The Financial Monitoring Review Process Operating Effectiveness Testing

The Financial Monitoring Review Process: Operating Effectiveness Testing CAURA Ontario Conference November 24, 2014

Financial Monitoring Review Process (Reminder) Planning Stage • Communication of Monitoring Review Schedule Risk Assessment Questionnaire • Communications • CIGT • Document Requests Execution Stage Reporting Stage • Opening Meeting • Transaction Testing • Interviews • Closing Meeting 2

Operating Effectiveness Testing - A sample of transactions is reviewed to test the operating effectiveness of a control, process and/or system. - Operating effectiveness testing essentially aims at addressing, for all types of transactions, 3 elements: 3

The SEA Elements ü Supporting Documentation (Compliance) ü Eligibility ü Authorization 4

Agencies – Use of Funds General Principles • Grant funds must contribute towards the direct costs of the research; • And they must be used effectively and economically. • Institutions must provide for indirect and overhead cost. • In the absence of written Agency policy, Institution’s policy applies. • Institutions can withhold payment of expenses approved by grant holders that contravene Agencies’ requirements or Institutions’ policies. 5

Travel Transactions - Supporting Documentation -Compliance - (Verify list of requirements in the TAFAG) – purpose of trip, per diem – automated systems for travel and procurement retention - Eligibility of expenses - Flights fare classes – extra fees (flight change, access to lounge) duration of travel - boarding passes - Authorization – proper authorization – prior to travel - one over one principle – or written delegated authority 6

Supplies & Equipment - Supporting documentation - Compliance (List of supporting documents required can be found in the TAFAG) - Eligibility of expenses - Printers – ink and paper – stationary supplies – internet fee – software - Authorization 7