Risks and Related Projects Not Covered in the Proposed Plan

Operational & Financial Risks

Risk

• Supply Chain Visibility and efficiency of the supply chain
• Cash & Funding Resilience Consider short, medium and long term funding
• Third Party Continuity of supply from third party service providers
• Market Opportunities & Vulnerabilities Volatility in investment portfolios, returns and public funding (including timing).
• Tax & Regulatory Potential Impacts

Internal Audit response

• The robustness of the supply chain is key: From the sourcing of raw material to deploying this in local projects new risks have arisen and may be impacted. A deep understanding of the supply chain and the risks presented by your third parties will help respond today and improve them for tomorrow.
• Understand and prepare: Accessing critical supply chain data across all tiers to properly assess the potential risk and opportunities to enable the business to take advantage. Where applicable, prepare to set up a temporary inventory recovery and evaluation process and pursue alternative sourcing strategies. Cash & Funding Resilience Consider short, medium and long term funding
• Project included in proposed plan 
• Review arrangements with third party service providers: Assess risks associated with outsourced arrangements and the robustness of third party controls (e.g. third party business continuity, integrity of reporting, service delivery KPIs, etc). Where organisations are significantly dependent on third parties to deliver core services, consider a 'fit-for-purpose' assurance program over key risks and controls associated with the delivery of services by a third party.
• Project health checks: Review of projects to assess the impact of COVID-19, checking contingency arrangements on the critical path for project delivery and assessing the ability of third parties to deliver as per their contract. Internal Audit could also assist in project prioritisation linked to strategy and value creation.
• Check-point audits throughout the M&A lifecycle: Assess process & procedures at a point in time and provide recommendations for improvement in areas such as controls over return impacts and timing of public funding cash flows.
• Favorable tax implications: Support business through process & controls implemented in order to meet criteria of any provisions including, among other things; delay of payment of employer payroll taxes, (NOL) changes; postponement or delay of required filings/reporting; partial above-the-line" deduction for charitable contributions and modification of limitation on charitable contributions Council Agenda - May 25, 2020