LANL FY 2001-2002 AUDIT PLAN

Internal Audit

Description

UNIVERSITY OF CALIFORNIA INTERNAL AUDIT PLAN 2001-2002 NARRATIVE & ASSUMPTIONS (Los Alamos National Laboratory) ______________________________________________________________________________ 1. Available Hours—Total available gross work hours are 11,275 based on 5.4 FTE’s under the University of California’s standard labor year for Laboratories of 2,088 hours. The following table itemizes the FTE calculation: Effective Position Number Percentage FTE Professional Staff 4 100% 4.0 Associate IAD Manager (Project 1 60% 0.6 Leader) IAD Manager (Group Leader) 1 60% 0.6 Audit Director 1 20% 0.2 Total FTE’s 7 77% 5.4 Number of Authorized 6.8 Personnel The available hours, therefore, are estimated to be 9,623 hours which is 1,291 (15%) hours more than our revised FY01 plan of 8,332 hours. The increase is due to the addition of two newly hired staff in March, 2001. We are continuing our efforts to fill an information technology auditing capability through either a strategic hire and/or establishment of a rotational career development opportunity for existing information technology line managers within the institution. Additionally, we are continuing to search for an Administrative professional. 2. Indirect Hours—Our indirect hours have increased by 3% from our revised FY01 plan and now represents 17% of our time. The increase is due to required training associated with Safety, Security and Technology. The Project Leader (60%), ...

Sujets

• management
• risk management
• managers

Informations

• Publié par: Fyan
• Nombre de lectures: 19
• Langue: English

Extrait

UNIVERSITY OF CALIFORNIA

INTERNAL AUDIT PLAN

2001-2002 NARRATIVE & ASSUMPTIONS

(Los Alamos National Laboratory)

______________________________________________________________________________

1.

Available Hours

—Total available gross work hours are 11,275 based on 5.4 FTE’s

under the University of California’s standard labor year for Laboratories of 2,088 hours.

The following table itemizes the FTE calculation:

Position

Number

Effective

Percentage

FTE

Professional Staff

4

100%

4.0

Associate IAD Manager (Project

Leader)

1

60%

0.6

IAD Manager (Group Leader)

1

60%

0.6

Audit Director

1

20%

0.2

Total FTE’s

7

77%

5.4

Number of Authorized

Personnel

6.8

The available hours, therefore, are estimated to be 9,623 hours which is 1,291 (15%)

hours more than our revised FY01 plan of 8,332 hours. The increase is due to the

addition of two newly hired staff in March, 2001. We are continuing our efforts to fill an

information technology auditing capability through either a strategic hire and/or

establishment of a rotational career development opportunity for existing information

technology line managers within the institution. Additionally, we are continuing to

search for an Administrative professional.

2.

Indirect Hours

—Our indirect hours have increased by 3% from our revised FY01 plan

and now represents 17% of our time. The increase is due to required training associated

with Safety, Security and Technology.

The Project Leader (60%), Group Leader (60%) and Audit Director (20%) time is

allocated based on data which historically has been directed toward the Internal Audit

Plan. The balance of their time is directed toward Contract Audit, Assessment and

Internal Evaluation activities and efforts. These activities and efforts are not a part of the

Internal Audit Plan.

3.

Audit Program

—We are planning to perform 8 audits which cover 7 of the highest risk

areas at Los Alamos National Laboratory. The remaining audit, Allowable Cost, is

contractually required by the University of California’s contract with the Department of

Energy. We are focusing our efforts on the planned high risk areas and will

accommodate supplemental requests as they may arise (e.g., Centers of Excellence and/or

Appendix O) through the audit plan revision process.

4.

Advisory Services

—We are anticipating a high degree, 19% of our direct hours, will be

needed to support Laboratory management in their efforts to accomplish the National

Nuclear Security Agency’s

Centers of Excellence

project, as well as supporting

management’s Appendix O initiatives. We also anticipate continuing to provide other

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UNIVERSITY OF CALIFORNIA

INTERNAL AUDIT PLAN

2001-2002 NARRATIVE & ASSUMPTIONS

(Los Alamos National Laboratory)

advisory services in the information technology area. We anticipate approximately 1,815

hours will be needed to support management, which is 725 hours, or 67%, more than the

1,090 from our revised FY01 plan. We are, however, within UCOP’s guideline of 10-

25% for this category.

5.

Investigations—

Los Alamos National Laboratory has its own Internal Evaluations

Group which investigates allegations of fraud, waste and abuse. The Internal Audit Plan

does not allocate time to this effort. Our Internal Audit program, however, incorporates

fraud, waste and abuse detective procedures into our work plans, and will occasionally

support the Internal Evaluations Group efforts by performing basic internal control

evaluations for their use.

6.

