Newsletter No. 52

CUHK NEWSLETTER Prior t o th e evaluatio n exercise , representative s o f th e Internal Audi t Office will have a preliminary meetin g with the head of the department in order to understand th e scope of it s services , an d t o discus s th e aspect s t o be evaluated . After thi s initia l familiarizatio n th e auditor s wil l contac t staff member s o f th e departmen t an d reques t th e releas e of relevan t informatio n an d documents . W e shal l allo w sufficient time for the gathering of documents and see to it that staff members' workloa d is not unduly increased. • Auditor s ar e ofte n unwelcom e figure s a s i t i s generall y believed tha t the y ar e fastidiou s an d ar e ap t t o roc k th e boat. A s hea d o f th e Interna l Audi t Office , what wil l you do t o gai n th e suppor t an d cooperation of the departments? • I mus t emphasiz e tha t th e Interna l Audit Offic e i s jus t on e o f th e University's servic e units . I t i s instituted to provid e independen t evaluation services . I t certainly ha s not bee n create d t o supervis e th e departments, o r to pic k a t them. It s intentions ar e well-mean t an d ther e is a lot of good will: it seeks to take a third-party , objectiv e vie w o f the operation o f the departments, t o see wha t ca n b e don e t o rais e effectiveness an d efficiency . Fo r example, whe n a departmen t complains about insufficien t manpower and it s request s fo r th e creatio n o f ne w post s canno t b e immediately me t because of limited resources, the Internal Audit Office will, if asked to assist, study the operation and manpower deploymen t o f tha t department , an d tr y t o identify solution s t o eas e th e strain . Ou r auditor s ar e professionals and , wher e ther e i s misunderstanding o n the part o f th e department s bein g evaluated , wil l patientl y explain everything to the people concerned. Truly Independent and Objective? • Objectivit y i s a n overridin g concer n a t th e Interna l Audi t Office. Do you see conflict of interest in your dual capacity as its director and a member of the Bursary staff? • I shal l relinquis h par t o f m y Bursar y dutie s whe n th e Internal Audi t Offic e becomes full y operational. However , I shal l continu e t o b e involve d o n a spli t tim e basi s i n certain area s o f th e Bursary' s services , fo r exampl e th e Staff Superannuation Schem e and staff loans. After all, the Internal Audi t Offic e is a smal l unit , an d th e University , with it s heav y commitment s t o teachin g an d research , i s not in a position t o provide for 10 0 per cent independence of thi s office . The offic e will initiall y b e locate d o n th e ground floo r o f th e Universit y Administratio n Building , next doo r t o th e Bursary , bu t i t wil l mov e t o th e lowe r ground floo r late r o n t o physicall y distanc e itsel f fro m the Bursary. • Yo u emphasiz e tha t th e rol e o f th e offic e i s t o revie w objectively an d t o mak e recommendation s fo r improvement. How abou t i f you r recommendation s ar e no t accepted or implemented by the department concerned? • Ou r work i s to audit , evaluate, an d report. Whethe r o r not to adop t th e recommendation s i s a decision tha t rest s wit h th e department concerned an d th e Universit y authorities. Whe n a n evaluatio n exercise is completed, the office will submit finding s an d recommendations to th e department , an d discuss i n grea t detai l wit h departmental representatives ho w th e recommendations shoul d b e effectively implemented. If , afte r th e first evaluation , a departmen t ha s not acte d o n th e recommendations , then w e wil l see k t o fin d ou t wh y at th e secon d evaluation . I believ e that, sinc e th e auditor s al l tak e a third-party stance , the y wil l no t b e overly concerne d wit h th e acceptanc e o r refusa l o f th e recommendations submitte d t o an y department , an d staf f morale is thus unlikely to be affected. • Wil l evaluation findings be publicized? • Thi s ha s ye t t o b e decide d b y th e vice-chancellor . I f findings ar e t o b e release d outsid e th e departmen t concerned, I shal l discus s wit h th e vice-chancello r ho w i t should be done. Present Status • Pleas e describe the staff establishment at the Internal Audit Office. How is preparation work getting on? • Apar t from me there i s provision fo r a senio r auditor , two auditors, an d a clerk . Th e senio r audito r wil l joi n u s i n mid-March whil e recruitmen t fo r th e othe r position s i s going on. It is hoped that all these positions could be filled within a year. While we haven't ye t go t al l the manpowe r we need , w e ar e plannin g t o star t evaluatio n exercise s i n April or May. NO.52MARC H 1994 9