Item - 2012.AU6.6
Tracking Status
- City Council adopted this item on April 10, 2012 without amendments.
- This item was considered by the Audit Committee on February 29, 2012 and adopted without amendment. It will be considered by City Council on April 10, 2012.
AU6.6 - Toronto Building Division - Building Permit Fees, Improving Controls and Reporting
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on April 10 and 11, 2012, adopted the following:
1. City Council request the Chief Building Official, in consultation with related City divisions, to review, revise and monitor the accuracy and completeness of information used to calculate building permit fees on an annual basis.
2. City Council request the City Manager to formalize service level agreements with key divisions supporting the Toronto Building Division permit process. Service level agreements should set forth anticipated service levels and applicable charges.
3. City Council request the City Manager to ensure that the 2005 and 2008 internal review recommendations made as a result of work conducted by the Internal Audit Division and Policy, Planning Finance and Administration are implemented on a timely basis. Follow-up audits should be conducted annually in order to verify that recommendations have been implemented. The results of these follow-up audits be reported to the City Manager.
4. City Council request the City Manager to ensure proper financial controls exist at each customer service center. Procedures should ensure timely reconciliation, deposit and the recording of funds collected.
5. City Council request the Chief Building Official to develop policies and procedures for issuing refunds and voiding transactions.
6. City Council request the Chief Building Official to ensure data contained in IBMS and SAP is accurate and complete and routine reconciliations of building permit fees collected are conducted.
7. City Council request the Chief Building Official, in consultation with the Chief Information Officer, to take steps to automate the interface between IBMS and SAP.
8. City Council request the Chief Building Official to ensure that the annual report on building permit fees includes additional information explaining the differences between building permit fees collected and the amounts included in the annual report.
9. City Council request the Chief Financial Officer to ensure the requirement for a triennial review of the Building Code Act Service Improvement Reserve Fund is met.
10. City Council request the Chief Building Official to ensure that building permit fees in IBMS and the Toronto Municipal Code are current, complete and accurate.
11. City Council request the Chief Building Official, in consultation with the Chief Information Officer, to ensure that any revisions to permit fees in IBMS are in accordance with generally accepted practices. Furthermore, steps should be taken to improve the process for uploading revised and new permit fees, including the potential for automation.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45269.pdf
(December 21, 2011) Appendix 1 - Toronto Building Division - Building Permit Fees, Improving Controls and Reporting
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45270.pdf
Appendix 2 - Management’s Response to the Auditor General’s Review of Toronto Building Division - Building Permit Fees, Improving Controls and Reporting
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45271.pdf
Motions (City Council)
Vote (Adopt Item) Apr-10-2012 4:43 PM
| Result: Carried | Majority Required - AU6.6 - Adopt the item |
|---|---|
| Total members that voted Yes: 29 | Members that voted Yes are Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Mike Del Grande, Sarah Doucette, Paula Fletcher, Mary Fragedakis, Mark Grimes, Doug Holyday, Norman Kelly, Chin Lee, Gloria Lindsay Luby, Josh Matlow, Mary-Margaret McMahon, Peter Milczyn, Denzil Minnan-Wong, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 16 | Members that were absent are Paul Ainslie, Michelle Berardinetti, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, John Filion, Doug Ford, Rob Ford, Mike Layton, Giorgio Mammoliti, Pam McConnell, Joe Mihevc, Ron Moeser, John Parker, Karen Stintz |
AU6.6 - Toronto Building Division - Building Permit Fees, Improving Controls and Reporting
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the Chief Building Official, in consultation with related City divisions, to review, revise and monitor the accuracy and completeness of information used to calculate building permit fees on an annual basis.
2. City Council request the City Manager to formalize service level agreements with key divisions supporting the Toronto Building Division permit process. Service level agreements should set forth anticipated service levels and applicable charges.
3. City Council request the City Manager to ensure that the 2005 and 2008 internal review recommendations made as a result of work conducted by the Internal Audit Division and Policy, Planning Finance and Administration are implemented on a timely basis. Follow-up audits should be conducted annually in order to verify that recommendations have been implemented. The results of these follow-up audits be reported to the City Manager.
4. City Council request the City Manager to ensure proper financial controls exist at each customer service center. Procedures should ensure timely reconciliation, deposit and the recording of funds collected.
5. City Council request the Chief Building Official to develop policies and procedures for issuing refunds and voiding transactions.
6. City Council request the Chief Building Official to ensure data contained in IBMS and SAP is accurate and complete and routine reconciliations of building permit fees collected are conducted.
7. City Council request the Chief Building Official, in consultation with the Chief Information Officer, to take steps to automate the interface between IBMS and SAP.
8. City Council request the Chief Building Official to ensure that the annual report on building permit fees includes additional information explaining the differences between building permit fees collected and the amounts included in the annual report.
9. City Council request the Chief Financial Officer to ensure the requirement for a triennial review of the Building Code Act Service Improvement Reserve Fund is met.
10. City Council request the Chief Building Official to ensure that building permit fees in IBMS and the Toronto Municipal Code are current, complete and accurate.
11. City Council request the Chief Building Official, in consultation with the Chief Information Officer, to ensure that any revisions to permit fees in IBMS are in accordance with generally accepted practices. Furthermore, steps should be taken to improve the process for uploading revised and new permit fees, including the potential for automation.
Origin
Summary
The Auditor General’s Annual Audit Work Plan included a review of the administration of building permit fees. The objective of this review was to assess compliance with legislative requirements and City policies and procedures for charging, collecting and reporting on building permit fees.
Our report includes 11 recommendations related to the administration of building permit fees. Included in the report is a management response to each of the recommendations.
Background Information
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45269.pdf
(December 21, 2011) Appendix 1 - Toronto Building Division - Building Permit Fees, Improving Controls and Reporting
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45270.pdf
Appendix 2 - Management’s Response to the Auditor General’s Review of Toronto Building Division - Building Permit Fees, Improving Controls and Reporting
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45271.pdf