Loading...
HomeMy WebLinkAboutCSD-09-074 - Community Resource Centre Audit Response ) ~R Community Services REPORT TO: DATE OF MEETING: SUBMITTED BY: PREPARED BY: WARD(S) INVOLVED: DATE OF REPORT: REPORT NO.: SUBJECT: Audit Committee December 14, 2009 Mark Hildebrand, Director of Community Programs and Services, ext 2623 Debbie Campbell, Manager, Community Resource Centres, ext 3382 All November 27,2009 CSD-09-074 COMMUNITY RESOURCE CENTRE AUDIT RESPONSE RECOMMENDATION: That Community Services report CSD-09-074 be received for information. BACKGROUND: The Internal Auditor conducted an administrative audit of all City of Kitchener Community Resource Centres during the period from May to August 2009. As a result of this audit, a final report was presented to City of Kitchener Council members on September 14, 2009. The report contained key findings as well as 20 recommendations for follow-up. REPORT: The Community Centre Audit report was reviewed by District Facilitators and key administrative staff in the fall of 2009. Although the report contains 20 recommendations, many of these are inter-connected. Upon review, the recommendations were sorted into 5 categories for consideration and follow-up. These categories are: * Manual Systems * Technical Solutions * Bank Deposits * Staff Training * Other Committees have been established to consider and respond to each of these five categories. Specific recommendations and actions are identified below: Manual Systems 2. Controls should be established to ensure all transactions can be verified. NA manual registration forms and payment receipt books should be numerically controlled, issued and recorded in sequence. They should be verified at least monthly by management. Transferring cash from City to NA should be verified and signed off by both parties and NAs should use their program attendance records to validate the payments collected and transferred to them by City staff Response: Controls identified above have been undertaken completely in one location, and are underway in others. Neighbourhood Associations have been advised of this recommendation; however, further discussion is required. As most NAs will be required to order new registration forms, complete implementation of this recommendation is anticipated for September 2010. 3. All staff should be using computers to access email and the intranet. At minimum, until such time as software solutions have been implemented, spreadsheets should be used to track daily registration and payment transactions instead of pen and paper forms Response: The use of spreadsheets is being developed; implementation anticipated in winter 2010. 6. Develop standardized templates, forms and procedures (even while still operating manually) across all centres to record program registrations, payments, miscellaneous revenue etc. Centres that have well-developed manual systems should be used as the model for these standards Response: Development of such templates has begun based on best practices at identified Centres. Staff training and implementation anticipated in winter/spring 2010. 16. Cash drawers used during business hours should be more closely monitored and when cash amounts exceed $200.00, funds should be placed in the safe Response: As safe access is limited to a small number of staff, drop-safes are required at all Community Centres to ensure implementation of this recommendation. A review is underway of location of safes, and quotes have been received for drop- safes. Three Community Centres are currently equipped with drop-safes. Technical Solutions The following recommendations require significant research to identify the impact of computerization for registration purposes. The use of computerization and on-line registration would be beneficial for ease of access for patrons, and would be welcomed by some NAs; however, is unlikely to be readily accepted by all NAs, as it would result in City staff taking on the full responsibility for program registration. There are tax implications, service fees and additional costs that would result in higher program fees for patrons. Consideration of such a systems change is anticipated to take some time for adequate discussion with Neighbourhood Associations. 1. Research and evaluate available technology solutions (point-of-sale, CLASS, spreadsheets, etc); determine the optimum level of computerization for City and NAs and implement a system to handle, at minimum, program registrations and payments and daily administrative processes in the centres. Response: This research is underway by staff. Significant discussion will be required with NAs when options have been determined. 