Support Activities

—Los Alamos National Laboratory’s support activities increased by

156 hours, or 26%, to 756 hours from 600 hours based on our revised FY01 plan. We are

anticipating that our audit program will benefit from a peer review during this planning

period. As such, additional effort is being directed into ensuring that our Quality

Assurance program is robust. We are also in the process of developing Librarian

practices to support our overall CAAT techniques and integrated audits. Lastly, we are

expanding our Risk Assessment process to include quarterly interviews of key

management and develop concurrent risk appraisal techniques.

7.

Total Direct Hours & Percent

— The total direct hours are planned to increase by 791

hours to 7,971 compared to 7,180 planned in our revised FY01 plan. The 11% increase is

largely due to the: (a) hiring of additional staff, (b) significant increase in Advisory

Services, (d) increase of Audit Support activities and (d) increase of indirect hours.

We plan to focus 83% of our Direct Audit Program time, or 4,500 hours, on the 7 highest

risk ranked audit areas. As a percentage, our planned Total Direct Hours will be at 83%,

which is slightly less than UCOP’s 85% benchmark. The cause for this 2% planned

variance is directly attributable to the Indirect Hour requirements.

The remaining audit, Allowable Cost, currently ranks 23

rd

on our universe, but needs to

be completed because it is a contractual requirement between the University of California

and the Department of Energy.

8.

Time Phasing Assumptions

—The hours are traditionally lower during the first quarter

due to holidays and the mandatory shutdown of Laboratory operations.

9.

Core Audit

—We do not plan to complete from our revised FY01 Internal Audit Plan: (a)

Physical Controls in the General Information Technology Environment, (b)

Administrative Computing Infrastructure Utilization or (c) Survey of Information Needed

to Manage (carryover from FY00 Internal Audit Plan). While these information

technology audits are important, when they were risk ranked against competing priorities

and institutional objectives for this plan, they did not prevail as current year, highest risk

areas.

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UNIVERSITY OF CALIFORNIA

INTERNAL AUDIT PLAN

2001-2002 NARRATIVE & ASSUMPTIONS

(Los Alamos National Laboratory)

The current Internal Audit Plan centers upon those focus areas which have the most risk

management concern to the institution. The successful execution of this Internal Audit

Plan should result in Internal Audit focusing its resources on the evaluation of those risks

which directly impact mission critical goals and objectives of the institution.

10.

Other Matters

—We have anticipated by this Internal Audit Plan that we will be an

integral component to certain key management initiatives (e.g., Centers of Excellence,

Appendix O, etc.). We believe these management initiatives, when executed, will have a

dramatic impact upon the current controls and related internal control environments

within Los Alamos National Laboratory as well as potentially impact other institutions.

The degree of our involvement in these initiatives will have a significant impact upon this

Internal Audit Plan.

Our ability to deliver quality audit services remains contingent upon budgetary

constraints which fluctuate from period to period. Additionally, we are tasked

periodically by the Department of Energy – Office of Inspector General to perform work

for them which we cannot necessarily anticipate within our plan.

Lastly, we have anticipated a certain level of support for Advisory Services as well as a

depth of understanding for each audit project undertaken. While this Internal Audit Plan

commits our current audit resources to their full utilization levels, we believe we can

absorb a small amount of additional, unplanned assignments without detrimentally

impacting the quality and extent of our assignments. We may, however, require

temporary expertise and capabilities to address certain types of planned assignments (e.g.,

Workforce Management). These stretch goals should result in timely and quality

assessments for management’s use. We will, however, accommodate all reasonable

Internal Audit requests to the best of our capabilities and resources.

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LANL Sched 1 thru 4.xls

Schedule 1 - Personnel

Gross & Net Available Hours Calculation

Total Year FTE's

1st Quarter

9/30/2001

2nd Quarter

12/31/2001

3rd Quarter

3/31/2002

4th Quarter

6/30/2002

Lab 9/30/02

Number of authorized professional staff

6.80

6.80

6.80

6.80

6.80

Number of Permanently OPEN Authorized Professional Staff

Positions

Number of professional positions at full staffing

PLANNED ACTUAL FTEs

Beginning of Period

5.40

5.40

5.40

5.40

5.40

Additions--Permanent

0.00

0.00

Additions--Temporary

0.00

0.00

Left--Within UC

0.00

(0.00)

Left--Outside UC

0.00

(0.00)

Retirements

0.00

(0.00)

Long-Term Leave

0.00

(0.00)

Estimated Staff Turnover

0.00

(0.00)

