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					                       Strategic Resource Plan
                     Building for a Bright Future

                                   2007/8 – 2009/10
                                           Audit Services

                                            December 2006




Strategic Resource Plan 2007/8 – 2009/10
                                       University of Manitoba – Audit Services
                              Strategic Resource Plan – Building For A Brighter Future
                                                   December 2006




                                                                 TABLE OF CONTENTS


I       INTRODUCTION............................................................................................................................................................... 2

II      RECOGNITION OF EXCELLENCE............................................................................................................................... 4

III     STRATEGIC INFLUENCES ............................................................................................................................................ 6

IV      PLANNING ASSUMPTIONS............................................................................................................................................ 8

V       STRATEGIC PRIORITIES ............................................................................................................................................... 9

VI      REVENUE AND EXPENDITURE FORECAST ........................................................................................................... 26

VII     SUMMARY OF ADDITIONAL FUNDS REQUESTED .............................................................................................. 26

VIII    APPENDICES AND EXHIBITS ..................................................................................................................................... 27




APPENDIX A               AUDIT SERVICES ORGANIZATION CHART ....................................................................................... 28

APPENDIX B               TREND ANALYSIS: UNIVERSITY VS AUDIT SERVICES ................................................................. 29




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                                  University of Manitoba – Audit Services
                         Strategic Resource Plan – Building For A Brighter Future
                                              December 2006

I         INTRODUCTION

          BACKGROUND

          “Building for a Bright Future: A Strategic Academic Plan for the University of Manitoba” was
          approved by Senate and the Board of Governors on June 18 and 24, 2003 respectively. This
          University Plan outlines “Five Institutional Priorities for Success” upon which this Audit
          Services Strategic Resource Plan is prepared.

          VISION

          Audit Services contributes to a higher level of trust and confidence in the University of Manitoba
          by being a leader in promoting enhanced accountability of the University to the Board of
          Governors and the Office of the President.

          MANDATE (MISSION STATEMENT)

          Audit Services Policy, approved by the Board of Governors, June 20, 2006, outlines our Mandate:

          “To provide the Board of Governors and University Administration with objective assurance and
          consulting services through the delivery of a comprehensive, risk-based internal audit plan.”

          To this end, Audit Services has adopted the Institute of Internal Auditor (IIA) Definition of
          Internal Auditing.

           "Internal auditing is an independent, objective assurance and consulting activity designed to add
          value and improve an organization's operations. It helps an organization accomplish its
          objectives by bringing a systematic, disciplined approach to evaluate and improve the
          effectiveness of risk management, control and governance processes." - June 1999.

          VALUES

          In Interpersonal Relationships

                     Respect                       Honesty
                     Integrity                     Openness

          In Achieving Our Vision and Mission

                     Independence                  Teamwork
                     Professional Excellence       Balanced Perspectives




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                                  University of Manitoba – Audit Services
                         Strategic Resource Plan – Building For A Brighter Future
                                              December 2006

          ORGANIZATION

          Audit Services offers unique, high level reporting through our direct access to the Audit
          Committee and the Office of the President. Our reports contribute to good governance by
          providing independent assurance to the Audit Committee and the Office of the President, that
          University goals, and ultimately the University Mission, are achieved. Audit Services
          organization chart is outlined in Appendix A.

            Audit Services clients include
                Audit Committee representing the Board of Governors,
                Vice-Presidents representing the President (University Administration), and
                University Management (Deans, Directors, Department Heads).

            Stakeholders include
                 External Agencies / Donors / Grantors,
                 Taxpayers,
                 Students,
                 Grant recipients,
                 Employees, and
                 Auditor General of Manitoba.

          Audit Services has a dual role providing both assurance and consulting services. Assurance work
          is designed to meet the fiduciary needs of the Audit Committee and the Office of the President by
          obtaining specific information to establish a level of comfort regarding the University’s risk
          management, governance, and internal control system. Consulting services focus on problem
          solving activities designed to add value to operating management.

          Audit Services also has conflicting roles in that we must build trust yet report on areas requiring
          improvement.

          CORE SERVICES

          Audit Services' scope includes all University of Manitoba operations: academic, research,
          external and administration. Our services encompass the examination and evaluation of the
          adequacy of the University's system of internal control and the effectiveness and efficiency of its
          performance.

          Operationally, in addition to auditor assessment of operational risks and controls, we are
          broadening our coverage of the University by promoting Unit self-assessment of their own risks
          and controls.

