|
Index - Major Sections
Home
**InHCc HMIS**
Site Map
Health Economic and Reform
Benefits
Discussion
Data and Data
Analysis
Health Management
Product and Services
References
Team
_______________
Index - Same Level Subject
Index - Child Subjects
| | Introduction
A proposed Manual for a Internal
Auditing Department
It is the policy of BNGO to
maintain a broad, comprehensive program of internal auditing. The Audit Section
is established for the purpose of assisting management in the effective
discharge of its responsibilities for the control of BNGO resources.
The position of Audit Officer is
a staff position without authority or direct control over the units being
reviewed.
The Audit Section will perform
financial audits for the purpose of ensuring that:
-
Assets of the organization
are promptly and completely recorded, accounted for, authorized and
adequately safeguarded against loss and misappropriation.
-
Liabilities of the Organization
have been properly incurred and are properly recorded and discharged.
-
Such audits directed to
financial accountability will include a review of all records, source data,
fiscal procedures, and control.
-
The compliance of employees
and management with established organization policies and procedures, and
the degree to which goals and objectives are achieved by individuals,
departments, and programs.
-
The degree to which the
activities of managers, employees, departments, and programs are integrated
in a compatible manner that provides for the maximum achievement of the
organization's mission.
The Audit Section will perform
operational audits for the purpose of ensuring that Organization' operations are
conducted effectively and efficiently and in accordance with appropriate and adequately
documented policies, plans, and procedures. Operational audits will encompass a
review of the policies, plans, procedures, organizational structure, staffing,
and output of the audited unit.
The Audit Section will provide
senior management with an independent, fair and objective appraisal of the
effectiveness of the Organization financial accountability systems and
operational performance in accordance with the priorities established by the
Audit Officer and approved by the Director and the Finance Committee.
The Audit Section will provide
management with constructive criticism and positive recommendations designed to
strengthen and improve performance results and cost effectiveness of their
operations.
Back to top
Each and every division, department, and project
will be examined in accordance to the Standards for the Professional Practice of
Internal Auditing and will be undertaken initially by an outside consultant.
-
Inefficiencies and
ineffectiveness.
-
Unnecessary operating
risks.
-
Poor management and
internal controls.
-
Missed income-generating
opportunities.
-
Poorly designed, poorly
implemented, and cost-ineffective systems
-
The governing board
and director has stated the organization's mission and communicated this to
all departments, programs, and employees.
-
Development of measurable
standards of performance against which performance is evaluated.
-
The performance of
individuals, groups, programs, and systems must be measured and compared
with performance standards, goals, and objectives.
-
Performance deviations both
above and below standards, goals, and objectives must be analyzed.
-
Corrective actions must be
selected and implemented.
-
Corrective action, once
taken, must be monitored to determine whether the outcome is a positive one.
All suggestions by staff
members will be reviewed for legitimacy at the Director level. If there appears
to be any validity to the suggestion, a panel will be convened for an
investigation.
Back to top
The Audit Officer reports to the
Director and to the Finance Committee of the Board of Trustees.
The Officer is responsible for establishing an effective internal audit
program and for ensuring that the results of examinations and actions taken are
communicated to the appropriate levels of management.
The Audit Officer is responsible
for drafting an annual audit schedule and a five-year audit plan based on a risk
analysis of all BNGO departments and activities.
The schedule and plan will be submitted to the Director and the Finance
Committee of the Board of Trustees for review and approval.
The Audit Section will give full
consideration to scheduling special audit requests made by any department or
activity. All requests should be in
writing to the Audit Officer and state the purpose and scope of the audit.
All internal audit activities
are to be conducted in compliance with Organization policies and procedures as
well as the Code of Ethics and the Standards for the Professional Practice of
Internal Auditing which are promulgated by the Institute of Internal Auditors,
Inc.
Back to top
The Audit Section will be
organizationally and functionally independent from all Organization operations
and will have no responsibility for the departments and activities being audited
while being responsive to their needs and requirements.
Because the Audit Sector must be
independent in carrying out its responsibility to monitor and evaluate control
procedures instituted by management, the extent of audit work to be performed
with respect to those procedures is limited to the assessment of such
procedures.
The Audit Section normally
performs tests of transactions and reviews the supporting documentation for
transactions. Accordingly,
objectivity would be lost if the Audit Section participated in or was
responsible for initiating or recording transactions.
Back to top
Audit Organization personnel
will have complete, free, and unrestricted access to all Organization
departments, activities, records, properties, and personnel, and are not to be
restricted in their activities. Where
appropriate, special arrangements will be made for the examination of
confidential information.
