4.2 Operating effectiveness of key controls

When assessing the operating effectiveness of key controls, the CFIA considered the results of the financial statement audits by the OAG, the recent internal audit reports, and the sample testing performed by the self-assessment team. During fiscal year 2011-12, the CFIA identified the following improvement opportunities in the operating effectiveness of its controls:

Revenue

• Clarify the roles and responsibilities for the preparation and reconciliation of deposits.

5. Action plan

The following summarizes the actions taken during fiscal year 2011-12 as well as significant elements of work that are planned to be completed in subsequent years.

5.1 Progress during fiscal year 2011-12

During fiscal year 2011-12, the CFIA has made significant progress in assessing and improving its key controls within the system of ICFR. Progress made by the CFIA during 2011-12 is summarized below:

Business Processes

• Completed the documentation, design effectiveness testing and operating effectiveness testing for: Revenue, Pay, Statutory Compensation Payments and Financial Close and Reporting.
• Completed on-going operating effectiveness testing for: Operating and Maintenance Expenses.
• Developed management response and action plan for improvement opportunities identified in fiscal year 2011-12.

Entity Level Controls

• Completed the documentation, design effectives and operating effectiveness testing for: Governance and Risk Management.

General Computer Controls

• Completed the documentation for: SAP / Enterprise, Peoplesoft, Electronic Invoicing and the CFIA IT Access Control and Change Management.

Follow-up on improvement opportunities identified in fiscal year 2010-11

The CFIA has completed work to improve its controls in the following areas:

• An updated and widely communicated Commitment Policy which clearly defines the requirements of expenditure initiation;
• Additional and updated training provided regarding the Financial Administration Act (FAA) requirements;