          Under Policy 320, the assurance objectives of our work may include assessment of:

                     Governance            The effectiveness of risk management, control and governance
                                           processes;

                     Effectiveness         Progress towards objectives and goals;
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                                  University of Manitoba – Audit Services
                         Strategic Resource Plan – Building For A Brighter Future
                                              December 2006

                     Efficiency              The accomplishment of objectives with the minimum amount of
                                             University resources and the maximum amount of output;

                     Accountability          The integrity and reliability of financial and operating
                                             information and the means used to identify, measure, control,
                                             classify and report such information;

                     Conformance             Compliance with those policies, plans, procedures, laws and
                                             regulations which have a significant impact on University
                                             operations; and

                     Asset Safeguards        The means of protecting assets, including information and, as
                                             appropriate, verify the existence of such assets. This may
                                             include investigations of fraud allegations.


II        RECOGNITION OF EXCELLENCE
          In our July 2006 Annual Progress Submission to the Office of the President, we reported our
          successes towards the achievement of our five strategic goals, established in relation to BUILDING
          FOR A BRIGHT FUTURE PRIORITY, as follows:

          #1 To provide relevant and timely services to assist University Administration with decision
          making

                     During the 2005-2006 year, Audit Services completed 23 projects providing value added
                     information to assist management in making decisions and providing a number of
                     recommendations for management to improve controls in higher risk areas. We issued
                     our reports to two of four Vice-Presidential areas; Administration and Academic.


          #2 To provide value added services to the University Community

                     Because of the University’s high level of dependence on Information Systems and
                     Technology, Audit Services continued to obtain ongoing assurance related to the
                     successful implementation of the System Renewal projects. The Director of Audit
                     Services sat on three key system renewal committees plus attended numerous meetings
                     offering risk and control advice as considered necessary. Because the University requires
                     a high level of security of data and information, Audit Services is in the process of
                     documenting and testing key controls and security for these new software systems.
                     Audit Services has developed a Policy Self-Assessment program designed to identify, in
                     question format, key policies approved by the Board of Governors which are relevant to
                     most University Units.




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                                  University of Manitoba – Audit Services
                         Strategic Resource Plan – Building For A Brighter Future
                                              December 2006

          #3 To retain and acquire competent staff

                     Audit Services completed a discussion paper on the joint Canadian Institute of Chartered
                     Accountants (CICA) and Institute of Internal Auditors (IIA) “20 Questions Directors
                     should ask about Internal Audit” and re-drafted Audit Services Policy and related
                     procedures based on best practice contained in this document.

                     Audit Services continued to work with our Competency Model designed to identify
                     training requirements. One of Audit Services Senior Audit Consultants passed the final
                     of a series of three exams, put on internationally by the Institute of Internal Auditors, to
                     become a Certified Internal Auditor. The Senior Audit Consultant also passed his exam
                     and is in the process of completing his articling period required to become a Certified
                     Information Systems Auditor. Audit Services other Senior Audit Consultant is also
                     studying to become Certified Internal Auditor.

          #4 To provide assurance on the Adequacy of Human, Physical and Technical Infrastructure

                     Audit Services uses a collaborative process, involving University management and Audit
                     Committee members, to establish an annual Assurance Plan. Audit Services uses a risk
                     ranking model to select projects and provide assurance that our limited resources
                     continue to add value to the University. As the year progresses, new projects and special
                     requests received are considered using the same collaborative and risk ranking process.
                     Audit Services risk ranking model includes the following 10 criteria:

                               Management Interest                                 Change
                               Control Environment                                 Size / Impact
                               Prior Audit Findings                                Public Sensitivity
                               Comfort with Operations                             Complexity
                                Management                                          Asset Sensitivity
                               Date last audited


          #5 To actively participate in our Audit Community

                     To enhance our competence and to demonstrate our commitment to the assurance
                     profession, Audit Services Director served as the Western representative and Chair of the
                     CAUBO Internal Auditors Standing Committee. A Senior Audit Consultants served on
                     the WIA Board.




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                                  University of Manitoba – Audit Services
                         Strategic Resource Plan – Building For A Brighter Future
                                              December 2006


III       STRATEGIC INFLUENCES
          STRENGTHS

          Audit Services has identified the following current strengths:

                1. We are objective and independent from management.

                2. As professional auditors, we have a trained ability to research, analyse and document our
                   findings and judgment.

                3. We have adopted the IIA’s Committee of Sponsoring Organizations of the Treadway
                   Commission (COSO) framework, providing us with a universally accepted internal
                   control model upon which to build our work.

