pwc presentation to frc forum (08!05!13)

7/30/2019 PWC Presentation to FRC Forum (08!05!13)

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Family SupportAgencyForum

Wednesday, 8 May 2013

www.pwc.com

Yvonne McBain


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Agenda

1 Introduction & Objectives

2 Internal Audit

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4 ext Steps


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Introduction &

Objectives


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Objectives of todays session

By the end of the session, you will:

Understand what and who Internal Audit are

Understand why Internal Audit do what they do

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Know the approach that Internal Audit takes to itsreviews

Learn about the common findings from previous work

Know who to contact if you have a question / need advice

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Context

Family Support Agency . . .

Circa 14.3m annual budget

Approx 106 FRCs nationwide

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Two regional support agencies

Limited number of FSA staff & resources available

Primary focus is the provision of support to families

However FSA also need comfort on adequacy of granteesoperations & controls nationwide

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Internal Audit


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What is Internal Audit?

Institute of Internal Auditors definition:

to provide independent assurance to Management and

the Audit Committee on the effectiveness of internal

controls

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. . .measuring and evaluating the effectiveness of controls in

place.

we provide assurance and comfort

we provide guidance and advice on how to improve areas

we are a sounding board and are there to be consulted

Internal Audit assess Governance, Risks and Controls7


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The term Corporate Governance is in common use all over the publicand private sector

Bar continues to rise and obligations and onus on Boards (Voluntary ornot) continues to increase

Governance basicall means How an or anisation is run

Governance - what is it?

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In simple terms it is shorthand for . . .

Who is accountable for what How we make decisions How we know that something is really happening

Tone from the Top . . . . .& throughout an organisation

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CONTROL FRAMEWORK

RISKS

Family Support Agency

Why do we need Internal Audit?

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AssetsAssets

Consequences

FAIL URE !!

nanc a Reputation

IT

People

Processes


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Where Internal Audit sits. . .

ExternalAudit

SHAREHOLDER(S)

ultimate accountability to FSA / shareholder(s)

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Internal

Audit

Management /Co-ordinator

Operations

AuditCommittee

independent assuranceto the Audit Committee

line responsibility to Board


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Governance, Risk, Controls - Clear accountabilityis crucial. . .

RESPONSIBILITY

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AUTHORITY ACCOUNTABILITY

If it is to be, it is up to me. . .

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Internal Audit process how do we decide what todo?

On an annual basis we agree a plan of work with the AuditCommittee & Management in FSA. . .

This is based on:

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Results of previous years findings

Discussions with Management and the AuditCommittee

Areas of greatest risk and concern

Input from our own experiences

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Scope of Internal Audit

Our work covers all FSA operations:

Annual Internal FinancialControls review

Code of Practice assessment

Audit Committee training

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Review of FSA Board

Provide advice and assistance asneeded to Management, AuditCommittee and FSA Board

Accounting training

Risk identification & Assessmentworkshops

FRC / CO Grantee reviews

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Approach & Common

Findings. . .


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Approach for Grantee Reviews - what we look at . .

Focus on three areas:Governance meet selected Board members, gain anunderstanding of the structure of the FRC & assess whether keygovernance risks have been addressed

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which monies are received and test to ensure they are being usedfor the correct purpose (in line with the grant application)

Compliance review of financial processes and procedures in

place within the organisation to determine whether anappropriate level of financial control exists.

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Approach what we ask for . . .

Request a sample of key documents in advance, including: Terms of reference for Board & List of Board Members / Board Sub-

Committees and their members

Copies of Board meeting minutes & AGM minutes

Listing of Services provided

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Annual progress reports & grant application form

Financial procedures / policies manual

Documentation to support key payments, expenses paid / receipts etc

Meet with the co-ordinator, Board members, accountant, FSA liaisonperson

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Common Findings

No formal terms of reference for Boards & sub-committees

Lack of awareness of Boards roles & responsibilities

Inaccurate or no minutes of Board meetings retained

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Common Findings

No formal terms of reference for Boards & sub-committees

Lack of awareness of Boards roles & responsibilities

Inaccurate or no minutes of Board meetings retained

Absence of documented corporate governance policies

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(e.g. selection / appointment process for Board; conflictof interest etc)

Inadequate segregation of duties

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Common Findings

Absence of Financial policies & procedures (authorisedsignatory, approvers etc)

Lack of evidence to support payments made / expensesclaimed

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Common Findings

Absence of Financial policies & procedures (includingidentifying who is authorised to sign / approve etc)


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Inaccurate or no time records maintained

Absence of payslips / supporting documentation forpayroll

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Common Findings



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Inappropriate physical access controls over holding of

cash / cheque book

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Common Findings



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Inappropriate physical access controls over holding of

cash / cheque book

Do any of these resonate with you?22


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Next Steps. . .


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Your views

What are your key challenges?

Where can we help?

Where would you like moreguidance?

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Any questions?

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Contact:

Yvonne McBain

T: 01 792 8722

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E: [email protected]

pwc presentation to frc forum (08!05!13)

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