UCR FY 2001-2002 AUDIT PLAN
Description
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 2002 NARRATIVE & ASSUMPTIONS (UCR) . _____________________________________________________________________ 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 2001/2002 Audit Plan. This is no change from last year. Presently, we have no open positions. No employee turnover in 2001/2002 is assumed. However, with all the financial management opportunities on campus and the skills/experience our auditors have we believe it is likely at least one will leave us before the end of next year. To budget for this would make our plan unacceptable since one auditor leaving thhas about a 25% impact. We have requested a 6 auditor but because it is most likely this resource will not be authorized until 2002/2003 we have not included it in the 2001/2002 plan. We are at the lower end of the UCOP per cent guidelines for the audit program because of increased budgeted time for advisory services and investigations. Separately describe the basis for any hours in the “Other ...
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| Publié par | Inyio |
| Nombre de lectures | 19 |
| 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 2002 NARRATIVE & ASSUMPTIONS
(UCR)
.
_____________________________________________________________________
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 2001/2002 Audit
Plan. This is no change from last year. Presently, we have no open positions. No
employee turnover in 2001/2002 is assumed. However, with all the financial
management opportunities on campus and the skills/experience our auditors
have we believe it is likely at least one will leave us before the end of next year.
To budget for this would make our plan unacceptable since one auditor leaving
has about a 25% impact. We have requested a 6
th
auditor but because it is most
likely this resource will not be authorized until 2002/2003 we have not included it
in the 2001/2002 plan.
We are at the lower end of the UCOP per cent guidelines for the audit program
because of increased budgeted time for advisory services and investigations.
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. We have
planned for about 4 student interns to assist us for about 10 hours weekly during
the three academic quarters and 2 during the summer. This represents a 40%
planned increase over last year. More planned audits this year lend themselves
to greater intern utilization. We do not see any difficulty in 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.
RISK BASED AUDIT WORK GROUP
GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE
ALLOCATION
FISCAL YEAR 2001
ATTACHMENT E
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. As to
administrative time it is based on actual and is 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 8.5% for 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 two
years ago. We believe the 8.5% budget could cover one moderate sized special
systemwide audit if needed.
RISK BASED AUDIT WORK GROUP
GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE
ALLOCATION
FISCAL YEAR 2001
ATTACHMENT E
4.
Advisory Services
-- Note IPA (Information Practices Act) and COI (Conflict
of Interest Coordination) activities would be reported here and are reflective of
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.
In general we have substantially increased (20% vs 15% in prior year) this
budgeted time in order to promote advisory services. We expect to be heavily
involved in major campus systems control consulting and conducting more
control related training classes as well as some CSA partnering with the Director
of Financial Control and Accountability. Time will also be invested in assisting
UCR in the implementation of the new G-29 policy.
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 2000 hours is consistent with the recent historical upward trend. We believe
this trend coupled with the increased campus risk associated with excelerated
growth supports budgeting at the high end (20%) of UCOP guidelines.
6.
Support Activities
--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
RISK BASED AUDIT WORK GROUP
GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE
ALLOCATION
FISCAL YEAR 2001
ATTACHMENT E
Assurance teams, managers’ new assignments to systemwide workgroups and
the like.
We have budgeted the Director’s time for one QAR (UCSC) in the third quarter.
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
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 (3/31/2001 YTD
actual was 91% and FY 1999/2000 actual was 93%). The primary factors
contributing to this higher percentage are: (1) student interns working 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. Intern use is heaviest in the
fourth quarter and lightest in the first quarter. Fewer uncontrollable hours are
incurred in the fourth quarter. The “plug figure” each quarter is Planned
RISK BASED AUDIT WORK GROUP
GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE
ALLOCATION
FISCAL YEAR 2001
ATTACHMENT E
Audits although we intend to complete the unplanned carried forward audits in
the first quarter. 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.
9.
Core Audit—
Comment on recent (last three years) coverage of core audit
topics, plans for core coverage in the current year and any areas not covered by
recent or planned coverage.
