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Audit Update: May 19, 2015

For the May 19, 2015, 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.
The Audit & Budget Committee has supported pursuit of governance training for Council. A Terms of Reference document was developed to enable the search for a vendor to facilitate an effective and appropriate governance training program built upon leading practices in adult education. The RFP closed on April 1. Administration is currently reviewing the one submission received to determine if it meets the evaluation criteria as set out in the RFP. The evaluation will be presented to the Audit & Budget Committee on June 2 in order to determine the next steps.

Completion date: June 2
1.3 Develop consistent information to be provided by Administration to Council. Will be addressed as part of the new CAO Bylaw which will identify reporting requirements.

Completion date: TBD
1.5 Develop and document a process to support Administration’s annual representations with respect to internal controls. Discussions were held with KPMG and it was concluded that the process would be implemented for the 2015 year end process.

Completion date: Will be implemented as part of the 2015 year-end process
1.6 Council clearly define its expectations for the Municipal Auditor function. To be addressed as part of the Council governance structure.

Completion date: TBD

2.0 Council Policies

[What KPMG said on this topic.]

Recommendation Current Status
2.1 Implement a whistleblower policy. Draft being reviewed with Executive Directors prior to E-review and review by the CAO. To Council prior to summer recess.

Completion date: Prior to Summer Recess
2.2 Review and update Delegation Order on a regular basis to ensure it remains current. Under review.

Completion date: TBD
2.3 Review and update existing Code of Conduct Policy to reflect leading practices. Review is in progress to ensure it aligns with our Corporate Values and reflects leading practices.

Completion date: July 14
2.4 Implement an employee performance management policy and procedure. Internal review completed. Targeted for May 26 Council meeting.

Completion date: May 26
2.5 Implement a Severance Policy and Procedure Human Resources will be reviewing the draft Policy with Executive Directors. Anticipate presenting it to the CAO May 1 and Council on June 9.

Completion date: June 9
2.6. Implement a “Learning For All” policy and procedure. Internal review completed. Targeted for May 26 Council meeting.

Completion date: May 26
2.9 Review all policies and procedures for gaps noted in the Accountability, Integrity and Transparency Audit. Once the policies and procedures that were identified in the audit are completed, Administration will be reviewing existing policies and procedures on an ongoing basis to determine where updates are needed and where new policies and procedures need to be created.

Completion date: Ongoing

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. As part of the organizational restructuring, the Public Affairs Dept. was consolidated with the Communications Dept. as the new Communications and Stakeholder Relations Dept. The synergy between these two depts. will be improved as a result of this consolidation. Recruitment for a Director has been completed and the candidate of choice started on May 4. The new Director will be charged with responsibility to review the department structure and functions performed/delivered. The Dept. mandate will be updated once that is completed.

Completion date: TBD

4.0 Honorariums

[What KPMG said on this topic.]

Recommendation Current Status
4.1 Develop and implement a formal Gratuity Policy and Procedure (formerly referred to as Honorarium Policy and Procedure) Internal review completed. Report will be coming to Council May 26.

Completion date: Carried over to May 26 from the May 12 Council meeting.
4.2 Use a consistent form for approval of gratuities.

4.3 Develop and implement regular monitoring of gratuities.
Form for approval of gratuities and monitoring of gratuities will be addressed as part of the Administrative Procedure that will be developed to support and guide implementation of the Gratuity Policy.

Completion date: Carried over to May 26 from the May 12 Council meeting.

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.
Policies and procedures have been documented and the recommendations incorporated. Ereview is completed and reviewed with the Executive Directors. Comments will now be reviewed with Legal Services and the CAO for final review. June 9 Council meeting targeted.

Completion date: June 9
5.5 Consider implementing a data processing patch in SAP to track land acquisitions and expropriations. We have had discussions in the past with respect to implementing a patch in SAP. We are implementing Open Text (a file management system) to assist with the tracking as well as discussions with Information and Advisory Services with respect to a program to house Land Administration spatial and aspatial data.

Completion date: 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. Policy developed and discussed with Executive Directors and the CAO.

Completion date: Referred back to Administration for further review
6.2 Implement a policy and procedure for temporary housing. Targeted for July 14 Council meeting.

Completion date: July 14
6.4 Review all taxable benefits related to fly-in-fly-out arrangements. Review of current taxable benefits.

Completion date: Ongoing
6.5 Update the Delegation Order and LEG-050 for the gaps noted in the Accountability, Integrity and Transparency Audit Report. Under review.

Completion date: TBD
6.6 Utilize the Municipal Auditor to perform sample testing over self-approval of expense reports. Ongoing.

Completion date: Ongoing
6.7 Retain appropriate evidence of approval of expense reports. Continue to reinforce and train staff relative to following documented procedures.

Completion date: Ongoing
6.8 Reinforce the requirements of the existing Expense Policy to all employees. Continue to reinforce and train staff relative to following documented procedures.

Completion date: Ongoing
6.9 Reinforce the requirement to submit copies of receipts with expense reports. Continue to reinforce and train staff relative to following documented procedures.

Completion date: Ongoing
6.10 Regularly monitor taxable benefits. Incorporated into Administrative Procedure – Taxable Benefits

Completion date: Ongoing
6.11 Consider implementing an automated approval workflow for expense reports. This item will require SAP resources and therefore would be prioritized against other SAP projects.

Completion date: TBD

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. Continue to reinforce and train staff relative to following documented procedures. In addition, a Capital Projects Framework is being developed that includes reviewing the “cradle to grave” process for capital projects delivery. The noted audit recommendations will be included as part of this review for potential enhancement.

Completion date: Ongoing
7.4-7.5 Reinforce the requirements for change orders, including evidence of approval, to all employees. Continue to reinforce and train staff relative to following documented procedures. In addition, there is a Capital Projects Framework being developed that includes reviewing the “cradle to grave” process for capital projects delivery. The noted audit recommendations will be included as part of this review for potential enhancement. As an interim measure, Executive Directors review noncompetitive selections for adherence to New West Trade Partnerships Agreement Legislation. Supply Chain Management is also developing enhanced reporting for Executive Directors. Capital Projects Framework and Governance Update presentation scheduled for Administrative Briefing on June 2.

Completion date: June 2

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. Will be brought forward for approval on or before the 3rd quarter 2015. No significant changes to the existing policy anticipated since public procurement is guided by the Agreement on Internal Trade and the New West Trade Partnership Agreement.

Completion date: 3rd Quarter 2015
8.2 Reinforce the requirement to complete a “Non-competitive Selection Business Case” to all employees. Continue to reinforce and train staff relative to following documented procedures. As an interim measure, Executive Directors are reviewing noncompetitive selections for adherence to New West Trade Partnership Agreement legislation. Supply Chain Management is also developing enhanced reporting for Executive Directors.

Completion date: Ongoing
8.3 Amend Policy FIN 190 to include a minimum number of bids. Administration has reviewed the matter with KPMG and they have concurred that there is no need to amend the Policy. A BN will be provided to Council explaining the rationale as to why there is no need to amend Policy FIN 190 relative to a minimum number of bids as the Municipality would be in contravention of the New West Trade Partnership Agreement.

Completion date: TBD
8.4 Update FIN 190 to include a minimum categorical requirement for proposal submissions. Administration has reviewed the matter with KPMG. A minor wording change may be included in the policy 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.

Completion date: TBD

Additional Policies requested by the CAO

Recommendation Current Status
1. Public Participation – Engagement

2. Groundbreaking/Ribbon Cutting
E-review completed. Further edits required.
Completion date: TBD
Draft being developed.
Completion date: TBD

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