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Audit of Accounts Receivable

June 22, 2009

Audit Key Steps

Planning completed - August 2008

Field work completed - February 2009

Draft report completed and sent for management response - February 2009

Management response received - March 2009

Final report completed - April 2009

Report presented to the External Audit Advisory Committee - April 2009

Approved by the Deputy Minister - June 2009

Prepared by the Audit and Evaluation Team

Acknowledgments

The team responsible for this audit, comprised of Julie Clavet-Drolet, under the supervision of Bruno Pilotte and the direction of Jean Leclerc, would like to thank those individuals who contributed to this project, and particularly, employees who provided insights and comments as part of this audit.

Original signed by

Chief Audit Executive

Table of Contents

• Executive Summary
• 1 Introduction
  • 1.1 Context
  • 1.2 Analysis of Risks
  • 1.3 Objectives and Scope
  • 1.4 Methodology
  • 1.5 Statement of Assurance
• 2 Findings and Recommendations
  • 2.1 Recovery of Debts
    • 2.1.1 Collection Actions
    • 2.1.2 Value of Sums to be Recovered
  • 2.2 Administrative Charges and Interest
    • 2.2.1 Administrative Charges
    • 2.2.2 Interest
  • 2.3 Writing off Accounts Receivable
    • 2.3.1 Approval and Monitoring of Write-offs
    • 2.3.2 Authorization for Writing off of Interest
    • 2.3.3 Financial Coding Used for Write-offs
  • 2.4 Financial System
    • 2.4.1 Accessibility to the Accounts Receivable Module
    • 2.4.2 Reconciliation of the Accounts Receivable Module with the General Ledger
  • 2.5 Segregation of Duties
  • 2.6 Recording Revenue in the Appropriate Fiscal Period
  • 2.7 Departmental Policies and Procedures
• 3 Conclusion
• Annex 1 Audit Criteria
• Annex 2 Authority Description