UCR Audit Plan Narrative

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• management
• managers

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• Publié par: Naphang
• Nombre de lectures: 15
• Langue: English

Extrait

RISK BASED AUDIT WORK GROUP

GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE

ALLOCATION

FISCAL YEAR 2001

ATTACHMENT E

UNIVERSITY OF CALIFORNIA

INTERNAL AUDIT PLAN

FISCAL YEAR 2001 NARRATIVE & ASSUMPTIONS

(UCR)

Significant changes from 1999/2000

are noted in Italics.

_____________________________________________________________________

1.

Available Hours

--Describe the basis for the number of FTE’s in the plan

including any change from current year staffing levels, time frame for filling

open positions, assumed turnover and impact on available hours, and any

positions authorized but intentionally left open for necessary salary savings.

Our authorized and funded number of 5 FTE is used in the 2000-2001 Audit

Plan.

Presently, we have one open position that is being recruited for and should

be filled by 7/01/2000.

No employee turnover in 2000/2001 is assumed.

Separately describe the basis for any hours in the “Other Resources category; e.g. temporary

assistance, interns, paid or unpaid overtime, or re-charge to another internal audit department

(negative).

The Other Resources hours are those of planned student interns.

Generally, about 3 excellent

student interns assist us for about 10 hours weekly during the three academic quarters.

We do not

see any difficulty in continuing the use of interns at this level.

In fact, we have a waiting list of

interns.

We have not budgeted for unpaid professional staff “overtime” but this may become

necessary if the plan goes astray.

2.

Indirect Hours

--Describe any unusual variances from expected norms.

For

example, Non-Controllable time which is budgeted differently from leave

permitted by H.R. policies, Professional Development different from

guidelines, or Other reflecting the impact from an office relocation etc.

Comment on the manner in which Director’s time is allocated to administration

versus audit projects, especially if the overall indirect percentage is unusually

high (greater than 20%) or low (less than 10%).

Professional development time is allocated at 80 hours per professional since we

have the All Auditors Conference, integrated auditing training, ACUA, etc

scheduled for 2000/2001.

As to administrative time it is based on actual and is

RISK BASED AUDIT WORK GROUP

GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE

ALLOCATION

FISCAL YEAR 2001

ATTACHMENT E

recorded daily.

Generally, other than a couple hours each month for staff

meetings, time reporting, and intern recruiting, only the Director charges

administrative time. Any time spent by the Director on an audit is charged to

that audit.

Non-controllable time is based on polling of staff as to planned

vacation time by quarter, past/projected sick leave and jury duty experience.

Holiday time is based on actual by quarter.

With seasoned professional staff

coupled with the Director functioning as a “working” manager,

administrative

time tends to be lower than the UC system average.

3.

Audit Program

--Comment on coverage of the Audit Universe and its high-risk

components, using statistics from Attachment F-4 (Schedule 4 Plan Statistics),

as appropriate.

Comment also on the basis for the hours assumed in

Supplemental Audits.

Note

that while Supplemental Audits is intended to

acknowledge the dynamic nature of our environment--and also our on-going

risk assessment--it is not intended to undermine our ability to audit highly

ranked risks or mask accountability for our time.

Comment also on the extent

of obligated time versus time freely available to assign by the Audit Director on

a risk assessment basis.

We do not recharge at all, so time is freely available to assign on a risk

assessment basis.

We have only budgeted 400 hours supplemental audit time so

we can cover 100% of the high risk areas.

Historically, we have not had many

time consuming supplemental audits with the unique exception of cashiering last

year.

4.

Advisory Services

--Note the changes in the reporting categories begun in 1999.

Note also the addition of IPA (Information Practices Act) and COI (Conflict of

Interest Coordination).

These were added to reflect the roles assigned to UCSD

and UCSC respectively.

However, any location expecting to spend time on

these matters (outside of project specific time that should be charged to the

project) can budget and charge time here. Comment on material changes from

historical patterns if any are projected.

