Udenrigsudvalget 2013-14, Finansudvalget 2013-14, Klima-, Energi- og Bygningsudvalget 2013-14
URU Alm.del Bilag 42, FIU Alm.del Bilag 26, KEB Alm.del Bilag 74
Offentligt
2013 Internal Audit Plan by Office of Internal Audit (OIA)I.Risk Assessment
The purpose of the Risk Assessment (RA) is to identify, assess and prioritize risks to develop arisk based Internal Audit (IA) Plan and Budget. In 2013, the RA process took place in Q2 uponhiring of the Chief Internal Auditor. As such, limited RA procedures and condenseddocumentation are placed for the 2013 IA Plan and Budget.The RA procedures included a review of financial data and disclosures, interviewing keypersonnel and following-up the observations from previous external audit. 15 people wereinterviewed, and the lack of policies and procedures at GGGI was the most frequently identifiedarea of concern.The focus of OIA in 2013 is establishing foundation of Internal Audit function at GGGI. Assuch, the 2013 IA Plan covers the area of Governance, Risk Management, Internal Control andOIA’s Project Management. The Audit and Finance Sub-Committee of the Council reviewed theRA process and approved the 2013 IA Plan and Budget below on May 6, 2013.Risk Assessment Procedures Performed (as of May 13, 2013)Interview with Key PersonnelFunctionAudit and Finance Sub-CommitteeSecretariatSecretariatGGP&IGGP&I/ResearchGGP&IPublic and Private CooperationInternational CooperationAbu Dhabi OfficeFinanceHuman ResourcesLegalDonor Country (Danida)Former (Partial) Internal AuditorExternal AuditorRoleChairDirector-General (DG)Former Director-GeneralDeputy Director-GeneralDirectorSPMSPMSPMDirectorCFOSPMSPMSr. AdvisorSPMFinancial Statements AuditNamePeter HansenHoward BamseyRichard SamansMattia RomaniMyung Kyoon LeeFrederic AsselineJung Hwan KimDarius NassiryChan Ho ParkMunehiko JoyaKristen SonJi Hwan ParkRene KarottikiHyo Youl KimKPMG
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Review of Documents•••••••••GGGI 2011 Annual ReportGGGI Strategic Plan 2012-20132012 Financial Statements Audit Report (Draft)2012 Audit Report by Board of Audit and Inspection (BAI)Measures and Plans Concerning the BAI Audit Findings by GGGIPlanned Measures Concerning the BAI Audit Results by MOFATDecision on the Sub-Committees of the Council (in lieu of AFSC Charter)Implementation Guideline for Risk Management and Internal ControlBMU fund related documents (e.g. Contract, PMU documents, Status Reports, etc.)
Potential Internal Audit Projects (in lieu of Audit Universe)Budgeting Process AssessmentProcure to Pay Process Assessment and Compliance AuditProject Control & Monitoring Process ReviewFunding Agreement Compliance ReviewConsulting Contract Compliance AuditContingency Plan AssessmentStaff Allowance AuditReview of Segregation of DutiesCompliance Audit of Financial RegulationsFollow-up Review of Previous Audit ReportOther Investigations (upon request from the Council)
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II.#1
Approved 2013 Internal Audit (IA) PlanProject ObjectiveTo establish IA activity’sposition within GGGITo emphasize tone at the topand promote function of IAand importance of InternalControls to all staff at GGGITo evaluate current internalcontrol environment atGGGI and plan for the 2013IA activityTo establish capacity of IAfunctionTo assess sufficiency ofCode of Conduct issued on4/12/13 and ensure it coversCode of EthicsTo evaluate existence andcompleteness of the policiesand procedures at GGGITo exam compliance withthe rules and regulationsTo establish contractcompliance review practiceat GGGICategoryGovernanceTimingQ2LocationSeoulNoteRequire agreement from DG andapproval from AFSCDistribute to all at GGGI withacknowledgement by DG and theChair of AFSCResourceIn-house