End of Period

5.40

0.00

5.40

5.40

5.40

5.40

GROSS & NET AVAILABLE HRS CALCULATION

Total Year Hours

1st Quarter

9/30/2001

2nd Qtr 12/31/2001

3rd Quarter

3/31/2002

4th Quarter

6/30/2002

Lab 9/30/02

Weighted Avg. FTE's

5.4

5.40

5.40

5.40

5.40

Hours in the period - Campus

2,080

520

528

512

520

Hours in the period - Lab

2,088

528

512

520

528

Subtotal - Lab / Campus

11,275

0

2851

2765

2808

2851

Other Resources:

Overtime

0

Contract Labor/Interns

0

Recharge In (or Out)

0

Admin. & Other

0

Subtotal

0

0

0

0

0

0

Gross Available Hours

11,275

0

2851

2765

2808

2851

Non Controllable Hours

1,652

840

280

265

267

Non Controllable Hours Percent

14.65%

-

29.46%

10.13%

9.44%

9.37%

Net Available Hours

9,623

0

2011

2485

2543

2584

Schedule 2 - Activity Report

Distribution of Net Available Hours

UCOP % Guideline Total Year Hours

1st Quarter

9/30/2001

2nd Quarter

12/31/2001

3rd Quarter

3/31/2002

4th Quarter

6/30/2002

Lab 9/30/02

INDIRECT HOURS

Administration

5--10%

1,000

250

250

250

250

Professional Development

2--5%

412

104

104

102

102

Other

0--3%

240

60

60

60

60

Total Indirect Hours

1,652

0

4

14

414

412

412

Total Indirect Percent

15%

17.16%

-

20.59%

16.67%

16.19%

15.94%

DIRECT HOURS

Audit Program

Planned Carried Forward Audits, PC

0

Planned New Audits, PN

5,000

800

1400

1400

1400

Supplemental Audits, PS

Approx 10%

400

100

100

100

100

Unplanned Carried Forward Audits, PU

0

Total Audit Program Hours

5,400

0

900

1500

1500

1500

Total Audit Program Percent

40--60%

56.12%

-

44.75%

60.36%

58.99%

58.05%

Advisory Services

Consultations/Spec. Projects, SC

452

115

115

112

110

Ext. Audit Coordination, SE

112

28

28

28

28

Internal Control & Accountability, SI

160

40

40

40

40

IPA, COI & Other, SP

0

Systems Dev., Reeingineering Teams, etc., SR

1,091

310

204

267

310

Total Advisory Services Hours

1,815

0

493

387

447

488

Total Advisory Services Percent

10--25%

18.86%

-

24.52%

15.57%

17.58%

18.89%

Investigations Hours, IN

0

Investigations Percent

10--20%

0.00%

-

0.00%

0.00%

0.00%

0.00%

Audit Support Activities

Audit Planning

320

80

80

80

80

Audit Committee Support

96

24

24

24

24

Systemwide Audit Support

0

Computer Support

80

20

20

20

20

Quality Assurance

260

80

60

60

60

Total Audit Support Hours

756

0

2

04

184

184

184

Total Audit Support Percent

5--10%

7.86%

-

10.14%

7.40%

7.24%

7.12%

Total Direct Hours

7,971

0

1597

2071

2131

2172

Total Direct Percent

85%

82.84%

-

79.41%

83.33%

83.81%

84.06%

Total Net Available Hours

9,623

0

2011

2485

2543

2584

Total Net Available Percent

100%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Schedule 1,2 - Cross Check

Total Year Hours

1st Quarter

9/30/2001

2nd Quarter

12/31/2001

3rd Quarter

3/31/2002

4th Quarter

6/30/2002

Lab 9/30/02

Total net available hours (From Sch 1)

9623.00

0.00

2011.00

2485.00

2543.00

2584.00

Total net available hours (From Sch 2)

9623.00

0.00

2011.00

2485.00

2543.00

2584.00

Total A+AS+IN (Scd 3 Check)

7215

0

1393

1887

1947

1988

Actual FTEs, End of Period (Check down)

5.40

0.00

5.40

5.40

5.40

5.40

Avail. Hours, Other Res., Subtotal (Check Down)

0

0

0

0

0

0

Gross Available Hours

11275

0

2851

2765

2808

2851

Net Available Hours

9623

0

2011

2485

2543

2584

Indirect Hours

1652

0

414

414

412

412

Audit Program

5400

0

900

1500

1500

1500

Audit Support Activities

756

0

204

184

184

184

Investigations Hours

0

0

0

0

0

0

Advisory Services

1815

0

493

387

447

488

Total Direct Hours

7971

0

1597

2071

2131

2172

Net Available Hours

9623

0

2011

2485

2543

2584

Schedule 1 2 FY 2002 Plan

LANL Sched 1 thru 4.xls

UNIVERSITY OF CALIFORNIA

INTERNAL AUDIT PLAN DETAIL

SCHEDULE 3

FY 2002

LANL

High Risk

*

Planned

Primary

Additional

Name/Title of Audit

1, 2, 3

Hours

Index Code

Index Code(s)