1999/2000 coverage: fund raising and gift processing, cash management, student
fees
2000/2001 coverage: major construction projects, cash management,
disbursements, contract and grant accounting, payroll processing, procurement
(advisory services – procurement card), central administrative computing
2001/2002 planned coverage: fund raising and gift processing, major
construction projects, cash management, disbursements, payroll processing,
central administrative computing, student fees (covered under G.b.01 via student
information system advisory services)
Areas not covered: planned to be covered if additional resources become
available in 2001/2002, or budgeted in 2002/2003 at the latest -- financial aid
10.
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 2001/2002
of a 5.0 FTE staffing level, the extent of our role in the CSA/Ethics programs,
level of investigations, the aftermath/continuation of the UCR Financial System
implementation, successful completion of the 2000/2001 Audit Plan, 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
RISK BASED AUDIT WORK GROUP
GUIDELINES FOR ANNUAL AUDIT PLANNING AND RESOURCE
ALLOCATION
FISCAL YEAR 2001
ATTACHMENT E
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 the 200 hour School of Education
audit carried forward that we still hope to complete in FY 2000/2001, 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.
UCR Sched 1 thru 4.xls
Schedule 1 - Personnel
Gross & Net Available Hours Calculation
Total Year FTE's
1st Quarter
9/30/2001
2nd Quarter
12/31/2001
3rd Quarter
3/31/2002
4th Quarter
6/30/2002
Lab 9/30/02
Number of authorized professional staff
5.00
5.00
5.00
5.00
5.00
Number of Permanently OPEN Authorized Professional Staff
Positions
Number of professional positions at full staffing
5.00
5.00
5.00
5.00
5.00
PLANNED ACTUAL FTEs
Beginning of Period
5.00
5.00
5.00
5.00
5.00
Additions--Permanent
0.00
0.00
Additions--Temporary
0.00
0.00
Left--Within UC
0.00
(0.00)
Left--Outside UC
0.00
(0.00)
Retirements
0.00
(0.00)
Long-Term Leave
0.00
(0.00)
Estimated Staff Turnover
0.00
(0.00)
End of Period
5.00
5.00
5.00
5.00
5.00
0.00
GROSS & NET AVAILABLE HRS CALCULATION
Total Year Hours
1st Quarter
9/30/2001
2nd Qtr 12/31/2001
3rd Quarter
3/31/2002
4th Quarter
6/30/2002
Lab 9/30/02
Weighted Avg. FTE's
5.0
5.00
5.00
5.00
5.00
Hours in the period - Campus
2,080
520
528
512
520
Hours in the period - Lab
2,088
528
512
520
528
Subtotal - Lab / Campus
10,400
2600
2640
2560
2600
0
Other Resources:
Overtime
Contract Labor/Interns
1,400
200
350
350
500
Recharge In (or Out)
Admin. & Other
Subtotal
1,400
200
350
350
500
0
Gross Available Hours
11,800
2800
2990
2910
3100
0
Non Controllable Hours
1,714
444
540
568
162
Non Controllable Hours Percent
14.53%
15.86%
18.06%
19.52%
5.23%
-
