1. 2005 – 2009 AUDIT RECOMMENDATIONS –
ACTION STATUS REPORT and process for
reporting ongoing audit status tracking
rECOMMANDATIONS DES VÉRIFICATIONS 2005 – 2009 –
RAPPORT SUR L’ÉTAT D’AVANCEMENT DES MESURES ET PROCESSUS EN
VUE DE FAIRE RAPPORT SUR LE SUIVI
EN COURS DES VÉRIFICATIONS
COMMITTEE
RECOMMENDATIONS
That Council:
1.
Receive, for
information, the 2009 year-end action status tracking report for the 2005 -
2009 audit recommendations requiring implementation, as outlined in Documents 1
through 5; and
2.
Approve that
future action status tracking of audit recommendations be included in the
Auditor General’s annual follow-up audits as part of the regular audit
reporting process.
RECOMMANDATIONS DU COMITÉ
Que le Conseil :
1.
Prenne connaissance du rapport de
fin d’année 2009 relatif au suivi sur l’état d’avancement des mesures
concernant les recommandations des vérifications 2005-2009 nécessitant une mise
en œuvre, tel qu’il est exposé dans les Documents 1 à 5;
2.
Approuve que les suivis à venir sur
l’état d’avancement des mesures liées aux recommandations des vérifications
soient inclus dans les vérifications de suivi annuelles du vérificateur général
dans le cadre du processus régulier relatif aux rapports de vérification.
Documentation
1. City Manager’s report dated 12 April 2010 (ACS2010-CMR-OCM-0003).
Report
to/Rapport au :
Audit, Budget and Finance Committee
Comité de la vérification, du budget et des finances
and Council / et au Conseil
12 April 2010 / le 12 avril 2010
Submitted by/Soumis par : Kent Kirkpatrick, City Manager/Directeur des services
municipaux et Alain Lalonde, Auditor General/ Vérificateur général
Contact
Person/Personne ressource : Kent Kirkpatrick, City Manager /
Directeur des services municipaux
(613) 580-2424 x 25657,
kent.kirkpatrick@ottawa.ca
REPORT RECOMMENDATIONS
That the Audit, Budget and Finance Committee recommend Council:
1.
Receive, for
information, the 2009 year-end action status tracking report for the 2005 - 2009
audit recommendations requiring implementation, as outlined in Documents 1 through
5; and
2.
Approve that
future action status tracking of audit recommendations be included in the
Auditor General’s annual follow-up audits as part of the regular audit
reporting process.
RECOMMANDATIONS DU
RAPPORT
Que le Comité de la vérification,
du budget et des finances recommande au Conseil :
1.
De prendre connaissance du rapport
de fin d’année 2009 relatif au suivi sur l’état d’avancement des mesures
concernant les recommandations des vérifications 2005-2009 nécessitant une mise
en œuvre, tel qu’il est exposé dans les Documents 1 à 5;
2.
D’approuver que les suivis à venir
sur l’état d’avancement des mesures liées aux recommandations des vérifications
soient inclus dans les vérifications de suivi annuelles du vérificateur général
dans le cadre du processus régulier relatif aux rapports de vérification.
BACKGROUND
The Corporate Services and Economic Development Committee and City Council have considered and approved action status tracking reports since 2006 with respect to the implementation status of outstanding audit recommendations and the resolution of items under dispute.
Prior to the formation of the Audit, Budget and Finance Committee (ABFC), following the tabling of the midterm governance review report in June 2009, the Council Audit Working Group (CAWG) was the legislative body overseeing implementation and resolution of the audit recommendations.
The CAWG was established in 2006 to oversee the implementation of audit recommendations and provide a forum for discussion with the Auditor General, appointed members of Council and senior management to discuss and formulate recommendations for decision by CSEDC and Council on disputed items.
With the formation of the ABFC, the CAWG was dissolved and their mandate to receive and report quarterly on the implementation status of audit recommendations and provide input into the recommendations requiring resolution was assumed by the ABFC.
The purpose of this report is to:
DISCUSSION
Audit Action Status Tracking
Documents 1 through 5, appended to this report, provide the ABFC with an update on the status of the implementation of remaining recommendations from the 2005, 2006, 2007, 2008 and 2009 audits as of December 31, 2009.
Document 1 provides the action status tracking of recommendations from the 2005 audits. Implementation of recommendations for the By-Law Services, Emergency Management Program, Real Estate Management, Overtime and Procurement audits are 100% complete. Further progress has been made on implementing the remaining audit recommendations, with the majority of the audits being over 85% completed. This is provided to the ABFC and Council for information.
2007 Audits
Document 3 provides the action status tracking of recommendations from the 2007 audits. The Food Safety and Inspections Control, Light Rail Transit Financial Information, Pesticide Use Policy, Population Growth Projections, Procurement of Fax Machines and Council Request Tracking Process audits are 100% complete. Progress has been made on implementing the remaining audit recommendations, with ten audits over 65% completed. This is provided to the ABFC and Council for information.
2008 Audits
Document 4 provides the action status tracking of recommendations from the 2008 audits tabled to date. The Year-end Spending audit is 100% complete. Progress has been made on implementing the remaining audit recommendations, with twelve audits over 25% completed. This is provided to the ABFC and Council for information.
2009 Audits
Document 5 provides the action status tracking of recommendations from the 2009 audits tabled to date. Progress has been made on implementing the audit recommendations. The Incremental Costs of the Transit Strike is 44% complete. This is provided to the ABFC and Council for information.
Following the tabling of the mid-term governance review report in June 2009 and the formation of the ABFC, the CAWG was dissolved and the mandate to receive and report quarterly on the status of implementation of audit recommendations and provide input into the recommendations requiring resolution was assumed by the ABFC. There is now a requirement to confirm next steps with regard to ongoing audit status tracking.
