2012 Annual Report Office of the Auditor General November 28, 2013

Presentation

Introduction: Alain Lalonde, Auditor General 5 Audit Reports: Ray Kostuch, Deputy Auditor General Fraud and Waste Hotline: Ray Kostuch 14 Follo !up Audit Reports: Alain Lalonde "#1$ Audit Wor% &lan: Alain Lalonde "#14 Audit Wor% &lan: Alain Lalonde 'u((ary and &otential 'a)in*s: Alain Lalonde

Work not included in Annual Report

+ased on Le*al ad)ice the ,ollo in* ill -e presented a,ter any related ar-itration and.or liti*ation are co(pleted:
Audit

o, the &rocure(ent &rocess ! 'ource 'eparated /r*anics 0ontract

Audit Follo

o, the &rocure(ent &rocess 1 'prin*hill Land,ill

!up to the "#1# Audit o, the West 2nd Floodin* 2)ent and the De)elop(ent Re)ie &rocesses ithin the 0arp Ri)er Watershed
Follo

!up to the "#1# Audit o, the 3acKen4ie +rid*e Resur,acin*

Work not included in Annual Report

&resented directly to the 0ity 3ana*er and an /utside +oard:

Follo !up Audit o, the &ine 5ie 3unicipal Gol, 0ourse Audit o, the /tta a 3unicipal 0a(p*round

Audit Reports

16 7reasury Function "6 0orporate 0redit 0ards $6 0lient 'er)ice 0entres 80'09 46 /ntario Wor%s 2li*i-ility Assess(ent &rocess 56 0onstruction 'uper)ision

1. Treasury Function
16a 3eetin* le*islati)e and policy re:uire(ents 16- &olicies and procedures consistent ith rele)ant le*islation 16c For(al per,or(ance (easure(ent (ethodolo*y has not -een de)eloped and i(ple(ented 16d Rate o, R/I durin* "#11 as $6;<=

1. Treasury Function

16e Increasin* 2F7 use could lead to annual sa)in*s o, as (uch as >1##,###

16, 7otal potential sa)in*s: >1<5,###

3ana*e(ent a*reed ith all 11 reco((endations

2. Corporate Credit Cards

"6a Well ad(inistered and supported -y Finance "6- 0lear processes, super)ision and o)ersi*ht o)er reconciliations )eri,ication "6c 0o(pliance a*ainst applica-le policies and procedures "6d 2rror rates lo and controls ,unctionin* as intended

2. Corporate Credit Cards

"6e Increasin* use o, credit cards could yield annual sa)in*s o, >"5#,### "6, 'pent ? >"$5,### in *rocery stores in "#11 ithout pre,erred pricin* "6* Reassi*nin* purchasin* to lo er operational le)el sta,, could sa)e appro@i(ately >1#,### annually

3ana*e(ent a*reed ith all 1$ reco((endations

3. Client Service Centres (CSC)

$6a 2,,iciency sa)in*s ,ro( strea(linin* operations in the A 0'0s $6- Resources are not ,ully utili4edB annual e,,iciency sa)in*s o, 1$ F72s )alued at ><"4,### $6c 0onsider closin* so(e 0'0s *i)en lo usa*e rates $6d Increase auto(ated transactions ,or ser)ice deli)ery could lead to potential sa)in*s

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3. Client Service Centres (CSC)

$6d &otential additional reco)ery o, >$5,<## ,or Go)ern(ent 'er)ice 0entres *reeters 8salaries, -ene,its and o)erhead9 $6, 7otal potential sa)in*s: ><C#,###

3ana*e(ent a*reed ith all 1A reco((endations

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4. Ontario Works Eligibility Assessment Process

46a Initial eli*i-ility assess(ents (eetin* le*islati)e and policy re:uire(ents 46- Rando( sa(ple o, 1## recipients 8Dan "#11!Dun "#1" pay(ents9 46c #6C= o, the population tested totallin* >$,<4#, identi,ied as ineli*i-le

46d I, error rate proEected to population o, pay(ents, ineli*i-le pay(ents ould appro@i(ate ><$4,###

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4. Ontario Works Eligibility Assessment Process

46e Decreasin* nu(-er o, *eneric case or%ers to -e (ore in line ith pro)incial (edian ould result in e,,iciency sa)in*s o, F >165 3 46, Reducin* case or%ersG sic% lea)e to 1C65 days 8as in 2ast 'er)6 0entre9 ,or a sa)in*s o, appro@i(ately >1CA,###: /ther 'er)ice 0entres 1 as hi*h as "1 days.yr 0ity! ide ! a)era*e is 11 days.yr 46e 7otal potential sa)in*s: >"65 3 3ana*e(ent a*reed ith all 1< reco((endations
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5. Construction Supervision
56a Heed to e)aluate past per,or(ance o, contractors hen deter(inin* a ard o, contract 56- &ast per,or(ance should -e docu(ented and a ratin* syste( esta-lished 56c In so(e instances, chan*e orders ere result o, consultantsG errors and o(issions 56d 2sti(ates that >16" 3 could -e reco)ered ,ro( chan*e orders resultin* ,ro( desi*n errors hen proEected o)er the entire population o, proEects