                4. We gain an in-depth knowledge of the various University Units including their culture.

                5. We require our auditors to become a Certified Internal Auditor (CIA) and/or Certified
                   Information Systems Auditor (CISA) as applicable.

                6. We participate with the Winnipeg Chapter of the Institute of Internal Auditors (WIA) to
                   increase our knowledge, competencies and professionalism.

                7. We operate in a team environment that allows us to gain support from each other and
                   renew our ideas.

                8. We bring with us diverse education and background including experience in both the
                   public and private sectors.

                9. We currently have some budget carry over funds which we are using to update our
                   technology and obtain required training and consultants. Keeping up with technology is
                   essential to maximize our use of the University’s renewed administrative information
                   systems.

          CHALLENGES

          Audit Services has identified the following current challenges:

                1. Meeting the need for a broad variety of more in-depth, specialized skills required to deal
                   with increasingly complex issues.

                2. Updating our audit tool kit to include current tools in information technology.

                3. Managing the constant need to balance timeliness and depth of work.

                4. Balancing special requests with our need to meet our stated annual Assurance Plan
                   designed to provide adequate assurance of areas with identified high risk.
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                                  University of Manitoba – Audit Services
                         Strategic Resource Plan – Building For A Brighter Future
                                              December 2006


                5. Recruiting and retaining competent and highly motivated professional staff at a
                   reasonable salary.

                6. Obtaining timely information from Units that are already facing resource constraints.

                7. Maintaining our professional development and technical needs in light of diminishing
                   budget carry over funds.

          OPPORTUNITIES

          Audit Services has identified the following current opportunities:

                1. Build on our adoption of the COSO framework by encouraging the University to adopt
                   the COSO Enterprise Risk Framework – An Integrated Approach. Champion the
                   establishment of an Enterprise Risk Management program designed to transfer our
                   knowledge of control and facilitate staff in identifying their own risks so staff can better
                   achieve their stated goals.

                2. Promote our services to strengthen the University control environment and educate the
                   University community on the value added services we provide.

                3. Manage our increasing demands by promoting the use of our Policy Self-Assessment
                   (PSA) program designed for Units to self-assess their knowledge of and compliance with
                   University policies and utilize web-based technology for greater coverage.

                4. Carry our knowledge and competencies forward to strengthen the Canadian Association
                   of University Business Officers (CAUBO) Internal Audit Standing Committee. Assist in
                   the development of standard Canadian benchmarks against which Canadian Universities
                   can be measured.

                5. Encourage staff to volunteer their services to broaden their knowledge and skills plus
                   help sustain our local WIA and ISACA chapters.

                6. Use the Audit Director’ IIA teaching engagements to stay abreast of current trends in the
                   audit environment and supplement learning requirements for the audit consultants.

          RISKS

          Audit Services has identified one significant risk; not identifying and assessing the
          management of significant risks to the University on a timely basis. The likelihood of this
          risk is intensified by

                    the impact of recent changes on the University’s control environment, and

                    the growing pressure on administrative functions caused by resource and time
                     constraints; controls are becoming secondary to the growing list of responsibilities.

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                                  University of Manitoba – Audit Services
                         Strategic Resource Plan – Building For A Brighter Future
                                              December 2006


          Audit Services current level of resources requires us be reactive rather than pro-active in the
          mitigation of risk. Audit Services staffing level has remained constant at one Director and two
          auditors since before 1990; 16 years. We now believe that we are unable to meet the increasing
          demands placed on us in terms of time and skills. Appendix B displays Audit Services decrease
          in resources relative to University assets and revenues.

          In addition to decreasing resources, we face increased expectations resulting from
                    significant increases in regulatory and legislative requirements;
                    growing environmental complexity including new technologies and systems;
                    revised University policies and procedures;
                    increasing number and complexity of external relationships,
                    increasing expectations on decentralized units, and
                    increasing number and complexity of assets including buildings under construction,
                       trust and endowments and intellectual property to name a few.

IV        PLANNING ASSUMPTIONS

          We assume that Audit Services will continue to:

                    Have steady baseline funding for the next five years.

                    Be supported in our compliance with the IIA Standards of the Professional Practice of
                     Internal Auditing and Code of Ethics. Specifically, that we will continue to maintain our
                     independence, objectivity and confidentiality.

                    Be granted sufficient authority to design and implement a comprehensive, risk-based
                     Assurance Plan.

                    Be granted full, free and unrestricted access to all activities, records, property and
                     personnel of the University.

                    Not exercise direct control over Units or over the activities under their review.

