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2. COUNCIL AUDIT WORKING GROUP
- 2005 and 2006 AUDIT RECOMMENDATIONS - QUARTERLY ACTION STATUS REPORT GROUPe de travail du
conseil sur la vérification -
recommandations découlant des vérifications de 2005 et DE 2006 -
rapport d'étape trimestrieL |
Committee RecommendationS
That Council :
1. Approve the changes with
respect to implementation for the following 2005 Audit recommendation as
outlined in Document 1, specifically :
a) Procurement Audit
recommendation no. 25;
2. Receive, for information,
the ongoing action status tracking report for the 2005 audit recommendation as
at January 2008, as outlined in Document 2; and
3. Receive, for information,
the ongoing action status tracking report for the 2006 audit recommendations as
at January 2008, as outlined in Document 3.
RecommandationS du comité
Que le Conseil :
1. Approuve les modifications visant la mise en
œuvre des recommandations suivantes découlant de la vérification de 2005
énoncées dans le document 1, à savoir :
a) la recommandation no. 25 concernant la
vérification des achats;
2. Prend connaissance du rapport sur l’état de
la mise en œuvre des recommandations découlant de la vérification de 2005 au
janvier 2008, comme le précise le document 2; et
3. Prend connaissance du rapport sur l’état de
la mise en œuvre des recommandations découlant de la vérification de 2006 au
janvier 2008, comme le précise le document 3.
Documentation
1. City Manager’s report dated 25 March 2008
(ACS2008-CMR-OCM-0002).
2. Extract of Draft Minutes, 15 April 2008.
Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
and Council / et au Conseil
15 April 2008 / le 15 avril 2008
Submitted by/Soumis par : Council Audit Working Group / Groupe
de travail du Conseil sur la vérification
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 Corporate Services and Economic Development Committee recommend
Council :
1. Approve the changes
with respect to implementation for the following 2005 Audit recommendation as
outlined in Document 1, specifically :
a) Procurement Audit
recommendation no. 25;
2. Receive, for
information, the ongoing action status tracking report for the 2005 audit
recommendation as at January 2008, as outlined in Document 2; and
3. Receive, for
information, the ongoing action status tracking report for the 2006 audit
recommendations as at January 2008, as outlined in Document 3.
RECOMMANDATIONS DU
RAPPORT
Que le Comité des services organisationnels et du développement
économique recommande ce qui suit au Conseil :
1. Approuver les modifications visant la
mise en œuvre des recommandations suivantes découlant de la vérification de
2005 énoncées dans le document 1, à savoir :
a) la recommandation no. 25 concernant la
vérification des achats;
2. Prendre connaissance du rapport sur
l’état de la mise en œuvre des recommandations découlant de la vérification de
2005 au janvier 2008, comme le précise le document 2; et
3. Prendre connaissance du rapport sur
l’état de la mise en œuvre des recommandations découlant de la vérification de
2006 au janvier 2008, comme le précise le document 3.
BACKGROUND
Since the establishment of this Council Audit Working Group (CAWG) in May 2006, the group has been meeting on an ongoing basis with the City Manager, the Auditor General and City staff as required.
The Corporate Services and Economic Development Committee and City Council have considered and approved previous quarterly reports on the 2005 and 2006 audit recommendations action status as well as an adjustment to implementation of recommendations for some of the audit recommendations under dispute.
The purpose of this report is to provide the Corporate Services and Economic Development Committee and Council with the following:
DISCUSSION
The CAWG was created to oversee the implementation of the audit recommendations and provide a body for discussion with the Auditor General, appointed members of Council and senior management to further discuss the audit recommendations under dispute or where circumstances may have changed.
When considering the total number of recommendations coming forward from the Auditor General through his audit reports, it should be noted that there were an overwhelming number of recommendations supported by management that are being implemented on an ongoing basis. In looking at the overall picture, the number of recommendations that require further discussion by the CAWG represent a very small percentage.
The primary focus of the CAWG has been to receive additional background information from the 2005 and 2006 audit recommendations where the Auditor General and management had differing opinions, and to formulate recommendations for decision by CSEDC and Council on the disputed item. These management responses have been the subject of discussions between the Auditor General, the City Manager and the CAWG. In a majority of the cases, consensus has been achieved on revisions to the implementation of the audit recommendations, with only a small number of cases where further discussion and analysis is required.
(Document
1)
For recommendation 25 in the Procurement audit, the CAWG and the Auditor General agreed to the recommended revisions as outlined in Document 1.
With the resolution of Procurement recommendation 25 as indicated in Document 1, all 2005 recommendations under dispute have been resolved. The Auditor General and the City Manager are continuing to resolve any 2006 recommendations under dispute with the involvement of the CAWG as required.
(Document 2)
Document 2 provides the action status tracking of recommendations from the 2005 audits as at January 2008. The majority of the audit recommendations have been implemented, and the Emergency Management Program and Real Estate Management audits are 100% complete. This is provided to the CSEDC and Council for its information.
