Archive: Audit FAQ
Participation of Former Employees
An invitation to certain former employees to participate in the audit.
Q. What is an audit?
An audit, in simplest terms, is an examination and verification. In this case, the auditors are examining processes and procedures around several subjects including expropriation of land, travel and living expenses of senior management, and tendering. An auditor looks for the things that an organization does right, and the things that an organization does wrong.
Q. Can I see a copy of the Request for Proposal for the External audit?
This RFP document was made public during an Audit and Budget Committee meeting. Please select the link to review RFP QU 3314, which has now closed. Accountability, Integrity and Transparency Audit.
Q. What will the Accountability, Integrity and Transparency Audit be reviewing?
This audit is an important opportunity to help the RMWB improve our checks and balances, as well as our policies and procedures. Many organizations use audits to ensure spending is rational, and to make sure we are making decisions that are driven by organizational values. Council named the audit the, “Accountability, Integrity and TransparencyAudit” to demonstrate its commitment to these public service values. Some of the components of the Accountability, Integrity and Transparency audit include:
- Business Process and Compliance – This will focus on a single process or system, and can include a review of the accountability framework, risk management practices, effectiveness of key controls, and compliance with the authorities and performance reporting.
- Contract and Vendors – This will review the contract for goods and services received by the Municipality and the validation of charges billed to the Municipality. It will also review the adherence of vendor contract provisions, and accuracy of the data presented.
Performance – This will focus on the evaluation of the performance of a program or function, and can include the review of the following:
- Business objectives
- Accountability and relationships
- Risk Management and controls
- Value for money achieved
- Protection of public assets
- Compliance with authorities
- Performance results
- Performance reporting
- Due Diligence – This will focus on providing assurance on public Service reports and financial information. This can include reviews of key business assumptions, costing calculations, and disclosures to decision makers.
- Construction and Engineering – This can include reviews of existing construction or engineering contracts for compliance with the contract.
- Special Reviews – These reviews will be performed as requested by management or Municipal Council.
Q. Some of the specifics that the Accountability, Integrity and Transparency Audit will look at include:
- Land Acquisitions – Including the purchases, expropriations, leases and all incentives offered by the Municipality in the determination of the sale price from January 1, 2011, until current.
- Travel and living expenses for senior staff, consultants and contractors, and taxation considerations
- Consultants and contractors – ensuring compliance with legislation for engagements, monitoring and best practices.
- Tender and proposal terms and conditions
- Organizational reviews specific to the communication needs, to ensure there is a correct ratio of support staff and management
- Governance framework, specific to delegated authorities approvals and policies
- Council Policies – Ensuring best practices and adequacy of information is received from Administration
Q. How was the successful proponent / Auditor Selected?
KPMG has been selected as the successful proponent to execute the Accountability, Integrity and Transparency Audit. They were selected through the Municipality’s competitive supply chain policy, and are independent of the Regional Municipality of Wood Buffalo, as defined by Canadian Auditing Standards.
Q. When will the Audit be complete?
September 23, 2014.
Q. What will be done with the recommendations of the audit?
The findings and recommendations from this audit will be presented to the Audit and Budget committee. The next step is to share in a formal Council meeting. If these recommendations are accepted, administration will be able to implement the improvements suggested. Our internal auditing team can help ensure these improvements are fully implemented, and working as intended.
Q. How is this different than the financial audit that the RMWB undergoes each year?
Every year, the RMWB works with an independent partner to complete an external, financial audit. This process is similar but focuses on the broader processes and policies. It examines the way we make our decisions and any potential gaps in these processes.
The output of any audit is a series of recommendations. Our annual external audit looks more closely at financial related issues, this separate audit will focus on policies, procedures and processes in the eight areas listed above.
Q. How will the recommendations of this audit be shared with the public?
Once Council examines and accepts any audit findings, members of the public will be able to see the recommendations. Implementation and continuous improvements may also be examined.
Q. What happens after the recommendations are approved? How do we know improvements have taken place?
Council reviews recommendations, first through the Audit and Budget committee and then at a Council meeting. The recommendations are approved formally and the administration will implement any improvements. These improvements will be monitored over time through the Audit and Budget committee, who are mandated to review all matters relating to budget.
Q. Do members of the public have an opportunity to provide feedback and comments to the auditors?
This current process is an examination of internal processes. The work of the auditors is guided by the Audit and Budget Committee, and any feedback from the public should be directed to the Audit and Budget committee.
Q. What is the role of the Audit and Budget Committee?
The Audit and Budget Committee is a council committee, and its mandate is to review and make recommendations to Council on matters relating to budget, finance, and taxation.