Audit of the Disbursement Process for Program Payments Final Report [Date]

TABLE OF CONTENTS Executive Summary Audit Objective Audit Opinion Statement of Assurance Summary of Recommendations Audit Report Background Audit Risk Objectives, Scope, and Approach Audit Objectives Scope Approach/Methodology Findings and Recommendations Management Action Plan

Executive Summary Audit Objective The audit of the disbursement process for program payments, which covered the [disbursement process for program payments included in the audit] from [date covered], was included in Audit Plan as approved by the president. The audit was conducted [dates the audit was conducted]. The overall objective of the audit was to provide assurance that the Agency developed and maintained controls to mitigate any potential risks associated with the disbursement process for program payments by ensuring that: The disbursement process for program payments is well-defined, with sound controls in place, and effectively managed to ensure that program payments are made when appropriate. The Agencys disbursement process for program payments functions properly, and complies with established policies and procedures, contract agreements, and the Treasury Board Policy on Transfer Payments. Audit Opinion In our opinion, the Agency has established sound controls and processes for the disbursement of project payments to clients. We identified during our audit the following areas that require management attention:

Recommendation 1 [Ex. A recommendation was made to improve the itemization of eligible costs in the project summary forms (PSFs) and contract agreements. In our view, categorizing eligible costs at the outset will facilitate project payments, reduce processing time and improve client satisfaction. ] Recommendation 2 [Ex. Recommendations were made to encourage the use of official Agency claim forms for payment requests, and to review and revise the attestation and certification statement on the forms.] Recommendation 3 [Ex. A recommendation was made to ensure that contract conditions are appropriately observed, particularly those associated with disbursements.]

Based on the results of our audit, the Internal Audit Directorate has issued a statement of assurance that, in general, the Agency has sufficient controls in place to effectively manage the disbursement process for grants and contributions. However, improvements have been recommended to strengthen certain elements of this process. The findings identified during this audit are not considered to materially impact the effectiveness of the internal controls over disbursement processing put in place by management. Please refer to the body of this report for further details regarding the audit findings. Statement of Assurance We have completed the audit of the disbursement process, which examined the process for program payments in [areas covered] during the [dates covered]. The audit was conducted [dates the audit was conducted]. The overall objective is to [objective] Summary of Recommendations The following is a summary of recommendations made to improve the program payment process of the Agency: Recommendation 1 Recommendation 2 Recommendation 3

Audit Report Background [background of disbursement process]. Audit Risk [state the risks that are encountered and the likelihood of happening]

Objectives, Scope, and Approach Audit Objectives [state all audit objectives] Scope [scope of the audit] Approach/Methodology A substantive approach for reviewing key documentation was used to verify that the controls in place are operating effectively, and that the operations of these controls are being monitored. The audit consisted of visiting [areas covered] to: [Ex. Review the controls] Ex. Examine individual claims]

Findings and Recommendations