Core Control Audit of the Military Police Complaints Commission
Objective and Scope
The objective of this audit was to ensure that core controls over financial managementFootnote 1 within the Military Police Complaints Commission (MPCC) result in compliance with key requirements contained in the corresponding legislation, policies, and directives. For the specific audit criteria please refer to http://www.tbs-sct.gc.ca/report/orp/2011/ccac-cvcb-eng.asp.
The scope of this audit included all transactions, records, and processes conducted by the MPCC from April 1 2010 to March 31, 2011. Note that Pay Administration and Performance Pay accounts verification was not tested through this audit as this process is administered for the MPCC by Public Works and Government Services Canada through a Memorandum of Understanding.
Transactions were selected from fiscal year 2010-2011. The audit examined a sample of transactions for each of the policies and directives listed in Appendix A of this report.
Conformance with Professional Standards
This audit was conducted in accordance with the Government of Canada Standards for Internal Audit that includes the Institute of Internal Auditors’ International Standards for the Professional Practice of Internal AuditingFootnote 2.
Acting Assistant Comptroller General
Internal Audit Sector, Office of the Comptroller General
Why this is important
Canadians expect the federal government to be well managed and to be accountable for the prudent stewardship of public funds, the safeguarding of public assets, and the effective, efficient and economical use of public resources. They also expect reliable and transparent reporting on how the government spends public funds to achieve results for Canadians.Footnote 3
The Financial Administration Act designates deputy heads as accounting officers for their department or agency. As accounting officers, deputy heads are accountable for ensuring that resources are organized to deliver departmental objectives in compliance with government policy and procedures; ensuring that there are effective systems of internal control; signing departmental accounts; and performing other specific duties assigned by law or regulation to the administration of their department or agency.
Audit Findings and Conclusion
Core controls over financial management within the Military Police Complaints Commission resulted in compliance with the requirements contained in six policies and directives and in partial compliance in four of eleven policies, directivesFootnote 4 and corresponding legislation tested. The MPCC was not in compliance with one directive tested.
It was noted that some expenditure initiation and fund commitments were not pre-approved, particularly in the areas of travel and payroll administration. Furthermore, documentation in most procurement files was insufficient to support contracting decisions taken. Finally, some untimely approvals of leave requests in the system were observed.
The MPCC should ensure that expenditure initiation is documented prior to expenses being incurred. The MPCC should implement business processes to ensure the consistent documentation of contracting decisions and ensure these decisions are made in compliance with the Contracting Policy. Finally the MPCC should ensure that formal approval of employee leave transactions is completed on a timely basis.
Management Action Plans
Management has accepted the audit findings and has developed an action plan to address the recommendations. The Management Action Plan is available on the MPCC website.
The results of the audit and the Management Action Plan have been discussed with the Chairperson of the MPCC and the Small Departments and Agencies Audit Committee. The Office of the Comptroller General will follow-up on the Management Action Plan until all findings are resolved.
Appendix A: Policies and Directives Tested
|Policies and Directives Tested||Compliance|
|Directive on Delegation of Financial Authorities for Disbursements||Met|
|Directive on Acquisition Cards||Met|
|Directive on Accountable Advances||Met|
|Contracting Policy||Partially Met|
|National Joint Council Travel Directive and the Directive on Travel Cards and Travellers Cheques||Partially Met|
|Hospitality Policy/ Directive on the Management of Expenditures on Travel, Hospitality and Conferences||Met|
|Directive on Leave and Special Working Arrangements||Not Met|
|Performance Pay AdministrationFootnote 5||Met|
|Directive on Financial Management of Pay Administration||Partially Met|
|Directive on Expenditure Initiation and Commitment ControlFootnote 6||Partially Met|
|Directive on Account VerificationFootnote 7||Met with Exception|
|Met||Greater than or equal to 99% compliance.|
|Met with exception||Greater than or equal to 90% and less than 99% compliance.|
|Partially met||Greater than or equal to 80% and less than 90% compliance.|
|Not met||Less than 80% compliance.|
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