gla.audit/audit/minutes/2009-10-01
Audit Committee Thursday, 1 October 2009
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Audit Committee Thursday, 1 October 2009
Faculty Risk Management Internal Audit were working closely with Faculties to provide guidance in the
development of Faculty action plans.
The Committee stated that they would benefit from having sight of Internal Audit
recommendations and management comments. Internal Audit would meet with
management to consider how best this request could be addressed.
AUDIT/2009/05. Management Structure
The Convener introduced an additional agenda item to the meeting.
The Principal informed the Committee that plans were underway to improve the
management structure of the University and the Senior Management Group decision-
making process. The proposal involved a move from 9 Faculties to a system of 4
Colleges, to be headed by Heads of College, with an underlying system of Schools.
The proposal to change the structure was motivated by a need to enhance the academic
competitiveness of the University and to ensure more responsive and efficient decision-
making in the University. There would be a consultation process prior to presentation
to Court for approval in December 2009 with implementation aimed for October 2010.
The Committee noted that responsibility for implementation of the Risk Management
Policy and improving visibility within the Faculties had been raised with the Deans.
AUDIT/2009/06. Internal Audit Plan 2009/10
Internal Audit undertook to present a revised Audit Plan to the next Audit Committee
meeting for approval with the inclusion of Estates Acquisition and Disposal and the
Management of Endowment Funds.
Internal Audit and senior management undertook to consider the request for early sight
of the draft Audit Plan in May each year.
AUDIT/2009/07 Implementation of Outstanding Priority 1 and 2 Recommendations
The Committee was updated on the degree of implementation of the audit
recommendations.
Finance Office
The Group Financial Controller reported that 96 points had been actioned in the last 3
years. A total of 12 points had been actioned since the last meeting leaving 23 actions
outstanding as follows:
•
Cash Collection: The number of collection points would be reduced to 4 following
the completion of the Student Lifecycle Project (SLP). The cash processes within
the Veterinary School would be reviewed by November 2009 and guidance on
control requirements for cash collection points would be issued by December 2009.
•
Commercial Pricing: An exercise would be undertaken to identify all sources of
miscellaneous income and a full cost and price review would be carried out by July
2010.
•
Debt Management: Debt letters would be raised on Agresso from December 2009.
Further progress would be made in September 2011 with the implementation of the
SLP.
•
Financial Awareness: A training programme would be formalised by December
2009.
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Audit Committee Thursday, 1 October 2009
•
Ledger Journal Access: Further to the ledger restructure, the recommendations to
introduce a policy and control journal access could now be taken forward with a
view to completion by June 2010.
•
Ledger Restructure and Maintenance: Work was due to be completed by
November 2009 to formalise the balance sheet monthly reconciliation process.
•
Payroll and Expenses: A system to automate the expenses procedure was due to be
implemented by March 2010.
•
Purchase to Pay: A number of procedures and purchase to pay interfaces should be
implemented throughout the year with completion by June 2010.
•
Research: The task allocation data within faculties would be enhanced by
December 2009 and by December 2010 reconciliation and automation between the
Research and Agresso systems should be implemented and consideration given to
management of the data.
•
Sales Invoicing: Sales invoicing had been rolled out across the University and the
accounts receivable process would be re-engineered by March 2010.
•
Tendering: Tender guidance would be updated by December 2009.
Departments other than the Finance Office
The Secretary of Court informed the Committee that in the period 2005 to 2007 13
non-financial audits were carried out and the 14 recommendations that had not yet
been implemented were mainly in the area of IT. While much had been achieved there
were challenges surrounding the extent of devolved responsibilities for IT
management. An inter-Faculty Technical Review Group had been established to
encourage academic departments to move to corporate systems. It was noted that the
implementation of a single system to deal with pre- and post-award research projects
would take some time to implement and a number of the review points were reliant on
the implementation of the SLP. Further to the Review of Campus Security, a
programme for investment had been agreed and a budget established.
There were 42 recommendations in 2007/08 one of which had been implemented since
the last meeting, leaving 10 outstanding. The main points to note were the requirement
for a single system to collect and approve postgraduate research applications and the
need for improved market analysis, an issue that would be addressed through a
proposed new appointment. The new HR/Payroll System would include a model to
capture and manage training requirements and performance and development reviews.
There were seven non financial audits in 2008/09 and 26 recommendations had still to
be addressed, including:
•
Space Management: A Policy Manager would be employed to review the policy,
procedures and system for the management of available space.
•
Project Management Methodology: The recommendation to establish a central
project management office was being considered.
•
Absence Management: Absence management training would be provided and
recommendations regarding Occupational Health referrals and the review of web
policy guidance would be implemented.
•
Sport and Recreation Service: The main recommendation relating to lockers would
be implemented after associated building work was complete in October 2010.
•
Corporate Communications: Recommendations on the content management
system and archiving policy would be implemented by December 2009. A Public
Affairs Assistant had been recently appointed and would take the remaining
recommendations forward.
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Audit Committee Thursday, 1 October 2009
•
Business Continuity Management: A template setting out key principles and
standards to be adopted would be issued in October 2009.
To date one non financial audit had been completed in 2009/10 and 5 of the 7
recommendations had still to be addressed regarding the integration of student services,
improved processes and efficiency savings.
The Committee requested that future reports on the non-financial areas also include a
note clarifying the timescale for implementation.
AUDIT/2009/08 Corporate Structure
The Group Financial Controller informed the Committee that the University’s
Corporate Structure was relatively simple with two trading companies, GU Holdings
Limited and Kelvin Nanotechnology Limited. The main change in year was an
allocation of ordinary share capital resulting in Kelvin Nanotechnology Limited being
owned 100% by the University Court rather than via GU Holdings Limited. The four
entities, including GU Developments Limited and GU Heritage Retail Limited, would
be consolidated into the financial statements. In addition, the University would include
its own transactions with the Scottish University Environmental Research Centre’s
(SUERC). A number of companies 100% owned by GU Holdings Limited had moved
into dormant status.
The Group Financial Controller confirmed that there was a dedicated University
accountant who prepared the financial statements for the companies and that they were
audited by the University External Auditors.
AUDIT/2009/09 Allegations of Research Misconduct 2008/09
The Committee noted the Report and that, due to a number of recommendations arising
from investigations, the procedures were due to be reviewed and a revised version
would be provided to the Committee in due course.
AUDIT/2009/10 Any Other Business
Current Sector Risks and Issues
In response to a request at a previous meeting, Internal Audit provided an update on
changes and developments within the sector.
AUDIT/2009/11 Date of Next Meeting
Wednesday, 4 November 2009
Prepared by: Paula Vinaccia, Clerk to Committee, [email address]
Last modified on: Tuesday, 27 October 2009
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