Item - 2019.AU4.3

Tracking Status

  • City Council adopted this item on October 29, 2019 without amendments.
  • This item was considered by Audit Committee on October 25, 2019 and was adopted with amendments. It will be considered by City Council on October 29, 2019.

AU4.3 - Auditor Generalís 2019 Status Report on Outstanding Audit Recommendations for City Divisions in Corporate Services and Finance and Treasury Services

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on October 29 and 30, 2019, adopted the following:

 

1. City Council request the City Manager to report to City Council, through the Audit Committee, on the following:

 

a. steps in providing effective mechanisms for management to be held accountable for implementing, within reasonable and identified timelines, measures which they have agreed to take in order to implement recommendations from the Auditor General; and

 

b. ensuring appropriate consequences when information provided to the Auditor General is not fully accurate.

 

2. City Council receive the report (October 10, 2019) from the Auditor General for information.

 

3. City Council direct that Confidential Attachment 1 to report (October 10, 2019) from the Auditor General remain confidential in its entirety, as it involves the security of property belonging to the City of Toronto, it is about labour relations or employee negotiations, and it is about litigation or potential litigation that affects the City of Toronto.

 

Confidential Attachment 1 to report (October 10, 2019) from the Auditor General remains confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to the security of property belonging to the City of Toronto, it pertains to labour relations or employee negotiations, and it pertains to litigation or potential litigation that affects the City of Toronto.

City Council Decision Advice and Other Information

During the review of the Order Paper on October 29, 2019, City Council adopted a procedural motion to remove this Item from the jurisdiction of the Audit Committee and bring it forward for consideration by City Council.

 

City Council recessed its public session and met as Committee of the Whole in closed session on October 30, 2019 to consider confidential information on this Item as it pertains to the security of the property of the municipality or local board, labour relations or employee negotiations and litigation or potential litigation that affects the City of Toronto. 

Confidential Attachment - The security of the property of the municipality or local board. Labour relations or employee negotiations. Litigation or potential litigation that affects the City of Toronto.

Background Information (Committee)

(October 10, 2019) Report from the Auditor General - Auditor Generalís 2019 Status Report on Outstanding Audit Recommendations for City Divisions in Corporate Services and Finance and Treasury Services
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138834.pdf
Confidential Attachment 1 - City Divisions in Corporate Services and Finance and Treasury Services - Confidential Audit Recommendations - Fully Implemented and Not Fully Implemented
Attachment 1: City Divisions in Corporate Services and Finance and Treasury Services - Public Recommendations - Fully Implemented
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138835.pdf
Attachment 2: City Divisions in Corporate Services and Finance and Treasury Services - Public Recommendations - Not Fully Implemented
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138836.pdf
Attachment 3: City Divisions in Corporate Services and Finance and Treasury Services - Public Recommendations - No Longer Applicable
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138837.pdf
Attachment 4 - City Divisions in Corporate Services and Finance and Treasury Services - Audit Reports Issued since December 31, 2017 that are Not Included in 2019 Follow-up Review
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138838.pdf

Motions (City Council)

Motion to Remove from Committee moved by Councillor Stephen Holyday (Carried)

That in accordance with Section 27-7.10 of Council Procedures, City Council remove Item AU4.3, headed "Auditor General’s 2019 Status Report on Outstanding Audit Recommendations for City Divisions in Corporate Services and Finance and Treasury Services" from the Audit Committee and bring the Item forward to City Council for consideration.


Report of Committee of the Whole

October 30, 2019 at 12:18 p.m. - Speaker Nunziata advised that City Council had completed its closed session consideration of Item AU4.3 headed "Auditor General’s 2019 Status Report on Outstanding Audit Recommendations for City Divisions in Corporate Services and Finance and Treasury Services".  No motions were placed in the closed session.  City Council would now proceed with the public debate on the Item.


Motion to Adopt Item (Carried)

Vote (Adopt Item) Oct-30-2019 12:21 PM

Result: Carried Majority Required - AU4.3 - Adopt the Item
Total members that voted Yes: 20 Members that voted Yes are Ana Bail„o, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, John Filion, Paula Fletcher, Mark Grimes, Stephen Holyday, Jim Karygiannis, Cynthia Lai, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, John Tory, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 6 Members that were absent are Paul Ainslie, Joe Cressy, Michael Ford, Mike Layton, Jaye Robinson, Michael Thompson

AU4.3 - Auditor Generalís 2019 Status Report on Outstanding Audit Recommendations for City Divisions in Corporate Services and Finance and Treasury Services

Decision Type:
ACTION
Status:
Amended
Wards:
All

Confidential Attachment - The security of the property of the municipality or local board. Labour relations or employee negotiations. Litigation or potential litigation that affects the City of Toronto.

Committee Recommendations

The Audit Committee recommends that:

 

1. City Council request the City Manager to report to City Council, through the Audit Committee, on the following:

 

a. Steps in providing effective mechanisms for management to be held accountable for implementing, within reasonable and identified timelines, measures which they have agreed to take in order to implement recommendations from the Auditor General.

