THE REGIONAL MUNICIPALITY OF PEEL

AUDIT SUBCOMMITTEE

M I N U T E S      ASC-2007-6


The Audit Subcommittee met on December 6, 2007, at 8:39 a.m. in the Council Chamber, Regional Administrative Headquarters, 10 Peel Centre Dr., Brampton.

Members Present: C. Corbasson; E. Kolb*; G. Miles; R. Whitehead
   
Members Absent:   R. Paterak, due to a personal matter
   
Also Present:   D. Szwarc, Chief Administrative Officer; R.K. Gillespie, Commissioner of Corporate Services and Regional Solicitor; D. Labrecque, Chief Financial Officer; M. Zamojc, Commissioner of Environment, Transportation and Planning Services; B. Wilson, Director, Internal Audit; K. Travers, Associate Partner, KPMG; J. Payne, Committee Clerk

Chaired by Councillor R. Whitehead

1. DECLARATIONS OF CONFLICTS OF INTEREST - Nil


2. APPROVAL OF AGENDA

RECOMMENDATION ASC-9-2007:

That the agenda for the December 6, 2007 Audit Subcommittee meeting be approved.


3. DELEGATIONS/PRESENTATIONS - Nil


4. REPORTS

a) Audit of the Peel Children’s Safety Village

Received

Beate Wilson, Director of Internal Audit, reminded members of the Audit Subcommittee that a review of the Peel Children’s Safety Village (PCSV) was included in the Region of Peel Internal Audit 2007-2009 work plan. The PCSV is a not-for-profit organization with a charitable status administered by a community-based volunteer board. The audit was conducted jointly by the Region of Peel Audit division and the Peel Regional Police Audit Unit.

The review identified opportunities to strengthen controls regarding the budgeting process for acquisitions, the maintenance of capital assets and the accumulation of reserves. Further, it was noted in the audit that a memorandum of understanding between Peel Regional Police and the Peel Children’s Safety Village needs to be developed to clearly define roles and responsibilities.

Gary Evans, President of Peel Children’s Safety Village thanked Region of Peel and Peel Regional Police audit staff for undertaking the review. He noted that the audit identified several opportunities for process improvement that the PCSV Board will undertake to implement prior to the end of 2008.

Chair Kolb arrived at 8:44 a.m.

b) Roads, Water and Wastewater Capital Project Planning and Budgeting Audit
Presentation by Mitch Zamojc, Commissioner of Environment, Transportation and Planning Services; Dan Labrecque, Chief Financial Officer; and Damian Albanese, Director, Transportation Division, Environment, Transportation and Planning Services

Received

Damian Albanese, Director, Transportation division of the Environment, Transportation and Planning Services (ETPS) department provided an overview of the audit findings. The audit observations were summarized in four categories as follows: enhancements to planning and processes; development of revised management roles and responsibilities; improvements to budget development activities and redefined operational and financial measurements. Damian Albanese then reviewed the work that was completed to date and noted that the 2008 ETPS budgeting process benefited from a more structured project management approach. Finally, he addressed the ongoing improvements that will be implemented over the coming years based on the audit findings.

Councillor Corbasson questioned the length of the implementation time periods identified for a number of management action plan items. Damian Albanese spoke to the need for setting attainable goals and noted that staff is committed to implementing many of the recommendations prior to the 2009 ETPS budget development process. Dan Labrecque, Chief Financial Officer (CFO) for the Region of Peel, responded that several of the audit findings address process improvements that can be applied across the organization, and as such, implementation of solutions will require additional time.

Councillor Whitehead remarked on the complexity of the capital forecasting process in such a high growth region and asked staff to identify some of the current key drivers of change within the ETPS program area. Mitch Zamojc, Commissioner of ETPS replied that changing technology, the number and complexity of projects, as well as the new corporate organizational alignment with service provision, summarizes the challenges currently being addressed. Regional Chair Kolb also noted that the significant impact of rapid and sustained population growth, estimated to be approximately 175,000 people over the past five years in the Region of Peel, also represents a significant challenge faced by the department.

Chair Kolb requested that staff report back regarding progress on the audit findings to a future meeting of the subcommittee. Beate Wilson responded that the progress of the audit findings in the report will be summarized and provided to the members of the subcommittee as part of the annual update.

Councillor Whitehead expressed that he appreciated the challenges in planning long-range capital projects given the rapid growth that the Region has, and which it will continue to experience. He noted that staff at the Region has done a good job of planning to accommodate growth while completing the current work.

c) Waste Management Audit
Presentation by Andy Pollock, Director, Waste Management

Received

Andrew Pollock, Director, Waste Management division of the Environment, Transportation and Planning Services (ETPS) department provided a high-level overview of the range of services provided by the waste collection, waste processing and waste operations and planning sections. He provided the reasoning behind the selection of the Waste Management division for an audit, including the recent introduction of the region-wide organics program, the negotiation of new long term waste collection and disposal contracts and the opening of the Peel Integrated Waste Management Facility. The audit findings addressed process improvements related to contract administration, management reporting, financial reports and processes as well as information management. In conclusion, Andrew Pollock presented the next steps to address the audit recommendations through the implementation of the management action plans.

Councillor Corbasson sought additional information regarding instances of delayed revenue payments. She further requested a statement of the revenue impact resulting from the late payments to the Region. Beate Wilson responded that Internal Audit did not conduct a cash- flow analysis as part of the audit and, as such, could not provide a statement of the revenue impact. Andrew Pollock added that all payments have been made and the issues identified in the report have been resolved.

Councillor Corbasson requested a report from staff, to a future meeting of the Audit Subcommittee, detailing the cost, including lost interest, resulting from late payments. Beate Wilson agreed to provide the requested report to a future meeting of the Audit Subcommittee.

d) 2006 KPMG Audit Findings Report

Received


5. COMMUNICATIONS - Nil

6. IN CAMERA MATTERS - Nil

7. OTHER BUSINESS - Nil

8. NEXT MEETING

Thursday, February 28, 2008, 8:30 a.m. - 9:30 a.m.
Council Chamber, 5th floor
Regional Administrative Headquarters
10 Peel Centre Drive
Brampton, Ontario


9. ADJOURNMENT

The meeting adjourned at 9:17 a.m.