                    Function under the policies and procedures established by the Board of Governors and
                     the Office of the President.

                    Be supported in our contribution to the audit community.




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                                  University of Manitoba – Audit Services
                         Strategic Resource Plan – Building For A Brighter Future
                                              December 2006

V         STRATEGIC PRIORITIES
          OBJECTIVE AND GOALS

          By strengthening the University’s control environment and enabling good decision making, Audit
          Services contributes to the effective and efficient operations of the University; allowing
          University management to work towards the achievement of the University’s “Institutional
          Priorities for Success” as follows:

          1. Provide Access to an Exceptional Education

          2. Attract and Retain the Best

          3. Be a Centre for Research and Graduate Education that Makes a Difference to our Province,
             our Nation, and our World.

          4. Provide the Human, Physical and Technical Infrastructure Necessary for Learning and
             Research

          5. Be at the centre of Our Community: On Manitoba


          Audit Services Strategic Priorities                           Institutional Priorities for
                                                                        Success

          1      To work with Senior Administration and Management      1, 3, and 4
                 on ways to strengthen the Control Environment

          2      To provide relevant, timely and value added services   1, 3, and 4
                 to the University Community to enable effective
                 decision making

          3      To retain and acquire competent staff                  2

          4      To actively participate in our Audit Community         5




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                                  University of Manitoba – Audit Services
                         Strategic Resource Plan – Building For A Brighter Future
                                              December 2006

          MONITORING PROCESS

          In fulfilling Audit Services responsibility to the Audit Committee and the Office of the Vice
          President, Audit Services submits the following planning and accountability reports.

          Annually

          On or before March 31.            Strategic Resource Plan and Assurance Plan for the
                                            subsequent fiscal year.

          On or before June 30.              Annual Report addressing outcomes associated with Strategic
                                             Resource Plan and Assurance Plan for the previous fiscal
                                             year.

          Periodically

          In conjunction with Audit         Progress Reports on our Assurance Plan implementation and
          Committee Meetings.               on the results of services rendered.


          On Going, as Necessary            Reports on significant risks that the University faces and
                                            issues relating to the University system of internal control.




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                                                   University of Manitoba – Audit Services
                                          Strategic Resource Plan – Building For A Brighter Future
                                                               December 2006
                                                                                                                                                   TEMPLATE A
#1: To work with Senior Administration and Management on ways to strengthen the Control Environment.
#2: To provide relevant, timely and value added services to the University Community to enable effective decision making.

PERFORMANCE MEASURES                                               PERFORMANCE TARGETS:
    Project Reports                                               Upon completion of each project
    Implementation of report recommendations                      100%
    Progress Reports                                              @ September 30; December 31; March 31.
    Annual Report                                                 Annually @ March 31, measure our performance against Strategic Resource and Assurance Plans
    Client satisfaction                                           Client survey
    Web site                                                      Current
    Newsletter                                                    Quarterly
    Educational brochure                                          Ongoing current
    Report cards                                                  Annually

                      OBJECTIVE                                         STRATEGY                                RESOURCE          FINANCIAL           FUNDING
                                                                                                                 IMPACT             IMPACT            SOURCE
1 Strengthen Governance                           1.1 Evaluate risk management processes and give
Assess the effectiveness of risk management,      assurance thereon. (Includes 1.2 to 1.5, 1.7, 4.3, 4.7,
control and governance processes.                 5.1, 5.2)
                                                  1.2 Give assurance that risks are correctly evaluated.




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                                           University of Manitoba – Audit Services
                                  Strategic Resource Plan – Building For A Brighter Future
                                                       December 2006

                                                                                                                          TEMPLATE A

                      OBJECTIVE                                STRATEGY                            RESOURCE   FINANCIAL    FUNDING
                                                                                                    IMPACT      IMPACT     SOURCE
                                         1.4 Review the management of key risks.

                                         1.5 Champion the establishment of an Enterprise Risk
                                         Management (ERM) system.

                                         1.6 Identify, document and test University key controls
                                         to prepare for potential CEO & CFO certification of
                                         Internal Controls over Financial Reporting (ICFR).

                                         1.7 Evaluate the University’s process to identify and
                                         manage Conflict of Interest and report annually on the
                                         University’s efforts towards protecting the University
                                         against these risks.

                                         1.8 Champion the implementation of a whistle blowing
                                         policy and process.

                                         1.9 Manage the whistle blowing process and follow-up
                                         on significant areas of concern raised.

