Business Expenses and Purchasing Cards (IA /F) Steve Allen, Managing Director, Finance. Audit Conclusion: Audit Closed

Transcription

1 FINAL INTERNAL AUDIT REPORT Business Expenses and Purchasing Cards (IA /F) Steve Allen, Managing Director, Finance Audit Conclusion: Audit Closed 17 February 2014 Issue categories Agreed actions Satisfactorily addressed Partially addressed No longer applicable Not addressed Priority Priority Priority TfL RESTRICTED

2 Contents EXECUTIVE SUMMARY... 3 STATUS OF AGREED ACTIONS... 4 APPENDIX 1 DISTRIBUTION LIST... 8 Version 1 Draft versions issued 1 Fieldwork commenced 19/11/2013 Fieldwork completed 07/02/2013 Draft report issued 17/02/2014 TfL RESTRICTED Page 2

3 EXECUTIVE SUMMARY Objective The audit reviewed the controls in place over business expenses and purchasing cards, and the impact of revised business expenditure controls. Scope The audit focused on the control environment in relation to the following key risk areas: Policy and procedures supporting business expenses and purchasing cards; Issuing and cancellation of purchasing cards; Validation and authorisation of business expense claims and purchasing cards expenditure; Payment of business expenses claims and purchasing card statements; Monitoring and reporting of business expenses and purchasing card expenditure; The LU stations petty cash expense process. The audit also followed up the agreed actions from the audit report Business Expenses and Purchasing Cards IA issued on 6 September Summary of findings Our Interim Audit Report dated 9 April 2013 entitled Business Expenses and Purchasing Cards, identified two Priority 2 and four Priority 3 issues resulting in nine agreed management actions. The Priority 2 issues are: Purchasing card spending limits and MCCs are not consistently reversed to their original status following a temporary change; Some expenditure claims are incomplete or incorrectly entered into SAP. We have now carried out a follow up review and can confirm that six actions have been satisfactorily addressed, two are partially addressed and one is no longer applicable. We are satisfied that plans are in place to complete the partially addressed actions. Accordingly this audit is now closed. TfL RESTRICTED Page 3

4 STATUS OF AGREED ACTIONS Ref Agreed action Owner and Priority 2 actions Status Further action required and 1. FSC will process all card changes directly via MYVISION 2. FSC work instructions will be updated to reflect this process change 30/04/13 30/04/13 No longer applicable FSC investigated the use of MYVISION to process all card changes directly but found this control to not be as effective as contacting HSBC directly and changes were taking up to 24 hours to take effect. They also noted that some cards were not registered on MYVISION. FSC is using MYVISION to perform checks on the card reversals performed by HSBC. These checks are logged on a spreadsheet which is now subject to periodic management review. Cards which are not registered on MYVISION are investigated with HSBC. Work instructions have been updated to reflect the need to TfL RESTRICTED Page 4

5 Ref Agreed action Owner and Status review changes to spend limits / MCCs. Further action required and 3. FSC will issue a communication to the business reinforcing the need for compliance with the BEPs and associated SAP guidance for completing claims. Partially addressed FSC have drafted a communication to the business. However, a decision has been taken by FSC management to wait until the proposed revised claim authorisation process is introduced before issuing the communication (see action 6). 30/09/14 4. FSC will investigate the possibility of using SAP workflow for the follow up of incomplete claims and incorporate any resulting actions into the Run Better Shared Services workstream. Extended to 31/10/13 The use of SAP workflows for the follow up of incomplete claims will be incorporated into Run Better Phase 2. Priority 3 actions 5. FSC will produce an options paper looking at receipt scanning into SAP in all TfL business areas, with The options paper has been produced and the scanning of receipts into SAP will be taken TfL RESTRICTED Page 5

6 Ref Agreed action Owner and recommendations as appropriate. Status forward as part of Run Better Phase 2. Further action required and 6. FSC will provide all TfL Directors with monthly summaries of T&E reports for their Cost Centres. 31/05/13 Extended to 31/10/13 Partially addressed Agreement to producing monthly summaries has been given by both Specialist Services and Surface Transport who currently receive weekly reports. 30/09/14 A proposal for revising the SAP claim authorisation process is awaiting approval from the Finance Leadership Team. Once the resulting changes have been introduced the revised reporting arrangements will be adopted. 7. FSC will improve trend analysis to enable pro-active recommendation of card limit changes to Directors, as appropriate. Card limit changes are monitored by FSC and recommendations for permanent card limit changes made to Directors as appropriate. 8. The CMS LU Handbook will be updated in line with current BEP. The LU Directors Risk, Assurance and Change Control Team TfL RESTRICTED Page 6

7 Ref Agreed action Owner and Status (DRACCT) approved the changes to the CMS LU Handbook on 3 December The revisions are being drafted by R&U Finance for the CMS update. Further action required and 9. The residual cash floats will be returned to FSC. The residual petty cash floats have been returned to FSC. TfL RESTRICTED Page 7

8 APPENDIX 1 Distribution list This report was sent to Steve Allen, Managing Director, Finance, by Clive Walker, Director of Internal Audit, and copied to: Simon Bicknell David Goldstone Tricia Riley Andrew Pollins David Hendry Simon Kilonback Mike Brown Leon Daniels Michèle Dix Vernon Everitt Patrice Whyte Nigel Blore Andrea Clarke Howard Carter Robert Brent Head of Financial Services Centre Financial Operations and Performance Manager, FSC Chief Finance Officer HR Director Director of Finance, R&U Director of Finance, ST Group Treasurer Managing Director, R&U Managing Director, ST Managing Director, Planning Managing Director, Marketing & Communications as Key Risk Representative Head of Group Insurance Director of TfL Legal General Counsel KPMG TfL RESTRICTED Page 8