HomeMy WebLinkAboutFCS-14-019 - 2013 Year in Review - Audit Status Report with presentationREPORT TO:
Staff Report
Finance and Corporate Services Department
DATE OF MEETING:
SUBMITTED BY:
PREPARED BY:
WARD(S) INVOLVED:
DATE OF REPORT:
REPORT NO.:
SUBJECT:
RECOMMENDATION:
For information
BACKGROUND:
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Audit Committee
March 3, 2013
Corina Tasker, Internal Auditor, 519 - 741 -2200 EXT 7361
Corina Tasker
ALL
February 21, 2013
FCS -14 -019
2013 YEAR IN REVIEW —AUDIT STATUS REPORT
The intent of this report is to give Audit Committee a full picture of the service review work
completed, in progress and not started in 2013. This encompasses the work of internal audit
and the service review work undertaken within each department.
This report provides a summary of the Internal Audit activities during the 2013 calendar year
compared to the Audit Committee approved work plan. The 2013 internal audit work plan was
approved by the Audit Committee on December 12, 2012 and can be referenced in report FCS-
12 -184. Detailed audit reports relating to each item have been or will be presented to Audit
Committee during past or future quarterly status updates and are thus not included here.
This report also includes a summary of the other service reviews performed within each of the
three departments as part of the Integrated Service Review Work Plan which was presented to
Audit Committee as part of the report referenced above. Staff committed to reporting back to
Audit Committee on an annual basis regarding the status of the plan.
REPORT:
A significant amount of internal audit and service review work was completed in 2013. All
resources were working at full capacity. However, not all of the approved work plan items were
completed due to three main reasons:
1. There was a significant amount of work carried forward from 2012 which took longer to
complete than anticipated, including the Emergency Plan review and the Operations
division review.
2. Unplanned work including three confidential investigations and tasks related to
implementation of the Operations division review recommendations.
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3. Priorities within the departments which took precedence, not related to the work plans.
Internal Audit
57% or 4 of 7 planned 2013 activities were completed, 2 were deferred due to workload and
resource constraints, and 1 was deferred in order for the division being audited to complete their
process improvements before being audited again. An additional 2 reviews which were carried
over from 2012 were completed. Three confidential investigations were performed, consuming
a total of 38 working hours.
The following chart shows the status of each of the approved 2013 work plan items as well as
the additional work completed:
Topic
Type af'Review
Status
Follow --up Audits:
Comprehensive
Complete (carried over
Legal division
Follow -up audit
Complete
Hiring Transparency
Follow -up audit
Deferred — process
improvements still
underway
Service Reviews
from 2012)
The Aud and Arenas
Comprehensive
Complete
Storm Water Utility — Operations
Compliance audit
Deferred — due to
resource constraints
Sanitary Sewer Utility — Operations
Compliance audit
Deferred — due to
resource constraints
Recurring Internal Audit Activity;
Cash counts
Controls
Complete
Physical Inventory
Count verification
Complete
Ad hoc:
Confidential Investigations
Investigation
Completed three
Additional Work, Performed
Operations division
Comprehensive
Complete (carried over
from 2012)
Emergency Plan
Comprehensive
Complete (carried over
from 2012)
*Note: a list of review type definitions is included in Appendix A.
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Integrated Service Review Work Plan
The chart below provides the status of the 2013 integrated service review work plan items
assigned to the three departments for completion.
Topic
Type of Review
Status ,
Resources
Comments ,
By -law
Service delivery
Complete
CSD
Included in this
enforcement
review / capacity
report; presented at
analysis, service
Aug.26, 2013
delivery vision
strategic session
IT — Projects
Mandate /
Complete
FCS
Included in this
and Planning
Service Delivery
report
HR—
Process
In progress
FCS
Expected
Recruiting
completion early
2014
HR — Health
Service Delivery
In progress
FCS
Expected
and Safety
completion early
2014
Kitchener
Capacity
Deferred to 2014 and
Risk
Market
reassigned to Audit
Revenue,
Roles and
Deferred to 2014 —
FCS
Accounting,
responsibilities
resource constraint
Financial
Planning,
Supply
Services
Facilities
Impact
Deferred to 2014 —
INS
Management
assessments
resource constraint
Storm Water
Risk
Deferred to 2015 —
Risk, INS,
Utility —
assessment,
resource constraint
Audit
Operations
process /
capacity review,
compliance audit
Sanitary
Process review,
Deferred to 2015 —
INS, Audit
Sewer Utility —
compliance audit
resource constraint
Operations
Fleet — Repair
Process review
Deferred to 2016 — As
INS
and
Fleet is already
Maintenance
operating under ISO
14001 protocols &
processes, greater
value -add would be
achieved by carrying out
a review in another
Division
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Summaries of the By -law Enforcement and IT Projects and Planning reviews are included
below. These did not involve Internal Audit and therefore have not been presented through the
quarterly audit status updates.
