Item - 2010.AU17.3

Tracking Status

  • City Council adopted this item on July 6, 2010 without amendments and without debate.
  • This item was considered by the Audit Committee on June 7, 2010 and adopted without amendment. It will be considered by City Council on July 6, 2010.

AU17.3 - Parks, Forestry and Recreation Division - Controls Over Ferry Service Revenue Need Strengthening

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on July 6, 7 and 8, 2010, adopted the following:

 

1.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to evaluate options for alternative payment methods including the use of debit and credit cards at sales counters and vending machines, as well as Web-based sales.

 

2.         City Council request the General Manager, Parks, Forestry and Recreation, to develop an automated cash reconciliation process.  The process should include daily variance tracking of cash shortages and overages, and should report accumulated variances by month, year and cashier.  The process should also provide for investigation and reconciliation of unusual variances.  Mandatory supervisory review should include sign-off on all reconciliations and variances.  Variance reports should be retained in accordance with required record retention time frames.

 

3.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to conduct a business process review of the Ferry Service/Marine Operations and evaluate options to upgrade or replace the existing information technology system for submission to the 2011 information technology capital process.  The review should include:

 

a.         integration of the point of sale system with other related City systems, such as the debit and credit card system and the SAP financial system; and

 

b.         an evaluation of the CLASS management information system as it relates to meeting the needs of Marine Operations.

 

4.         City Council request the General Manager, Parks, Forestry and Recreation, to implement an interim process to independently reconcile point of sale revenues with bank deposits.

 

5.         City Council request the General Manager, Parks, Forestry and Recreation, to ensure staff are appropriately trained on computer systems routinely used and user manuals are available to staff for training and ready reference.  Further, the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, determine corporate requirements for future computer system support and maintenance in the event of system failure.

 

6.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to evaluate options for automating the ferry service ticket inventory.

 

7.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to evaluate options for:

 

a.         automating ticket cancellation and refund processes; and

 

b.         implementing a process to analytically review cancelled tickets and refunds.

 

Further, the General Manager, Parks, Forestry and Recreation, to implement a process to ensure reasons for ticket and ferry pass cancellations and refunds are appropriately documented and are subject to supervisory approval.

 

8.         City Council request the General Manager, Parks, Forestry and Recreation, to review current ticket and dock procedures.  Periodic comparisons between tickets sold and the number of patrons recorded as ferry passengers should be conducted, and unusual deviations investigated.

 

9.         City Council request the General Manager, Parks, Forestry and Recreation, to develop a process to review and monitor vendor contracts and ensure contracts are renewed on a timely basis.  In addition, the General Manager, Parks, Forestry and Recreation, to develop a process to periodically bill and follow-up on outstanding revenues on a timely basis.

 

10.       City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to evaluate controls on system data and change management processes, and ensure corporate requirements are followed for current and future computer systems.

Background Information (Committee)

Report (April 26, 2010) from the Auditor General, headed "Parks, Forestry and Recreation Division - Controls Over Ferry Service Revenue Need Strengthening"
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-30574.pdf
Appendix 1 - Parks, Forestry and Recreation Division - Controls Over Ferry Service Revenue Need Strengthening (January 15, 2010)
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-30575.pdf
Appendix 2 - Management's Response
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-30576.pdf

AU17.3 - Parks, Forestry and Recreation Division - Controls Over Ferry Service Revenue Need Strengthening

Decision Type:
ACTION
Status:
Adopted
Wards:
All

Committee Recommendations

The Audit Committee recommends that:

 

1.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to evaluate options for alternative payment methods including the use of debit and credit cards at sales counters and vending machines, as well as Web-based sales.

 

2.         City Council request the General Manager, Parks, Forestry and Recreation, to develop an automated cash reconciliation process.  The process should include daily variance tracking of cash shortages and overages, and should report accumulated variances by month, year and cashier.  The process should also provide for investigation and reconciliation of unusual variances.  Mandatory supervisory review should include sign-off on all reconciliations and variances.  Variance reports should be retained in accordance with required record retention time frames.

 

3.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to conduct a business process review of the Ferry Service/Marine Operations and evaluate options to upgrade or replace the existing information technology system for submission to the 2011 information technology capital process.  The review should include:

 

a.         integration of the point of sale system with other related City systems, such as the debit and credit card system and the SAP financial system; and

 

b.         an evaluation of the CLASS management information system as it relates to meeting the needs of Marine Operations.

 

4.         City Council request the General Manager, Parks, Forestry and Recreation, to implement an interim process to independently reconcile point of sale revenues with bank deposits.

 

5.         City Council request the General Manager, Parks, Forestry and Recreation, to ensure staff are appropriately trained on computer systems routinely used and user manuals are available to staff for training and ready reference.  Further, the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, determine corporate requirements for future computer system support and maintenance in the event of system failure.

 

6.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to evaluate options for automating the ferry service ticket inventory.

 

7.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to evaluate options for:

 

a.         automating ticket cancellation and refund processes; and

 

b.         implementing a process to analytically review cancelled tickets and refunds.

 

Further, the General Manager, Parks, Forestry and Recreation, to implement a process to ensure reasons for ticket and ferry pass cancellations and refunds are appropriately documented and are subject to supervisory approval.

 

8.         City Council request the General Manager, Parks, Forestry and Recreation, to review current ticket and dock procedures.  Periodic comparisons between tickets sold and the number of patrons recorded as ferry passengers should be conducted, and unusual deviations investigated.

 

9.         City Council request the General Manager, Parks, Forestry and Recreation, to develop a process to review and monitor vendor contracts and ensure contracts are renewed on a timely basis.  In addition, the General Manager, Parks, Forestry and Recreation, to develop a process to periodically bill and follow-up on outstanding revenues on a timely basis.

 

10.       City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the Chief Information Officer, to evaluate controls on system data and change management processes, and ensure corporate requirements are followed for current and future computer systems.

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"
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-30574.pdf
Appendix 1 - Parks, Forestry and Recreation Division - Controls Over Ferry Service Revenue Need Strengthening (January 15, 2010)
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-30575.pdf
Appendix 2 - Management's Response
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-30576.pdf

Motions

1 - Motion to Adopt Item moved by Councillor Chin Lee (Carried)

That the Audit Committee recommend to City Council adoption of the recommendations contained in the report (April 26, 2010) from the Auditor General.

Source: Toronto City Clerk at www.toronto.ca/council