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HomeMy WebLinkAboutCAO-08-032 - Compliance ReportingJ Krrr.~~.R Chief Administrator's Office REPORT Report To: Mayor Carl Zehr, Chair and Members of the Audit Committee Date of Meeting: September 15, 2008 Submitted By: Corina Tasker, Performance Measurement, Internal Auditor Prepared By: Corina Tasker, Performance Measurement, Internal Auditor Wards} Involved: ALL Date of Report: September 9, 2008 Report No.: CAO-08-032 Subject: Compliance Reporting RECOMMENDATION: That Internal Audit staff continue as planned to follow a risk-based approach to capture significant risks across the Corporation for the purposes of managing the corporation's risks and implementing appropriate mitigation plans; and That no action be taken to prepare an annual report to the Audit Committee regarding the obligations of the City under various Acts showing if the City has met its obligations. BACKGROUND: At the March 17, 2008 meeting of the Audit Committee it was requested that an annual report be developed and presented to the Audit Committee regarding obligations of the City under various Acts showing if the City has met its obligations. It was noted that Wilfrid Laurier University (WLU) undertakes this exercise annually and the report is helpful for members of the board. This report is attached in the addendum as reference. REPORT: Staff did an initial assessment of the scope of this exercise if it were to be carried out for the City. Although a similar format to the WLU report could be used which lists all the legislation which applies to the City, it has been noted that the scope would be very large. This is due to the fact that the City is under the obligation to the follow the Municipal Act in addition to the other pieces of legislation related to specific areas of work. It would not be as simple as indicating whether the City is in compliance with the Municipal Act or not. Each section would need to be listed separately and investigated. This is not impossible to do, but would take considerable resources and time to compile initially and administer annually. In addition, this Page 1 of 2 relies to a large extent on self-identification and reporting which does not assure a complete and accurate resu It. Given the aggressive work plan for the Performance Measurement & Internal Audit division for 2008 staff feel that the existing planned work should take priority. It is recommended that the compliance report not be completed at this time. However, compliance in general will be considered later in the year under the larger umbrella of Enterprise Risk Management (ERM). The Internal Auditor will be facilitating the development of an ERM plan for the City starting in the fall of 2008. This will be a corporate-wide approach which will be tied to the City's Strategic Plan. These risks will be categorized into one or more broad risk classifications including regulatory risk. The risks will then be rated according to the probability and impact. Mitigation plans will then be developed for the high risk items which will be monitored on a regular basis by staff and the Internal Auditor. This risk register will focus on items which have at least some probability of occurring and at least some impact to the Corporation. As such, ongoing legislative requirements will not necessarily be part of the risk register. Whereas, with the WLU compliance report they would be included, regardless of whether there is any risk associated with them. Given the current resource constraints it will be more effective to focus on the risk items utilizing the ERM plan which is a more focused framework within which to assess and mitigate risks, rather than potentially reviewing non-risk items in a compliance report. As such, it is recommended that the ERM program be utilized to inform the Audit Committee of potential risk areas related to compliance rather than completing a comprehensive listing of all legislation affecting the City. FINANCIAL IMPLICATIONS None at this time COMMUNICATIONS: None Corina Tasker, CMA Performance Measurement & Internal Auditor Page 2of 2 Item B2, Board of Governors, June 22106 MEMORANDUM Wilfrid Laurier University To: Board of Governors From: Jennifer Casey, Acting University Secretary Date: June 15, 2006 Subject: Legislative Compliance Report for 2006 University Secretariat Attached please find the legislative compliance report for 2006. As in previous years, wrote to the senior managers asking them to complete a form regarding provincial and federal legislation pertaining to their areas. Please note that in completing the form senior managers are asked, by means of signature, to declare that to the best of their knowledge and belief every activity forwhich there is an appropriate legislation requirement, they are in compliance. The terms of reference state that the Audit & Compliance Committee is, "to systemically reviewthat the university is in compliance with all relevant statutory and regulatory provisions and any matters necessarily related thereto". As such, a legislative compliance report is presented to the committee on an annual basis and brought forward to the Board for approval. www.wlu.ca/universitysecretariat • Tel: 5 19-884-0710 x2037 ~ Fax: 5 