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5. Construction Supervision
56e 0ould sa)e >4$5,### in contractor (ar%!up ,ee ,or police assistance at intersections i, 0ity paid &olice directly rather than )ia contactor 56, 'hould chan*e current (ethod o, ad)ertisin* tenders to include a ider distri-ution and ensure the lar*est e@posure possi-le ,or the 0ity 56* &otential sa)in*s identi,ied: >1,C$5,###

3ana*e(ent a*reed ith all 1$ reco((endations

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Fraud and Waste Hotline

Reports by Reporter Type

Reporter Type &u-lic 2(ployee 7otal

Number of Reports <" C1 14$

Percentage 5A= 4$= 1##=

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Fraud and Waste Hotline

Reporters Who Used Two-way Communication Reviewed Report Ho Ies 7otal Number of Reports A; C4 14$ Percentage 55= 45= 1##=

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Follow-up Reports
16 Jse o, 0ity 5ehicles and 3ilea*e 0lai(s "6 'elected Grant Recipients ! 'i*ned A*ree(ents and Audit 0lauses $6 Hepean 'ailin* 0lu- A*ree(ent 46 'u*ar-ush 8Action 5anier9 A*ree(ents 56 Re)enue +ranch C6 'ta,,in* &rocess 1 0hildrenGs 'er)ices +ranch A6 0ityGs 3ana*e(ent o, a Loan A*ree(ent

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Follow-up Reports
<6 0ityKs Role Re*ardin* a 0anada Day 2)ent ;6 Internet and 2(ail Jsa*e &olicies and &rocedures 1#6 0o(pressed Wor% Wee% A*ree(ents 116 &rocure(ent &rocess ,or the '(art+us He@t 'top Announce(ent 'yste( 1"6 /tta a 3unicipal 0a(p*round 1$6 +rid*e 3aintenance &rocess 146 &ine 5ie 3unicipal Gol, 0ourse

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14 Follow-up Reports General Comments

'olid pro*ress on <<= o, ori*inal audits reco((endations 81"< o, 14C reco((endations9

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Approved 2013 Audit Work Plan

16 "6 $6 46 56 C6 Fleet 'er)ices 1 HA&A 0ontract 2thics I7 Go)ernance /0 7ranspo +usiness 'trate*ic &lannin* &rocesses 2n)iron(ental Le*islated Appro)al &rocesses In,rastructure 'er)ices Depart(ent Reports e@pected to -e issued ,or ,act )alidation -et een Dece(-er "#1$ and Fe-ruary "#146

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Approved 2013 Audit Work Plan

Follo !up audits: 16 3ana*e(ent o, 5acant &ositions "6 0orporate 0o((unications Function $6 &rocure(ent &ractices 1 General 46 &rocure(ent &ractices ! Hed*in* Acti)ities 56 &er,or(ance 3easure(ent C6 /ccupational Health and 'a,ety A6 Hu(an Resources 3aster &lan <6 +ud*etin* ,or Gro th Fundin* ;6 /0 7ranspo 'chedulin* &rocess ,or +us /perators 1#6 /0 7ranspo 0o((unication o, 0ancelled +us 7rips
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Approved 2014 Audit Work Plan

Due to the ti(in* and arri)al o, (y successor, this annual report does not put ,orth an audit or% plan -eyond that o, "#1$6 Done intentionally to allo the ne Auditor General to propose his audit or% plan and see% Audit 0o((ittee and 0ouncilGs appro)al6

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Summary 2005 to 2012

1"" audits 1,A1$ reco((endations 15" reco((endations (ana*e(ent disa*reed ith

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Potential Savings

/ne ti(e sa)in*s: Annual sa)in*s: 7otal potential sa)in*s:

>"C (illion >"5 (illion >51 (illion

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Acknowledgement
3y collea*ues and I ish to e@press our appreciation ,or the continued cooperation and assistance a,,orded the audit tea(s -y the 0ity 3ana*er, (ana*e(ent and sta,,6 Staff of the Office of the Auditor General 2012 'u4anne +ertrand Ray Kostuch Alain Lalonde Dan &resse Louise &roul@ Lise Renaud Laura Roe
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Questions

7han% you

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