH

risks.

III

Distribution of Tier 1 Audit Coverage

Hours

Pct.

A

Auxiliary, Business, & Employee Support Services

24

0.34% (3)

B

Development & External Relations

0

0.00%

C

Environmental Safety and Security

351

4.91%

D

Facilities, Construction & Maintenance

504

7.05%

E

Financial Management

1981

27.69%

F

Human Resources & Benefits

523

7.31%

G

Information & Communications

1456

20.36%

H

Campus Research Departments & Instruction

0

0.00%

I

Health Sciences Research, Instruction & Clinical Service

0

0.00%

J

Lab Research Programs & Processes

2314

32.35%

K

Office of the President

0

0.00%

Total

7153 100.00%

Notes:

(1) 6 of 10 H1 audits were planned for FY01.

Of the other 4 H1 audits,

3 were in progress and 1 had recently been completed at the time of this plan submission (4/14/00)

(2) 7 of 10 H2 audits were planned for FY01.

Of the other 3 H2 audits,

1 was in progress, 1 had recently been completed at the time of this plan submission (4/14/00),

and the remaining was issued in FY98

(3) 1 audit within this category was in progress at the time of this plan submission (4/14/00)

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