                                         1.10 Evaluate whether University staff and management
                                         are aware of their Authority, Responsibility, and
                                         Accountability.
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                                                    University of Manitoba – Audit Services
                                           Strategic Resource Plan – Building For A Brighter Future
                                                                December 2006

                                                                                                                                          TEMPLATE A
                      OBJECTIVE                                            STRATEGY                                RESOURCE   FINANCIAL    FUNDING
                                                                                                                    IMPACT     IMPACT       SOURCE
2 Strengthen Effectiveness & Efficiency            2.1 Build time for consulting and special assurance
Assess the University’s progress towards           requests into the Annual Assurance Plan.
objectives and goals.

Assess the accomplishment of University
objectives with the minimum amount of University
resources and the maximum amount of output.
                                                   2.2 Increase the visibility of Audit Services on campus to
                                                   encourage Units to engage us in consulting services by
                                                   updating our web site, producing a brochure and newsletter
                                                   plus meeting with Senior Management to identify their areas
                                                   of concern.
                                                   2.3 Build strategic alliances though out the University and
                                                   with relevant external parties to improve the breadth and
                                                   depth of our assurance coverage.
                                                   2.4 Sit on Committees as requested to provide assurance that
                                                   risk and controls are adequately considered in decision
                                                   making.
                                                   2.5 Provide assurance that the University’s process to manage
                                                   capital construction is effective.

                                                   2.6 Use audit technology to identify and monitor areas of
                                                   concern to provide assurance of accuracy.

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                                                      University of Manitoba – Audit Services
                                             Strategic Resource Plan – Building For A Brighter Future
                                                                  December 2006
                                                                                                                                               TEMPLATE A
                      OBJECTIVE                                                 STRATEGY                                RESOURCE   FINANCIAL    FUNDING
                                                                                                                         IMPACT     IMPACT       SOURCE
3 Strengthen Accountability                             3.1 Identify and assess risk and controls associated with the
                                                        University’s administrative systems.

Assess the integrity and reliability of financial and
operating information and the means used to
identify, measure, control, classify and report such
information.



                                                        3.2 Participate in ongoing system renewal projects to provide
                                                        assurance that risk and controls are being adequately
                                                        considered.

                                                        3.3 Evaluate the reporting of non-arms length entities.

                                                        3.4 Use audit technology to continuously monitor financial
                                                        and administrative data to identify irregularities. Partner
                                                        with Financial Services.




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                                                   University of Manitoba – Audit Services
                                          Strategic Resource Plan – Building For A Brighter Future
                                                               December 2006
                                                                                                                                      TEMPLATE A
                                                                                                               RESOURCE   FINANCIAL    FUNDING
                      OBJECTIVE                                          STRATEGY
                                                                                                                IMPACT     IMPACT       SOURCE
4 Strengthen Conformance                         4.1 Unit Internal Control Compliance program for auditor
Assess compliance with those policies, plans,    assessment of Unit compliance with University policies and
procedures, laws and regulations which have a    procedures plus best practices.
significant impact on University operations.

                                                 4.2 Web-based Policy Self-Assessment program designed to
                                                 educate Units and allow them to self-assess their knowledge
                                                 of and compliance with University policies and procedures.
                                                 Participation will originally be voluntary leading to
                                                 mandatory participation with Unit certification to support
                                                 CEO & CFO certification of ICFR.

                                                 4.3 Survey and compile one central list of Legislative and
                                                 Regulatory compliance areas and report annually on the
                                                 University’s efforts towards compliance.

                                                 4.4 Evaluate the University’s process that provides
                                                 assurance of compliance with Research granting agencies
                                                 administrative requirements. Note: to date Audit
                                                 Services has not performed any assurance work in this
                                                 significant and complex area.

                                                 4.5 Evaluate University researcher’s compliance with
                                                 University policies and procedures plus granting agency
                                                 administrative requirements.

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                                                    University of Manitoba – Audit Services
                                           Strategic Resource Plan – Building For A Brighter Future
                                                                December 2006

                                                                                                                                           TEMPLATE A
                                                                                                                    RESOURCE   FINANCIAL   FUNDING
OBJECTIVE                                          STRATEGY
                                                                                                                     IMPACT     IMPACT     SOURCE
                                                   4.6 Identify and evaluate the University’s process to manage
                                                   relationships with third parties.
                                                   4.7 Formally track and follow-up all recommendations.
                                                   Report on recommendations not implemented.
5 Strengthen Asset Safeguards                      5.1 Identify the University’s process to manage various asset
                                                   types including physical assets, technology, and intellectual
Assess the means of protecting assets, including   property (knowledge, copyright, trademarks, and patents) and
information and, as appropriate, verify the        report annually on the University’s efforts towards protecting
existence of such assets. This may include         these types of assets. (Size & complexity)
investigations of fraud allegations
                                                   5.2 Survey and compile one central list of potential areas of
                                                   fraud and report annually on the University’s efforts towards
                                                   protecting the University against these risks.

