FINAL INTERNAL AUDIT REPORT
General Ledger Management
(IA 12 103/F)
Steve Allen, Managing Director,
Finance
Audit Conclusion: Audit Closed
29 January 2014
Issue
categories
Agreed
actions
Satisfactorily
addressed
Partially
addressed
No longer
applicable
Not
addressed
Priority 1
0
0
0
0
0
Priority 2
3
2
1
0
0
Priority 3
0
0
0
0
0
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General Ledger Management (12 103/F)
Contents
EXECUTIVE SUMMARY .................................................................................... 3
STATUS OF AGREED ACTIONS ...................................................................... 4
APPENDIX 1 – DISTRIBUTION LIST ................................................................ 6
Draft versions issued
1
Fieldwork commenced
15 January 2014
Fieldwork completed
28 January 2014
Draft report issued
28 January 2014
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General Ledger Management (12 103/F)
EXECUTIVE SUMMARY
Objective
The objective of this audit was to review the adequacy and effectiveness of the
TfL general ledger controls.
Scope
The audit focused on the control environment in relation to the following key risk
areas:
Written policies, and procedures
Chart of accounts
Roles and responsibilities, including segregation of duties and access rights
Trial balance controls and balance sheet control account reconciliations
Journals and other manual entries
Suspense accounts
SAP interface with other key systems
Summary of findings
Our Interim Audit Report dated 12 December 2012 entitled General Ledger
Management identified one Priority 2 issue resulting in three management
actions.
We have now carried out a follow up review of the agreed management actions
and can confirm that two have been satisfactorily addressed.
One action remains partially addressed due to significant delay to the Run
Better Programme. However, alternative action is being taken in the meantime
to compensate for this.
Therefore this audit is now closed.
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STATUS OF AGREED ACTIONS
Ref
Agreed action
Owner and
due date
Status
Further action required and
due date
Sarah
Bradley,
Head of
Group
Financial
Accounting
Partially addressed.
Comprehensive review of the
Chart of Accounts as part of
the RBP Financial
Consolidation workstream.
Priority 2 actions
1.
A comprehensive review of
the Chart of Accounts will be
undertaken as part of the Run
Better Programme (RBP), in
order to streamline it.
However, as a result of other
priorities, particularly the new
Consolidation System, it will
not be possible to undertake
the review earlier than
December 2013.
2.
The Group Financial
Reporting Manager’s
approval will now be
required where a TfL
business area requests to
31 December
2013
The Financial Consolidation
workstream of RBP will include a
review of the structure of the Chart
of Accounts. However, due to RBP
slippage, this workstream is now
estimated not to be completed until
June 2015.
June 2015.
In the meantime, the Chart of
Accounts is reviewed every year
and as part of the last review in
2013, 38 accounts relating to old
PPP general ledger codes were
blocked for use. Another review will
take place after the 2014 year end
process.
Sarah
Bradley,
Head of
Group
Financial
Satisfactorily addressed.
The Group Financial Reporting
Manager’s approval is now required
where a TfL business area requests
to use an account already set up for
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General Ledger Management (12 103/F)
Ref
3.
Agreed action
Owner and
due date
Status
use an account already set
up for another business
area.
Accounting
another business area.
The Head of Group Financial
Accounting will raise the
issue of Crossrail new
accounts with the Crossrail
Director of Financial
Operations, and ask him to
ensure TfL is always
informed of proposed
changes to the Crossrail
Chart of Accounts.
Sarah
Bradley,
Head of
Group
Financial
Accounting
Further action required and
due date
31 December
2012
31 December
2012
Satisfactorily addressed.
The issue of Crossrail new accounts
was raised with the Crossrail
Director of Financial Operations,
and he was asked to ensure TfL is
always informed of proposed
changes to the Crossrail Chart of
Accounts.
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General Ledger Management (12 103/F)
APPENDIX 1 – Distribution list
This report was sent to Steve Allen, Managing Director, Finance, by Clive
Walker, Director of Internal Audit, and copied to:
Simon Bicknell
Head of FSC
Kris Worthington
Financial Reporting & Revenue Accounting
Manager, FSC
Andrew Pollins
Director of Finance, Rail and Underground
David Hendry
Director of Finance, Surface Transport
Andrew Freeman
Head of FBSF
Sarah Bradley
Head of Group Financial Accounting
David Allen
Director of Finance, Crossrail
Robert Flanagan
Director of Financial Operations, Crossrail
Patrice Whyte
as Key Risk Representative
Nigel Blore
Head of Group Insurance
Andrea Clarke
Director of TfL Legal
David Goldstone
Chief Finance Officer
Howard Carter
General Counsel
Robert Brent
KPMG
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