Auditor General s Office

Transcription

1 Item N. Auditr General s Office The Auditr General s Office will supprt City Cuncil and Municipal Administratin in meeting their legislated respnsibilities, in imprving the perfrmance f the crpratin in the prgrams and services it delivers and in ensuring the accuntability f lcal gvernment t the taxpayers. The Auditr General s Office will bring an independent, bjective, prfessinal and value-added apprach in evaluating the ecnmy, efficiency, effectiveness and equity f the results f the crpratin s prgrams and in evaluating the apprpriateness and adequacy f risk management prcedures and management cntrls. Authr s Name: Tdd Langlis Reprt Date: January 18, 2012 Authr s Psitin: Auditr General Date t Audit Advisry Cmmittee: January 26, 2012 Authr s Phne: (519) Authr s [email protected] T: Subject: Members f the City f Windsr Audit Advisry Cmmittee Auditr General s Office Three Year Audit Wrk Plan and 2012 Budget 1. RECOMMENDATIONS: 1.1. THAT the Audit Advisry Cmmittee RECEIVES FOR INFORMATION, the Auditr General s Office ( AGO ) three year audit wrk plan THAT the Audit Advisry Cmmittee RECOMMENDS SUPPORT f the Auditr General s Office ( AGO ) three year audit wrk plan THAT the Audit Advisry Cmmittee RECOMMENDS APPROVAL f the Auditr General s Office ( AGO ) 2012 Budget. 2. BACKGROUND: 2.1. As set ut in the Auditr General s Office ( AGO ) Charter (apprval pending), the AGO perfrmed a risk assessment resulting in a risk based three year audit wrk plan fr the years 2012 t The audit wrk plan was prepared by taking int cnsideratin infrmatin btained by the AGO n varius criteria, including the fllwing: 2011 budgeted grss expenses Annualized Nvember 2011 actual grss expenses, since ttal year numbers were nt available at the time f analysis Emplyee turnver by area The number f management vacancies and the duratin f thse vacancies Outstanding audit reprt recmmendatins included the number f utstanding recmmendatins and their significance The number f reprts required t be prvided t external regulatry bdies was factred in The number f htline calls frm 2009 t 2011 Whether previus audits, reviews r ther similar wrk had been cnducted as well as the timing and significance f that wrk t the area Whether the area was expected t be, by its nature, inherently susceptible t errrs, missins, irregularities, theft, etc., including whether the area handled cash, had high transactinal vlume, etc. AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 1 f 11

2 The level f public interest was als cnsidered 2.3. Nte: Due t timing limitatins and a lack f resurces, limited interviews and infrmal discussins were perfrmed in this initial risk assessment. 3. DISCUSSION: 3.1. The purpse f perfrming a risk assessment resulting in a risk based three year audit wrk plan is t direct audit attentin t areas f ptentially higher risk and significance Successful cmpletin f the audit wrk plan is highly dependent n certain factrs, including: The adequacy f the Auditr General s Office budget, t fund sufficient audit resurces. The Auditr General s Office rganizatinal structure, including whether audit resurces will be city emplyees, externally resurced cntractrs, r a cmbinatin. The quality and timing f the wrking resurces prvided t the Auditr General. The current interim rganizatinal structure f the AGO, with nly tw staff available t the AG as resurces. The timing f wrk is subject t the business cycles f the City and the availability f City staff resurces. Htline vlume f activity and resulting wrk may result in shifting pririties. Administrative requirements impsed by daily peratinal needs The prpsed wrk plan was riginally develped with the assumptin f fur senir audit wrking resurces and the Auditr General. Annually, a full year alltment f 7,176 hurs is assumed and necessary, as nted in the audit wrk plan belw. Amendments t the wrk plan may be required, depending n the final apprved resurces and structure prvided t the Auditr General Nte that the hurs assigned t each area culd change significantly nce specific audit prgrams are created at the detail level and are dependent n number f issues that arise during the audit. The hurs were simply prvided at a high level as estimates at this pint and significant mvement f hurs may ccur between audits Fr each area t be audited, a general risk assessment f the specific auditee department r rganizatin may be perfrmed t assist in finalizing the scpe fr the audit. This may result in refcusing the audit t a different area within the auditee, than initially prpsed Certain audits may be limited in scpe, and nly targeted high risk areas may be included within the audit The audit wrk plan s estimated wrk hurs are anticipated t be cmprehensive, including a review f the area(s) t be audited, determinatin f the audit scpe(s), develpment f the audit plan, perfrmance and review f the audit wrk, writing f the audit reprt, and nging discussin and ther cmmunicatin f the audit reprt and findings with the auditee and administratin The Audit Management Sftware ( AMS ) prject is n hld, pending the determinatin f AGO resurces t be prvided t the Auditr General. AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 2 f 11

