1.                   OFFICE OF THE AUDITOR GENERAL (OAG) - 2010 ANNUAL REPORT AND DETAILED AUDIT REPORTS

 

BUREAU DU VÉRIFICATEUR GÉNÉRAL (BVG) – RAPPORT ANNUEL ET RAPPORTS DE VÉRIFICATION DÉTAILLÉS DE 2010

 

 

COMMITTEE RECOMMENDATIONS

 

            1.         That Council approve the recommendations contained in the following detailed audit reports:

 

·         Audit of the Nepean Sailing Club Agreement

·         Audit of the Sugarbush (Action Vanier) Agreements

·         Audit of the City’s Role regarding a Canada Day Event

 

·         Audit of Internet and Email Usage Policies and Procedures

 

·         Audit of the Use of City Vehicles and Mileage Claims

·         Audit of the City’s Management of a Loan Agreement

·         Audit of Selected Grant Recipients – Signed Agreements and Audit Clauses

·         Audit of the Revenue Branch

·         Audit of a Staffing Process - Children’s Services Branch

·         Determination of Sampling Requirements for Audits of Payroll Accuracy

·         Audit of Compressed Work Week Agreements

·         Audit of the City's Operating Relationship with the Ottawa Centre for Research and Innovation (OCRI)

 

·         Audit of the West End Flooding and the Development Review Processes within the Carp Watershed (public portion)

 

2.         That Council consider and approve the audit recommendations and refer all recommendations where management is in disagreement to the Audit Sub-Committee or other Standing Committee as directed by Council.

 

 


 

RECOMMANDATIONS du ComitÉ

 

1.         Que le Conseil approuve les recommandations contenues dans les rapports de vérification détaillés suivants:

 

·         Vérification de l’accord du Nepean Sailing Club

·         Vérification des ententes de la cabane à sucre (Action Vanier)

·         Vérification du rôle de la Ville concernant une activité de la fête du Canada

 

·         Vérification des politiques et des procédures concernant l’utilisation des services d’Internet et du courriel

 

·         Vérification de l’utilisation des véhicules municipaux et des demandes de remboursement de frais de kilométrage

·         Vérification de la gestion d’un contrat de prêt par la Ville

·         Vérification d’une sélection des bénéficiaires de subventions – Accords signés et clauses de vérification

·         Vérification de la Direction des recettes

·         Vérification d’un processus de dotation en personnel –  Direction des services à l’enfance Détermination des exigences d’échantillonnage pour les vérifications de la précision de la paie

·         Vérification des ententes de semaine de travail comprimée

·         Vérification des relations opérationnelles de la Ville avec le Centre de recherche et d’innovation d’Ottawa (OCRI)

 

·         Vérification de l’inondation du secteur ouest et du processus d’examen des demandes d’aménagement dans le bassin hydrographique de la rivière carp (partie publique)

 

2.         Que le Conseil municipal d’examiner et d'approuver les recommandations des vérifications et qu’il soumette toutes celles avec lesquelles la direction n’est pas d’accord au Sous-comité de la vérification ou à un autre comité permanent tel qu’enjoint par le Conseil municipal.

 

DOCUMENTATION

 

1.      Auditor General’s report dated 1 September 2011 (ACS2011-OAG-BVG-0004).

 

2.      Auditor General’s public version of the report dated 8 September 2011, titled, Audit of the West End Flooding Event and the Development Review Process within the Carp River Watershed 2010 – to be issued separately in advance of Council.

 

3.   Extract of Draft Audit Sub-Committee Minutes dated 8 September 2011


 

Report to/Rapport au :

 

Audit Sub-Committee

Sous-comité de la vérification

and Council / et au Conseil

 

1 September 2011 / le 1 septembre 2011

 

Submitted by/Soumis par : Alain Lalonde, Auditor General/Vérificateur général  

 

Contact Person/Personne ressource : Alain Lalonde, Auditor General

(613) 580-2424 x14226, oag@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2011-OAG-BVG-0004

 

 

SUBJECT:

OFFICE OF THE AUDITOR GENERAL (OAG) - 2010 ANNUAL REPORT AND DETAILED AUDIT REPORTS

 

 

OBJET :

BUREAU DU VÉRIFICATEUR GÉNÉRAL (BVG) – RAPPORT ANNUEL ET RAPPORTS DE VÉRIFICATION DÉTAILLÉS DE 2010

 

REPORT RECOMMENDATIONS

 

1.         That the Audit Sub-Committee receive the 2010 Annual Report and detailed audit reports from the OAG on September 8, 2011, and refer them to the appropriate Standing Committees to hear public delegations, as follows:

 

September 15, 2011 - Community and Protective Services Committee:

·         Audit of the Nepean Sailing Club Agreement

·         Audit of the Sugarbush (Action Vanier) Agreements

·         Audit of the City’s Role regarding a Canada Day Event

 

September 19, 2011 - IT Sub-Committee:

·         Audit of Internet and Email Usage Policies and Procedures

 

October 4, 2011 - Finance and Economic Development Committee:

·         Audit of the Use of City Vehicles and Mileage Claims

·         Audit of the City’s Management of a Loan Agreement

·         Audit of Selected Grant Recipients – Signed Agreements and Audit Clauses

·         Audit of the Revenue Branch

·         Audit of a Staffing Process - Children’s Services Branch

·         Determination of Sampling Requirements for Audits of Payroll Accuracy

·         Audit of Compressed Work Week Agreements

·         Audit of the City's Operating Relationship with the Ottawa Centre for Research and Innovation (OCRI)

 

for subsequent consideration and approval of the audit recommendations by Council at its meeting of October 12, 2011.

 

2.         That the Audit Sub-Committee recommend that Council consider the following reports in camera, based on Section 239(2)(e) of the Municipal Act, 2001 “litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board”:

      - Audit of the Glen Cairn Flooding and the Development Review Processes within the Carp Watershed; and,

      - Audit of the Mackenzie King Bridge Rehabilitation.

 

3.         That the Audit Sub-Committee recommend that Council consider and approve the audit recommendations and refer all recommendations where management is in disagreement to the Audit Sub-Committee or other Standing Committee as directed by Council.

 

 

RECOMMANDATIONS DU RAPPORT

 

1.         Que le Sous-comité de la vérification reçoive le Rapport annuel et les Rapports de vérification détaillés 2010 du BVG le 8 septembre 2011, pour soumette les rapports aux Comités permanents pertinents pour entendre les délégations du public, comme suit :

 

Le 15 septembre 2011  – Comité des services communautaires et de protection :

·         Vérification de l’accord du Nepean Sailing Club

·         Vérification des ententes de la cabane à sucre (Action Vanier)

·         Vérification du rôle de la Ville concernant une activité de la fête du Canada

 

Le 19 septembre 19 2011 – Sous-comité de la technologie de l’information :

·         Vérification des politiques et des procédures concernant l’utilisation des services d’Internet et du courriel

 

Le 4 octobre 2011 -  Comité des finances et du développement économique :

·         Vérification de l’utilisation des véhicules municipaux et des demandes de remboursement de frais de kilométrage

·         Vérification de la gestion d’un contrat de prêt par la Ville

·         Vérification d’une sélection des bénéficiaires de subventions – Accords signés et clauses de vérification

·         Vérification de la Direction des recettes

·         Vérification d’un processus de dotation en personnel –  Direction des services à l’enfance Détermination des exigences d’échantillonnage pour les vérifications de la précision de la paie

·         Vérification des ententes de semaine de travail comprimée

·         Vérification des relations opérationnelles de la Ville avec le Centre de recherche et d’innovation d’Ottawa (OCRI)

 

et pour examen et approbation subséquents des recommandations des vérifications par le Conseil municipal à sa réunion du 12 octobre 2011.

 

2.         Que le Sous-comité de la vérification recommande au Conseil d’examiner les rapports suivants à huis clos en vertu de l’alinéa 239(2)(e) de la Loi de 2011 sur les municipalités portant sur « les litiges actuels ou éventuels, y compris les questions dont les tribunaux administratifs sont saisis, ayant une incidence sur la municipalité ou le conseil local » :

      - Vérification portant sur l’inondation à Glen Cairn et sur les processus d’examen des projets d’aménagement dans le bassin hydrographique de la rivière Carp

      - Vérification de la réfection du pont Mackenzie King.

 

3.         Que le Sous-comité de la vérification recommande au Conseil municipal d’examiner et d'approuver les recommandations des vérifications et qu’il soumette toutes celles avec lesquelles la direction n’est pas d’accord au Sous-comité de la vérification ou à un autre comité permanent tel qu’enjoint par le Conseil municipal.