(Document 3)
Document 3 provides the action status tracking of recommendations from the 2006 audits as at January 2008. Many of the audit recommendations have been implemented, and the Munster Hamlet and P3 Processes audits are 100% complete. This is provided to the CSEDC and Council for its information.
CONSULTATION
The CAWG and the Auditor General receive the status tracking documents for their information quarterly at CAWG meetings.
Consultation was held with the applicable department heads as part of drafting this report. Consultation will continue as part of the ongoing discussions related to the implementation surrounding some of the audit recommendations.
Public consultation is not applicable and was not conducted as part of this report.
FINANCIAL IMPLICATIONS
There are no financial implications associated with this action status report.
SUPPORTING DOCUMENTATION
Document 1: 2005 Audit Recommendations and Management Comments – Requested revisions with respect to implementation of recommendations for the Procurement Audit. (Attached to the report.)
Document 2: Status tracking for the 2005 audits as at January 2008.
Document 3: Status tracking for 2006 audits as at January 2008.
· Building Permits and Inspection Processes
· Employment and Financial Assistance - Comprehensive Audit
· Financial Control Environment
· IT Process of Computerized Financial System
· Management Control Framework
· Overtime
· Surface Operations - Roads Maintenance
DISPOSITION
The applicable department head and staff will continue to work on the implementation of the audit recommendations as noted.
The Council Audit Working Group and the City Manager will continue to work with the Auditor General on the resolution and implementation of recommendations that are subject to further discussion.
Recommendation No. 1
1. Approve the changes with respect to implementation for the Procurement Audit recommendation no. 25, as outlined in Document 1;
|
Audit
Recommendation |
Action
Required Based on Dept. Head Action Plan |
Comments (Risks,
issues regarding implementation) |
Related
Council Motion |
Status
Update / Request for Approval of revised Implementation |
|
Procurement
Audit Rec. 25 Supply Management should
work to integrate the Contract Approval Request within the Procurement Module
of the Financial System. |
Purchasing and Accounts Payable are
working towards using functionality, which may currently exist in SAP to
implement the Auditor General’s recommendation. |
The Contract Approval
Request (CAR) is an MS Word based template used to approve all contracts
under delegated authority. The CAR
flows well through the outlook e-mail function and the timeline associated
with contract approval, even at the highest levels of City management, is an
impressively short one. Although we would continue
to process the CAR for approval as a Word.doc through Outlook, there is an
advantage to saving the final approved CAR, as evidence of appropriate
authority, in SAP. |
No |
This recommendation was
discussed at Council Audit Working Group on February 25, 2008. Financial Services has made
the CAR an official business record within the City's records management system.
This leverages the City's implementation of electronic enterprise records
management without adding to the limited SAP physical resources. Management believes this addresses the
recommendation's intent to save the CAR as evidence of the appropriate
authority. |
COUNCIL AUDIT
WORKING GROUP - 2005 and 2006 AUDIT RECOMMENDATIONS - QUARTERLY ACTION STATUS
REPORT
GROUPe de travail du conseil sur la vérification - recommandations découlant des vérifications
de 2005 et DE 2006 - rapport d'étape trimestrieL
acs2008-cmR-OCM-0002 city-wide / À l’Échelle de la ville
Responding to questions from Councillor Wilkinson, Mr. K. Kirkpatrick, City Manager, opined that there was not a problem with respect to implementing audit recommendations. He submitted delays or deferrals were reflective of the almost on-going juggling of priorities taking place. He noted that for the most part, the staff focused on implementing audit recommendations were management and business support staff; the same group being affected by changes in either the corporate workplan or the legislative agenda. He indicated the point of this tool was to allow the Council Audit Working Group (CAWG) and senior management to continue to focus on the status of recommendations and to see when things started to fall behind schedule. He explained that the recommendations arising from the Munster Hamlet and the P3 process audits were no longer listed in the attachment to the current report because these had been completed.
In reply to a question from the Councillor with respect to the Ottawa Fire Station Location Study, Mr. S. Kanellakos, Deputy City Manager of Community and Protective Services, indicated the report was almost finalized and he estimated it would be coming forward in June.
Councillor Chiarelli commented on the work done by the CAWG over the past couple of years and submitted that reports such as the current one were proof the City was moving forward and implementing the Auditor General’s recommendations.
In closing, Mayor O’Brien applauded the CAWG for its hard work, noting i twas very effective.
At this juncture, Committee voted on the report recommendations.
That
the Corporate Services and Economic Development Committee recommend
Council :
1. Approve
the changes with respect to implementation for the following 2005 Audit
recommendation as outlined in Document 1, specifically :
a) Procurement
Audit recommendation no. 25;
2. Receive,
for information, the ongoing action status tracking report for the 2005 audit
recommendation as at January 2008, as outlined in Document 2; and
3. Receive,
for information, the ongoing action status tracking report for the 2006 audit
recommendations as at January 2008, as outlined in Document 3.
CARRIED