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Decision Document |
|
Audit Committee |
Meeting No. | 16 | Contact | Rosemary MacKenzie, Council Administrator | |
Meeting Date |
Friday, May 14, 2010 |
Phone | 416-392-8021 | |
Start Time |
9:30 AM |
rmacken@toronto.ca | ||
Location |
Committee Room 1, City Hall
|
Chair | Councillor Doug Holyday |
The Decision Document is for preliminary reference purposes only. Please refer to the Committee’s Report to City Council or to the Minutes for the official record. |
AU16.1 | ACTION |
Amended |
|
Ward: All |
Issues Respecting Parking Tag Issuance and Cancellation |
Committee Recommendations |
The Audit Committee recommends that:
1. City Council request the Treasurer to review the parking enforcement process as it relates to the issue and cancellation of parking tags for delivery and courier vehicles. Such a review include an evaluation of best practices in other Canadian and US jurisdictions. If required, amendments to provincial legislation be requested.
2. City Council request the Treasurer to:
a. report annually to the Government Management Committee on the number of tickets cancelled in each category with a view to using the data to evaluate our cancellation protocol; and
b. revise data collection procedures so as to generate data for the Toronto Police Service that would enable Police supervisory staff to evaluate the job performance of parking control officers on the basis of:
1. number of cancelled tickets. 2. number of convictions.
3. City Council request the General Manager, Transportation Services to report to the August 18, 2010 meeting of the Public Works and Infrastructure Committee on the issue of enabling delivery and courier vehicles to fulfill their function. |
Origin |
(February 26, 2010) Letter from City Council |
Summary |
City Council on February 22 and 23, 2010, adopted, as amended, Audit Committee Item 15.2, headed "Controls Over Parking Tags Need Strengthening", and in so doing, referred one recommendation and a motion by Councillor Moscoe to the Audit Committee for consideration. |
Background Information |
Letter (February 26, 2010) from City Council, respecting Parking Tag Controls (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29746.pdf) Audit Committee Item 15.2, headed "Controls Over Parking Tags Need Strengthening ", adopted, as amended, by City Council on February 22 and 23, 2010 (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29747.htm) |
Communications |
(May 14, 2010) Submission from Mr. David Turnbull, President & CEO Canadian Court & Logistics Association (AU.New.AU16.1.1) |
Speakers |
Mr. David Turnbull, President and CEO, Canadian Courier & Logistics Association (Submission Filed) |
AU16.2 | Information |
Received |
|
|
External Audit of the Auditor General's Office |
Committee Decision |
The Audit Committee received for information, the report (March 28, 2010) from Robert Gore & Associates, Chartered Accountants. |
Origin |
(March 28, 2010) Report from Robert Gore & Associates, Chartered Accountants |
Summary |
This letter has been prepared at the request of the Audit Committee of the City of Toronto to obtain assurance that expenditures as incurred by the Auditor General's Office of the City of Toronto (AGO) are in compliance with the applicable policies as set by the City of Toronto. |
Background Information |
Report (March 28, 2010) Robert Gore & Associates, headed "Auditor General's Office, City of Toronto, Report on the Results of Applying Specified Auditing Procedures to Financial Information other than Financial Statements, Year Ended Dec 31, 2009" (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29862.pdf) |
AU16.3 | ACTION |
No Action |
|
Ward: All |
Agenda Planning for the July 5, 2010 Audit Committee Meeting |
Decision Advice and Other Information |
Due to lack of quorum, the Committee did not consider this item. All unfinished items will be brought forward to the next regular meeting of the Audit Committee or to a special meeting which may be called prior to the next regular meeting. |
Origin |
(May 3, 2010) Letter from the Chair, Audit Committee |
Summary |
In July 2008, the Audit Committee adopted a motion which directed that in future years, the annual schedule of meetings for the Audit Committee include:
- one meeting to review the City’s audited consolidated financial statements; and
- a separate meeting to review the financial statements of agencies, boards and commissions (ABCs) including business improvement areas (BIAs), arenas and community centres.
