Members of Council and Staff: Please keep this agenda and the accompanying material until the City Council meeting dealing with these matters has ended. The City Clerk’s Office will not provide additional copies.

Special Assistance for Members of the Public: City staff can arrange for special assistance with some advance notice. If you need special assistance, please call (416-392-8021), TTY 416-338-0889 or e-mail rmacken@toronto.ca.

Closed Meeting Requirements: If the Audit Committee wants to meet in closed session (privately), a Member of the Committee must make a motion to do so and give the reason why the Committee has to meet privately. (City of Toronto Act, 2006)

Notice to people writing or making presentations to the Audit Committee: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its committees.

The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it – such as your postal address, telephone number or e-mail address – available to the public, unless you expressly request the City to remove it.

The City videotapes committee and community council meetings. If you make a presentation to a committee or community council, the City will be videotaping you and City staff may make the video tapes available to the public.

If you want to learn more about why and how the City collects your information, write to the City Clerk's Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or by calling 416-392-8021.

Declarations of Interest under the Municipal Conflict of Interest Act.

Confirmation of Minutes     –      September 24, 2009, Meeting 12

                                          –      September 24, 2009, Meeting 13

                                          –      October 20, 2009, Meeting 11

Communications/Reports

The Auditor General recommends that:

1.         The Treasurer, in conjunction with Heads of Divisions participating in the PCard program, develop and implement clear and effective procedures to:

a.         Reduce the number of monthly transactions with outstanding documents or approvals

b.         Follow up on transactions with outstanding documents or approvals in a consistent manner

c.         Recover the City’s GST rebates from PCard purchases

d.         Ensure cancellation of individual PCards according to policy.

2.         The Treasurer validate employment status of all current cardholders.  Further, in consultation with Heads of Divisions participating in the PCard program, the Treasurer develop and implement clear and effective procedures to address the timely cancellation of PCards upon employment termination or extended leave.

3.         The Treasurer, in conjunction with Heads of Divisions participating in the PCard program, develop and implement effective review, monitoring, and follow-up procedures, at the divisional and Corporate levels, to ensure compliance with PCard policies and procedures.

4.         Heads of Divisions participating in the PCard program ensure that a divisional approval list outlining cardholders and their respective approval supervisors is developed and routinely reviewed for appropriateness.

5.         The Treasurer, in consultation with Heads of Divisions participating in the PCard Program, ensure adequate controls are incorporated into the PCard approval process to detect inappropriate authorization and minimize the risk of unauthorized alterations to purchase logs.

6.         The Treasurer, in consultation with Heads of Divisions participating in the PCard Program, ensure that cardholder reconciliation of purchase logs with PCard system records is consistently implemented.

7.         The Treasurer, in consultation with Heads of Divisions participating in the PCard program, develop procedures whereby management staff have regular access to information on the total number and types of PCard purchases made for their office/unit.

8.         The Treasurer ensure that PCard documents, including purchase logs and receipts, are stored in a secure manner to prevent unauthorized access.

9.         The Treasurer undertake the necessary steps to improve effectiveness of PCard training.  Such steps should include, but not be limited to:

a.         Ensuring the training includes a review of the importance of individual roles and responsibilities in the control framework

b.         Providing refresher training where needed.

10.       The Treasurer undertake the necessary steps to improve efficiency of the PCard process, including steps to explore the feasibility of using the PCard system to generate purchase logs for cardholders, and re-assess what information is necessary for cardholders to provide in the purchase logs.

11.       The City Manager ensure that the Expense Claim Policy for Staff of the City of Toronto (March 10, 1998) is reviewed, updated, and made accessible to staff.

12.       The Treasurer develop and implement measures to improve compliance with Corporate policies and procedures pertaining to business expenses.

13.       The Treasurer develop standards or guidelines for providing food and/or beverages at staff meetings and functions.

14.       The Treasurer undertake the necessary steps to improve cardholder compliance with Corporate purchasing policies and procedures.  Such steps should include, but not be limited to:

            a.         ensuring cardholders receive adequate training in purchasing policies and procedures

            b.         monitoring PCard purchases to identify non- compliance with purchasing policies.

15.       The Treasurer ensure that PCard purchases are regularly monitored and analyzed to identify opportunities for blanket contract.

16.       The City Manager review the current sundry expense policy and consider integrating the requirement to reduce the sundry expense claim when meals are provided at conferences or business meetings, or when meals are paid for by the City.

17.       The Treasurer, in conjunction with Heads of Divisions participating in the PCard program, develop and implement procedures to reduce the number of inactive or low usage cards, and cancel inactive cards where necessary.

18.       The Treasurer develop and implement strategies to promote and expand the use of PCards by City divisions.  Such strategies should include, but not be limited to:

a.         analyzing divisional purchasing patterns to identify potential areas for expansion

b.         developing and implementing measures to increase the use of PCards by divisions

c.         setting performance goals for the City based on the number of participating divisions and yearly PCard purchase volume.