Comment also if any projected change

is a result of recharacterizing hours historically charged elsewhere or on any

efforts to promote Advisory Services in your environment.

RISK BASED AUDIT WORK GROUP

GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE

ALLOCATION

FISCAL YEAR 2001

ATTACHMENT E

In general we have increased this budgeted time in order to promote advisory

services.

We expect to be heavily involved in financial system control consulting

and conducting more control related training classes associated with the new

financial system.

Time will also be invested in assisting UCR in the

implementation of the new G-29 policy et al.

We expect the 5

th

audit professional

to incrementally add to our advisory services efforts.

5.

Investigations--

Comment on material changes from historical patterns if any

are projected.

If a basis other than historical patterns was used to estimate

investigations comment on that basis.

The 1500 hours is consistent with historical trends.

We have reduced it

approximately 200 hours from last year due to a slow down in the last half of FY

1999/2000.

6.

Support Activities

--Note that while the Support Activities categories are the

same, we agreed to one change in their usage beginning in 1999.

That is,

Quality Assurance may be used for local QA programs as well as the

systemwide program.

However, care should be taken to charge time only for

formal QA program efforts such as post issuance report reviews, post

completion checks for documentation and compliance with standards and local

procedures.

It should not be charged for any project specific time that belongs

in the project and is not a substitute for supervision, secondary review or pre

report issuance quality assurance measures.

Comment on the assumptions that drive significant hours in these categories and any

variances from historical or “normal” commitments of time in these categories.

Examples

might include an increase in commitments to Quality Assurance teams, managers’ new

assignments to systemwide workgroups and the like.

Planned time is less in FY 2000/2001 because of a 150 hour reduction in the

Quality Assurance category.

This is because in FY 1999/2000 we budgeted for

and experienced the UCR QAR.

We don’t expect to receive a QAR in FY

2000/2001.

7.

Total Direct Hours & Percent

--Comment on the overall allocation of Direct

Hours and the commitment to an audit program aimed at providing basic audit

RISK BASED AUDIT WORK GROUP

GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE

ALLOCATION

FISCAL YEAR 2001

ATTACHMENT E

coverage with principal audit emphasis on highly ranked risks.

Comment on

the Direct Hour Percentage as a performance measure and the variance from a

benchmark of 85%.

Assuming no professional staff turnover the number of direct hours should be

attained.

We believe a 91% direct time rate is reasonable for us (12/31/99 YTD

actual was 92%).

The primary factors contributing to this higher percentage

are: (1) student interns working generally at 100% direct time, (2) seasoned staff

that require very little administrative time, (3) and a “working” Director coupled

with no other management layers.

8.

Time Phasing Assumptions

--Predictable variances from period to period

should be accounted for in your spread of hours.

For instance, the holiday

hours are predictable based on the local holiday schedule.

Other items, such as

vacations, illness and other authorized time off are less predictable, but it may

nevertheless be your assumption that they do not flow evenly by quarter.

It is

suggested that you first estimate total available hours by period, then estimate

non-controllable and controllable hours (for such things as scheduled CPE) to

arrive at total hours available for direct audit activities before spreading the

annual plan total for Planned Audits and other direct activities.

Remember that

it is not necessary to spread individual audits by quarter--time phasing is only

requested at the Schedule 2 (Attachment F-2), not

Schedule 3 (Attachment F-3)

level.

Comment on significant assumptions made in spreading the annual plan by quarter.

Some assumptions have already been noted above.

The “plug figure” each

quarter is Planned Audits.

Audit planning takes place in the third and fourth

quarters.

Audit committee meetings are generally once every quarter.

Professional development is weighted heavily in the first half of the year (All

Auditors, ACUA, integrated auditing).

QAR time is expected to be absent in the

1

st

and 4

th

quarters since it seems unlikely that our new systemwide QAR

program will be developed and implemented in the first quarter and often the

fourth quarter is avoided because of work demands in completing the audit plan.

