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HomeMy WebLinkAbout2005-04-25 AUDIT COMMITTEE MINUTES APRIL 25~ 2005 CITY OF KITCHENER The Audit Committee met this date commencing at 4:10p.m. Present: Acting Mayor M. Galloway and Councillors G. Lorentz, J. Gazzola, C. Weylie, B. Vrbanovic. J. Smola was in attendance for part of the meeting. Staff: C. Ladd, Chief Administrative Officer P. Houston, General Manager, Financial Services & City Treasurer C. Wilson, Internal Auditor & Performance Measurement, Office of the C.A.O. K. Dever, Organizational Change Facilitator, Human Resources R. LeBrun, Director of Budgets & Financial Services R. Gosse, Director of Legislated Services 1 . Acting Mayor M. Galloway called the meeting to order and advised that in accordance with the Terms of Reference for the Audit Committee, the first order of business is the appointment of a Committee Chair. On a motion by Councillor B. Vrbanovic - it was resolved: "That the Mayor, or in his absence the Acting Mayor, be appointed as Chair of the Audit Committee. " C. Wilson gave a presentation outlining: the purposes of the Performance Audit and Performance Measurement programs; providing an update on the two programs to date; and, reviewing the case load priorities. Ms. Wilson explained that there are five types of Performance Audits: Financial; Control; Process; Goals; and Outcome. The purpose of a Performance Audit is to ensure that the right things are being done well, to determine if the City is getting value for the service, to ensure the City is progressing and continuously improving and to develop good practices in conducting regular system reviews. She advised that Performance Audits are optional and would usually be conducted in areas having: multiple or key position vacancies; experiencing resource pressures or difficulties in delivering service, a potential need for efficiencies have been identified; services issues, inconsistencies in levels of service across similar facilities; and/or, where internal control weaknesses have been identified. Ms. Wilson then explained that Performance Measurement is a set of indicators or metrics that are developed which can be used as a tool to help in making decisions to better meet or exceed objectives and to highlight if customer and strategic operational goals are being met. She advised that Performance Measurement will be a mandatory program that all divisions and sections will have to undertake. Chair M. Galloway asked how the Audit Committee will be provided with results of the programs and if there will be a follow-up with the Committee to ascertain if the objectives are being met. C. Wilson responded that the Performance Measurement metrics will be posted annually due to the fact that in most cases the data used for the metrics are collected annually but that these measurements could be provided to the Committee when obtained. With respect to Performance Audit these would be submitted to the Committee when completed. In regards to a follow-up program, Ms. Wilson advised that there is no formal review process but this could be added as part of the programs. Ms. Wilson then provided an update on Performance Audits that have been completed including the Control Audit for the new Market Dollars, a Financial Audit of Facilities Management and Process Audit for the LT. Division. Councillor J. Gazzola enquired if the completed audits will be presented to the Audit Committee. Ms. Wilson advised that the Audits for Facilities Management and LT. could be provided to the Committee. C. Ladd advised that the final draft of the I. T. review has just been completed and can be presented to the Committee within the next few weeks. Ms. Wilson added that the audit regarding the Market Dollars was simply a control audit to ensure that procedures and controls were in place to ensure accountability and that no formal report was necessary. Ms. Wilson advised that the recommended case load for Performance Measurement include Arenas, Special Events and the new Kitchener Market. Regarding the Performance Audit, it is being recommended that a main audit be conducted for the Communications Division and a AUDIT COMMITTEE MINUTES APRIL 25~ 2005 - 2 - CITY OF KITCHENER review of the organizational structures for Licensing, Budgets and the Print Shop. The Committee asked questions regarding the amount of time it takes in order to complete an audit and how the metrics used in Performance Measurement are developed. Ms. Wilson advised that currently it has been taking 8 - 12 hours of Divisional staff time which would include a team of management and staff. She explained that the development of the metrics used in Performance Measurement is completed by the Divisional team and she noted that in many cases the data is already being collected by the Divisions and only require further analysis. Chair M. Galloway raised a concern regarding the perception of staff undertaking the Performance Audit and asked what steps were being taken to ensure a fair audit. Ms. Wilson advised that the final report of the Performance Audit is completed separately from the Divisional team. Councillor J. Smola entered the meeting. Chair M. Galloway suggested that the program needs to include a regular follow-up for the Audit Committee with respect to completed Performance Audits and Performance Measurement. The Committee then reviewed the Performance Audit and Measurement Priorities list, attached to the agenda as "Appendix B" and were in agreement with the list as presented. On a motion by Councillor J. Gazzola - it was resolved: "That the following City of Kitchener Divisions/Sections be included in the immediately case load with respect to Performance Measurement: Arenas; Special Events and the new Kitchener Market; and further, That the following City of Kitchener Divisions/Sections be included in the immediate case load with respect to Performance Audits: Communications; Licensing; Budgets and the Print Shop." C. Ladd advised that the Performance Audit completed for the LT. Division can be brought back to the Audit Committee at a special meeting in two weeks time. The Committee agreed to hold a special meeting in order to review the audit. 2. ADJOURNMENT On motion, the hearing adjourned at 4:55 p.m. Randy Gosse Committee Administrator