19-746-2472 • E-mail: jcasey@wlu.ca Legislative Compliance Report (as at April 30, 2006) Report to the Audit & Compliance June 5, 2006 and the Board of Governors, June 22, 2006 Provincial Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Acts Re uirements De artments Current Re ulations Alcohol and Responsible for the Office of the Yes AGCO newsletters, at their own discretion Gambling administration of Liquor Vice-President: information bulletins, Regulation and licence Act, the Gaming Finance & website Public Control Act, 1992, the Wine Administration Alcohol on campus Protection Act Content Act & the committee regulations made under those Acts. 1996, c. 26, Sched., s. 3 (I). Animals for Registration of research Faculty of Yes Consulting veterinarian, Annual. Canadian Council on Animal Care last Research facility, provision of proper Science OMAFRA Inspector visited on March 9/05. CCAC visits occur every care and handling of animals, three years. Ontario Ministry of Agriculture, Food submission of reports and Rural Affairs visited March 28/06. Report endin . Office of the Access of Auditor and or any Accounting and Yes Professional Associations No Audit Provincial member of the Office of the Finance & Newsletters Auditor Auditor in performance of an ins ection or audit. Building Code Parameters for safe Physical Yes Receipt of code updates Yes, through municipal building code construction of buildings, Resources and advice from administrative procedures & inspections including fire protection, consultants emergency exit requirements and general standards (administered through City of Waterloo) Construction Owner of a construction Physical Yes Through lawyer who No liens currently. Lien project required to hold back Resources does review of projects a certain amount from payments due to contractors to protect material suppliers and wager earners (only applicable through major contractor) Provincial Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Acts Requirements Departments Current Regulations Corporations Prohibits the making of false Office of the Yes Review the Act Annually No statements, including Vice-President: financial, or Finance & misrepresentations of a Administration material nature. Electricity Act Physical Yes Through inspection Yes, annually Resources contract with the Electrical Safety Authority (ESA) Elevating Elevator and escalator Physical Yes Regular Technical Yes Devices licensing, maintenance, Resources Standards and Safety inspection and safety Authority (TSSA) inspections & licensing procedures ensure up to date compliance Employer Deals with regulations Payroll Yes Government of Ontario Annually a reconciliation report is sent to the Health Tax concerning collecting and website, Dialogue Ontario Ministry of Finance. The reconciliation is remitting of employer health Magazine, & Paysource reviewed and questions brought forward. No tax audit has been conducted for many years. Employment Compliance with standards Payroll Yes Canadian Payroll No Standards pertaining to working, Association publications, overtime, public holidays, etc. 3rd party publications, ESA Website Environmental Establishment and regulation Environmental/ Yes Monitor literature from Ministry of the Environment can inspect at any Protection of waste management Occupational the government and the time. Annual Report (Reg 127, HWIV - systems and disposal sites; Health & Safety media Hazardous Waste Information Network disposal of hazardous wastes Registration). Last inspection in January 2006 and and a ui ment results were "in ood standin " Fire Protection Fire safety standards for Physical Yes PP: Regular contact with PP: Periodically at the discretion of the local Fire and Prevention buildings, emergency exits, Resources; the City Fire Department Department & conducting of fire drills occupant loading Environmental/ E/OH&S: Review E/OH&S: annually by Fire department. Last Occupational regulations with the local inspection December 2005 and results "in Health & Safety fire authority on a regular compliance" basis Provincial Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Acts Requirements Departments Current Regulations Fuel Tax Tax regulations governing fuel Accounting Yes Professional Associations No and the collecting and and Finance a ment of tax Gasoline Tax Payment of tax on purchases Accounting and yes Professional Associations No of gasoline Finance Health Health and safety Food Services; yes FS: Health Inspector; FS: yes, varies Protection and requirements for food Athletics Government Safety Ath: yes, daily pool inspection by Pool Inspector Promotion & premises and public Inspectors, Internal and Risk Committee; daily pool chemistry testing; Safety swimming pools Ath: regular recording of monthly Risk Management Committee meets to pool operations, bulletins review all issues and ensure compliance regarding pool regulations by health inspector, Pool Inspector & Risk Committee Human Rights Rights of employees as they Harassment & yes Review Ontario Human Currently one complaint filed with the Code pertain to various types of Discrimination Rights Commission Commission. The H+D officer is dealing with two discrimination and Office (OHRC) Website "Rights complaints that relate