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Audit Update: Feb 15, 2017

For the Feb. 4, 2016, Audit and Budget Committee meeting, the Chief Administrative Officer prepared an update to Council on Administration’s progress of implementing the recommendations from KPMG’s Accountability, Integrity and Transparency Audit. You can read that update here.

1.0 Governance

[What KPMG said on this topic.]

Recommendation Current Status
1.1 Set a clear and consistent “Tone from the Top”.
1.2 Review the current structure of the relationships between Council and Administration.
At the April 26, 2016 Council meeting, Council rescinded their March 15 motion to engagement Watson Advisory Inc. to provide governance training to Council members.
1.3 Develop consistent information to be provided by Administration to Council. This will be addressed as part of the new CAO Bylaw
1.4 Council clearly define its expectations for the External Audit function. COMPLETED
Council had an In-Camera session with the External Auditor at the Audit and Budget Committee on April 21, 2015.
1.5 Develop and document a process to support Administration’s annual representations with respect to internal controls. COMPLETED
Implemented as part of the sign-off of the 2015 Financial Statements.
1.6 Council clearly define its expectations for the Municipal Auditor function. COMPLETED
Terms of Reference for the Audit Committee was approved at the April 20, 2016 Audit Committee Meeting.

2.0 Council Policies

[What KPMG said on this topic.]

Recommendation Current Status
2.1 Implement a whistleblower policy. COMPLETED
Whistleblower Policy was approved by Council at their October 6, 2015 meeting and implemented on January 1, 2016.
2.2 Review and update Delegation Order on a regular basis to ensure it remains current. This will be addressed as part of the new CAO Bylaw.
2.3 Review and update existing Code of Conduct Policy to reflect leading practices. COMPLETED
It was determined at the July 2 Agenda Review meeting that Administration should revise the existing Code of Conduct Procedure as opposed to developing a Council Policy on Code of Conduct. Procedure has since been revised and is now in place.
2.4 Implement an employee performance management policy and procedure. COMPLETED
Council approved the Exempt Performance Management Policy HRM-550 at their May 26, 2015 meeting.
2.5 Implement a Severance Policy and Procedure. COMPLETED
Council approved the Exempt Severance Policy HRM-620 at their Dec. 1, 2015 mtg.
2.6 Implement a “Learning For All” policy and procedure. COMPLETED
Council approved the Learning Development & Training Policy HRM-540 at their April 26, 2015 meeting
2.7 Implement a policy covering attendance at political fundraisers for elected officials and employees and update the current procedures to include additional guidance. COMPLETED
Council approved the Attendance at Political Fundraising Events & Other Events – Elected Officials, Chief Administrative Officer and Executive Directors – LEG-180 at their April 28, 2015 meeting.
2.8 Implement the Grant Procedure. COMPLETED
Council approved the Community Investment Program Policy FIN-220 at their June 24, 2014. The Internal Auditor reviews on an ongoing basis for compliance.
2.9 Review all policies and procedures for gaps noted in this report. Ongoing
Additional Policies requested by the CAO:
1. Public Participation – Engagement
COMPLETED
Council approved the Public Engagement Policy COM-130 at their October 18, 2016 meeting.
Additional Policies requested by the CAO:
2. Groundbreaking/Ribbon Cutting
COMPLETED
Council approved the Municipal Sponsored Ground-Breaking and Ribbon-Cutting Ceremony Policy COM-120 at their April 26, 2016 meeting.

3.0 Organization Review – Communications and Public Affairs

[What KPMG said on this topic.]

Recommendation Current Status
3.1 Develop and document a mandate for the Public Affairs Department. COMPLETED:
Council was provided a copy of all departmental mandates on October 7, 2015 via e-mail. Mandates are also posted on the RMWB website.

4.0 Honorariums

[What KPMG said on this topic.]

Recommendation Current Status
4.1 Develop and implement a formal honorarium policy and procedure. COMPLETED
Council approved the Gratuity Policy FIN-230 at their May 26, 2015 meeting.
4.2 Use a consistent form for approval of honorariums.
4.3 Develop and implement regular monitoring of honorariums.
COMPLETED
Form and regular monitoring is part of the Gratuity Administrative Procedure FIN-240.

