Facilities Management Audit Program

Control Objectives & Activities Test Steps

1) Adequate and appropriate buildings and facilities are provided in order that the organization's operational
requirements can be cost effectively met.

1. Interview management to determine how the

requirement for buildings and premises are identified to
address the operational objectives of the organization.
1.1 Management accurately identifies requirements for buildings
and premises in order to address the operational objectives of the
2. Obtain details of new/changes to buildings and
organization.
premises and examine whether it can be evidenced that
management identifies the requirements keeping in
mind operational objectives of the organization.

1. Obtain a list of all new property arrangements made

1.2 Property arrangements are made only after appropriate
management authorization.
for the period under review and select a sample for
testing.
2. Verify that all the sampled arrangements are
adequately authorized prior to execution.

1. Interview management to understand the process by

1.3 Space requirements are accurately linked to the strategic
development of business operations.
which space requirements are accurately linked to the
strategic development of business operations.
2. Obtain the working of space requirements for all
facilities and assess whether the strategic objectives of
the organization is factored into the calculation as per
process understood in step 1 above.

1. Interview management to determine how they ensure

that restrictions are not included in lease terms.
1.4 Management reviews property deeds and leases to ensure
that they do not contain any usage limitations or other restrictions. 2. Obtain the property deeds and lease agreements of
the organization and review them to determine if they
contain any terms restricting usage by the organization.

2) Acquisition and leasing of property are valid and justified.

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 Facilities Management Audit Program

Control Objectives & Activities Test Steps

1. Interview management to determine how potential

properties are evaluated.

2. Obtain a list of all new properties acquired and rented

for the period under review and select a sample for
2.1 Property prices and rent expense are fair and competitive.
testing.

3. Verify that for all the samples, there exists evidence

of evaluation by management of price competitiveness
as per the process understood in step 1 above.

1. Interview management to determine how property

costs are monitored and accounted for.

2. Obtain details of property costs for the period under

review and select a sample for testing.
2.2 All property costs are correctly accounted for, authorized, and
monitored. 3. Verify that the costs are authorized by an appropriate
level of management and are correctly accounted for.

4. Examine the monitoring of these costs and determine

if they are consistent with the process understood in
step 1 above.

1. Obtain details of maintenance costs for the period

under review and select a sample for testing.

2. Verify that the costs are authorized by an appropriate

2.3 All maintenance costs are justified and authorized. level of management.

3. Examine that there exists proper justification of these

costs which are also subject to regular management
monitoring.

3) Space requirements are accurately identified and available space is efficiently utilized.
1. Interview management to determine how they ensure
that building space is efficiently used.
3.1 Space is efficiently utilized and surplus or under-utilized
space and buildings are identified and disposed of.
2. Review the facilities and building layouts and assess
whether space is sufficient.

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 Facilities Management Audit Program

Control Objectives & Activities Test Steps

1. Obtain the space planning details for the period

under review.
3.2 Space planning requirements and allocations are subject to
suitable assessment and authorization.
2. Examine whether space requirements and allocations
are authorized by an appropriate level of management.

1. Interview management to determine how potential

properties are evaluated.
3.3 Potential property acquisitions are suitable for the required
purpose and provide all the required facilities. 2. Verify that potential properties are evaluated for
suitability to the purpose and provision of required
facilities before they are acquired.
4) An accurate, complete, and up-to-date register of all properties is maintained and the relevant law and regulation is
met.
1. Obtain the property register of the organization.

2. Obtain the complete list of properties of the

4.1 A property register is established and kept up-to-date,
complete, and accurate with a listing of all properties in the
organization.
organization from the lease agreement and property
purchase files.
3. Obtain source documents for all leases and
purchases and verify the correctness of entries in the
property register.

1. Interview management to determine how building

4.2 All the relevant prevailing building laws and regulations are
identified and complied with.
laws and regulations are identified and complied with.
2. Inquire of instances of recent non-compliance and if
existing, interview management to determine the cause
of the non-compliance.

