Departmental Assurance Survey Financial User Group presentation 13th July 2018 #[TitlePage] © 2018 Deloitte LLP. Private and Confidential.

Contents Introduction Summary Results 2017/18 Points for improvement Further Information Timeline of Survey Preparation and Analysis Feedback and Continuous Improvement © 2018 Deloitte LLP. Private and Confidential.

A brief summary of the results and criteria used Summary Results 2017/18 A brief summary of the results and criteria used No ‘red’ topic areas 86 responses to the survey with 99% of surveys returned Same as 2016/17 14 ‘green’ topic areas compared with 17 in 2016/17 Three areas have moved from a green to an ‘amber’ topic area Nine ‘amber’ topic areas – an increase from three reported in 2016/17 © 2018 Deloitte LLP. Private and Confidential.

University Level and UAS Results (weakest to strongest) The diagram below outlines the average score for each of the 23 topic areas of the 2017/18 survey. There are no areas with a weak control environment. For the following areas, the score both across UAS respondents as well as across the University was over 3.5, indicating a strong control environment: Trust Funds, Expenses and Advances, Budgetary Controls, Student Feedback, Health and Safety, University issued Credit Cards, Procurement and Purchasing, Cash Handling and Banking, Recruitment, Reward and Payroll, Research Grants and Contracts, and Fixed Assets. *For Donations, all UAS responded “Not Applicable” to all questions; as such, there is no UAS score for Donations Key: Weak Control Environment (x≤2.5) Satisfactory Control Environment (2.5 < x < 3.5) Strong Control Environment (x≥3.5) © 2018 Deloitte LLP. Private and Confidential.

Financial areas – points of improvement Accounts Receivable - Deposits and prepayments and credit checks on customers General Ledger and Grant Journals - Secondary review of journal entries by an independent officer and journals providing a sufficient description. Reward and Payroll - Secondary review of payroll Procurement and Purchasing - POs authorised before order placed, authorisation to raise POs for all relevant staff (including academic) and supplier list on Marketplace University issued Credit Cards - Independent review of reconciliations and journal entries for expenditure Expenses and Advances - Regular cost monitoring Cash and cheque banking, and petty cash: One individual responsible for banking, which requires all Departments to travel to the Old Schools. © 2018 Deloitte LLP. Private and Confidential.

Non-financial areas for improvement: Health and Safety - insufficient training for fire wardens and other areas pertaining to health and safety. Responsibilities for risk assessments and safety inspections not understood. Estate Management - lack of awareness of the University’s space utilisation guidelines. Informal and disparate systems for sharing space. IT Controls – Non completion of regular backups, testing of restoration processes. Lack of suitable firewalls in place and a lack of periodic reviews of system access. Risk Management – Local risk registers not subject to a review. © 2018 Deloitte LLP. Private and Confidential.

Further information University of Cambridge – Department Assurance Survey 2017/18 © 2018 Deloitte LLP. Private and confidential.

Timeline of Survey Preparation and Analysis Timescales for delivery of the Departmental Assurance Survey and results In the below diagram, we have outlined the timetable for preparation, completion, and analysis of the Department Assurance survey. We have also included the final next steps for conclusion of our work. Following issuance of the 2017/18 report, we plan to further refine the survey based on feedback received. Following refinement, the 2018/19 survey will be distributed to all Departments in November 2018. Action October November December January February March April May June July September Survey refinement through consultation with management Survey distribution and collection of results Initial analysis of survey results Department visits Additional analysis of survey results and draft report Distribute survey results to Central Offices and Finance Division Presentation to Schools/Departments Draft suggested actions and obtain management responses Distribute final report to the Audit Committee Next Steps Engage with stakeholders to refine survey questions for 2018/19 Follow-up with management on suggested actions © 2018 Deloitte LLP. Private and Confidential.

Continuous improvement Incorporating feedback to further enhance the survey The Departmental Assurance survey analysis and results continue to provide a valuable source of information to Internal Audit in understanding the overall control environment in place across the University. We continue to revise and update both the survey content and our overall approach in response to feedback received from throughout the University. As part of our continuous improvement of the survey, we would like to hear your feedback Could we delve deeper in to some topic areas? Were the questions clear? Any ideas for new topic areas? Could we present our results any better? © 2018 Deloitte LLP. Private and Confidential.

© 2018 Deloitte LLP. Private and Confidential.