Accordingly, the meeting of the Audit Committee scheduled for June 30, 2010 is to consider the City's financial statements, and the meeting on July 5, 2010 is to consider financial statements of the City's ABCs, BIAs, Arenas and Community Centres.
Due to the upcoming election, these are the last meetings scheduled for this year. The Auditor General has advised that there will be several other matters that will require consideration by the Audit Committee. I am recommending that the Audit Committee permit other Items at the July 5, 2010 meeting, in addition to the financial statements. |
Background Information |
Letter (May 3, 2010) from the Chair, Audit Committee (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29745.pdf) |
3a | Audit Reports to be Submitted to July 5, 2010 Audit Committee Meeting |
Origin |
(April 28, 2010) Report from the Auditor General |
Summary |
The purpose of this report is to provide Audit Committee with information regarding various audit reports to be submitted to the July 5, 2010 meeting of Audit Committee. |
Background Information |
Report (April 28, 2010) from the Auditor General, headed "Audit Reports to be Submitted to July 5, 2010 Audit Committee Meeting" (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29858.pdf) |
AU16.4 | ACTION |
No Action |
|
Ward: All |
Insurance and Risk Management Review |
Decision Advice and Other Information |
Due to lack of quorum, the Committee did not consider this item. All unfinished items will be brought forward to the next regular meeting of the Audit Committee or to a special meeting which may be called prior to the next regular meeting. |
Origin |
(April 26, 2010) Report from the Auditor General |
Summary |
The Auditor General’s annual work plan included a review of the Insurance and Risk Management Section of the Corporate Finance Division.
Our review identified areas where opportunities exist to improve administrative practices and controls. Accordingly, we have issued a report which contains 20 recommendations. |
Background Information |
Report (April 26, 2010) from the Auditor General, headed "Insurance and Risk Management Review" (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29849.pdf) Appendix 1 - Insurance and Risk Management Review (February 22, 2010) (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29850.pdf) Appendix 2 - Management's Response (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29851.pdf) |
AU16.5 | ACTION |
No Action |
|
Ward: All |
Parks, Forestry and Recreation Division - Controls Over Ferry Service Revenue Need Strengthening |
Decision Advice and Other Information |
Due to lack of quorum, the Committee did not consider this item. All unfinished items will be brought forward to the next regular meeting of the Audit Committee or to a special meeting which may be called prior to the next regular meeting. |
Origin |
(April 26, 2010) Report from the Auditor General |
Summary |
The objective of this review was to assess the adequacy of controls over the administration and collection of Ferry Service revenue.
Our review identified opportunities for strengthening controls over the management of Ferry Service revenue and receivables. We have provided 10 recommendations for strengthening financial and accounting controls. |
Background Information |
Report (April 26, 2010) from the Auditor General, headed "Parks, Forestry and Recreation Division - Controls Over Ferry Service Revenue Need Strengthening" (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29844.pdf) Appendix 1 - Parks, Forestry and Recreation Division - Controls Over Ferry Service Revenue Need Strengthening (January 15, 2010) (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29845.pdf) Appendix 2 - Management's Response (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29846.pdf) |
AU16.6 | ACTION |
No Action |
|
Ward: All |
Governance and Management of City Wireless Technology Needs Improvement |
Decision Advice and Other Information |
Due to lack of quorum, the Committee did not consider this item. All unfinished items will be brought forward to the next regular meeting of the Audit Committee or to a special meeting which may be called prior to the next regular meeting. |
Origin |
(April 20, 2010) Report from the Auditor General |
Summary |
Attached is the Auditor General's report entitled "Governance and Management of City Wireless Technology Needs Improvement.” This review was conducted as part of the Auditor General's 2009 Annual Work Plan.
