4.0 Capacity and performance assessment of OCOL’s internal audit function
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4.1 Capacity assessment
As part of its responsibilities to provide oversight of OCOL’s internal audit function, the AC is required to assess and report on the capacity and performance of this function in its annual report. This section describes the AC’s assessment in these areas.
One of the biggest challenges for OCOL’s internal audit function, as well as for internal audit functions across the government, is the recruitment, training and retention of qualified internal audit professionals. This problem arises from the limited pool of qualified internal audit professionals in the public service, which are in increasing demand across the federal government.
The additional challenge for OCOL is its lack of internal dedicated capacity for an internal audit function because of OCOL’s small size. OCOL’s in-house internal audit capacity consists of a Manager, Internal Audit and Planning, with oversight by the Chief Audit Executive, who is also the Assistant Commissioner, Corporate Services Branch. To augment its in‑house capacity, OCOL works with an outside professional services firm on both the internal audit planning function and individual internal audit engagements. This arrangement enables OCOL to retain control and oversight of the function while leveraging the expertise and experience of internal audit professionals as required.
4.2 Performance assessment
4.2.1 Delivery against the approved Internal Audit Plan
The Internal Audit Plan 2008–2009 and Outlook to 2010–2011 identified the need for an internal audit of OCOL’s key human resources management practices in 2008–2009. The organization is poised to complete the audit aspect of this planned internal audit engagement by the end of the fiscal year, with the final report expected to be completed by the end of April 2009.
4.2.2 Progress in implementing the TB Policy on Internal Audit
Because OCOL did not have an internal audit function before the TB’s Policy on Internal Audit, OCOL has only begun to make progress in implementing the required elements of this policy, including the following:
- established an internal audit function;
- established a new, independent audit committee in October 2007;
- developed an internal audit policy for OCOL, consistent with the TB Policy on Internal Audit, which the AC recommended for approval in October 2007 and was subsequently approved by the Commissioner;
- developed and implemented a risk-based internal audit planning process, including the development of its first annual and multi-year internal audit plan; and
- developed and implemented a process to identify and contract with qualified internal audit specialists when required.