19.       The Treasurer ensure adequate contract review and management practices for the PCard program including:

a.         a thorough review of the contractual terms and rebate rates and volume tiers

      b.        retaining a copy of the final contract.

20.       The Treasurer, in conjunction with Heads of Divisions  participating in the PCard program, develop a long term strategy for continuous improvement of the PCard program including:

             a.        establishment of a City-wide User Group

             b.        regular reviews and updates of policies and procedures.

The Auditor General recommends that:

1.         The City Manager be required to fully address the recommendations relating to hiring contained in the Bellamy Report.  The Executive Director of Human Resources also be required to ensure that the quality control of hiring files include a monitoring process to address the Bellamy recommendations.

2.         The Executive Director of Human Resources take steps to implement the action plans related to employment equity contained in the Toronto Public Service People Plan 2008 - 2011.  The action plans to provide specific deliverables as well as a time frame for such deliverables.  Regular progress reports be provided to City Council.  In developing its specific plans, the Executive Director of Human Resources consult with the Toronto Police Services as well as other appropriate employers in order to ensure that its action plans represent best practices.

3.         The Executive Director of Human Resources ensure the City’s external recruitment strategy includes outreach to diverse community groups.  Evidence of such activities be documented in the files.

4.         The City Manager in consultation with the City unions give priority to the development of a workplace survey for union staff.  Such a survey be consistent with the non-union workforce survey.  The results of the survey be reported to City Council and be used as a basis for addressing the City’s employment equity hiring goals.

5.         The Executive Director of Human Resources in consultation with the City Solicitor evaluate the feasibility, benefits and risks of adopting a City-wide Corporate hiring policy.

6.         The Executive Director of Human Resources direct all staff to complete the appropriate screening documentation for all employee applicants.  All such documentation be retained in hiring files.

7.         The Executive Director of Human Resources direct all staff involved in the hiring process that documentation relating to conflict of interest declarations be completed and retained.

8.         The Executive Director of Human Resources direct all staff involved in the hiring process to ensure that there is an adequate level of documentation in all hiring files to support hiring decisions.  Such documentation is critical in any potential hiring dispute.

9.         The Executive Director of Human Resources direct all staff involved in the hiring process to follow and comply with City policies on employment references.

10.       The Executive Director of Human Resources direct all staff to ensure that a fully executed copy of the current employment agreement is obtained and retained in the employee’s Corporate human resources file. 

11.       The Executive Director of Human Resources develop Corporate standards which requires the written evaluation of newly hired non-union City employees during the six-month probationary period.

12.       The Executive Director of Human Resources develop a hiring benchmark to measure the time required to complete the hiring process for non-union employees and monitor the performance of each hiring unit against the established benchmark.  The Division evaluate the current hiring process to determine where “bottlenecks” in the process occur.  Steps be taken to address these areas.

13.       The Executive Director of Human Resources review the current extent and timing of quality reviews of hiring files.  Consideration be given to conducting a certain number of such reviews on current open hiring files.

14.       The Executive Director of Human Resources ensure all current and new divisional hiring supervisors and managers attend the “Basics of Staffing” training course.

15.       The Executive Director of Human Resources review acting assignments to ensure such assignments comply with Corporate policy.  The Executive Director of Human Resources review the documentation requirements for acting assignments of non-union employees to ensure Corporate records include written documentation detailing the terms and conditions of acting assignments. 

16.       The City Manager forward this report to the City’s Agencies, Boards and Commissions.  Further, the City Manager request that relevant recommendations contained in this report be implemented.

The objectives of this audit were to determine the effectiveness of internal controls over the hiring of non-union employees and to review compliance with relevant legislative requirements.

This review identified a number of areas where there is opportunity for improvement.  For the most part, existing policies and procedures are adequate and in compliance with legislative requirements.  However, in a number of cases they are not being followed.  In circumstances where policies and procedures are not being followed, the risk exists that the City's recruitment objectives may not be achieved.

The implementation of the recommendations in this report will assist the Division in ensuring that the recruitment for non-union employees is transparent, fair and in compliance with legislation, policies and procedures.

Since the City's agencies, boards and commissions conduct their own hiring process, the recommendations contained in this report likely have relevance to each one of those organizations.  It is suggested that this report be forwarded to the agencies, boards and commissions in order to determine the applicability of the recommendations.

The Auditor General recommends that:

1.         The Chief Information Officer in consultation with the Executive Director, Human Resources Division take steps in accordance with the “People Plan” to identify common computer skills which apply to “jobs across all divisions” to assist in the development of a training program for new and current employees.

2.         The City Manager ensure divisional learning plans are prepared as required by the City “People Plan” and submitted to the Information and Technology Division.

3.         The City Manager review the evaluation process relating to the effectiveness of Information and Technology training particularly in regards to the impact of enterprise-wide information and technology training for on-the-job performance as well as its impact on the City as a whole.