The objective of this audit was to determine what steps the City has taken to address risks related to the emerging use of wireless technology. Specific areas reviewed include an analysis of existing wireless related policies, general management and operational practices in effect, and safeguards used to secure city wireless infrastructure and data. |
Background Information |
Report (April 20, 2010) from the Auditor General, headed "Governance and Management of City Wireless Technology Needs Improvement" (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29831.pdf) Appendix 1 - Governance and Management of City Wireless Technology Needs Improvement (March 12, 2010) (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29832.pdf) Appendix 2 - Management's Response (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29833.pdf) |
AU16.7 | ACTION |
Amended |
|
Ward: All |
Parks, Forestry and Recreation - Review of Internal Controls at the East York Curling Club |
Committee Recommendations |
The Audit Committee recommends that:
1. City Council request the General Manager of Parks, Forestry and Recreation, to evaluate the City’s ongoing role in the management of facilities such as the East York Curling Club. The evaluation determine the most effective operating model taking into account community involvement in the facility as well as the management of core programs and other ancillary services.
2. City Council request the General Manager of Parks, Forestry and Recreation, to develop an accountability framework which includes formal operating agreements for groups operating programs at any City owned curling facility.
3. City Council request the General Manager of Parks, Forestry and Recreation, until such time as a different operating model is implemented, to request that the members of the Club’s volunteer Executive Board:
a. provide a financial report on a periodic basis, regarding funds held in the Board’s bank accounts and the expenditures made using these funds; and
b. provide access, upon request, to review documents and records to substantiate the completeness of receipts and the appropriateness of expenditures.
4. City Council request the General Manager of Parks, Forestry and Recreation to review the internal control deficiencies identified at the East York Curling Facility and establish a process whereby such control deficiencies are reviewed and addressed by the Parks, Forestry and Recreation Compliance Unit.
5. City Council request the General Manager of Parks, Forestry and Recreation to review the recommendations contained in this report for applicability to the other two Parks, Forestry and Recreation curling facilities, and where appropriate, such recommendations be implemented.
6. City Council request the General Manager of Parks, Forestry and Recreation to consult and work with the Board of Directors and President of the East York Curling Club in the evaluation and development of proposed changes to the current operating model at the East York Curling Club and report to the Community Development and Recreation Committee with recommendations. |
Origin |
(April 27, 2010) Report from the Auditor General |
Summary |
The objective of this review was to assess the adequacy of the East York Curling Club’s system of internal control over revenues, inventory management and compliance with policies and procedures related to cash handling and purchasing.
Most of the projects completed by the Auditor General’s Office are usually Divisional in nature and encompass large scale reviews involving significant audit time and staff resources. During our review of the City’s Purchasing Card Program, it became evident that the use of purchasing cards not only pertained to Divisional Staff at the City but it had also been extended to entities, including the East York Curling Club, outside the immediate day-to-day control of the City. The Auditor General’s report (October 27, 2009) entitled, “City Purchasing Card (PCard) Program - Improving Controls Before Expanding the Program” was adopted by City Council on January 26 and 27, 2010.