Net Available Hours
10,086
2356
2450
2342
2938
0
Schedule 2 - Activity Report
Distribution of Net Available Hours
UCOP % Guideline Total Year Hours
1st Quarter
9/30/2001
2nd Quarter
12/31/2001
3rd Quarter
3/31/2002
4th Quarter
6/30/2002
Lab 9/30/02
INDIRECT HOURS
Administration
5--10%
500
125
125
125
125
Professional Development
2--5%
400
160
120
80
40
Other
0--3%
Total Indirect Hours
900
285
245
205
165
0
Total Indirect Percent
15%
8.92%
12.11%
110.00%
208.75%
305.61%
-
DIRECT HOURS
Audit Program
Planned Carried Forward Audits, PC
355
355
Planned New Audits, PN
3,231
354
843
649
1385
Supplemental Audits, PS
Approx 10%
850
212
212
213
213
Unplanned Carried Forward Audits, PU
Total Audit Program Hours
4,436
921
1055
862
1598
0
Total Audit Program Percent
40--60%
43.98%
39.09%
43.06%
36.81%
54.39%
-
Advisory Services
Consultations/Spec. Projects, SC
1,000
250
250
250
250
Ext. Audit Coordination, SE
20
5
5
5
5
Internal Control & Accountability, SI
375
125
125
125
125
IPA, COI & Other, SP
Systems Dev., Reeingineering Teams, etc., SR
500
125
125
125
125
Total Advisory Services Hours
2,020
505
505
505
505
0
Total Advisory Services Percent
10--25%
20.03%
21.43%
20.61%
21.56%
17.19%
-
Investigations Hours, IN
2,000
500
500
500
500
Investigations Percent
10--20%
19.83%
21.22%
20.41%
21.35%
17.02%
-
Audit Support Activities
Audit Planning
75
25
Audit Committee Support
100
25
25
25
25
Systemwide Audit Support
240
60
60
60
60
Computer Support
240
60
60
60
60
Quality Assurance
50
Total Audit Support Hours
730
145
145
270
170
0
Total Audit Support Percent
5--10%
7.24%
6.15%
5.92%
11.53%
5.79%
-
Total Direct Hours
9,186
2071
2205
2137
2773
0
Total Direct Percent
85%
91.08%
87.89%
90.00%
91.25%
94.39%
-
Total Net Available Hours
10,086
2356
2450
2342
2938
0
Total Net Available Percent
100%
100.00%
100.00%
200.00%
300.00%
400.00%
500.00%
Schedule 1,2 - Cross Check
Total Year Hours
1st Quarter
9/30/2001
2nd Quarter
12/31/2001
3rd Quarter
3/31/2002
4th Quarter
6/30/2002
Lab 9/30/02
Total net available hours (From Sch 1)
10086.00
2356.00
2450.00
2342.00
2938.00
0.00
Total net available hours (From Sch 2)
10086.00
2356.00
2450.00
2342.00
2938.00
0.00
Total A+AS+IN (Scd 3 Check)
8456
1926
2060
1867
2603
0
Actual FTEs, End of Period (Check down)
5.00
5.00
5.00
5.00
5.00
0.00
Avail. Hours, Other Res., Subtotal (Check Down)
1400
200
350
350
500
0
Gross Available Hours
11800
2800
2990
2910
3100
0
Net Available Hours
10086
2356
2450
2342
2938
0
Indirect Hours
900
285
245
205
165
0
Audit Program
4436
921
1055
862
1598
0
Advisory Services
730
145
145
270
170
0
Total Direct Hours
9186
2071
2205
2137
2773
0
Net Available Hours
10086
2356
2450
2342
2938
0
Schedule 1 2 FY 2002 Plan
UCR Sched 1 thru 4.xls
INTERNAL AUDIT PLAN DETAIL
SCHEDULE 3
FY 2002
UCR
High Risk?