                                                   5.3 Perform audits of reported fraudulent areas on a timely
                                                   basis.




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                                                      University of Manitoba – Audit Services
                                             Strategic Resource Plan – Building For A Brighter Future
                                                                  December 2006
                                                                                                                                                        TEMPLATE A
#3 To Retain and Acquire Competent Staff.
PERFORMANCE MEASURES                                                PERFORMANCE TARGETS
     Staff training                                                40 hours / staff / year & 5% of operating budget to meet staff professional requirements
     Policy and procedures                                         Meet best practices.
     Operations Manual                                             Meet best practices
     Status reports / staff meetings                               Monthly
     Files reviews                                                 Through out project and on final completion
     Performance appraisals                                        Annually
     Compliance with IIA standards and Code of Ethics              Ongoing

OBJECTIVE                                                                    STRATEGY                               RESOURCE            FINANCIAL FUNDING
                                                                                                                      IMPACT            IMPACT    SOURCE
6 Retain competent staff to better serve our clients   6.1 Train staff based on our competency model. Have          40 hrs annually
/ stakeholders                                         staff apply skills and knowledge learned to jobs.            Professional
                                                                                                                    Requirement
                                                                                                                    Training
                                                       6.2 Perform staff performance appraisals annually and
                                                       identify formal training requirements. Mentor staff.

                                                       6.3 Require staff to become CIA and/or CISA                  Study Material
                                                                                                                    Exam time &
                                                                                                                    costs
                                                       6.4 Remain competitive with outside employment
                                                       alternatives by paying annual CA dues.

7 Maintain current policy and procedures               7.1 Revisit policy and procedures annually for best
                                                       practice.

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                                                  University of Manitoba – Audit Services
                                         Strategic Resource Plan – Building For A Brighter Future
                                                              December 2006

                                                                                                                                     TEMPLATE A
OBJECTIVE                                                              STRATEGY                             RESOURCE        FINANCIAL FUNDING
                                                                                                             IMPACT         IMPACT    SOURCE
8 Maintain a current Operations Manual          8.1 Continually update Operations Manual to reflect best
                                                practice.
9 Retain project focus                          9.1 Require monthly status reports and hold monthly staff
                                                meetings.
10 Control time and financial budgets           10.1 Monitor monthly MOR and quarterly time report
                                                against preset budgets.
11 Maintain Office Quality Assurance            11.1 Internal file review certified by Director
                                                12.2 Internal file review certified by peer.
                                                12.3 Prepare and arrange for external review of office      Hire external
                                                practices every 5 years.                                    reviewer




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                                                     University of Manitoba – Audit Services
                                            Strategic Resource Plan – Building For A Brighter Future
                                                                 December 2006
                                                                                                                                      TEMPLATE A
#4 To Actively Participate in our Audit Community.

PERFORMANCE MEASURES                                  PERFORMANCE TARGETS:
    Audit memberships                                Institute of Internal Auditors (IIA) & Winnipeg Chapter (WIA)
                                                      Information Systems and Audit Control Association (ISACA) & Manitoba Chapter
                                                      Canadian Institute of Chartered Accountants (CICA)
                                                      Institute of Chartered Accountants of Manitoba (ICAM)
                                                      Canadian Association of University Business Officers (CAUBO)
                                                      Western University Finance Officers (W3)
                                                     Association of College and University Auditors (ACUA)
OBJECTIVE                            STRATEGY                                                                     RESOURCE       FINANCIAL FUNDING
                                                                                                                  IMPACT         IMPACT    SOURCES
12 Obtain value from annual          12.1 Assess value of each membership annually and re-subscribe as
memberships.                         considered appropriate.

13 Obtain cost effective training    13.1 Attend training events which directly add value to audit consultant’s
to enhance our competence.           skill sets.