While we did not identify any irregularities at the East York Curling Club during our purchasing card review, we nevertheless deemed it appropriate to conduct a more detailed review of controls in order to ensure that they are appropriate and effective. A further benefit of such a review would be the probability that any recommendations resulting from this review could likely be applicable to other similar entities. |
Background Information |
Report (April 27, 2010) from the Auditor General, headed "Parks, Forestry and Recreation - Review of Internal Controls at the East York Curling Club" (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29822.pdf) Appendix 1 - Parks, Forestry and Recreation - Review of Internal Controls at the East York Curling Club (January 18, 2010) (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29823.pdf) Appendix 2 - Management's Response (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29824.pdf) |
Speakers |
Mr. Scott Murray, President, East York Curling Club |
AU16.8 | Information |
Deferred |
|
Ward: All |
2007 and 2008 Sole Source Activity up to $500,000 |
Committee Decision |
The Audit Committee deferred consideration of the report (April 28, 2010) from the Treasurer, to the July 5, 2010 meeting of the Audit Committee in order to allow for debate. |
Origin |
(April 28, 2010) Report from the Treasurer |
Summary |
This report provides information on the City’s sole source policies and procedures, and sole source contracts processed in 2007 and 2008 for amounts up to $500,000. |
Background Information |
Report (April 28, 2010) from the Treasurer, 2007 and 2008 Sole Source Activity up to $500,000 (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29766.pdf) Attachment 1 - Sole Source Divisional Purchase Orders (DPOs) issued up to $50,000 for the Year 2007 (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29767.pdf) Attachment 2 - Sole Source Purchase Orders and Blanket Contracts issued by PMMD up to $500,000 for the Year 2007 (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29768.pdf) Attachment 3 - Sole Source Divisional Purchase Orders (DPOs) issued up to $50,000 for the Year 2008 (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29769.pdf) Attachment 4 - Sole Source Purchase Orders and Blanket Contracts issued by PMMD up to $500,000 for the Year 2008 (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29770.pdf) |
AU16.9 | ACTION |
Referred |
|
Ward: All |
Mileage Claim Policy and Administration |
Committee Decision |
The Audit Committee referred the letter (May 3, 2010) from Councillor Denzil Minnan-Wong to the Auditor General for consideration and report back to the Audit Committee. |
Origin |
(May 3, 2010) Letter from Councillor Denzil Minnan-Wong |
Summary |
Requesting that the policy, oversight and administration of mileage claims by City employees be placed on the May 14, 2010 Agenda of the Audit Committee. |
Background Information |
Letter (May 3, 2010) from Councillor Denzil Minnan-Wong (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29853.pdf) Attachment - Letter (March 15, 2010) addressed to the Auditor General, from Councillor Minnan-Wong (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29854.pdf) |
Speakers |
Councillor Denzil Minnan-Wong, Don Valley East, Ward 34 |
AU16.10 | Information |
No Action |
|
Ward: All |
2008 Investment and Leasing Policy Compliance |
Decision Advice and Other Information |
Due to lack of quorum, the Committee did not consider this item. All unfinished items will be brought forward to the next regular meeting of the Audit committee or to a special meeting which may be called prior to the next regular meeting. |
Origin |
(January 26, 2010) Report from the Deputy City Manager and Chief Financial Officer |
Summary |
To respond to the audit opinion and the auditor’s comments contained in the report, "Auditor’s Report on Compliance with Investment Policy 2008" and to comply with the City’s Statement of Lease Financing Policies which requires confirmation that the City’s Agencies, Boards and Commissions have complied with the City’s investment and leasing policies during 2008. |
Background Information |
Report (January 26, 2010) from the Deputy City Manager and Chief Financial Officer, 2008 Investment and Leasing Policy Compliance (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29855.pdf) Attachment 1 - Ernst & Young Auditor's Report on Compliance with Investment Policy (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29856.pdf) Attachment 2 - Ernst & Young Management Letter (September 3, 2009) (http://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-29857.pdf) |
Quorum Lost No quorum was present for the afternoon session at 1:30 p.m. on Friday, May 14, 2010. After calling for quorum, the Chair called the roll at 1:45 p.m. and the Clerk recorded the following members present:
- Councillor Mike Del Grande - Councillor Chin Lee - Councillor John Parker
Also present:
- Councillor Janet Davis (non-member)
As quorum was not present, the meeting was adjourned. |
Meeting Sessions |
Session Date | Session Type | Start Time | End Time | Public or Closed Session |
2010-05-14 | Morning | 9:36 AM | 12:45 PM | Public |
2010-05-14 | Afternoon | 1:45 PM | 1:45 PM | Public |
Attendance | ||
Members were present for some or all of the time period indicated. |
Date and Time | Quorum | Members |
2010-05-14 9:36 AM - 12:45 PM (Public Session) |
Present |
Present: Del Grande, Ford, Holyday (Chair), Lee, Parker, Perruzza Also present (non-members): Davis, Minnan-Wong |
2010-05-14 1:45 PM - Roll Call |
Lost |
Present: Del Grande, Lee, Parker Not Present: Ford, Holyday (Chair), Perruzza Also present (non-members): Davis |