Pre-GIA Audit Finance Audit Findings. 17 May 2011 Henry Wong

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1 Pre-GIA Audit Finance Audit Findings 17 May 2011 Henry Wong

2 Introduction GIA auditors will come in the week of 13 Jun 2011 and focus on Procurement Problems of non-compliance will report to Global Audit Committee and senior management No cheating No falsifying records No excuse on delegating your own responsibilities No side-tracking No pre-assumption on client s approval before works 2

3 Area of focus Duplicate payment of vendor bills Reconciliation of account payables, general ledger and bank accounts to identify Timely settlement of vendor bills Vendor insurance monitor Segregation of duties No PO or late PO 3

4 Suggestions Take immediate actions to follow up the pre-gia audit findings for those site offices have performed pre-gia audit For those other sites that have not selected for GIA audit, goes through the items in the CSA audit checklist (will be explained by Kimmy later) and make sure that all the necessary documents are available at site offices For BIC, second BIC, PM of site offices, pls. plan your annual leave in Q2 2011, i.e. do allow sufficient manpower or backup to answer GIA auditor s questions Head Office formed a GIA working committee including Carrie Lam, CH Chung, Steve Chan, David Yu, Kimmy Wong and Henry Wong For all those site offices that are chosen for GIA audit in the real audit, please note down all the questions raised by them and report to the GIA working committee and do not hesitate to ask if you have any questions. 4

5 Findings of the pre-gia audit at Finance Department 1. Non-compliance NC1 They did not comply with the QSP 7.4 Procurement Procedure 7.7 Change/Cancellation of Purchase Document because the Finance Dept. was found that they helped the surveyor to amend the PO amount in SMART System after received the request form them so the surveyors were not required to cancel the previous PO first and issue a new PO. Follow-up action: - If PO amount > AP invoice amount without/with any settlement record, surveyor should create one more PO to cover the amount difference. i.e. variation order - If PO amount < AP invoice amount without settlement by AP. Surveyor should re-issue a new PO to replace the old one. - If PO amount < AP invoice amount and partial payment was made by AP, the change of the outstanding balance can be made by confirmation from surveyor. 5

6 Findings of the pre-gia audit at Finance Department 2. Area of Improvement AO3 Insufficient documentation is provided for evidence when some invoices were approved. Follow-up action: With effect from 1 May 11, all the site offices and Finance Department shall make sure that the following supporting documents are attached to suppliers invoices for payment purpose. Pls. return those invoices WITHOUT supporting to the suppliers for their further action to attach the supporting. Surveyors and Team Leaders, pls. help to check the presence of the supporting during the payment approval process. If there is no supporting, pls. hold up and return to Finance Department for further processing. 6

7 Findings of the pre-gia audit at Finance Department Supporting documents required: 1. Attendance record for outsourcing relievers, e.g. Lion Security Ltd. 2. Attendance record for pest control service provided by pest controllers, e.g. Rentoki 3. Inspection record provided for monthly maintenance such as Lift and Escalator, Landscaping and Air-Conditioning etc. 4. Goods receipt note / delivery note for all kind of purchases. 5. Job completion form for all kind of works including renovation and minor works - Procurement Department will inform all the ASL vendors about this - Surveyors and site offices shall inform all the other non-asl vendors about this 7

8 Questions and Answers Thank You

JLL Property Management Department Document List

JLL Property Management Department Document List Item Procedure number Document description Rev Date 1 QSP 4.1 Quality System Procedure Control B 20/05/2011 Procedure 2 QSP 4.2 Operation Document Control