Audit Committees and Regional Internal Audits

Transcription

1 Audit Committees and Regional Internal Audits Dan Duszczysyn, Regional Internal Audit Coordinator Ruth Tisdale, Thames Valley DSB Trustee Wayne McNally, OPSBA Director of Finance June 11, 2016 OPSBA AGM

2 May 7, Bill 177, Student Achievement and School Board Governance Act, introduced requiring every district school board to establish an audit committee. December 15, Bill 177 received Royal Assent. March 31, OPSBA provided a submission to a Ministry consultation document regarding Audit Committees. September 10, Regulation 361/00 Audit Committees filed Spring Implementation of the Audit Committee June 11, 2016 OPSBA AGM

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4 While not part of a direct reporting relationship, the Regional Internal Audit Coordinator position will provide central oversight for the regional audit initiative and will act as mediator, as required, between the Regional Internal Audit Managers and the school Board in each region.

5 KEY RESPONSIBILITIES OF REGIONAL INTERNAL AUDIT COORDINATOR STRATEGIC SUPPORT In coordination with the RIAMs, develop and implement a provincial strategy for the regional internal audit function, including ways to increase the value proposition of internal audit to school boards through audit and other services. Coordinate any future modernization of the risk assessment process. Coordinate the regional internal audit function's role in any future implementation of Enterprise Risk Management across the sector.

6 OPERATIONAL SUPPORT Identify successful practices amongst RIATs and coordinate the implementation of these practices across the regions to ensure province-wide consistency, including (but not limited to) the following areas: Internal audit risk assessment and annual/multi-year planning process Audit approach Reporting of audit results Use of audit software Internal audit quality assurance and improvement program Use of consulting engagements Develop and implement a tool to facilitate sharing with the sector any leading practices identified through audit work. Review and provide advice on the risk assessment results, annual/multi-year internal audit plans and internal audit reports before presentation to the audit committee to ensure appropriate, easy to understand, etc.

7 LIAISON/MEDIATION/CONCILIATION Provide mediation for any significant disputes related to internal audit: Assist parties in resolving disagreements or issues Provide advice to RIAMs on how to proceed where a contentious issue is encountered Assist RIAMs where there is difficulty obtaining access to key staff or information

8 STAFF DEVELOPMENT & EVALUATION/ RECRUITMENT Assist host boards with the RIAM performance management process Development of a formal feedback structure for regional internal audit teams Coordination of performance reviews for RIAMs (collecting feedback on performance and coordination of RIAM self-assessments) Providing reviews to the host board senior business official for delivery to the RIAMs Addressing RIAM performance issues identified through the performance review process

9 STAFF DEVELOPMENT & EVALUATION/ RECRUITMENT (Continued) Provide or facilitate a mentorship relationship for RIAMs or other team members, where requested Identify gaps in subject matter expertise and address these through coordinating professional development opportunities and/or encouraging RIAMs to engage external service providers for audits. Organize the annual school board internal audit professional development conference On request, assist the host boards in the RIAM recruitment process.

10 COMMUNICATION/ FACILITATION/ COLLABORATION/EDUCATION Hold monthly meetings with RIAMs to discuss issues, share information and establish a shared identity for the regional internal auditors. Meet monthly with the advisory committee of host board senior business officials to discuss and obtain feedback on progress toward addressing identified concerns, projects underway and any additional issues encountered, as well as provide quarterly updates to all host board senior business officials. Conduct a monthly meeting with the Ministry of Education to discuss progress toward addressing identified concerns, as well as areas where the Ministry can provide further assistance. Presentations to the sector on the value of internal audit, as necessary.

11 TERMS & CONDITIONS OF APPOINTMENT 2 Year Contract with CODE ( Council of Directors of Education) Up to: 150 days Year 1: 120 days Year 2 Not a Full Time Engagement Funding provided to CODE via a Transfer Payment Agreement (TPA) with Ministry of Education TERM: November 6 th, 2014 August 31, This position will report to the Council of Ontario Directors of Education, with an advisory committee of host board senior business officials set up to provide advice to the Regional Internal Audit Coordinator as necessary.

12 THE ROAD AHEAD: REGIONAL INTERNAL AUDIT STANDARDIZATION Providing all Boards with similar level of Internal Audit Services Ensure all Boards receive a minimum number of audit engagements (Internal Audits & Consulting) Ensure follow-up activities to validate management has implemented action plans identified in audits and agreed by management. Implementation of a standard regional internal audit report template. Performance Metrics Implementation of standard performance evaluation framework for all Regional Internal Audit Managers Evaluation tool will incorporate feedback from each audit committee and senior business official in the region. Implementation of standardized post audit feedback survey

13 Leading Practice Repository Internal Audit Leading Practice Repository (Pilot September 2016) Response to sector request for regional and/or provincial sharing of leading practices identified through internal audits. 2016: SB14 The repository will be piloted with the leading practices of a single process from the standard audit universe. The committee has selected the payroll process. The pilot will be available to the sector by September To participate, payroll leading practices should be submitted by August 1, 2016 using the process specified below. Once the pilot is successfully implemented, the repository will be expanded to include all processes in the school board audit universe. Eligible Leading Practices: All leading practices identified through internal audits undertaken by RIATs or board internal auditors are eligible to be included in the repository, including exemplary practices and recommendations or action plans made in response to findings. All completed templates approved and submitted will be included in the repository. To keep the repository current, it will include practices from audits completed in and beyond. Specific practices from earlier years may be selected if all relevant parties agree. 13

14 Grand Erie DSB Brant Haldimand Norfolk Catholic DSB Avon Maitland DSB Huron Perth Catholic DSB Thames Valley DSB Host Board London District Catholic SB Lambton Kent DSB St Clair Catholic DSB Greater Essex County DSB Windsor Essex Catholic DSB

15 Model was presented to Ministry in January 2016 Host board is directed by steering committee comprised of Superintendents of Business for all 10 Boards Contract with PWC to provide services All work is assigned to one PWC Manager who oversees the PWC staff and RIAT staff

16 Next Steps? Questions? June 11, 2016 OPSBA AGM