3 AGO RECOMMENDED BUDGET: The AGO recgnizes the city s cst cnstraints. Hwever, this is the Auditr General s first pprtunity t recmmend a budget that may meet the AGO s mandate. As it stands, the mandate may be difficult t achieve at $614,997. Please als cnsider this infrmatin alng with the GAIN data n pages 10 and 11. The Auditr General recmmends a 2012 AGO budget as fllws: Descriptin f Amunt Amunt Staff resurces $370,253 (includes salaries, benefits, training, memberships, cmputers and blackberries) Auditr General salary and benefits 171,796 Facility rental and building insurance 40,010 (internal csts) Other 22,027 (AG csts fr training, memberships, cmputer and blackberry; ffice supplies, phtcpier lease, publicatins, etc.) Cnsultants 10,911 Ttal Recmmended Budget $614,997 Fr the abve 2012 AGO recmmended budget: The fur staff resurce csts include prfessinal memberships, and training and develpment necessary t retain prfessinal designatins and t als adhere t the Institute f Internal Auditrs ( IIA ) standards. The facility rental and building insurance csts are estimated City internal csts fr AGO space in a City-wned facility, which may r may nt be charged t the AGO by the City. The cnsultants amunt is expected t include ad hc external independent legal advice when determined by the Auditr General t be necessary. AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 3 f 11

4 5. PROPOSED AGO WORK PLAN: Nte: The 7,176 ttal number f annual AGO wrk plan hurs detailed in the pie chart belw, is net f estimated vacatin, sick, and training time. Annually, 6,262 hurs are allcated twards audits. Staff Htline, 210, 3% Auditr General - Other, 549, 8% Auditr General's Office Annual Activity in Number f Staff Varius Analyses, 78, 1% Staff Administrative Tasks, 77, 1% Audit Auditr General - Other Audit, 6,262, 87% Staff Htline Staff Varius Analyses Staff Administrative Tasks Nte: Fr details n Auditr General Other, refer t page Audit Wrk Plan: Tpic 1. Htline Wrk is required t address and t clse ut a number f htline calls frm prir years. Calls may be addressed in grups if feasible. AGO is currently wrking n clsing ut a number f allegatins and we anticipate a reprt will be available in March Fllw Up n the Recmmendatins in the Pst Cnstructin Audit Reprts I, IIA and IIB n the 400 City Hall Square T assess whether the 400 City Hall Square ( CHS ) East Audit Reprts I, IIA and IIB recmmendatins have been addressed. T assess the quality and timeliness f the city s actins t address the audit s recmmendatins. 350 AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 4 f 11