 

b. Ensuring appropriate consequences when information provided to the Auditor General is not fully accurate.

 

2. City Council receive the report (October 10, 2019) from the Auditor General for information.

 

3. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it involves the security of property belonging to the City of Toronto, it is about labour relations or employee negotiations, and it is about litigation or potential litigation that affects the City of Toronto.

Decision Advice and Other Information

The Audit Committee:

 

1.  Directed the City Manager to report to the Audit Committee in Q1 2020 with an update on the implementation of all outstanding audit recommendations for City Divisions in Corporate Services and Finance and Treasury Services, with the report to include detailed plans and timelines for implementation of all recommendations not yet fully implemented.

________

 

The Audit Committee recessed its public session and met in closed session to consider confidential information on this Item as it relates to:

 

- the security of the property of the municipality or local board;

 

- labour relations or employee negotiations; and

 

- litigation or potential litigation that affects the City of Toronto.

Origin

(October 10, 2019) Report from the Auditor General

Summary

The Auditor General's Office conducts an annual follow-up review to determine the implementation status of recommendations in previously issued audit reports. The results of the review are reported to City Council through the Audit Committee.

 

This report provides information regarding the implementation status of audit recommendations issued to City divisions in Corporate Services and Finance and Treasury Services. Our 2019 follow-up review included 206 outstanding recommendations from audit reports issued between 2005 and 2017 for the following City divisions:

 

- Accounting Services
- Corporate Real Estate Management
- Environment and Energy
- Financial Planning
- Information and Technology
- Pension, Payroll and Employee Benefits
- Purchasing and Materials Management
- Revenue Services
- 311 Toronto
 

Our review verified that 24 recommendations (12 per cent) have been fully implemented, 178 recommendations (86 per cent) have been partially implemented and four recommendations (2 per cent) are no longer applicable.

 

Recommendations reported by management as implemented that the Auditor General determined as not fully implemented

 

During the current follow-up process, management reported that 87 out of 206 outstanding recommendations were fully implemented. However, based on our review we determined that 63 (72 per cent) of those recommendations have not been fully implemented. Management agreed with our assessments and will take additional actions to fully implement these recommendations.

 

Continued efforts to implement outstanding recommendations will provide additional benefits to the City such as cost savings, improved controls, and enhanced service delivery.

Background Information

(October 10, 2019) Report from the Auditor General - Auditor Generalís 2019 Status Report on Outstanding Audit Recommendations for City Divisions in Corporate Services and Finance and Treasury Services
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138834.pdf
Confidential Attachment 1 - City Divisions in Corporate Services and Finance and Treasury Services - Confidential Audit Recommendations - Fully Implemented and Not Fully Implemented
Attachment 1: City Divisions in Corporate Services and Finance and Treasury Services - Public Recommendations - Fully Implemented
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138835.pdf
Attachment 2: City Divisions in Corporate Services and Finance and Treasury Services - Public Recommendations - Not Fully Implemented
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138836.pdf
Attachment 3: City Divisions in Corporate Services and Finance and Treasury Services - Public Recommendations - No Longer Applicable
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138837.pdf
Attachment 4 - City Divisions in Corporate Services and Finance and Treasury Services - Audit Reports Issued since December 31, 2017 that are Not Included in 2019 Follow-up Review
https://www.toronto.ca/legdocs/mmis/2019/au/bgrd/backgroundfile-138838.pdf

Motions

Motion to Meet in Closed Session moved by Councillor Stephen Holyday (Carried)

10:11 a.m. That the Audit Committee recess its public session and met in closed session to consider confidential information on this Item as it relates to:

 

- the security of the property of the municipality or local board;

 

- labour relations or employee negotiations; and

 

- litigation or potential litigation that affects the City of Toronto.

 

The Audit Committee recessed its public session and met in closed session to consider the above matter.

 

The Audit Committee reconvened in public session at 12:27 p.m.  Councillor Holyday took the Chair and advised that the Committee had completed its closed session consideration of confidential information related to this Item.  No motions were made during the closed session.  The Audit Committee would now proceed with the public debate on this Item.


1 - Motion to Amend Item (Additional) moved by Councillor John Filion (Carried)

That the Audit Committee recommend that:

 

1. City Council request the City Manager to report to City Council, through the Audit Committee, on the following:

 

a. Steps in providing effective mechanisms for management to be held accountable for implementing, within reasonable and identified timelines, measures which they have agreed to take in order to implement recommendations from the Auditor General.

 

b. Ensuring appropriate consequences when information provided to the Auditor General is not fully accurate.


2 - Motion to Amend Item (Additional) moved by Councillor Frances Nunziata (Carried)

That the Audit Committee direct the City Manager to report to the Audit Committee in Q1 2020 with an update on the implementation of all outstanding audit recommendations for City Divisions in Corporate Services and Finance and Treasury Services, with the report to include detailed plans and timelines for implementation of all recommendations not yet fully implemented.


Motion to Adopt Item as Amended (Carried)
Source: Toronto City Clerk at www.toronto.ca/council