 

 

BACKGROUND

 

The OAG’s 2010 audit work plan was included in the 2009 Annual Report tabled with Council on June 23, 2010.  The 2010 audit plan consisted of new projects in addition to conducting a follow-up of previously completed audits from 2005-2008.  The 2010 Annual Report contains the following reports:

1.         Audit of the Use of City Vehicles and Mileage Claims;

2.         Audit of Selected Grant Recipients – Signed Agreements and Audit Clauses;

3.         Audit of the Nepean Sailing Club Agreement;

4.         Audit of the Sugarbush (Action Vanier) Agreements;

5.         Audit of the Revenue Branch;

6.         Audit of a Staffing Process - Children’s Services Branch;

7.         Audit of the City’s Management of a Loan Agreement;

8.         Audit of the City’s Role regarding a Canada Day Event;

9.         Audit of Internet and Email Usage Policies and Procedures;

10.       Audit of the Mackenzie King Bridge Rehabilitation (presented in camera);

11.       Determination of Sampling Requirements for Audits of Payroll Accuracy;

12.       Audit of Compressed Work Week Agreements;

13.       Audit of the City's Operating Relationship with the Ottawa Centre for Research and Innovation (OCRI); and,

14.       Audit of the Glen Cairn Flooding and the Development Review Processes within the Carp Watershed (presented in camera).

 

FOLLOW-UP AUDITS:

1.         Follow-up to the 2005 Audit of Internet Usage and Controls;

2.         Follow-up to the 2005 Audit of Drinking Water Services;

3.         Follow-up to the 2006 Audit of the Wastewater and Drainage Services Division;

4.         Follow-up to the 2006 Audit of the Food Safety Program;

5.         Follow-up to the 2007 Audit of 2006 and 2007 Compensation Budgets;

6.         Follow-up to the 2007 Audit of the Carp River Watershed Study and Related Projects;

7.         Follow-up to the 2007 Audit of Parks and Recreation Branch;

8.         Follow-up to the 2007 Audit of Parks and Recreation Financial Management and Revenue Processes;

9.         Follow-up to the 2008 Audit of the Children's Services Division;

10.       Follow-up to the 2008 Audit of the Assessment and Monitoring of Eligibility for Social Housing Subsidies;

11.       Follow-up to the 2008 Audit of Information Technology Capital Expenditures and Project Approval Process;

12.       Follow-up to 2008 Audit of the Long Term Care Branch;

13.       Follow-up to the 2008 Audit of the Ottawa Paramedic Service;

14.       Follow-up to the 2008 Audit of Building Code Services Process for 215 Preston Street;

15.       Follow-up to the 2008 Audit of Hospitality and Other Ethical Matters;

16.       Follow-up to the 2008 Audit of the Parking Function;

17.       Follow-up to the 2008 Audit of Sick Leave Management;

18.       Follow-up to the 2008 Audit of Traffic Operations Division;

19.       Follow-up to the 2008 Audit of the City of Ottawa Water Rate;

20.       Follow-up to the 2008 Audit of the 2006 Sewage Spill;

21.       Follow-up to the 2008 Audit of the Governance and Compliance with the Access Management Agreement of the Southpointe Community Association; and,

22.       Follow up to the 2008 Audit of the Governance and Compliance with the Community Funding Service Agreement of the Banff Avenue Community House.

 

Two 2010 audits have already been presented to Council and are included in this Annual Report document:

1.         Audit of the Lansdowne Park Proposal (LPP) Financial Model; and,

2.         Audit of the Procurement Process for the SmartBus Next Stop Announcement System and the SmartCard System.

 

 

DISCUSSION

 

In accordance with the protocol approved by Council for the Office of the Auditor General on April 13, 2011, the reports are being tabled today for transmittal to the appropriate Standing Committee to hear public delegations, and subsequently to be forwarded to Council.

 

The City Solicitor has requested that the Audit of the Glen Cairn Flooding and the Development Review Processes within the Carp Watershed; and, the Audit of the Mackenzie King Bridge Rehabilitation go in camera, based on Section 239(2)(e) of the Municipal Act, 2001, being “litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board”.

 

The sixth Annual Report of the OAG summarizes the activities of the OAG during 2010, including the report on the Fraud and Waste Hotline. Included is a summary of the results of all audits completed during 2010 along with the management responses to all recommendations.

 

The Annual Report document contains an executive summary for each audit and follow-up completed in 2010.  The detailed audit and follow-up reports are not provided in hard copy, but are available on the OAG Web site at ottawa.ca.

 

FINANCIAL IMPLICATIONS

 

Any financial implications of the OAG’s recommendations are outlined in the detailed reports.  Management have also identified financial implications in their responses to specific recommendations.

 

 

SUPPORTING DOCUMENTATION

 

The following reports will be issued separately to Members of Council and will be on file with the City Clerk:

-           Office of the Auditor General 2010 Annual Report

-           The detailed audit reports (will also be available on the Auditor General’s Web site at ottawa.ca)

 

 

DISPOSITION

 

The audit reports will be referred to the appropriate Standing Committee, and for subsequent consideration and approval of the audit recommendations by Council on October 12, 2011.


