MEETING OF COUNCIL - Town of Cambridge

COUNCIL MINUTES
TUESDAY 27 NOVEMBER 2012
AU12.7
INTERNAL AUDIT - INFORMATION TECHNOLOGY - GENERAL CONTROLS,
CASH VERIFICATION AND WEMBLEY GOLF COURSE OPERATIONS
PURPOSE OF REPORT:
To consider the internal audit which in accordance with the Audit Plan covered:-
• a review of the information technology general controls environment.
• the identification of all areas where cash is being received on behalf of the Town by
external parties and to assess controls, accountability and proper recording of
transactions;
• year end audit for 2011/2012 of the Wembley Golf Course Operations:
BACKGROUND:
The Local Government (Financial Management) Regulations 1996, specifically Regulation 5
(2) (c) requires the Chief Executive Officer to:
"undertake reviews of the appropriateness and effectiveness of the financial management
systems and procedures of the local government regularly (and not less than once in every 4
financial years) and report to the local government the results of those reviews."
In order to satisfy this requirement, an internal audit process has been established to cover
all areas of the Town's financial management systems within this time frame. The audit
program is in its third year with the following audits presented for consideration:-
1. Information technology - general controls environment
2. Quarterly Cash Verification Audits for the quarters ended 31 March 2012 and 30
September 2012.
3. Year end audit report for the 2011/2012 financial year on the Wembley Golf Course
The Town engaged the services of auditors, Santo Casilli Accounting and Auditing Services
to undertake the Internal Audit Program and their reports are included as an attachment to
this report.
DETAILS:
A summary of the findings is provided below. Management comments are shown in italics:-
Information Technology - General Controls Environment
The Audit concluded that overall that the Information Technology (IT) General Control
Environment within the Town of Cambridge to be adequate for the Town's operational
needs. It was noted that:
• Proper authorised access controls and physical controls were in place over the
Town's hardware located in server rooms;
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