By -law Enforcement Division Service Level Review
Objective: The service level review was undertaken to assist in determining whether the
division is meeting public expectations regarding by -law enforcement roles and responsibilities.
The data collected and analysed formed the basis for a presentation at a Council strategic
session held on August 26, 2013.
Scope: Identify current challenges, identify trends and develop a presentation framework for a
Council strategic session. This review did not include a detailed financial or controls review or
development of an implementation plan.
Methodology:
• Stakeholder engagement process designed and implemented - individual interviews with
11 councillors and 1 council staff member conducted
• Data collection conducted regarding best practices, statistics regarding costs per capita,
resolution rates, court times, staff complement, public expectations per Environics
survey results, legislative requirements, etc.
• Situational analysis performed (divisional structure, types of service requests, response
protocol, public awareness, trends, challenges, growth, new programs)
Key Findings:
The following observations summarize the results of the review, which provided the basis for the
presentation framework for a Council strategic session held on August 26, 2013.
• Increase in calls for service (complaints)
• Increase in services /initiatives provided
• Public expectations have increased (expecting more immediate responses)
• Challenged to meet expectations on response times
• Gaps in coverage is a public concern
• Public education initiatives have increased but aware more can be done
• Analysis shows the division is at capacity in some areas of enforcement and is
significantly challenged in other areas.
IT — Projects and Planning
Objective: To refresh the mandate and vision for the IT Projects and Planning team. Clarity of
roles, mandate and vision will help improve internal satisfaction, improve clarity and provide a
key point of contact in the IT division for projects.
Scope: Developing a mandate and vision for this team within the IT division, aligned with the
FCS department service strategy and corporate technology strategic plan.
Methodology:
• Review of input on strengths and areas to improve from various internal input processes
• Strengths - Weaknesses - Opportunities- Threats brainstorming and key issues analysis
with the staff team
1 -4
• Identifying key themes and words to represent the purpose of the team (mandate) and
its desired future (vision)
• Gap analysis of current staff alignment, job functions and enterprise system support to
identify where efforts should be put to make improvements
• Recommended realignment of roles to better meet current and future internal needs and
expectations
• Support to IT management in developing communications plan to share new alignment
and roles with internal departments
• The review was done in collaboration with the IT Planning Projects team, IT director and
DCAO
Key Outcomes:
The refreshed mandate is: `The IT Planning & Projects Team supports Internal Partners by
facilitating technology planning and delivering the best solutions that meet business goals. We
do this by establishing solid partnerships, acting as a conduit between departments and IT and
enabling effective requests and delivery of IT projects using Project Management best
practices.' This mandate is further detailed by 5 pillars or means through which the team will
carry out this mandate. The refreshed vision is: `Provide optimal project management and
relationship management to our Internal Partners'.
Through communication of the mandate and vision within IT and to other departments, the
following benefits hope to be realized: optimal project management and relationship
management with internal partners, smooth intake process for project requests, and clarity of
roles to facilitate business requirements gathering and documenting.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Work falls within the Efficient and Effective Government plan foundation area of the Strategic
Plan. The goal of Internal Audit work and service reviews is to protect the City's interests and
assets through
• ensuring compliance with policy, procedures and legislation
• ensuring adequate controls are in place to protect our assets
• ensuring our operations are as efficient and effective as possible
This helps support the financial goal of long term financial stability and fiscal accountability to
our taxpayers.
FINANCIAL IMPLICATIONS:
N/A
COMMUNITY ENGAGEMENT:
Members of the community have been informed of the results of this audit status report through
the posting of this report on the internet on February 26, 2014.
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO, Finance and Corporate Services
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Appendix A — Review Type Definitions
Capacity
A review of the actual transaction or work volume, the average time to
complete each transaction and the estimated required resourcing compared
to the actual resourcing.
Compliance
A test to determine if staff are following all rules, regulations and policies
associated with the service.
Comprehensive
An all- encompassing review of the division or service including things like
process and functional analysis, organization structure review, controls,
compliance, risk assessment, service delivery, customer satisfaction, value for
money, capacity, benchmarking and any other analysis required.
Controls
A review of the adequacy of control points in a process to protect assets from
fraud or theft.
Follow up
An additional review of any type, not sooner than 1 year after the original
review in order to assess the impact of the original recommendations and
proactively identify any new / emerging risks.
Impact
A review to determine all of the up- stream and down - stream touch points,
assessment
information flows and dependencies in a process.
Process
An analysis of what is done in delivering a particular service and where
effectiveness could be improved.
Risk assessment
An identification of all of the possible risks that could affect a service including
rating the probability and impact of the risk using the corporate risk matrix.
Role clarification
Clarification, documentation, and communication of roles and responsibilities
of similar roles to ensure there is no overlap in duties.
Service delivery
A review to determine the optimal method of delivering a service including
exploring options of contracting out or not delivering the service at all.
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