1. Department of Education Internal Audit So what’s it all about then …briefly What are your concerns … some I know, let me know others What are some of ours … if I’m not too bruised and battered! Questions? … Ask them any time and cut me short if I go on!

2. Department of Education What we do and Why There are two main themes CompliancePerformance LegislationEffectiveness Guidelines and ProceduresEfficiency Generally black letterPolicy Incudes best or better practiceAchieving outcomes

3. Department of Education SACS vs Finance Financial Payments Invoice only No control stamp No DF Receipts Manual receipt books Stamp deposit slip (F1 or Deposit Book) Journals Unclear – workflow or sign Have written to Finance Budget Adjustments Nothing Can see it in F1 Corporate Cards No difference Invoices attached to statements Statement signed – cardholder and Principal Types of evidence now that on Finance 1

4. Department of Education Audit Opinions Why do auditors have different opinions? They should be consistent – we work very hard at this. Opinions based on policy, guidelines and procedures. An obligation to report it as it is, not filtered. However…. Schools are different – for valid reasons Risk based procedures in some instances Not everything is black letter Evidence different/missing – reconciliation difficult Requires us to exercise professional judgement Sometimes discretion is justified ( but not if black letter ) Equity and fairness – good systems vs bad systems Not everything is as obvious as this….

5. Department of Education Unity How can there be unity in what we do if auditors require different things? Agree – very difficult Try very hard to be consistent We consider the environment – not just compliance Schools do different things all the time Some done well...others not We may ignore minor issues & focus on more important ones There’s a lot we review – not all have procedures Some professional judgement required Concerns with consistency – let me know

6. Department of Education Audit Requirements – What are they? Impossible for audit to list everything Program is limited – does not cover everything You should be able to objectively support your activities Records must be contemporaneous Can provide a general list – you may have some or all There would be other requirements beyond the program Audit – test if what should be done is being done Inconvenient – but documentation should be there If not - local issue, education, support ? Nothing clear as to what we have to keep for audit. Would appreciate a ‘tick box’ list from the auditor

7. Department of Education Payments to the Principal Workflow is linear, systemic Not possible to change to address unique payments Example of gap in controls – no guidance Objective – segregation of duties Claim/invoice certified by next senior teacher Protects yourself from coercion Adheres to the segregation objective Maintains workflow efficiency Consistent with other processes – corp card Who approves payments to the Principal – workflow suggests they authorise their own !?!