14 Demonstrate commitment to         14.1 Volunteer within the audit community
the audit profession and the local
audit community
15 Nurture a positive U of M         15.1 Lecture for IIA in exchange for free PD tuition for staff (on hold)
profile
                                     15.2 Serve on National / International Audit related Committees / Boards



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                                               University of Manitoba – Audit Services
                                      Strategic Resource Plan – Building For A Brighter Future
                                                           December 2006

PERFORMANCE INFORMATION APRIL 1, 2005 TO MARCH 31, 2006

                                                                                                                                       TEMPLATE B
#1 To Provide Relevant and Timely Services to Assist Senior Management with Decision Making

#2 To Provide Value-Added Services to the University Community
OBJECTIVES        STRATEGIES                           KEY PERFORMANCE                         PERFORMANCE                  CURRENT STATUS
                                                       INDICATOR(S)                            TARGET(S)
To assess         Evaluate the University’s risk
governance        management processes, the reporting
                  of key risks and the management of
                  key risks. ERM

                                                      Annual Assurance Plan provides for       65% budgeted assurance
                                                      planned control of high risk areas.      hours for high risk areas.


                                                      Internal control recommendations are     100% implementation of
                                                      implemented strengthening the internal   our recommendations
                                                      control environment.




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                                                          University of Manitoba – Audit Services
                                                 Strategic Resource Plan – Building For A Brighter Future
                                                                      December 2006


                                                                                                                                                    TEMPLATE B

OBJECTIVES               STRATEGIES                             KEY PERFORMANCE                               PERFORMANCE                CURRENT STATUS
                                                                INDICATOR(S)                                  TARGET(S)
To assess                                                       Requests for consulting services indicating   15% contingency hours
effectiveness                                                   management is taking responsibility for       as a percentage of total
                                                                managing their risks.                         annual hours. (IIA
                                                                                                              recommended)

                         Promote the establishment of an ERM.   Requests for ERM / COSO presentations         Budget for on ERM
                                                                required to strengthen risk management.
To assess                Place our Policy Self-Assessment       Access to PSA program to strengthen           100% access to PSA
compliance               (PSA) program on the web               knowledge of and compliance with
                                                                University Policies.

                         Assess compliance to respective        Compliance with external regulations.         100% compliance.
                         regulations as identified in annual
                         assurance plan.




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                                                         University of Manitoba – Audit Services
                                                Strategic Resource Plan – Building For A Brighter Future
                                                                     December 2006

#3: To Retain and Acquire Competent Staff.                                                                                                             TEMPLATE B

OBJECTIVES               STRATEGIES                              KEY PERFORMANCE                                PERFORMANCE                 CURRENT STATUS
                                                                 INDICATOR(S)                                   TARGET(S)
Nurture staff            Finalize our competency model and       Staff training to develop competent staff to   40 hours audit training /
expertise and            train staff accordingly. Have staff     better serve our clients / stakeholders and    staff / year to meet CIA
knowledge.               apply skills and knowledge learned to   meet professional training requirements.       staff training
                         jobs.                                                                                  requirements
                                                                                                                2% of operating
                                                                                                                expenditures allocated
                                                                                                                for staff training.
                                                                                                                Lecturer for IIA.
                         Perform staff performance appraisals    Performance appraisals.                        Annual appraisal with
                         annually and identify formal training                                                  improvements linked to
                         requirements. Mentor staff.                                                            Competency model.

                         Update and maintain our Operations      Operations Manual.                             Current manual.
                         Manual.
                         Monthly status reports and staff        Status report and staff meetings.              Monthly.
                         meetings.

Quality                  Ongoing review of files                 Internal Quality Assurance Reviews             100%                                         Projects Total
Assurance
Review
                         External peer review every 5 years.     External quality assurance review.             Positive quality
                                                                                                                assurance review every
                                                                                                                5 years.
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                                                    University of Manitoba – Audit Services
                                           Strategic Resource Plan – Building For A Brighter Future
                                                                December 2006


#4: To Provide Assurance on the Adequacy of Human, Physical and Technical Infrastructure                                                         TEMPLATE B

OBJECTIVES                                STRATEGIES                          KEY PERFORMANCE              PERFORMANCE                 CURRENT STATUS
                                                                              INDICATOR(S)                 TARGET(S)
To assess accountability:                  Document and test key internal     University quality assured   100% key controls
Defined as integrity and reliability of   controls.                           through internal control     documented and tested
financial and operating information                                           documentation and testing.   rotationally.
and the means used to identify
measure, classify and report such info.
                                          Document and test data security     Current information          100% key information
                                          and key systems information         security identified and      security identified and
                                          controls.                           tested.                      tested rotationally.
                                          Demonstrate accountability          Prepare and comply with      Compliance with Plans and
                                                                              budgets / plans              budgets
To assess efficiency:                     Assess as identified in annual      Annual Assurance Plan        Target one area annually.
Defined as the accomplishment of          assurance plan or on a consulting   provides planned
objectives with the minimum amount        request.                            assessment of efficiency.
of University resources and the
maximum amount of output.
To assess asset safeguards:               Assess as identified in annual      Annual Assurance Plan        Target one area annually.   .
Defined as the means of protecting        assurance plan or on a consulting   provides planned
assets, including information and, as     request.                            assessment of asset
appropriate, verify the existence of                                          safeguards.
such assets. This may include
investigations of fraud allegations.
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                                                  University of Manitoba – Audit Services
                                         Strategic Resource Plan – Building For A Brighter Future
                                                              December 2006