Planned Carry Forward

Subtotal Planned Carry Forward

0.0

Planned New Audits

Information Systems Infrastructure

1

600.0

J.c.04

Scientific Application Development

1

650.0

G.b.01

AHF Project

1

600.0

D.b.01

Recharge Process

1

700.0

E.k.04

Project Management Baseline

1

650.0

D.b.02

Materials and Manufacturing Program Operations

1

600.0

J.b.06

Workforce Management

1

700.0

F.b.04

Allowable Cost Audit - FY 2001

3

500.0

J.b.04

Subtotal Planned New Audits

5000.0

Audit Follow Up

400.0

Subtotal Planned Supplemental Audits (lump sum only)

400.0

Total Planned Audit Program

(1)

5400.0

Planned Advisory Services

(Used where known advisory services will address high risk areas

and thus their inclusion here provides a basis for statistical

calculation of coverage of items risk ranked as high. Other known

Advisory Services (e,g, CSA assistance to controllers) should also

be listed.)

Subtotal Planned Advisory Services

Subtotal Other Advisory Services as yet unknown--should

be added as a lump sum so that a total ties to Schedule 2

Total Advisory Services

(1)

(1)

Must tie with Audit Program and Advisory Services on Schedule 2

Activity Report

*1 = Top 10 scores

2 = Next top 10 scores

3 = All others

Schedule 3 FY 2002 Plan

LANL Sched 1 thru 4.xls

FUNCTIONAL AREAS

CATEGORY

HOURS

PERCENT

Auxiliary, Business, & Employee Support Services

A

-

0%

Development & External Relations

B

-

0%

Environmental and Public Safety

C

-

0%

Facilities, Construction & Maintenance

D

1,250

25%

Financial Management

E

700

14%

Human Resources & Benefits

F

700

14%

Information Technology & Communications

G

650

13%

Campus Research Departments & Instruction

H

-

0%

Healthsciences, Research, Instruction & Clinical Services

I

-

0%

Lab Research Programs & Processes

J

1,700

34%

UCOP

K

-

0%

5,000

100%

LANL Sched 1 thru 4.xls

FY 2001-02 Annual Plan - Functional Areas

I

Healthsciences, Research,

Instruction & Clinical Services

J

Lab Research Programs &

Processes

K

UCOP

H

Campus Research

Departments & Instruction

F

Human Resources & Benefits

E

Financial Management

D

Facilities, Construction &

Maintenance

C

Environmental and Public

Safety

B

Development & External

Relations

A

Auxiliary, Business, &

Employee Support Services

G

Information Technology &

Communications

LANL Sched 1 thru 4.xls

UNIVERSITY OF CALIFORNIA

SCHEDULE 4

INTERNAL AUDIT PLAN STATISTICS

FY 2002

LANL

Annual

I

Coverage of High Risk

Hours

Number

Hours

Number

Hours

Number

Goal

In Planned:

Top 10 High Risk (if not 10 insert correct #)

10

10

20

Audits

4500

7

4500

7

Advisory Services

0

0

Total

4500

7

0

4500

7

Percentage

70%

0%

35%

80--100%

Coverage of CORE

Annual

II

Hours

Number

Hours

Number

Hours

Number

Goal

Number of Core elements in Universe

8

8

In Planned:

Audits

3000

5

Advisory Services

Total

3000

5

0

0

0

5

Percentage

63%

#DIV/0!

63%

Approx. 33%

III

Distribution of Tier 1 Audit Coverage

Hours

Percent

Hours

Percent

Hours

Percent

A

Auxiliary, Business, & Employee Support Services

0

0%

#DIV/0!

0

0%

B

Development & External Relations

0

0%

#DIV/0!

0

0%

C

Environmental Safety and Security

0

0%

#DIV/0!

0

0%

D

Facilities, Construction & Maintenance

1250

28%

#DIV/0!

1250

28%

E

Financial Management

700

16%

#DIV/0!

700

16%

F

Human Resources & Benefits

700

16%

#DIV/0!

700

16%

G

Information & Communications

650

14%

#DIV/0!

650

14%

H

Campus Research Departments & Instruction

0

0%

#DIV/0!

0

0%

I

Health Sciences Research, Instruction & Clinical Services

0

0%

#DIV/0!

0

0%

J

Lab Research Programs & Processes

1200

27%

#DIV/0!

1200

27%

K

Office of the President

0

0%

#DIV/0!

0

0%

Total

4500

100.00%

0 #DIV/0!

4500

100.00%

Camp/Lab/OP

Health Sciences

Combined Total

Camp/Lab/OP

Health Sciences

Combined Total

Camp/Lab/OP

Health Sciences

Combined Total

Schedule 4 FY 2002 Plan

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