to the code; five other harassment Online"-update any new complaints are in process; 12 others at the legislation, receive & discussion stage. review annotated version of Ontario Human Rights Code, receive Employers' Human Rights & Equity Report 6X per year, consult with attorney when required, participate in human rights listserv with other human right officers in Ontario universities, Education Law Reporter Post-secondary Provincial Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Acts Requirements Departments Current Regulations Labour Rules, regulation & Human yes HR: government and the No. Relations procedures for establishing Resources; media bargaining rights, for Office of the VP Academic: Director of negotiating collective Vice-President: Faculty Relations is tasked agreements & for resolving Academic with this, belongs to list disputes arising from the (WLUFA) serves, attends meetings administration of collective of counterparts a reements Liquor Licence Regulations pertaining to the Office of the yes: re- Review the act annually, Random inspections at discretion of AGCO. Last selling, licensing and Vice-President: drafting WLU review the Alcohol and inspection occurred Feb 10/06 at Polar Ice Jam. responsible use of liquor Finance & alcohol policy Gaming Commission All handled to the inspectors satisfaction. Administration to reflect (AGCO) newsletter updated operating procedures Liquour - Food Services Yes Must have Smartserve Inspected by management through proof of Smartserve certificate to serve any certificate alcohol on campus -need to roduce u on hirin Ontarians with an act to improve the Harassment & yes HD: Newsletters & HD: No Disabilities Act, identification, removal & Discrimination Bulletins OHS: Ministry may check for posted/public 2001 (ODA) prevention of barriers faced Office; OHS: List serves, ministry accessibility plans. Potential for fine if not done. Accessibility for by persons with disabilities & Employment websites, contracts Ontarians with to make related amendments Equity Disabilities Act to other acts Occupational Occupational health and Environmental yes Monitor literature from The office continues to make progress in Health and safety regulations, use and /Occupational the government, developing programs and proposing policies to Safety control of hazardous Health and newsletters and Website senior administration in order for the university to chemicals and toxic Safety; all of the Ministry of Labour meet its legislative obligations. E/OH&S and Dean substances supervisory and the Canadian Centre of Science developing a Science Laboratory Safety personnel for Occupational Health Manual to be completed for April 2007. Ministry & Safety of Labour can inspect at their discretion. Last inspection Jan./06. Results were satisfactory with some recommendations pertaining to the composition of the H+S Cmte. as outlined in Collective A reements. Provincial Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Acts Requirements Departments Current Regulations Pay Equity Adjustment to achieve equal Human yes Labour Board, Pay Equity The University and UFCW agreed on an updated remuneration for males or Resources Commission contacts and Pay Equity Plan which was posted April 13/06. females where work website The dishwasher job class received pay equity performed is of equal or adjustment of $ I.07/hr. com arable value Pension Guidelines governing the Human yes Monitor literature, Yes, annually Benefits appropriate manner in which Resources government and media; pension contributions are to pension consultants; legal be handled. counsel etc. Pesticides Proper use and handling of Physical yes Through service provider Regulatory compliance through contractor pesticides Resources who is licensed by the province Police Services Status, powers, and Community yes Through OACP Comply contract conditions Waterloo Reg.P.S.. responsibilities of special Safety and Waterloo Reg.PS and During courtesy Ministry visit in March 2005 the constables Security OACUSA rep was pleased with implemented changes.. Changed uniforms & badges to comply in'05. Policies & procedures to be updated for May 06. Addt'I funds necessary to meet training requirements. Public Halls Governs the licensing of Physical yes Legislated by City of Yes, annually buildings for over 100 Resources Waterloo by-laws, they persons that are offered for advise us annually. use or used for public assembl . Public Sector Disclosure of University Payroll yes Gov't of Ontario website, On an annual basis the external auditor conducts Salary employees who receive Public Sector Salary spot checks on the disclosure list to ensure all Disclosure salaries of $ 100,000 or more Disclosures employees who should be on the list are. in a calendar ear Retail Sales Tax Collection and remittance of Materiel yes MM: CCH subscriptions MM: yes, through Finance audits tax. Management; to retail sales tax A&F: no, We will be doing a RFP for sales tax Accounting and information recovery services within next year Finance A&F: Professional Associations and Newsletters Provincial Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Acts Requirements Departments Current Regulations Smoking in the Smoking not permitted in Environmental Yes