Planned
Primary
Additional
Name/Title of Audit
1, 2, 3
Hours
Index Code
Index Code(s)
Planned Carry Forward
Information Technology & Communications - Strategic Planning
1
155
G.a.01
School of Education
3
200
H.c.00.24
Subtotal Planned Carry Forward
355
Planned New Audits
Bank Account Reconciliations
1
170
E.d.01
Disbursements Testing
1
415
E.e.01
Capital Program Construction
1
270
D.b.01
Parking
1
160
A.a.07
Intercollegiate Athletics
1
110
A.a.01
Development
1
310
B.a.05
Decentralized Payroll Controls and Testing
1
410
E.g.01
Non-Capital Program Construction
1
180
E.i.03
Selected Cash Handling Operations
2
280
E.d.02
Analytic Review/Fraud Detection Procedures
1
264
E.e
Physical Plant
3
210
D.d
Student Life and Leadership
3
8
0
H.f
Presley Center for Crime and Justice Studies
3
9
2
H.c
Archaeological Research Unit and Archaeometry Lab
3
8
0
H.c
Audit Follow-ups
200
E
Subtotal Planned New Audits
3231
Subtotal Planned Supplemental Audits (lump sum only)
850
Total Planned Audit Program
(1)
4436
Planned Advisory Services
Major Campus Systems
1
500
G.b.01
California Institute for Agricultural Genomics
3
30
H.d
EH&S - Pesticide Pits
3
60
C.a
UCR G-29 Implementing Policy
NA
200
NA
Staff Assembly
3
55
A.c
UCR Alcohol Policy
3
30
E.j.01
Subtotal Planned Advisory Services
875
Subtotal Other Advisory Services as yet unknown--should
be added as a lump sum so that a total ties to Schedule 2
1145
Total Advisory Services
(1)
2020
(1)
Must tie with Audit Program and Advisory Services on Schedule 2 Activity Report
Schedule 3 FY 2002 Plan
UCR Sched 1 thru 4.xls
FUNCTIONAL AREAS
CATEGORY HOURS PERCENT
Auxiliary, Business, & Employee Support Services
A
270
8%
Development & External Relations
B
310
9%
Environmental and Public Safety
C
0
0
%
Facilities, Construction & Maintenance
D
480
13%
Financial Management
E
1919
54%
Human Resources & Benefits
F
0
0
%
Information Technology & Communications
G
155
4%
Campus Research Departments & Instruction
H
452
13%
Healthsciences, Research, Instruction & Clinical Services
I
0
0
%
Lab Research Programs & Processes
J
0
0
%
UCOP
K
0
0
%
3,586
100%
FY 2001-02 Annual Plan - Functional Areas
H
Campus Research
Departments & Instruction
13%
E
Financial Management
53%
D
Facilities, Construction &
Maintenance
13%
B
Development & External
Relations
9%
A
Auxiliary, Business, &
Employee Support Services
8%
G
Information Technology &
Communications
4%
UCR Sched 1 thru 4.xls
UNIVERSITY OF CALIFORNIA
SCHEDULE 4
INTERNAL AUDIT PLAN STATISTICS
FY 2002
UCR
Annual
I
Coverage of High Risk
Hours
Number
Hours
Number
Hours
Number
Goal
In Planned:
Audits
2444
9
2444
9
Advisory Services
500
1
500
1
Total
2944
10
0
2944
10
Percentage
100%
#DIV/0!
100%
80--100%
Coverage of CORE
Annual
II
Hours
Number
Hours
Number
Hours
Number
Goal
Number of Core elements in U
10
10
In Planned:
Audits
1855
6
6
Advisory Services
500
1
1
Total
2355
7
0
0
0
7
Percentage
70%
#DIV/0!
70%
Approx. 33%
III
Distribution of Tier 1 Hours
Percent
Hours
Percent
Hours
Percent
A
Auxiliary, Business, &
270
8%
#DIV/0!
270
8%
B
Development & Exter
310
9%
#DIV/0!
310
9%
C
Environmental Safety
0
0%
#DIV/0!
0
0%
D
Facilities, Constructio
480
13%
#DIV/0!
480
13%
E
Financial Managemen
1919
54%
#DIV/0!
1919
54%
F
Human Resources &
0
0%
#DIV/0!
0
0%
G
Information & Commu
155
4%
#DIV/0!
155
4%
H
Campus Research De
452
13%
#DIV/0!
452
13%
I
Health Sciences Rese
0
0%
#DIV/0!
0
0%
J
Lab Research Progra
0
0%
#DIV/0!
0
0%
K
Office of the Presiden
0
0%
#DIV/0!
0
0%
Total
3586
100.00%
0
#DIV/0!
3586
100.00%
Camp/Lab/OP
Health Sciences
Combined Total
Camp/Lab/OP
Health Sciences
Combined Total
Camp/Lab/OP
Health Sciences
Combined Total
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