4.         The Chief Information Officer develop performance indicators to measure the efficiency and effectiveness of the Information and Technology Training and Education Unit and training courses provided by the Unit.

5.         The Executive Director, Human Resources Division ensure enterprise wide courses resulting in corporate wide benefit have priority when the on-line self service system is implemented.

6.         The Chief Information Officer implement a charge-back policy for training courses similar to the Human Resources Division policy.  The policy should charge divisions for registered employees that fail to attend courses without prior notification.

7.         The Chief Information Officer in consultation with the Executive Director, Human Resources Division investigate the long term use of the SAP Human Resources Information System as the repository for employee training records. 

The objective of this audit was to review training activities provided by the Information and Technology Division to identify opportunities for improving the management, administration and effectiveness of training services provided by the Division.  Specifically the review was to determine if information technology training provided is relevant and delivered in a cost effective manner.

The review identified the need to address a number of areas to strengthen the overall effectiveness and efficiency of information technology training and education provided to City employees.  Areas identified include the following:

• Developing common computer skills
• More effective use of trainer time
• Evaluating the effectiveness of training
• Implementing a charge-back for “No Shows”
• Implementing performance measures
• Preparation of learning plans
• Centralizing employee training records

Although recommendations in this report focus on improving efficiency and effectiveness over information technology training and education at the City, the recommendations may be relevant to the City's agencies, boards, commissions and corporations and should be reviewed, evaluated and implemented as deemed appropriate.

The Auditor General recommends that:

1.         The Deputy City Manager and Chief Financial Officer consider assigning responsibility for hydro and natural gas accounts management to the Energy and Waste Management Office.  At the same time the reallocation of resources should be evaluated.

2.         The Deputy City Manager and Chief Financial Officer develop a control framework to ensure the cost effective administration of hydro and natural gas invoice payments.  Such framework should include, but not be limited to the following:

             a.         clear definition of the roles and responsibilities of the Accounts Payable Unit, the Energy and Waste Management Office and City divisional managers.  The roles and responsibilities to include areas such as processing hydro and natural gas invoices, including following up on billing exceptions, dispute resolution and reporting protocols, as required

             b.        the establishment of protocols for effecting and reporting on energy metering changes, including new meter account set ups, de-activations, replacements, relocations and record keeping requirements

             c.        procedures for ensuring ongoing verification of hydro charges relating to street lighting by a staff person familiar with the operations

             d.        requirements for the Energy and Waste Management Office to communicate energy consumption fluctuations for divisional follow-up as required.

3.         The Deputy City Manager and Chief Financial Officer review and make appropriate revisions to Accounting Services’ Cost Centre Billing Procedure to include the revised utility payment control framework.

4.         The Executive Director of Facilities and Real Estate Division take appropriate steps to ensure the Energy and Waste Management Office maintains a complete and accurate database on all hydro and natural gas meters billable to City divisions.  The database be updated as required.

5.         The City Manager assign one City unit responsibility for developing and implementing a process for updating and verifying street lighting related hydro costs.

6.         The Executive Director of Facilities and Real Estate Division take necessary steps to complete, on a sample basis, ongoing recalculations of major hydro and natural gas bills for accuracy and consider using the specific software currently used by the TTC.

7.         The Executive Director of Facilities and Real Estate Division to ensure that identified energy billing anomalies are promptly analyzed and satisfactorily resolved with the provider on a timely basis.  Further, a system be developed to track outstanding refund requests.

8.         The Executive Director of the Facilities and Real Estate Division take appropriate steps to expedite enrolment in the consolidated billing services plan all hydro invoices, and request from Toronto Hydro data in a format that facilitates input to the Energy and Waste Management Office’s energy meter database.

9.          The Executive Director of the Facilities and Real Estate Division take appropriate steps to minimize duplication of energy consumption review efforts performed by City staff on behalf of City agencies such as the TTC and the Toronto Community Housing Corporation.

10.       The Deputy City Manager and Chief Financial Officer assign responsibility for the management of cable television services.  The specific responsibilities include:

              a.       the renegotiation of a corporate cable television service discount plan for all users

              b.       the maintenance of an inventory of cable television plans

              c.       rationalization of such cable television plans commensurate with requirements.

11.       The City Manager forward this report to the City’s major agencies, boards and commissions in order to ensure that the issues raised in this report are addressed by them where appropriate.

The Executive Committee on October 5, 2009 considered a report (September 21, 2009) from the City Manager, entitled "Status Report – Update on the Implementation of Auditor General’s 2008 Recommendations on Access, Equity and Human Rights".

The Executive Committee referred the update on the implementation of the recommendations made by the Auditor General (Appendix A), to the Audit Committee.

The Auditor General recommends that:

1.         City Council receive for information, the 2008 audited financial statements of Scadding Court Community Centre.