ProjectInternal Audit Charter
2
Internal ControlFramework
Governance
Q2
Seoul
In-house
3
2013 Risk Assessment(RA), Audit Plan andBudgetHiring of IA staff and 3rdparty Internal AuditService Provider (IASP)Code of Conduct Review
RiskManagement
Q2
Seoul
Due to time restriction, limited RAprocedures and condenseddocumentation will be placed for the2013 plan.More detail will be submitted to DGand the Chair of AFSCUpon completion of the review,provide feedback to HR
In-house
4
ProjectManagementGovernance
Q2
Seoul
In-house
5
Q2/Q3
Seoul
In-housewithIASP
6
7
8
Inventory and Review ofall Financial andOperational Policies andProceduresCompliance Audit ofStaff Regulations andRulesInventory and Review ofFunding Contracts orAgreements with donors
InternalControl
Q3
Seoul
Sufficiency and effectiveness of thepolicies and procedures will beevaluated starting 2014.Staff regulations and provisional staffrules issued in April, 2013.*Upon review of the contracts, aseparate contract compliance reviewmay be necessary in 2013. In suchcase, the 2013 IA budget will need tobe adjusted.
In-housewithIASPIn-housewithIASPIn-housewithIASP
InternalControlRiskManagement
Q3
Seoul
Q3
Seoul
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#9
ProjectInventory and Review ofConsulting Contracts
Project ObjectiveTo establish 3rdpartyconsulting contractcompliance audit practice atGGGI
CategoryRiskManagement
TimingQ3
LocationSeoul
Note*Upon review of the contracts, aseparate contract compliance reviewmay be necessary in 2013. In suchcase, the 2013 IA budget will need tobe adjusted.*Under the assumption that ERP pre-implementation process has coveredpreparation of Process Map of majorfinancial and operational activities atGGGI.Sufficiency and effectiveness of thecontrol activities will be evaluatedstarting 2014.
ResourceIn-housewithIASP
10
Inventory and Review ofall Process Maps andInternal ControlDocuments (e.g.Narratives, flowchartand/or control matrix,etc.)
To evaluate existence ofinternal control activities andcompleteness of itsdocumentation by processowners
InternalControl
Q3/Q4
Seoul
In-housewithIASP
11
2013 Internal AuditActivity Report
To provide a summary of2013 IA activities and theiroutcome to the Chair ofAFSC, DG and ExternalAuditorTo prepare 2014 IA Plan andBudgetTo obtain an approval fromthe AFSCTo update the AFSC internalaudit activities and anycontrol issuesTo assist the Chair of AFSCand/or DG
Risk &ProjectManagement
Q4
Seoul
To be presented at the 1stAFSCmeeting in 2014
In-house
12
2014 Risk Assessment
RiskManagementProjectManagementGovernance
Q4
Seoul &TBDSeoul
To be presented at the 1stAFSCmeeting in 2014To be presented at the 1stAFSCmeeting in 2014
In-house
13
2014 Internal Audit Planand BudgetAudit and Finance Sub-Committee Meeting
Q4
In-house
14
Ongoing
Seoul
In-house
15
Other Advisory Serviceand Investigation
RiskManagement
Ongoing
Seoul
e.g. Implementation of procurementrules, ERP implementation, 3rdpartyaudit, etc.
In-house
4
III.
Approved 2013 Internal Audit (IA) BudgetHours (est.)n/a700Fee/hr (est.)n/a$140Total$ 210,00098,00012,000$320,000NoteHiring one Program Manager or Senior OfficerHours and fee may be adjusted once the scope of work is discussed with IASPIA Project #12 may require travelsRe-allocation among (a) through (c) may be required
Description(a) In-house Salary(b) Estimated IASP Fee(c) T&E/ CPE* TrainingTotal Budget
*Continuing Professional Education (CPE) is required for Certified Public Accountants (CPAs) by Board of Accountancy.
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