5) Surplus or redundant buildings and property are identified and suitably disposed.

1. Interview management to understand the process by

which surplus or redundant buildings and properties are
identified and how it is ensured that they are disposed
5.1 Surplus or redundant buildings are appropriately disposed of off on the most advantageous terms.
on the most advantageous terms.
2. Obtain a list of recent disposals and verify whether
there is a business justification for the disposal and if it
is approved by management.

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 Facilities Management Audit Program
Control Objectives & Activities
5.2 Surplus space capacity is considered in relation to shortages
elsewhere in the organization.
6) Relevant lease conditions are identified and complied with and sub-let property is effectively and efficiently
managed.
6.1 All the relevant lease and occupancy conditions are
accurately identified and fully complied with.
6.2 Mechanisms are in place to ensure that rents due from
tenants are correctly paid on time and prompt action taken when
overdue rents occur.
7) Buildings are adequately, safely, and cost effectively maintained.
7.1 Buildings are subject to adequate maintenance.
Test Steps
1. Obtain a list of new properties for the period under
review.
2. Verify that before management decides to
purchase/rent properties, whether there is evaluation of
surplus capacities in nearby facilities.
1. Interview management to determine how they ensure
that all occupancy terms are accurately identified and
complied with.
2. Obtain a sample of lease and occupancy agreements
and examine evidence that for the sampled
agreements, significant terms and conditions are
identified by management and highlighted.
3. Verify that the terms and conditions are complied with
by management by reviewing rent payment details,
occupancy stipulations, sub-letting , etc.
1. Obtain the rent received details and check with
respective agreements to verify whether rent is received
on time, and in case of any delays, examine steps taken
to ensure timely receipt in future.
2. Obtain a list of overdue rent from sub-letting of
facilities and verify if action is taken for recovery and
proper follow-up is performed.
1. Interview management to understand the
mechanisms that are in place to ensure that buildings
are maintained adequately and judgmentally decide if
this appears sufficient.
2. Examine the maintenance log to verify if the
mechanisms as identified in step 1 above are working
as intended.
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 Facilities Management Audit Program
Control Objectives & Activities
7.2 Adequate and effective security, fire prevention, and
protection facilities are provided, maintained, and tested.
7.3 All the required safety regulations are complied with, and
adequate, appropriate, and operational safety equipment is
provided.
7.4 Management ensures that the provision of building services
is cost-effective.
8) Appropriate and adequate facilities are provided to cater for the safety, protection, and well being of staff and
visitors and the properties.
Test Steps
1. Interview management to determine how they ensure
that effective security is maintained.
2. Physically inspect the facilities and decide whether
security measures are adequate.
3. Obtain the maintenance log for security, fire
prevention, and protection facilities and review whether
maintenance activities are taken as per frequency as
understood in step 1 above.
1. Interview management to determine how they ensure
that all safety regulations are complied with and
relevant regulations governing safety matters.
2. Inquire of instances of non-compliances and examine
whether these cases are investigated and action plans
formulated to prevent recurrence.
3. Examine the safety equipment provided and verify if it
is adequate by comparing requirements governed by
regulatory agencies.
1. Interview management to determine how building
service efficiency is achieved.
2. Obtain the building maintenance account and
examine whether this is regularly reviewed by
management to identify unnecessary expenditure and
also whether services are obtained at best possible
prices.
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 Facilities Management Audit Program

Control Objectives & Activities Test Steps

1. Review the physical security to the buildings and

property and determine if it is adequate.

2. Interview the security department to determine if

8.1 Buildings and property are adequately protected from there were any intrusion attempts in the recent past and
intruders and unwanted visitors. what action plans are formulated to strengthen security.

3. Examine whether the facilities are access controlled

and whether all visitors need to obtain temporary cards
to enter premises.