            OFFICE OF THE AUDITOR GENERAL (OAG) – 2010 ANNUAL REPORT AND DETAILED AUDIT REPORTS

            BUREAU DU VÉRIFICATEUR GÉNÉRAL (BVG) – RAPPORT ANNUEL ET RAPPORTS DE VÉRIFICATION DÉTAILLÉS DE 2010

ACS2011-OAG-BVG-0004                                      city-wide / À l’Échelle de la ville

 

REPORT RECOMMENDATIONS

 

1.         That the Audit Sub-Committee receive the 2010 Annual Report and detailed audit reports from the OAG on September 8, 2011, and refer them to the appropriate Standing Committees to hear public delegations, as follows:

 

September 15, 2011 - Community and Protective Services Committee:

·         Audit of the Nepean Sailing Club Agreement

·         Audit of the Sugarbush (Action Vanier) Agreements

·         Audit of the City’s Role regarding a Canada Day Event

 

September 19, 2011 - IT Sub-Committee:

·         Audit of Internet and Email Usage Policies and Procedures

 

October 4, 2011 - Finance and Economic Development Committee:

·         Audit of the Use of City Vehicles and Mileage Claims

·         Audit of the City’s Management of a Loan Agreement

·         Audit of Selected Grant Recipients – Signed Agreements and Audit Clauses

·         Audit of the Revenue Branch

·         Audit of a Staffing Process - Children’s Services Branch

·         Determination of Sampling Requirements for Audits of Payroll Accuracy

·         Audit of Compressed Work Week Agreements

·         Audit of the City's Operating Relationship with the Ottawa Centre for Research and Innovation (OCRI)

 

for subsequent consideration and approval of the audit recommendations by Council at its meeting of October 12, 2011.

 

2.         That the Audit Sub-Committee recommend that Council consider the following reports in camera, based on Section 239(2)(e) of the Municipal Act, 2001 “litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board”:

     - Audit of the Glen Cairn Flooding and the Development Review Processes within the Carp Watershed; and,

   - Audit of the Mackenzie King Bridge Rehabilitation.

 

3.         That the Audit Sub-Committee recommend that Council consider and approve the audit recommendations and refer all recommendations where management is in disagreement to the Audit Sub-Committee or other Standing Committee as directed by Council.

 

The Committee received an overview of the report from Alain Lalonde, Auditor General and Ray Kostuch, Deputy Auditor General.  A copy of the PowerPoint presentation is held on file.  Mr. Lalonde and the City Manager responded to questions from Committee members.

 

MOTION ASC 4/1

 

            Moved by Councillor A. Hubley

 

That the Auditor General and the City Clerk and Solicitor be directed to amend the Glen Cairn Audit such that as much of the report as possible will be public, with only legal liability portions being in-camera.

 

                                                                                                CARRIED

 

MOTION ASC 4/2

 

Moved by Councillor R. Bloess

 

WHEREAS the Draft Audit of the Pine View Municipal Golf Course was leaked to the press prior to the report being finalized; and

 

WHEREAS the Pine View Municipal Golf Course Board of Management has considered and accepted all of the Auditor General’s recommendations related to his audit; and

 

WHEREAS the Board met on September 1, 2011 to finalize its management response to the audit, including reporting on the work that has already been done over the past six months consider to implement a number of recommendations; and

 

WHEREAS each and every outstanding issue pertaining to financial management has been addressed by the Board and the Auditor General is in a position to finalize his report; and

 

WHEREAS the Auditor General has indicated that he is able to expedite his report and bring it forward in October;

 

THEREFORE BE IT RESOLVED that the Audit of the Pine View Municipal Golf Course be released by the Auditor General as soon as it is complete, and be tabled and considered at the October 12, 2011 City Council meeting at the same time as the other audit reports.

 

                                                                                                CARRIED

 

MOTION ASC 4/3

 

            Moved by Councillor E. El-Chantiry

 

That in accordance with Procedure By-law 2006-462, the Audit Sub-Committee resolve In Camera pursuant to Subsections 13 (1) (e) litigation or potential litigation, affecting the City, including matters before administrative tribunals, and (f), the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose, with regards to the following:

 

·         Audit of the Glen Cairn Flooding and the Development Review Processes within the Carp Watershed

·         Audit of the Mackenzie King Bridge Rehabilitation.

 

            CARRIED, with Councillor A. Hubley dissenting

 

            Following the in-camera session, the regular meeting resumed at 11:20 a.m.

 

Moved by Councillor A. Hubley

 

That Recommendation 2 be amended to replace the title “Glen Cairn” with “West End” to read as follows:  “Audit of the West End Flooding and the Development Review Processes within the Carp Watershed.

 

                                                                                                CARRIED

 

            The report recommendations were then put to the Commission and RECEIVED AND CARRIED, as amended.