The Audit Section will develop
measurable standards of performance against which performance is evaluated. The
department will measure and compare the performance of individuals, groups,
programs, and systems with performance standards, goals, and objectives.
Any performance deviations both above and below standards, goals, and
objectives will be analyzed.
The Audit Section will
participate in the planning, development, implementation, and modification of
computer-based and manual systems to ensure that:
-
Adequate controls are
incorporated to the system,
-
Thorough system testing is
performed at appropriate stages,
-
System documentation is
complete and accurate, and
-
The resultant system is a
complete and accurate implementation of the system specifications.
The Audit Section will conduct
post-installation evaluations of data processing systems to ensure that these
systems meet the intended purpose and objectives. The Department will also review computer operations
supporting such systems to ensure that generally accepted standards for systems
integrity and security, as well as system-specific controls, are being observed.
Corrective action, once taken
will be monitored to determine whether the outcome is a positive one.
Back to top
The Audit Section,
BNGO Security Department, and the Office Of the Director are to be
notified if assets have been lost through misappropriation or other security
breaches. The Audit Section will
perform sufficient tests and investigations to identify the weaknesses in
procedures which permitted the misappropriation to occur.
However, the investigation of the specific event with the objective of
recovery and/or prosecution is the responsibility of the BNGO Security
Department, with the decision to prosecute being the responsibility of the
appropriate Authority.
The Audit Officer will
coordinate the Section's audit efforts with the Auditor of Public Accounts or
other external auditors by participating in the planning and definition of the
scope of proposed audits so the work of all auditing groups is complementary,
and their combined efforts provide comprehensive, cost effective audit coverage
for the Organization. Duplication
of work will be avoided as much as possible.
Back to top
At the conclusion of each audit,
a formal report or memorandum will be issued which will present a concise,
clear, and factual review of the conditions found, followed by recommendations
for improvement.
Prior to the issuance of a
formal report, a draft report will be provided to the department or activity
along with an opportunity for an exit conference. The exit conference will be a
review of all findings, conclusions, and recommendations.
A response to the audit report
shall be issued to the Audit Officer within 30 days, responding to each finding
and recommendation. This response
will include the department's or activity's plan for implementing the
recommendations or, if the recommendations cannot be implemented, alternate
solutions for the issue. If a
decision is made not to implement a recommendation, the justification for this
decision will be provided to the Audit Section.
For major projects, a follow-up
review will be made by the Audit Section to establish that recommendations which
were agreed upon have been adopted. A
memorandum will be issued on the follow-up review to the Director and the
Division Director responsible for that area.
Back to top
Audit reports will be issued to
the Division Director responsible for the department or activity involved.
In addition, copies of all such reports will be distributed to the
Director and the senior administrator responsible for the department or activity
audited. The Chief Financial
Officer will receive copies of all reports containing issues which could
potentially affect the Organization's financial statements.
All audit reports and
accompanying management responses will be provided to the Finance Committee of
the Board of Trustee for review.
A summary of significant audit
findings will be prepared for each Board meeting and submitted to the Finance
Committee of the Board of Trustee, the Director, and other appropriate members
of BNGO management.
Back to top
Each and every division, department, and project will be examined in accordance to the Standards for
the Professional Practice of Internal Auditing (SPPIA)
The purposes of internal auditing as stated by the SPPIA are to evaluate and make recommendations
about the following:
- The soundness and adequacy of accounting, financial, and operating systems and internal control,
and operational effectiveness.
- The compliance of employees and management with established organization policies and
procedures, and the degree to which goals and objectives are achieved by individuals, departments,
and programs.
- The adequacy and reliability of all management information.
- The accountability and safeguarding of the organization assets.
- The degree to which the activities of managers, employees, departments, and programs are
integrated in a compatible manner that provides for the maximum achievement of the
hospital or
corporation’s mission
- Inefficiencies and ineffectiveness.
- Unnecessary operating risks.
- Poor management and internal controls.
- Missed income-generating opportunities.
- Poorly designed, poorly implemented, and cost-ineffective systems.
The governing board and director must state the organization’s mission.
Mission statements should be developed for programs and systems.
Creation of goals and objectives.
Communicated to all departments, programs, and employees.
Development of measurable standards of performance against which performance is evaluated.
The performance of individuals, groups, programs, and systems must be measured and compared
with performance standards, goals, and objectives.
Performance deviations both above and below standards, goals, and objectives must be analyzed.
Corrective actions must be selected and implemented.
Corrective action, once taken, must be monitored to determine whether the outcome is a positive
one.
All suggestions by staff members will be reviewed for legitimacy at the Director level. If there appears to
be any validity of the suggestion, a panel will be convened for an investigation for use of the suggestions
in InHCc.
Return to TOC
|