5. Develop an online registration process, either through CLASS, the City's web site, or other means to provide optimum service to the community. The system should also provide electronic payment options. As an interim measure, centres should be equipped with the ability to accept debit and credit card payments. This would necessitate agreements with the NAs to cover the costs of service and accounting procedures to transfer funds from the City to the NAs Response: This research is underway; tax implications and additional charges to be determined prior to discussion with NAs. 7. Research the cost of implementing point-of-sale terminals in all centres Response: Quotes have been provided; implementation to be determined based on factors such as tax implications, additional charges and dialogue with NAs. 8. Centres should be equipped with debit/credit processing terminals to facilitate payments from customers. The NAs should be prepared to share the costs of such an implementation and new accounting processes would be required to handle inter- organization transactions (See Recommendation #5) Response: Research underway to determine implications and cost to NAs. Bank Deposits 9. Bank deposits should be made in compliance with the existing policy which states: "The deposit must be prepared weekly or when the total on hand reaches $500 (whichever comes first). This includes cheques, cash and amounts from debit and credit cards (non- cash items). If possible, the deposit slip should be prepared by two people where large amounts of cash are involved. For deposits with non-cash items such as cheques, VISA or debit cards, one person preparing the deposit slip is sufficient." Response: The $500 deposit threshold is too low for practical purposes for Community Centres. Dialogue will take place with Finance regarding an amendment to this policy. 10. Centre staff should request that all bank deposits be picked up by security staff for delivery to the bank Response: Discussion underway with Security Trainina 11. Proper retention of accounting records should be reviewed with staff in compliance with regulatory requirements. Response: Review underway with staff 13. Facility rental contracts should always be prepared in CLASS and the contracts must be fully completed and signed by the customer in order to be valid Response: Review underway with staff 17. Increased review of registration and payment transactions, and oversight by management will reduce opportunities for theft and identify issues early should they arise Response: Training to be undertaken by supervisory staff in winter 2010 19. Provide training for supervisors and managers in optimal administration procedures i.e.) How to verify their revenue reports and reconcile cash reports Response: Training to be undertaken by supervisory staff in winter 2010 Other 4. The City's relationship with Neighbourhood Associations should be reviewed to determine the level of administrative support we are prepared to offer and at what cost, as well as the requirement of the City to support NA registration processes. City staff job profiles should be reviewed if staff are performing accounting functions such as payroll, accounts payable etc. for the NAs and these duties are not reflected in the position descriptions Response: The role of City of Kitchener staff is fluid, enabling staff to respond and adjust to the needs of various neighbourhood associations. The staff roles vary widely based largely on the capacity of the NAs at any given time to attend to the basic functions of program provision. Currently, research is being undertaken re on- line registration and payment options. If implemented, it is expected that City staff will take on increasing levels of responsibility for program registration, and, in some cases, program delivery. Staff job descriptions will be reviewed at this time to ensure that responsibilities are reflected accurately in position profiles. 12. NA volunteers should be required to pick up their deposits at least weekly and should be notified in writing of this requirement Response: This recommendation has been discussed with NAs. Although aware, the recommendation is not always practical for NA volunteers and is difficult to enforce. 14. CLASS system should be installed at all community centres (Mowat-Chandler, Mill- Courtland) Response: Completed 15. All facility keys should be stored in a locked cabinet or drawer with access given to only one or two staff Response: This is not practical for Community Centres, as staff require access to all areas of the Centre. 18. The physical location of the safes should be examined and if necessary the safes should be relocated to allow staff to access them more easily Response: Currently being reviewed as part of the facilities management audit. Quotes have been received for drop-safes. Drop safes have been installed in 3 Centres, with several others currently under investigation. 20. Internal audit should be scheduled every two years at request of General Manager, Community Services to ensure continuity of improvements FINANCIAL IMPLICATIONS: The implementation of on-line registration, CLASS, and other computerized systems for program registration will have financial implications for City of Kitchener, patrons and Neighbourhood Associations. The financial impact to the City of Kitchener includes operational costs such as staff wage adjustments to reflect use of computers, as well as capital costs to implement CLASS, and point of sale. Tax implications and service charges will increase the cost of programs for patrons. Detailed financial implications are to be determined. CONCLUSION: Audit recommendations will continue to be researched and implemented over the course of the next year. ACKNOWLEDGED BY: Pauline Houston, General Manager, Community Services