5.0 Land Acquisitions and Expropriations

[What KPMG said on this topic.]

Recommendation Current Status
5.1 Municipality to document its policies and procedures for land acquisitions and expropriations.
5.2 Retain all documentations in land acquisitions and expropriation files.
5.3 Mandate the use of the “Land Administration Transaction Request” form.
5.4 Include documentation of conflict of interest and related party checks in the land acquisition and expropriation files.
COMPLETED
Council approved the Land Acquisition Policy ADM-250 at their July 7, 2015 meeting.
5.5 Consider implementing a data processing patch in SAP to track land acquisitions and expropriations. Ongoing

6.0 Travel and Living Expenses

[What KPMG said on this topic.]

Recommendation Current Status
6.1 Determine whether or not a Fly-In-Fly-Out policy is required and if so implement a policy and procedure. COMPLETED
Council approved the Municipally Funded Commuting Policy HRM-510 at their April 12, 2016 meeting.
6.2 Implement a policy and procedure for temporary housing. COMPLETED
Council approved the Transitional & Temporary Housing Policy HRM-570 at their Dec. 1, 2015 meeting.
6.3 Implement a policy and procedure for taxable benefits. COMPLETED
Council approved the Taxable Benefits Policy FIN-250 at their March 10, 2015 meeting.
6.4 Review all taxable benefits related to fly-in-fly-out arrangements. Ongoing
6.5 Update the Delegation Order and LEG-050 for the gaps noted in the report. COMPLETED
Council approved the Elected Officials Compensation, Travel and Expense Policy LEG-050 at their January 17, 2017 meeting.
6.5 Update the Delegation Order and LEG-050 for the gaps noted in the report. COMPLETED
Council approved the Elected Officials Compensation, Travel and Expense Policy LEG-050 at their January 17, 2017 meeting.
6.6 Utilize the Municipal Auditor to perform sample testing over self-approval of expense reports. Ongoing
6.7 Retain appropriate evidence of approval of expense reports. Ongoing
6.8 Reinforce the requirements of the existing Expense Policy to all employees. Ongoing
6.9 Reinforce the requirement to submit copies of receipts with expense reports. Ongoing
6.10 Regularly monitor taxable benefits. Ongoing
6.11 Consider implementing an automated approval workflow for expense reports. COMPLETED
This item will require SAP resources and therefore would be prioritized against other SAP projects. Dedicating SAP resources at this time is not anticipated due to existing higher priority work plans.
6.12 Update the Delegation Order to require all expenses be approved by a more senior employee. COMPLETED
No update required. The existing Travel & Subsistence Administrative Procedure FIN-180 stipulates that a more senior employee is to approve expenses. All of the Executive Directors expenses are currently approved by the CAO and the CAO’s expenses approved by the Chair of the Audit Committee.

7.0 Consultants and Contractors

[What KPMG said on this topic.]

Recommendation Current Status
7.1 – 7.3 Reinforce requirements of the standard operating procedures and Delegation Order related to vendor performance, change orders and contract close out to all employees. Ongoing
7.4 - 7.5 Reinforce the requirements for change orders, including evidence of approval, to all employees. Ongoing

8.0 Tenders and Proposals

[What KPMG said on this topic.]

Recommendation Current Status
8.1 Review PUR-100, Procurement Policy, in accordance with the mandatory review dates. COMPLETED
Council approved an amendment to Procurement Policy PUR-100 at their January 26, 2016 meeting.
8.2 Reinforce the requirement to complete a “Non-competitive Selection Business Case” to all employees. Ongoing
8.3 Amend policy FIN 190 to include a minimum number of bids. COMPLETED
Administration has reviewed the matter with KPMG and they have concurred that there is no need to amend the Supply Chain Management Administrative Procedure FIN-190. A BN was provided to Council in July, 2015 explaining the rationale as to why there is no need to amend Administrative Procedure FIN 190 relative to a minimum number of bids as the Municipality would be in contravention of the New West Trade Partnership
8.4 Update FIN 190 to include a minimum categorical requirement for proposal submissions. COMPLETED
Administration has reviewed the matter with KPMG. A wording change was made in the procedure update that addresses the ability of the Municipality’s Supply Chain Professional to ensure that the procurement process is adaptable to the various procurement activities undertaken.

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