5 Tpic ( CHS ) East Building 3. Fllw Up n the Fleet Audit Reprt Recmmendatins 4. Disbursement Audit 5. Purchasing Slicitr) 6. Emplyment & Scial Services (Cmmunity Develpment & Health Services Cmmissiner) 7. Windsr Canada Utilities Limited; EnWin Energy Ltd.; EnWin Utilities Ltd.; and Windsr Utilities Cmmissin (Agencies, Bards & Cmmissins ( ABC )) 8. Maintenance - Operatins 9. Crprate Finance The Family Aquatics Centre r ther current capital prject will be reviewed fr cmpliance t the audit s recmmendatins. AGO is currently wrking n this review and we anticipate a reprt will be available in March. T assess whether the Fleet Audit Reprt recmmendatins have been addressed. T assess the quality and timeliness f the city s actins t address the audit s recmmendatins. Review the city s accunts payable and cheque disbursement functins and prcesses, including plicies and prcedures. Review the adequacy and effectiveness f the department. Review certain purchasing by-law(s), plicies, prcedures, prcesses, and business practices. The city s delivery f the Ontari Wrks prgram will be reviewed. Review the cmpanies structures and peratins t fcus the audit effrts n the higher risk area(s). Review f certain maintenance peratins areas, such as right f way (ROW) and sewers maintenance. Includes amunts such as municipal taxatin, fund transfers, fringe benefits, crprate revenue accunts, general expense accunts, banking and interest charges, debt charges accunts, crprate leases, AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 5 f 11

6 Tpic 10. Capital Prject # Lu Rman Water Reclamatin Plant (LRWRP) Expansin/ Upgrade (r latest LRWRP prject) payments in lieu, lcal imprvements, etc. Review f selected transactins/ adjustments t be based n their nature, materiality, cmplexity, and ther factrs. Review the apprpriateness, adequacy, effectiveness and efficiency f the capital prject Audit Wrk Plan: Tpic 11. Cntracts & Field Services - Operatins 12. Scial Husing Husing and Children s Services (Cmmunity Develpment & Health Services Cmmissiner) Review f winter cntrl peratins t include cntracts, cntrls, prcesses, plicies and prcedures, and business practices. Husing supprt administratin fr scial husing (rentals fr lw t mderate incmes, senirs r peple with special needs), ldging and hmelessness Fire & Rescue Services Slicitr) Fire rescue unit-firefighting. 14. Envirnmental Services Waste management including the waste (garbage) cllectin cntract, and tipping fees. 15. Arenas & WFCU Centre (Cmmunity Develpment & Health Services Cmmissiner) WFCU Centre peratins will be reviewed. 875 AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 6 f 11

7 Tpic 16. Windsr-Detrit Tunnel Crpratin (Agencies, Bards & Cmmissins ( ABC )) 17. Capital Prject # Retentin Basin RTB - ISF 18. Cnsulting and Legal Fees Review the structure, peratins, cntrls, prcesses, plicies and prcedures. Review f the apprpriateness, adequacy, effectiveness and efficiency f the capital prject. T include cnsulting and legal fees fr the whle city. Review f selected transactins t be based n their nature, materiality, and cmplexity Audit Wrk Plan: Tpic 19. Pllutin Cntrl 20. Operating Budget Develpment, Cntrl & Financial Administratin; r Perfrmance Measurement & Financial Administratin 21. Prject Management & Applicatins - Infrmatin Technlgy 22. Legal Slicitr) Lu Rman Water Reclamatin Plant ( LRWRP ) structure, peratins, cntrls, plicies, prcedures and prcesses. Operating budget department including the use f Questica. Detailed assessments f the perating budget and perfrmance measurement departments will refine the audit scpe. Review the efficiency and effectiveness f the department s structure, peratins, cntrls, plicies, prcedures and prcesses. Review the efficiency and effectiveness f the department s structure, peratins, cntrls, plicies, prcedures and prcesses. 350 AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 7 f 11