RISK BASED AUDIT WORK GROUP

GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE

ALLOCATION

FISCAL YEAR 2001

ATTACHMENT E

9.

Other Matters

--Comment on the biggest variables that will drive the ultimate

determination of your ability to complete the annual plan.

Such things may

include significant contingencies that can’t be predicted at this time; e.g.

staffing contingencies, major external investigations on the horizon such as

PATH II, DOE directives, Internal Audits role in a CSA program, and the like.

The biggest variables include the following:

continuation throughout 2000/2001

of a 5.0 FTE staffing level, our role in CSA/Ethics programs, level of

investigations, the aftermath/continuation of the UCR Financial System

implementation, successful completion of the 1999/2000 Audit Plan, smooth

continued implementation of the TeamMate work papers, and the level of special

management requests.

Suspected impropriety is frequently reported to us,

probably somewhat a result of our accountability and internal control classes as

well as our enhanced visibility on campus.

We believe progress has been made in

the “triage” of such reports in order to maximize our time utilization.

Comment also on the capacity to handle additional work; e.g. to what extent do you

consider the plan to be a stretch goal or what level of contingency availability is built

into the plan.

We consider the plan to be reasonably attainable.

If it is not necessary to use all

the budgeted Investigation time, the 400 Supplemental Audit time, and the hours

we have allocated for special requests then we should be able to add some

additional 2

nd

tier audits during the year.

However, historically these provisions

are justifiable.

Contingency resources include additional student interns and

working overtime.

If we lose an auditor during the year the possibility exists for

short term contractual assistance.

Comment on any other matters that you deem relevant to an understanding of your

Annual Audit Plan.

None.

UNIVERSITY OF CALIFORNIA

SCHEDULE 1

INTERNAL AUDIT PERSONNEL

FY 2001

UCR

I.

Authorized Personnel

Profess.

Admin.

Total

Number of Authorized Personnel

5

0.25

5.25

(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

1

4

5

Anticiapated Additions**

Estimated Separations**

End of Period

1

4

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**

5

5

5

5

5

Hours in the period

2080

520

520

520

520

Sub-Total

10400

2600

2600

2600

2600

Other Resources:

Overtime

Contract Labor/Interns

1000

0

350

350

300

Recharge In or (Out)

0

Admin. & Other

0

Sub-Total

1000

0

350

350

300

Gross Available Hours

11400

2600

2950

2950

2900

Less Non-Controllable Hours

1650

456

628

368

198

Non-Controllable Percent

14%

18%

21%

12%

7%

Total Net Available Hours

(1)

9750

2144

2322

2582

2702

(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

UCR

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%

5%

500

125

125

125

125

Professional Development

2--5%

4%

400

150

150

50

50

Other

0--3%

0%

0

0

0

0

0

Total Indirect Hours

900

275

275

175

175

Total Indirect Percent

15%

9%

9%

13%

12%

7%

6%

Direct Hours

Audit Program

Planned Audits - Current Year

48%

4650

894

1022

1232

1502

Planned Carryforward Audits

0%

0

0

0

0

0

Suppl. Audits - Current Year

10%

4%

400

100

100

100

100

Total Audit Program

5050

994

1122

1332

1602

Total Audit Percent

40--60%

52%

52%

46%

48%

52%

59%

Advisory Services

Consultations/Spec. Projects

7%

700

175

175

175

175

Systems Dev., Reengineering Teams, Etc.

