The Auditor General of Alberta, Fred J. Dunn, FCA, released his Report of the Auditor General of Alberta—October 2009 today. His report includes the results of five new and two follow-up major systems audits:
The report also includes the results of our 180 annual financial statements and other assurance Audits. Highlights include:
- University of Calgary—Decentralized control environment (page 151)—the University needs to make substantial improvements to its decentralized control environment. We repeated recommendations related to payroll (page 153), information technology (page 155), and journal entries (page 157).
- Energy—Bitumen valuation methodology implementation (page 195)—Department needs to improve its monitoring of the implementation of the bitumen valuation methodology. We observed bitumen price variances resulting from differences in interpretation of bitumen valuation methodology between the Department and oil sands operators. Although no significant impact on royalties earned to March 31, 2009, there could be a significant future impact on royalties.
- Alberta Health Services—we have made 11 significant recommendations to AHS to improve its systems. They focus on improving their systems for executive compensation, information technology, capital project management, financial reporting and financial management controls. Two are key:
- Information technology control policies and processes (page 262)—we found many weaknesses in IT controls. AHS needs to develop an IT control framework and monitor compliance with policies.
- AHS capital project monitoring systems (page 271)—AHS needs to improve the efficiency and effectiveness of its financial capital project monitoring and reporting systems and processes. We found a variety of monitoring processes that were inefficient, and did not enable staff to produce timely, relevant and accurate financial information on its capital projects.