Monitor Literature Ministry of Labour can inspect at any time. Workplace enclosed workplaces; posting /Occupational Referendum was conducted in Spring 2005 and of signs respecting smoking in Health and majority voted for asmoke-free campus. the workplace; Joint health & Safety Committee was struck, representing all safety committee constituencies, to develop a compliance strategy consultation for smoking area for consideration of the Board. Work is ongoing. designation; reasonable accommodation for employees who request a workplace separate from desi Hated smokin area Tenant Rights & obligations for Housing Yes Gov't website, Internet As the Act does not apply to Residence, the staff Protection landlords, procedures for and publications field complaints re. private landlords and offer terminating a tenancy, & rules appropriate advice. relating to rent Theatres Safety and operating Performance Yes Industry contracts, No regulations for theatres Facilities associations membership, on mailing list for updates to "Safety Guidelines for Live Performance Industry", published by Ontario Ministry of Labour Tobacco Smoking prohibited inside Environmental/ Yes Monitor literature Ministry of Labour can inspect at any time Control post-secondary education Occupational institutions except in Health & Safety designated areas; posting of no-smoking signs; sale or supply of cigarette products prohibited to persons under 9 rs of a e Wilfrid Laurier Guidelines for the board University Yes the act and respective by- No University concerning the governance, Secretariat laws conduct, and management of the universi Workplace Safety and Insurance Payment of assessments, provision of certain information, maintenance of first aid appliances and services Environmental / Occupational Health and Safety; Payroll Yes P: WSIB website, Paysource E/OH&S: Gov't website, regular communications with WSIB staff and colleagues P: yes, by WSIB inspects annually. Last conducted Dec/05. Results good with notable rebate. Federal Acts Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Requirements Departments Current Regulations Atomic Energy Care and control of atomic Environmental Yes Commission directives & Canadian Nuclear Safety Commission can inspect Control material / Website at any time. Last conducted in Dec/05 and Feb/06. Occupational Results, "meets requirements" Health and Safe Canada Deduction and submission of Payroll Yes Canada Revenue Agency Yes, CRA external auditors can conduct a Pension Pension contributions, documentation (CRA) website, + Insurable Earnings Report. Internal Auditor Employer's Guide to ensures accuracy of CPP remittance to CRA. A Payroll Deductions, review of our records was last conducted in 200 I . Pa source, Dialo ue Copyright Terms of copyright Library Yes Ontario Provincial news Access Copyright has the right to audit and listed through library inspect pursuant to clause 20 of the licensing assoc. such as OCUL; agreement. DE and BK store submit logs. govt websites; Oct. 24, 2005 Access Copyright workshop planned in cooperation with Access Copyright & Education Dev'pt & library; copying guidelines given to faculty at beginning of each term; Access copyright, AUCC, SOCAN contacted when uncertainties arise Customs Tariff Payment of appropriate Materiel Yes On-line access to Not to date customs duties, tariffs, and Management customs tariff, customs excise taxes brokerage services & info bulletins & training courses Employment Dev'pt of a comprehensive Office of the Yes Listserves, Ministry Potentially when the University receives a Federal Equity (Federal employment equity work Employment website, contracts contract of $200,000 or more Contractors' plan which meets Federal Equity Program) Contractors Program regm'ts Coordinator Federal Acts Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Requirements Departments Current Regulations Employment Matters pertaining to the Payroll Yes Employer's Guide to Yes, CRA external auditors can conduct a Pension Insurance proper implementation of Payroll Deductions; + Insurable Earnings Report. CRA last reviewed deducting & remitting Canada Customs Agency in 200 I . premiums, issuing of records (CRA) website, of em to ment, etc. Pa source, Dialo ue Canadian Environmental control of Environmental/ Yes Informed by government Canadian Nuclear Safety Commission can inspect Environmental toxic substances, effluents, Occupational publications and at any time; annual report National Pollutant Protection Act and emissions Health and newsletters Release Inventory NPRI. Last inspected in June 05; Safe results, "in com liance" Excise Tax Collection and remission of Accounting and Yes A&F: Professional A&F: No taxes on certain imported Finance; Associations & MM: yes in 2003-04 goods. Materiel Newsletters Management MM: Purchasing of commercial alcohols under license in the name of Dean of Science Export & Permits for export and Materiel Yes Req'd for restricted & No Import Permits import of strategic and other Management controlled goods-user User/importer must make application directly goods makes application (i.e. before importation. researchers through customs) Goods and Collection and remittance of Accounting and Yes A&F: Professional MM: Yes, through Finance