3%

300

75

75

75

75

Internal Control & Accountability

4%

400

100

100

100

100

External Audit Coordination

0%

20

5

5

5

5

IPA, COI & Other

0%

0

0

0

0

0

Total Advisory Services

1420

355

355

355

355

Total Advisory Percent

10--25%

15%

15%

17%

15%

14%

13%

Investigations--Hours

1500

375

375

375

375

Investigations--Percent

10--20%

15%

15%

17%

16%

15%

14%

Audit Support Activities

Audit Planning

2%

200

0

0

150

50

Audit Committee Support

1%

80

20

20

20

20

Systemwide Audit Support

2%

200

50

50

50

50

Computer Support

3%

300

75

75

75

75

Quality Assurance

1%

100

0

50

50

0

Total Audit Support

880

145

195

345

195

Total Audit Support Percent

5--10%

9%

9%

7%

8%

13%

7%

Total Direct Hours

8850

1869

2047

2407

2527

Total Direct Percent

85%

91%

91%

87%

88%

93%

94%

Total Net Available Hours

(1)

9750

2144

2322

2582

2702

Total Net Available Percent

(2)

100%

100%

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

DRAFT

INTERNAL AUDIT PLAN DETAIL

SCHEDULE 3

FY 2001

UCR

High Risk?

Planned

Primary

Additional

Name/Title of Audit

(1 is highest)

Hours

Index Code

Index Code(s)

Carryover--(WIP)

None

Subtotal Carryover

0

New Audits

Bank Account Administration and Reconciliation

1

200 E.d.01

Accounts Payable

1

300 E.e.01

Central Systems Development -- UCRFS (PS ver 7.5 Upgrade)

1

300 G.e.02

General Ledger/Sub Ledger Systems

1

300 E.f.01

E.f.02

Computing & Communications Strategic Planning

1

250 G.a.01

G.b.01, G.b.02

Parking Operations

1

300 A.a.07

Application Review - FAMIS

1

200 G.g.01

D.d

Network Security

1

300 G.b.01

Contract & Grant Accounting

1

250 E.k.01

Federal Cost Transfers

1

250 E.k.02

Keck Foundation Grant

1

200 E.k.01

H.c.00.08

Financial Analytic Review

1

400 E.f.01

School of Education

2

200 H.c.00.24

EH&S - Hazardous Waste

2

200 C.a.03

Athletic Development

2

150 A.a.01

B.a.05

Biomedical Sciences

3

100 H.c.00.05

Construction

3

200 D.b.02

Commons Dining Services - Cashiering

3

100 E.d.02

Early Academic Outreach Program

3

200 H.f.01

Operational Activity Surveys (20)

3

150 H.c

Follow-ups

100

Subtotal New Audits

4650

Total Plan Audits

(1)

4650

Planned Advisory Services

Athletics Compliance Committee

2

100 A.a.01

Desert Satellite Campus

3

50 H.c.00.25

G-29 et al implementation

NA

100 NA

Other

1170

Total Advisory Services

1420

(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.

(1)

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

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UNIVERSITY OF CALIFORNIA

DRAFT

SCHEDULE 4

INTERNAL AUDIT PLAN STATISTICS

FY 2001

UCR

Annual

I

Coverage of High Risk* (#1 items)

Hours

Number

Goal

In Planned:

Audits

3250

10

Advisory Services

0

0

Investigations

0

0

Total

3250

10

Percentage

N/A

100% 80--100%

*DEFINITION OF HIGH RISK

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

II

Coverage of Next Tier Risks** (#2 items)

Hours

Number

In Planned:

Audits

550

3

Advisory Services

100

1

Investigations

0

0

Total

650

4

Percentage

N/A

40%

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

450

10%

B

Development & External Relations

0

0%

C

Environmental Safety and Security

200

4%

D

Facilities, Construction & Maintenance

200

4%

E

Financial Management

2000

43%

F

Human Resources & Benefits

0

0%

G

Information & Communications

1050

23%

H

Campus Research Departments & Instruction

650

14%

I

Health Sciences Research, Instruction & Clinical Services

0

0%

J

Lab Research Programs & Processes

0

0%

K

Office of the President

0

0%

Other -- followups

100

2%

Total Planned Audits

4650

100%

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