150 lines
11 KiB
HTML
150 lines
11 KiB
HTML
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<div class="document">
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<div class="top-bar"></div>
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<div class="doc-header">
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<div class="doc-header-text">
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<div class="doc-title">Audit Report</div>
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<div class="doc-subtitle">Vantage Capital Partners Ltd</div>
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<hr>
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<div class="meta-grid">
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<span class="meta-label">Audit Period:</span> <span class="meta-value">1 October 2025 – 31 January 2026</span>
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<span class="meta-label">Prepared By:</span> <span class="meta-value">Dominic Hartley, Head of Internal Audit</span>
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<span class="meta-label">Report Date:</span> <span class="meta-value">14 February 2026</span>
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</div>
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<hr>
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<div class="section-heading">Executive Summary</div>
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<div class="text-section">This internal audit was conducted to assess the effectiveness of Vantage Capital Partners' procurement and supplier management framework across all UK business units. The audit covered the period 1 October 2025 to 31 January 2026 and encompassed purchase order processes, supplier onboarding controls, contract management and invoice approval workflows.
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Overall, the procurement function operates with a reasonable control environment. However, the audit identified three significant findings and two areas of improvement, as detailed below. Management has acknowledged the findings and proposed remediation actions with target completion dates. The overall audit opinion is Partially Satisfactory.</div>
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<div class="section-heading">Scope and Objectives</div>
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<div class="text-section">The audit was scoped to cover: (1) purchase order authorisation and segregation of duties; (2) supplier due diligence and onboarding procedures; (3) contract register completeness and renewal monitoring; (4) three-way matching of purchase orders, delivery notes and invoices; and (5) compliance with the Group Procurement Policy (v3.1, updated September 2025).
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Out of scope: IT systems procurement governed by the Technology Steering Committee and capital expenditure projects above £500,000 (subject to separate Board approval processes).
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The objectives were to provide assurance that procurement activities are conducted with appropriate controls, value for money is achieved, and risks of fraud and error are adequately mitigated.</div>
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<div class="section-heading">Methodology</div>
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<div class="text-section">The audit was conducted in accordance with the Chartered Institute of Internal Auditors (CIIA) Standards. Fieldwork comprised: structured interviews with the Head of Finance Operations, two Procurement Managers and the Legal Counsel; walkthrough testing of the purchase-to-pay process; review of a random sample of 45 purchase orders raised between October 2025 and January 2026; analysis of the supplier register and contract database; and examination of invoice approval audit logs from the Oracle Fusion ERP system.</div>
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<div class="section-heading">Findings</div>
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<table class="findings-table">
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<thead>
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<tr>
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<th style="width:5%">#</th>
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<th style="width:30%">Finding</th>
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<th style="width:12%">Risk Level</th>
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<th style="width:25%">Recommendation</th>
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<th style="width:28%">Management Response</th>
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</tr>
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</thead>
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<tbody>
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<tr>
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<td>1</td>
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<td>11 of 45 purchase orders sampled (24%) lacked a second approver for values between £25,000–£100,000, contrary to the Group Procurement Policy requirement for dual authorisation above £10,000.</td>
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<td><span class="risk-high">High</span></td>
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<td>Enforce dual-authorisation controls within Oracle Fusion for all POs above £10,000 and implement automated escalation alerts for non-compliance.</td>
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<td>Agreed. Finance Operations will reconfigure Oracle Fusion approval workflows by 31 March 2026. A mandatory awareness communication will be issued to all budget holders by 28 February 2026. Owner: Head of Finance Operations.</td>
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</tr>
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<tr>
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<td>2</td>
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<td>The supplier register contained 38 active suppliers with expired due diligence documentation (company credit checks and Modern Slavery Act questionnaires older than 24 months).</td>
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<td><span class="risk-high">High</span></td>
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<td>Implement an annual supplier re-accreditation cycle and introduce automated expiry alerts within the supplier management module.</td>
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<td>Agreed. Procurement will conduct a full supplier re-accreditation exercise by 30 April 2026. Automated alerts will be configured in the ERP system by 31 March 2026. Owner: Group Procurement Manager.</td>
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<tr>
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<td>3</td>
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<td>17 contracts (22% of the active contract register) had no documented renewal or expiry review scheduled, creating a risk of inadvertent auto-renewal on unfavourable terms.</td>
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<td><span class="risk-medium">Medium</span></td>
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<td>Assign a contract owner to each active contract and establish a 90-day advance review process within the contract management system.</td>
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<td>Agreed. Legal Counsel will update the contract register and assign ownership by 31 March 2026. A 90-day review process will be embedded in the contract management system by 30 April 2026. Owner: Legal Counsel.</td>
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</tr>
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<tr>
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<td>4</td>
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<td>Invoice coding errors were identified in 6% of sampled invoices, with amounts incorrectly posted to cost centres due to the absence of a mandatory cost-centre validation rule in Oracle Fusion.</td>
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<td><span class="risk-low">Low</span></td>
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<td>Introduce a mandatory cost-centre validation rule at invoice entry stage and provide refresher training to accounts payable staff.</td>
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<td>Agreed. IT will implement the validation rule by 28 February 2026. Training sessions will be arranged for accounts payable by 14 March 2026. Owner: Head of Finance Operations.</td>
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</tr>
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</tbody>
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</table>
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<div class="section-heading">Conclusion</div>
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<div class="text-section">The audit concludes that the procurement and supplier management function operates with a partially satisfactory control environment. The two high-risk findings relating to purchase order authorisation and supplier due diligence represent the most significant risks and require prompt remediation. Management has responded constructively and the agreed actions, if implemented to the stated deadlines, should substantially improve the control framework. Internal Audit will conduct a follow-up review in July 2026 to verify implementation of all agreed actions.</div>
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<div class="section-heading">Sign-Off</div>
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<div class="meta-grid">
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<span class="meta-label">Date:</span> <span class="meta-value">14 February 2026</span>
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</div>
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<div class="signoff-grid">
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<div class="signoff-col">
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<div class="signoff-label">Lead Auditor</div>
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<div class="sig-line"></div>
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<div class="sig-field-label">Dominic Hartley</div>
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<div class="sig-field-label">Head of Internal Audit</div>
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</div>
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<div class="signoff-col">
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<div class="signoff-label">Reviewed By</div>
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<div class="sig-line"></div>
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<div class="sig-field-label">Authorised Signatory</div>
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</div>
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</div>
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</div>
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</body>
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