1. Review the fire prevention systems in the

organization and determine if this appears adequate.

8.2 Sufficient and appropriate fire prevention and detection 2. Obtain evidence that fire fighting drills are carried out
facilities are provided, regularly tested, and maintained in working and examine whether staff are adequately trained to
order. respond to fire situations.

3. Examine that fire fighting equipment is regularly

tested for effectiveness.

1. Interview management to determine emergency

8.3 Measures are in place to ensure that all visitors are
accounted for during emergency evacuation drills.
evacuation procedures.
2. Examine evidence that drills are carried out as per
defined frequency and involves control on how to
identify and evacuate visitors in emergency situations.

1. Obtain the incident log and verify that all incidents are
8.4 All incidents and accidents are suitably recorded and
recorded and followed up and action plans drafted to
followed-up.
prevent such incidents from occurring in future.

1. Interview management to determine how insurance

coverage is evaluated.
8.5 Adequate levels of insurance coverage is maintained.
2. Obtain all insurance policies and verify that coverage
is adequate by examining book values of properties
insured.
9) All environmental systems are operated legally and cost effectively and adequate cleaning services are provided to
the required standard.

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 Facilities Management Audit Program

Control Objectives & Activities Test Steps

1. Interview management to determine how

environmental systems are maintained effectively and
also within legal parameters.

2. Obtain the relevant maintenance accounts and

examine whether maintenance costs show an
9.1 Measures are in place to ensure that all environmental
increasing trend in relation to cost of facilities, and if
systems (i.e. heating, lighting, air conditioning, etc.) are operated
yes, whether management is aware of the same and
correctly, legally, and cost-effectively.
takes steps to cut down wastages.

3. Inquire of cases of non-compliances with legal

provisions on operation of environmental systems and
examine steps taken be management to prevent
recurrence.

1. Interview management to determine how

environmental systems are monitored.
9.2 Management is alerted to either the failure or inefficient
operation of environmental systems.
2. Obtain details of operation of such systems and
examine evidence of management monitoring.

1. Obtain the details of the operating costs of

environmental systems for the period under review and
9.3 The operating costs of environmental systems are accurately select a sample for testing.
identified, monitored, and authorized.
2. Verify that the costs are authorized and monitored by
management.

1. Obtain the contracts with cleaning contractors and

identify the cleaning standards agreed upon.
9.4 Appropriate cleaning standards are agreed upon with
cleaning staff/contractors and achievement of those standards
2. Examine the cleaning checklist maintained in facilities
are monitored.
and verify if the standards agreed upon are being
followed.

1. Interview management to determine how building

service issues are dealt with.
9.5 Shortcomings in the provision of building services (i.e.
cleaning) are promptly identified and resolved.
2. Examine evidence that shortcomings are properly
dealt with.
10) All services (i.e. telephone, power, light, etc.) are valid and suitably maintained.

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 Facilities Management Audit Program
Control Objectives & Activities
10.1 Adequate and appropriate communications equipment is
provided and unauthorized usage is prevented.
10.2 Mail (internal and external) is securely and promptly
distributed.
10.3 All communications costs (i.e. telephone, fax, telex, video-
conferencing, etc.) are effectively monitored and authorized.
Test Steps
1. Interview management to determine how they ensure
that communications equipment obtained for use is
adequate and appropriate.
2. Examine the communication equipment and identify
idle equipment; determine the reasons for equipment
being idle.
1. Interview management to determine how mail is
distributed securely.
2. Select a sample of mail and identify if there was any
time lag between receipt of the mail at reception/mail
room and receipt of the same by addressee (from
acknowledgement of mail receipt by addressee).
3. Verify that mail is delivered to either the addressee of
a person to authorized by him/her to collect mails on
his/her absence.
1. Obtain the communication cost details for the period
under review and select a sample for testing.
2. Verify that all costs are authorized by management
prior to being incurred out and also examine evidence
of monitoring of these costs by management.
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