Report on the Audit of the Delegation of Financial Authorities – February 2014
60. While the Department has an overall adequate framework for managing the delegation of financial authorities, there are key areas that pose medium risk. The improvements recommended in this audit report would strengthen the effectiveness and efficiency of the control framework.
61. The Department has formally delegated authorities to positions aligned with its organizational structure. There are documented policies and procedures in place that provide guidance for the understanding and exercise of financial authorities. There is a robust and effective process for the management of SSCs and for ensuring authentication of signatures.
62. However, improvements are required in the following areas:
- Amendment of the Delegation Chart to enhance its effectiveness as a control for adequate separation of authorities delegated to functional positions;
- Implementation of a risk-based quality assurance and monitoring function as part of the exercise of Section 33 of the FAA by Accounting Operations;
- Formalization and documentation of the processes for ongoing and periodic reviews of the delegation of authorities;
- Strengthening of the process for delegating authorities to individuals to ensure that authority types and levels are better aligned to responsibilities; and,
- The development and provision of a comprehensive in-house training program for:
- RCM delegated financial authorities;
- RCAs supporting RCMs in the procurement and expenditure processes; and,
- Functional Specialists exercising payment authorities and responsible for overall quality assurance of the exercise of financial authorities by RCM and of verification activities undertaken by accounts payable specialists.
Recommended for approval by the Departmental Audit Committee:
Hon. Doug Lewis
F.C.A., Q.C., P.C., L.S.M.
Departmental Audit Committee Chair
William F. Pentney
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