#5: To actively participate in our Audit Community.                                                                                          TEMPLATE B


OBJECTIVES                        STRATEGIES                         KEY PERFORMANCE                   PERFORMANCE               CURRENT STATUS
                                                                     INDICATOR(S)                      TARGET(S)

Enhance our competence and        Community memberships and          Audit membership required to      Retain memberships
demonstrate commitment to the     network                            enhance competence, network,
assurance profession and the                                         and support community.
community.
                                  Attend PD events, CAUBO and        Attend events provided through    Support events annually
                                  WUFO conferences                   memberships as cost effective      CAUBO
                                                                     training and support for audit         conference
                                                                     community.                         WUFO conference
                                                                                                        IIA/WIA events
                                                                                                        ISACA events
                                                                                                        ACUA conf.
                                                                                                        Gimli retreat
                                  Volunteer on professional          Volunteer participation with      Staff to hold volunteer
                                  committees. Lecture for IIA        audit community for skills        position annually.
                                  annually in exchange for free PD   development, further support of
                                  tuition                            local audit community, and to     Lecturer for IIA
                                                                     raise U of M profile in our       internationally.                           Projects Total
                                                                     community.
                                  Maintain an up-to-date website     Up to date Website.               Ongoing updates.



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                                   University of Manitoba – Audit Services
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VI         REVENUE AND EXPENDITURE FORECAST
           (template C NOT attached)

VII        Summary of Additional Funds Requested
           (Template D NOT attached)




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                                   University of Manitoba – Audit Services
                          Strategic Resource Plan – Building For A Brighter Future
                                               December 2006


VIII APPENDICES AND EXHIBITS


Appendix A                        Audit Services Organization Chart

Appendix B                        Trend Analysis: University vs Audit Services




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                                   University of Manitoba – Audit Services
                          Strategic Resource Plan – Building For A Brighter Future
                                               December 2006

                                                                                            Appendix A
                Audit Services Organization Chart

                                                                                President




                                   Board of
                                  Governors                               Vice-President
                                                                         (Administration)



                                                                            Associate
                            Audit Committee                               Vice-President
                                                                            (Finance)



                                     Functional                          Administrative


                                                      Director
                                                    Audit Services




         Information
         Technology                      Senior Audit          Administrative                 Student
         Senior Audit                     Consultant             Support                    Audit Analyst
          Consultant                                              (P.T.)                       (P.T.)




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                                                                                     University of Manitoba – Audit Services
                                                                            Strategic Resource Plan – Building For A Brighter Future
                                                                                                 December 2006

                                                                                                                                                                                                                                                    Appendix B


                                                    Trend Analysis:
                                              University vs. Audit Services

                          300%                                                                                                                                                                                                                Revenue
     % change from 1989




                          250%                                                                                                                                                                                                                (100% increase)

                          200%                                                                                                                                                                                                                Assets
                                                                                                                                                                                                                                              (250% increase)
                          150%
                          100%                                                                                                                                                                                                                # of Auditors
                                                                                                                                                                                                                                              (0% increase)
                           50%
                            0%                                                                                                                                                                                                                Audit Services
                                  1989-1990

                                              1990-1991

                                                          1991-1992

                                                                      1992-1993

                                                                                  1993-1994

                                                                                              1994-1995

                                                                                                          1995-1996

                                                                                                                      1996-1997

                                                                                                                                  1997-1998

                                                                                                                                              1998-1999

                                                                                                                                                          1999-2000

                                                                                                                                                                      2000-2001

                                                                                                                                                                                  2001-2002

                                                                                                                                                                                              2002-2003

                                                                                                                                                                                                          2003-2004

                                                                                                                                                                                                                      2004-2005

                                                                                                                                                                                                                                  2005-2006
                                                                                                                                                                                                                                              Budget
                          -50%                                                                                                                                                                                                                (60% increase)




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