Audits Services the Goods and Service Tax Finance; Associations & A&F: Yes, we had a GST audit done at end of Materiel Newsletters 2004 fiscal year, which covered the period Management MM: Trade agreements Mayl/01-April 30/04. Resulting total assessment i.e. ONT/Quebec $144,094.04. Number of practices changed agreement oninterval- including the revision of food service plans. We trade-info-line; CCH will be doing a RFP for sales tax recovery services Goods + Services Tax within next year Reporter; update notifications Federal Acts Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Requirements Departments Current Regulations Hazardous Establish Workplace Materiel Yes MM: MSDS Info provided MM: data made available at user locations Products Hazardous Materials Management; with hazardous goods & E/OH&S: Ministry of Labour can inspect at any Information System; identify Environmental available on-line; special time requirements for labels; / training provided for Material Safety Data Sheets; Occupational handling radioactive employee training Health and materials for distribution Safety; all services employees supervisory E/OH&S: Ministry personnel directives and other ublications Health Canada Environmental Yes E/OH & S: Government Anew laboratory Biosafety Guidelines published - Laboratory /Occupational website by the Office of Laboratory Security within the Biosafety Health and Public Health Agency of Canada has stressed the Guidelines Safety importance of having a biosafety officer & a biosafety program in place. E/OH & S and Dean of Science developing a Biohazard Safety Manual to be completed for April 2007. Faculty member in Science serving as biosafety officer in conjunction with Stephanie Kibbee. Immigration Provisions dealing with Office of the Yes Reg: depends on Reg: No persons entering the country Registrar; notification by V-P A: No Office of the government, professional Vice-President associations such as the Academic Ontario University Registrars' Association and the Council of Ontario Universities or other members of the Laurier community V-P A: Director of Faculty Relations is tasked with this, belongs to list serves, attends meetings of counterparts. Federal Acts Summary of Act Applicable Compliance Sources of Info About Audit or Inspection & Other Comments Requirements Departments Current Regulations Income Tax Collection and remittance Payroll Yes Employer's Guide to Yes, CRA external audits. Each year after T4 info (Payroll} of income tax deducted Payroll Deductions, CRA is submitted we are subject to a final from employees website, Dialogue, reconciliation by CRA. This provides opportunity Paysource to explain differences between what should and what was remitted. Accounting & A&F: Yes A&F: Professional A&F: Yes, receipts issued by Development Finance UA: Yes Associations & UA: Yes, Internal audits and Periodic CRA audits. University Newsletters Last CRA Audit in 1999.Ontario Freedom of Advancement UA: Canada Customs & Information & Protections Act extended to Appropriate use and Revenue Agency website; universities June 2006. Currently auditing policies acknowledgement of current copy of Income & procedures for compliance. Expect to be fully Income Tax charitable gifts Tax Act; Canadian compliant by effective date of legislation. Requires (charitable gifts, Taxation Charities and an Basil accessible method for alumni to y- including hedge Donations -updated withdraw from fundraising programs; privacy fund gifts) annually. statement to be published in Campus; and mailing to alumni indicating how their information will be used and their abili toot-out of fundraisin . There is a US charitable arm University Yes Retain legal counsel in No, insufficient activity of "Friends of WLU"that Advancement US to monitor & advise must comply with Internal on tax matters Revenue Service Regulations Pest Control Regulation of products used Physical Yes Through service provider n/a Products for the control of pests and Resources who is licensed the organic functions of plants and animals Statistics Reporting of student Office of the Yes CoAR: Annual request CoAR: no enrolment, faculty Coordinator of from StatsCan regarding Reg: audited annually, both internally and complement, etc. Academic submission of data & externally according to precise methods Relations, what is required. suggested by the Ministry Office of the Reg: Memoranda from Registrar MTCU; interactions with colleagues at other universities; the Ontario University Registrar's Association and COU Federal Acts Summary of Act Requirements Applicable Departments Compliance Sources of Info About Current Regulations Audit or Inspection & Other Comments Canada Regulations concerning Materiel Yes MM: Distributions MM: No Transportation transporting of certain Management, services employees also E/OH&S: Transportation of Dangerous Goods dangerous and hazardous Environmental/ trained & certified in Inspector. Last inspected Feb 06. Results, "in products Occupational TDG procedures; special compliance". Health & Safety training on the handling of radioactive material provided to distribution services employees by E/OH&S office; E/OH&S: Government website Prepared by University Secretariat from survey o f applicable departments