HomeMy WebLinkAboutCAO-10-008 - Market followup auditREPORT
REPORT TO: Mayor Carl Zehr, Chair
and members of the Audit Committee
DATE OF MEETING: March 22, 2010
SUBMITTED BY: Corina Tasker, Internal Auditor
PREPARED BY: Loretta Alonzo, Internal Auditor
WARD(S) INVOLVED: ALL
DATE OF REPORT: March 8, 2010
REPORT NO.: CAO-10-008
SUBJECT: MARKET FOLLOW UP AUDIT
RECOMMENDATION:
For information only.
BACKGROUND:
A controls audit of the Market division administrative processes was conducted by the Internal
Audit division in December 2008.
It has been requested by the Corporate Management Team that all divisions which have been
audited in the past will participate in a follow up audit at least one year following the completion
of the original audit. The purpose is to assess the outcome of the audit in terms of which
recommendations have been implemented, what the impact to the division has been, and to
identify any new or existing challenges the division is facing. This will help determine if a further
in-depth review is required and will highlight any high risk issues proactively.
REPORT:
This staff report serves to inform the audit committee of the high level findings from the follow up
audit.
Positive Impacts
The administration processes of the market have improved significantly as a result of
implementing the audit recommendations.
• Financial reports are supported by verifiable accounting records
• Revenue is now accurately reflected in the financial statements
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Practice of cash being collected from vendors without any basic security or controls has
been completely discontinued. Vendors are now required to pay their rent with post-
dated cheques issued annually and these funds are securely stored in accounting until
they are deposited.
The City now has signed lease agreements with all vendors and the customer files
contain all of the appropriate documentation of agreements, payments and receipts and
correspondence.
Accounts receivable and delinquent accounts are actively monitored by the manager and
collection efforts are effective. Prior to the audit there were numerous accounts that
exceeded 90 days with only partial payments.
Emerging Issues and New Recommendations
Ongoing issues with vendors are being addressed by senior management.
FINANCIAL IMPLICATIONS:
None
CONCLUSION:
No further review is required at this time and this concludes the audit cycle for the division.
ACKNOWLEDGED BY: Carla Ladd, CAO
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