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HomeMy WebLinkAboutAudit - 2013-03-04Fill] D]110191k IkhIIa1:11 :8khIIki Lei I *y MARCH 4, 2013 CITY OF KITCHENER The Audit Committee met this date commencing at 4:00 p.m. Present: Mayor C. Zehr - Chair Councillors S. Davey, Y. Fernandes, K. Galloway- Sealock, F. Etherington , B. loannidis, P. Singh, B. Vrbanovic and D. Glenn- Graham. Staff: J. Willmer, Chief Administrative Officer D. Chapman, Deputy CAO /Finance & Corporate Services M. May, Deputy CAO /Community Services C. Fletcher, Acting Deputy CAO /Infrastructure Services C. Tasker, Internal Auditor J. Billett, Committee Administrator Mayor C. Zehr presented a 2011 Canadian Award for Excellence in Financial Reporting to the following Financial Services staff: Brenda Johnston, Roger Lebrun and Sherry Brisbane. The award is given by the Government Finance Officers Association of the United States and Canada to those who demonstrate that they have gone beyond the minimum requirements of generally accepted accounting principles in preparing comprehensive annual financial reports in the spirit of transparency and full disclosure. 2012 YEAR IN REVIEW — AUDIT STATUS REPORT The Committee considered Finance and Corporate Services Department report FCS -13 -006, dated February 26, 2013 which provides a summary of activities undertaken by the Internal Auditor during the 2012 calendar year in comparison to the Audit Committee's approved work plan. Ms. C. Tasker responded to questions concerning a service delivery review of Kitchener Utilities Dispatch completed in 2012 over and above the approved work plan, advising that this review was requested by Utilities Management staff to address service delivery issues related to the breadth of tasks and volume of calls handled by Dispatch on a 24/7 basis for other Divisions, such as By -law Enforcement and Operations. The purpose of the review was to determine the feasibility of Utilities Dispatch continuing to handle the quantity of work generated by these other areas. Ms. Tasker noted that a process map was completed to determine the different streams of work and associated protocols; and as part of the review, staff will be looking at how the data can be streamlined and extracted from its database in a manner that allows easier access for purposes of such reviews. 1ST QUARTER AUDIT STATUS REPORT The Committee considered Finance and Corporate Services Department report FCS -13 -007, dated February 26, 2013 which provides a summary of work completed by the Internal Auditor during the first quarter of 2013; and in particular, Ms. Tasker presented the findings of audits conducted for Legal Services and Cash Counts. In regard to the Legal Services audit, Councillor Y. Fernandes questioned if there is an upset limit attached to the Division's signing authority. Mr. D. Chapman advised that Legal Services seldom sign off on documents, primarily providing advice on content pertaining to such things as tender documents, agreements and other legal matters; and signing authority is delegated by Council through adoption of by -laws which set out the perimeters of authority. Councillor D. Glenn- Graham requested clarification of issues raised concerning workload and turn - around times. Ms. Tasker advised that both staff of Legal Services' and their customers agree turn - around times are too long. It was noted that the Division handles a wide range of services for its internal customers, many for which it is not possible to define a specific timeline for but which may require substantial time to complete dependent on the scope and complexity of the project. Ms. Tasker advised that a study was conducted based on drivers of workload and By -law Enforcement was one area identified that generates substantial work for Legal Services in processing enforcement related issues that may also involve attending Court to defend the City's position. Ms. Tasker noted that all work related drivers factored in have grown over the past 10 year period with no real increase in staffing levels. Ms. Tasker agreed to provide Council with more information on the driving factors used in the study. AUDIT COMMITTEE MINUTES MARCH 4, 2013 - 2 - CITY OF KITCHENER 2. 1ST QUARTER AUDIT STATUS REPORT - (CONT'D) Councillor D. Glenn- Graham questioned ability to alleviate Legal Services storage issues through use of space in another area or off -site. Ms. Tasker advised that staff of Corporate Records is working with Legal Services to address their storage issues through use of proper records management practices, which will see their files vetted to determine those that can be transferred for storage to Corporate Records. Councillor B. Vrbanovic questioned if changing technologies for storage have been investigated. Mr. Chapman pointed out that the issue is not really one of capacity but rather is an issue of not undertaking proper records management. He stated that the backlog is being addressed through hiring of a summer student and is anticipated to be eliminated over the summer months. In response to Councillor S. Davey, Mr. D. Chapman stated that the vacant administrative position remains unfilled at his direction. He advised that he has asked Legal Services to take this opportunity to assess the position to determine feasibility of redefining the role in order to ensure they are achieving maximum benefit from the position. Councillor Davey questioned the feasibility of hiring a part time lawyer in place of the administrative position. Mr. Chapman noted that this is part of the reasons for asking that time be taken to assess the position so it can be determined if there is merit in not filling the administrative position in lieu of hiring another lawyer. Councillor D. Glenn- Graham questioned if hiring a law student had been considered. Mr. D. Chapman advised that this option had been discussed; however, it presents a challenge in that the Ontario Law Society has certain obligations to provide a broad range of legal work to an articling student, and the City does not have the breadth of topics needed to meet those obligations. Mayor C. Zehr questioned if the number of inquiries collectively from Council seeking legal advice that takes up time where there may not have been a need to was taken into consideration. Mr. D. Chapman stated that this was not identified as a significant issue but rather workload consuming substantial time relates more to such matters as litigation, quasi - judicial hearings and realty matters. In regard to Cash Counts, Councillor Y. Fernandes suggested that the disbursement logs to be implemented for gift cards include the identification numbers on the back of the cards to safeguard recipients and the City in the event the card is lost. 3. MULTI -YEAR SERVICE REVIEW PRIORITIZATION The Committee considered Finance and Corporate Services Department report FCS -13 -018, dated February 26, 2013 concerning development of a service review prioritization framework for purposes of establishing a multi -year work plan. Ms. C. Tasker advised that under the service review framework 95 core services were identified, weighted and prioritized, with the work involved anticipated to span over a 6 year period from 2013 to 2018. She pointed out that the list of priorities as presented is not considered to be static but rather Council will have opportunity to make change, if desired, at time of approval of the annual work plans, the next of which will come forward in the fall of 2013. Councillor D. Glenn- Graham questioned the ability for members of Council to be involved in the actual investigation stage so as to gain a better understanding of aspects of the business conducted by respective Divisions. Mr. D. Chapman suggested that in advance of establishing the 2014 work plan, an approach could be taken to obtain key input from Council as to any specific interests, and /or specific questions to ask, that they may have toward a particular work project. Councillor Y. Fernandes referred to the proposed timing of the Fleet review in 2016, questioning why it would not be done earlier. Ms. Tasker advised that Fleet had previously undergone an audit review and is also subject to an annual review relative to an ISO designation; and therefore, it was determined not to be an immediate priority for review. AUDIT COMMITTEE MINUTES MARCH 4, 2013 - 3 - CITY OF KITCHENER ADJOURNMENT This meeting adjourned at 4:45 p.m. J. Billett, AMCT Committee Administrator