When the OAG was created in 2004, a decision was made to postpone conducting follow-up audits in order for the Office to focus on new audits and build a series of recommendations that would be followed up after a period of 4-5 years. As such, the 2009 work plan was focussed on these follow-ups, which will be reported upon in the 2010 Annual Report later this year. The Auditor General has indicated that follow-ups will now occur on a more regular basis and that all work plans for 2010-2013 will include a follow-up component, which will be reported to City Council.
The follow-up audit process involves the OAG providing their assessment
of management’s representation of the status of implementation of audit
recommendations. With the initiation of follow-up audits the Auditor General
and City Manager feel that there is no need to duplicate the ongoing status
tracking of audit recommendations through both a status report process and a
follow-up audit process. Recognizing that the audit status tracking will be
reported on as part of the follow-up audit process, the Auditor General and
City Manager are in agreement in recommending the elimination of this
duplication through the suspension of the existing audit status tracking
reporting process to the ABFC and Council.
The OAG has indicated that follow-up audits for the 2005-2007 audits
will be tabled with Council in June 2010.
In future years, each annual report of the OAG will contain follow-up
audits for the previous years' audits.
In addition to follow-up audits, management may provide additional
information regarding the status of implementation of audit recommendations
whenever it deems appropriate.
CONSULTATION
Audit status tracking documents were prepared by applicable departments as part of drafting this report. Consultation will continue as part of the ongoing discussions related to the implementation surrounding the audit recommendations.
Public consultation is not applicable and was not conducted as part of this report. Members of the public may address the Audit, Budget and Finance Committee during its consideration of the report.
FINANCIAL IMPLICATIONS
There are no financial implications associated with this action status
report.
SUPPORTING DOCUMENTATION
Document 1: Status tracking for
the 2005 audits as of December 31, 2009 (Document
issued separately and is on file with the City Clerk.)
a) 2005 Audit of
Drinking Water Services - Recommendation Status Tracking
b) 2005
Audit of Internet Usage and Controls - Recommendation Status Tracking
c) 2005
Audit of the Management Control Framework - Recommendation Status Tracking
Document 2: Status tracking for
the 2006 audits as of December 31, 2009 (Document
issued separately and is on file with the City Clerk.)
a) 2006
Audit of the Building Services Branch - Recommendation Status Tracking
b) 2006
Audit of the Financial Control Environment - Recommendation Status Tracking
c) 2006 Audit of Fleet
Services Branch - Recommendation Status Tracking
d) 2006
Ottawa Fire Services Branch - Recommendation Status Tracking
e) 2006 Audit of
Property Management - Recommendation Status Tracking
f) 2006
Audit of Public/Private Partnerships (P3) Processes - Recommendation Status
Tracking
g) 2006 Audit of
Surface Operations - Recommendation Status Tracking
h) 2006 Audit of
Wastewater & Drainage Services Division - Recommendation Status Tracking
Document 3: Status tracking for
the 2007 audits as of December 31, 2009 (Document
issued separately and is on file with the City Clerk.)
a) 2007 Audit of the 3-1-1 Contact Centre -
Recommendation Status Tracking
b) 2007
Audit of Development Review Process - Recommendation Status Tracking
c) 2007 Audit of
Labour Relations - Recommendation Status Tracking
d) 2007 Audit of Staffing -
Recommendation Status Tracking
e) 2007
Audit of Inventory and Asset Management Processes - Recommendation Status
Tracking
g) 2007
Audit of the Parks and Recreation Branch - Recommendation Status Tracking
i) 2007 Audit of the
Protocol Division - Recommendation Status Tracking
j) 2007
Audit of the 2006 and 2007 Compensation Budgets - Recommendation Status
Tracking
k) 2007
Audit of Bus Refurbishing and Warranty Programs - Recommendation Status
Tracking
l) 2007 Audit of Carp River
Watershed & Related Projects - Recommendation Status Tracking
m) 2007
Audit of Misuse and Abuse – Vehicles and Equipment - Recommendation Status
Tracking
o) 2007
Audit of the Disposal of Pavement Line Marker Equipment - Recommendation Status
Tracking
Document 4: Status tracking for the 2008 audits as of December 31, 2009 (Document issued separately and is on file with the City Clerk.)
a) 2008 Audit of the Water
Rate - Recommendation Status Tracking
c) 2008
Audit of Hospitality & Other Ethical Matters - Recommendation Status
Tracking
d) 2008
Audit of IT Capital Expenditures & Project Approval Process -
Recommendation Status Tracking
e) 2008
Audit of the Children’s Services Division - Recommendation Status Tracking
f) 2008
Audit of Grants and Contributions - Recommendation Status Tracking
g) 2008 Audit of the
Long Term Care Branch - Recommendation Status Tracking
h) 2008
Audit of the Ottawa Paramedic Service - Recommendation Status Tracking
i) 2008
Audit of the Parking Function - Recommendation Status Tracking
j) 2008 Audit
of Sick Leave Management - Recommendation Status Tracking
l) 2008
Audit of the Traffic Operations Division - Recommendation Status Tracking
o) 2008 Audit
of an Allegation of Blogging on City Work Time - Recommendation Status Tracking
Document 5: Status tracking for the 2009 audits as of December 31, 2009 (Document issued separately and is on file with the City Clerk.)
a) 2009
Audit of the Incremental Costs of the Transit Strike 2008-2009 - Recommendation
Status Tracking
b) 2009 Audit of the Award of a Key to the
City - Recommendation Status
Tracking
DISPOSITION
The applicable department head and staff will continue to work on implementation of the audit recommendations as noted.
The City Manager will continue to work with the Auditor General on the resolution and implementation of recommendations that are subject to further discussion.