8 Tpic 23. Facilities Review the efficiency and effectiveness f the department s structure, peratins, cntrls, plicies, prcedures and prcesses Cmmunity Prgramming Recreatin & Culture (Cmmunity Develpment & Health Services Cmmissiner) Review the efficiency and effectiveness f the department s structure, peratins, cntrls, plicies, prcedures and prcesses. 25. Financial Accunting Review f the Payrll department. 26. Yur Quick Getaway (Windsr) Inc. ( YQG ) 27. Reserve Funds and Reserve Accunts 28. Capital Prject # Family Aquatics Cmplex Review the efficiency and effectiveness f the rganizatin s structure, peratins, cntrls, plicies, prcedures and prcesses. Review f selected reserve funds and/r accunts, including set up, selected transactins, and supprting dcumentatin. Sme areas may be reviewed in 2012 Tpic #2, as part f the 400 CHS audit fllw up, if feasible. T review the adequacy, effectiveness, and efficiency f the capital prject, including the business case, structure, cntrls, prcesses, plicies and prcedures Annual Administrative : Tpic Wrk Descriptin 1. Auditr General ther hurs (nt allcated t specifically identified audits) Time nt allcated t specifically identified audits, including: Cmmunicatins, preparatin fr and attendance at meetings with thers including the Mayr, Executive Cmmittee f Cuncil, Audit Advisry Cmmittee, CAO, City Slicitr, external auditrs, and thers as apprpriate and necessary Annual review and update f charters fr the AGO, Audit Advisry Cmmittee ( AAC ), and 549 AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 8 f 11

9 the Executive Cmmittee f Cuncil ( ECC ) Oversight f AGO resurces wrk Annual perfrmance appraisals fr AGO staff members Htline versight, directin, analyses and review Varius ad hc analyses and review Varius administrative tasks and review 2. AGO staff analyses and ad hc assignments 3. AGO staff administrative tasks AGO budget and variance analyses, and varius ad hc analyses and research Audit Advisry Cmmittee and Executive Cmmittee materials & distributin, and may include attendance at meetings Varius tasks including daily attendance, invice prcessing, facilities issues, rdering supplies, human resurce and payrll issues, develpment and review f AGO plicies and prcedures, etc Annual Staff Htline : Tpic Wrk Descriptin 1. Staff htline hurs 2012 htline calls, including lgging the calls, fllwing up with the callers, referrals t ther city departments r external agencies as apprpriate r AGO investigatins r ther wrk determined t be necessary t clse the htline calls. The wrk and hurs cannt be reasnably estimated as they are entirely dependent n the number f calls requiring an AGO investigatin, nature f the calls and infrmatin received. 210 Ttal annual audit wrk plan hurs are estimated t be 7,176 hurs, fr fur audit resurces and the Auditr General. These annual audit wrk plan hurs are net f estimated vacatin, sick and training time. AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 9 f 11

10 AND 2011 AVAILABLE WINDSOR AND AGO INFORMATION, AND GAIN INFORMATION PROVIDED BY THE LEAD AUDITOR (ACTING) IN THE FIRST QUARTER OF 2011: and 2011 Available Windsr and AGO Infrmatin: Windsr Operating Budget Revenue Audit Staff Cunt Audit Budget Csts as a % f Revenues 2012 * n/a 5 $614, % 2011 ** $765,913,728 4 $586, % * As 2012 perating budget revenue was nt available, 2011 perating budget revenue was used fr 2012 t estimate and calculate csts as a % f revenues. ** Fr 2011, the fficial audit staff headcunt was 4, but the audit budget dllars were nly sufficient fr three audit staff and the Auditr General. In cnclusin, the AGO with a budget f $614,997 wuld be under funded in cmparisn t all categries belw. A reasnable cmparisn wuld be t the Gvernment categry. The AGO budget necessary t be cnsistent with the Gvernment categry wuld equal $1,368,688 ($765,913,728 x %), if the 2011 budget revenue was used GAIN Infrmatin Prvided by the Lead Auditr (Acting) in the First Quarter f 2011: AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 10 f 11

11 AGO - Three Year Wrk Plan Reprt And 2012 Budget Public Page 11 f 11