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ARCHIVED - Report on Audit of Pay and Related Benefits

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Appendix 1 - Core Management Controls and Audit Criteria

MAF Element	Core Management Controls	Audit Criteria
People	PPL-4. �At the pay and related benefits activity, the organization provides employees with the necessary training, tools, resources and information to support the discharge of their responsibilities.	Employees have access to sufficient tools, (such as, software, equipment, work methodologies and standard operating procedures) and training and development plans are resourced and actioned.
Stewardship- Financial Management Policies	ST-5. Financial management policies and authorities regarding the pay and related benefits activity are established and communicated	Financial management policies are maintained by the organization or reliance on Treasury Board policies are referenced. Effective communication of financial management policies is carried out (e.g. policies available on organizations intranet, published policies or reference to Treasury Board policies via email or other correspondence). Financial policies and authorities are known and understood by the personnel.
Stewardship- Transaction Processing	ST-10. The pay and related benefits transactions are coded and recorded accurately and in a timely manner to support accurate and timely information processing.	Financial transactions are coded and processed in an efficient and timely manner, including for example: Clearing accounts are not more than one month in arrears; Pay is processed within the set timeframe; and Sub ledgers are reconciled monthly. Controls are in place to ensure accuracy of transaction coding and processing (e.g. batch totals, reconciliations, supervisory review, management approval etc.).
	ST-11. Appropriate system application controls exist.	Logical access controls exist to ensure access to systems, data and programs, is restricted to authorized users, e.g. systems require users to logon using unique user name and password. Procedures exist and are applied in order to keep authentication and access mechanisms effective.
	ST-12. Records and information are maintained in accordance with laws and regulations.	Accounting records and information are maintained in accordance with generally accepted accounting principles as well as government laws and regulations. Responsibility for monitoring information management is clearly assigned.
	ST-13. There is appropriate segregation of duties.	Individuals responsible for initiation of (FAA section 32 - commitment) and/or approval for payment for (FAA section 34) transactions must not be the same individual responsible for payment (FAA section 33 – requisition). Incompatible functions must not be combined.
Stewardship- Monitoring	ST-15. Reviews are conducted to analyze, compare and explain financial variances between actual and plan.	The requirement to compare and explain variances is documented. Responsibility to compare and explain variances is known and understood and applied accordingly. Financial variance are reviewed and explained in a report.
	ST-16. Management compares results achieved against expectations, on a periodic basis.	Evidence of Management review exists (e.g. sign off). Management review is on going and is timely.
	ST-17. Management reallocates resources to facilitate the achievement of objectives/results.	Management review results in decision-making which impacts on the delivery of the activity. Reallocation of resources is supported.
Stewardship- Reporting	ST-18. Financial and non-financial reporting is reviewed and approved	Reporting is reviewed for completeness, accuracy, relevance, and timeliness. Approval is evidenced (signoff, email, minutes etc). Significant control breakdowns are reported to management.
Stewardship- Reporting	ST-20. Appropriate and timely financial and non-financial reporting is communicated internally and externally.	A schedule of regular reporting is prepared and communicated in advance. Responsibility for reporting is clear, communicated and implemented accordingly. Complete, accurate, relevant, and timely financial and non-financial reports are submitted as required.

*Source: Core Management Controls: A Guide for Internal Auditors (Draft - November 2007) published by the Internal Audit Sector of the Office of the Comptroller General is the source from which the Core Management Controls and the corresponding audit criteria were selected from.� Only the relevant Core Management Controls grouped under the "Stewardship" and "People" elements of the MAF were considered and the corresponding audit criteria have been, in some cases, tailored.