Audit of Compensation Services (September 2002)

FOREIGN AFFAIRS AND OFFICE OF THEINTERNATIONAL TRADE INSPECTOR GENERAL AUDITOFCOMPENSATION SERVICESSMSHSEPTEMBER 2002 Audit Division ( SIV )TABLE OF CONTENTSEX EC U TIVE SU M M AR Y ............................................... 1AU D IT OBJ EC TIVE ................................................... 3SCOPE AND APPROACH .............................................. 4BACKGROUND ...................................................... 51.1 Departmental 51.2 Interdepartmental ............................................ 5OBSERVATIONS AND RECOMMENDATIONS .............................. 72.1 Management Control Framework ................................ 72.2 Inter nal C ontr ols 172.3 Bus ines s Pr oc es s es ......................................... 19C OM PEN SATION SER VIC ES OR GAN IZ ATION AL PLAC EM EN T .............. 22EXECUTIVE SUMMARYAn internal audit of the Department’s Compensation Services unit(formerly SMFC) was carried out from October to December 2001.The audit focused on Compensation Services’ management controlframework, the efficiency of its business processes and practices, and theorganizational placement of the compensation services function within the Department.This Report contains recommendations aimed at improving CompensationServices’ delivery of its services to clients. The issues involved are well known ...