Rec #	Recommendation	Management Response	Est Comp Date	Status Updates (In Progress; Pending; Complete; Requires Resolution)
3	That management ensure staff approving payment of invoices do so in a timely fashion.	Management agrees with the recommendation. Management designs processes to ensure the timely recording of goods and services to the correct accounting period. Finance is in the process of issuing a Request for Proposal (RFP) to automate certain manual accounts payable processes. The automation project will include processes that will alert management and financial staff on a timely basis of invoices that are due for payment. This new functionality will be available by the end of Q3 2010.	Q3 2010	December 2009: In Progress. The AP automation project is in progress; a supplier has been selected and contract negotiations are in progress. Finance is on schedule to have the new functionality available by the end of Q3 2010.
4	That a monthly report be developed of goods received with outstanding invoices that are older than 30 days and that the approval of those invoices be followed up.	Management agrees with the recommendation. A report is available for this purpose and will be monitored regularly to identify receipted transactions not matched to an invoice. Finance presently reviews a report that lists goods received with outstanding invoices. Finance will continue to reconcile this report and alert management and financial support staff, on a timely basis, of any issues requiring follow-up. This report will be made available to the FSUs and management to allow for the timely follow-up of invoices commencing in Q1 2010.	Q1 2010	December 2009: In Progress. The goods receipt (GRIR) clearing account is in the process of being reviewed. Transaction ZRXF135 GL Line Item Display is used to show unmatched goods receipts transactions. Instructions on the use of the transaction will be prepared and communicated to FSU staff for their use by end of Q1 2010.
5 5	That management ensure accruing costs and posting prepaids are done in the proper months and to the proper accounts and that accounts are reviewed on a monthly basis to detect potential errors in accruals or prepaids.	Management agrees with the recommendation. Presently, significant expenditures such as labour, are accrued for in the proper period. Generally, it is the intention to accrue for expenses on a timely basis and to the proper account. It is also normal industry practice to undertake a more detailed review of accruals and prepaid expenses at year-end (December 31). While processing the accruals on a monthly basis allows management to make more informed decisions on the status of their budgets, the work at year- end is required in order to prepare the City's audited year-end financial statements. This often results in accruals and account adjustments being recorded in December that relate to prior periods and it also accounts for the increased volume of accruals at year-end. While the review of prepaid expenses and accrued expenses at year-end is quite detailed, the accounting area is not presently staffed to perform the same rigorous review each month. There will be a requirement for two additional FTE to comply with recommendations 5 and 7. This requirement will be included in the 2011 draft estimates.	Q3 2011	December 2009: Pending. Implementation of the recommendation is pending the submission and approval of a request for additional staff resources during the 2011 budget process.
7 7	That management ensure significant expenditures that are for more than one accounting period are treated as prepaid and allocated appropriately.	Management agrees with the recommendation. As mentioned in the management response to recommendation 5, generally it is the intention to accrue for expenses on a timely basis and to the proper account. It is also normal industry practice to undertake a more detailed review of accruals and prepaid expenses at year-end (December 31). While processing the accruals on a monthly basis allows management to make more informed decisions on the status of their budgets, the work at year- end is required in order to prepare the City's audited year-end financial statements. This often results in accruals and account adjustments being recorded in December that relate to prior periods and it also accounts for the increased volume of accruals at year-end. While the review of prepaid expenses and accrued expenses at year-end is quite detailed, the accounting area is not presently staffed to perform the same rigorous review each month. There will be a requirement for two additional FTE to comply with recommendations 5 and 7. This requirement will be included in the 2011 draft estimates.	Q3 2011	December 2009: Pending. Implementation of the recommendation is pending the submission and approval of a request for additional staff resources during the 2011 budget process.
9 9 9	That when taxi chits are used, an appropriate control system be implemented to ensure that the City is billed only for the value of the services rendered.	Management agrees with the recommendation. The use of taxi chits during the transit strike was part of a mitigation strategy to alleviate the negative effects of the strike, particularly on vulnerable members of the community, including low-income residents, seniors, and persons with disabilities. Approximately 30,000 taxi chits were distributed to address ongoing transportation needs for the vulnerable sector during the strike. A review of the taxi chits demonstrated that there were some irregularities in the manner in which a small percentage of chits were used. The City involved the assistance of the taxi chit supplier, Taxitab Inc., to undertake an accounting review of taxi chits and identified chits considered as suspicious. As a result of this process, approximately $45K in chits will not require payment by the City. There is the potential that some other chits may have been abused, however the accounting exercise was not able to readily identify same. The Chief License Inspector has undertaken her own investigation and revealed a small number of licensed taxicab drivers who appear to have taken advantage of the taxi chit system and thereby may have engaged in conduct adverse to the public interest, contrary to the Taxi By-law. The Chief License Inspector is furthering this investigation and will consider status review hearings where appropriate, before the City's License Committee in order to serve as a specific and general deterrent regarding taxi chit misuse. Management is working with the taxi chit supplier to seek further improvements that will serve to improve the integrity of the taxi chit system. An appropriate control system will be developed by staff representatives from Community and Social Services, Parks, Recreation and Cultural Services, Financial Services, and Legal Services, by the end of Q2 2010.	Q2 2010	December 2009: In Progress. Legal Services is working with the Chief License Inspector in bringing forward the first two cases of alleged taxi chit misuse to the License Committee. The cases relate to two drivers and a taxi plate owner that allegedly misused chits during the transit strike.  The hearing, originally scheduled for November 30, 2009 and then January 18, 2010, is now scheduled to take place on March 25^th and 26^th, 2010.   It is anticipated that through this hearing process, including any testimony from the licensees and other witnesses, that further details to the City's investigation, including the background and circumstances regarding the misuse will be made available. This information will be helpful in furthering recommendations from the Chief License Inspector to taxi industry stakeholders as well as City staff on implementing further control systems on future taxi chit programs.