M I N U T E S ASC-2008-4
The Audit Subcommittee met on October 9, 2008, at 8:38 a.m. in the Council Chamber, Regional Administrative Headquarters, 10 Peel Centre Drive, Brampton.
|Members Present:||C. Corbasson; R. Paterak; R. Whitehead|
|Members Absent:||E. Kolb|
|Also Present:||Councillor A. Thompson; R. K. Gillespie, Commissioner of Corporate Services and Regional Solicitor; J. Smith, Commissioner of Health Services; B. Wilson, Director, Internal Audit; K. Travers, Associate Partner, KPMG; R. Martin, Committee Clerk|
Chaired by Councillor
1. DECLARATIONS OF CONFLICT OF INTEREST - Nil
2. APPROVAL OF AGENDA
That the agenda for the October 9, 2008 Audit Subcommittee meeting be approved.
a) Certification in Energy Excellence
Presentation by Steve Hall, Director, Real Property Asset Management and Steve Saric, Energy Co-ordinator, Corporate Energy
Steve Hall, Director, Real Property Asset Management and Steve Saric, Energy Co-ordinator, Corporate Energy provided details on the Certification in Energy Excellence (CEE) program.
Steve Saric reported the CEE program was established in the United Kingdom in 1993. Over 350 organizations have gained accreditation through the program. Steve Saric stated that the CEE program is administered in Canada by 360 Energy Inc with the assistance of third party, independent assessors. The certification process takes 6 to 18 months to complete and is valid for three years. Steve Saric noted the target for the Region of Peel to complete the certification is Spring 2009.
Steve Saric reported that the CEE is the only program in Canada that recognizes the achievements of organizations who reduce their energy use. The CEE is an independent check on energy management practices that provides an objective assessment of an organization’s energy management program and measures actual achievements.
Steve Saric noted the benefits of the CEE program are:
- National recognition for energy and environmental performance;
- Guidance from independent assessors;
- The program is built specifically for energy management;
- The program demonstrates a commitment to continual improvement and external assessment;
- Reinforcement and enhancement of best procedures and practices;
- The program maximizes cost avoidance and reduces measurable costs.
Steve Saric outlined the four areas that CEE assessors review as part of the program certification process. These are energy procurement, management practices, energy efficiency measures and energy performance improvements. The assessors will ask a series of questions related to all four areas to determine how each functions. The findings are then submitted to a moderator in the United Kingdom. This moderator determines the level of certification which will either be platinum, gold or silver.
Steve Saric stated the CEE program can assist Internal Audit as it provides an assessment framework specifically for the evaluation of energy management programs.
Councillor Paterak requested further information on the CEE program costs and what are staff requirements in terms of time to complete the certification.
Steve Saric responded that the cost of the CEE is $75,000 and the certification process does not require a great deal of time from staff to complete.
Councillor Paterak asked for an estimate of the annual energy costs for the Region of Peel.
Steve Hall responded that annual energy costs for the Region are approximately $50 million.
Councillor Corbasson stated the City of Mississauga undertook a similar exercise which resulted in $9 million in savings.
Councillor Whitehead arrived at 8:50 a.m.
a) KPMG 2008 Audit Planning Report
Presentation by Kevin Travers, Associate Partner, KPMG
Kevin Travers, Associate Partner provided details on the KPMG 2008 Audit Planning Report.
Kevin Travers noted two areas of accounting standards where changes have been made.
In the area of Tangible Capital Assets, Kevin Travers reported that effective 2009, municipalities will be required to present information about the entire stock of their tangible capital assets and amortization in the financial statements to demonstrate stewardship and the cost of using those assets to deliver programs and provide services.
In the area of Segment Disclosures, Kevin Travers reported that municipalities will be required to provide segmented information with regards to revenue and expenditures.
Kevin Travers provided details on the KPMG Service and Multidisciplinary Resources teams that will be involved in the audit process for the Region of Peel and Peel Housing Corporation. The Service team includes Kevin Travers as the Lead Audit Engagement Associate Partner and Kelly Taiabjee as the Audit Engagement Manager. The Multidisciplinary team includes Iqubal Merchant as the Senior Principal and Gerry Hagerman as the Engagement Quality Control Reviewer.
b) Paramedic Services Audit
Presentation by Janette Smith, Commissioner of Health Services and Peter Dundas, Director, Peel Regional Paramedic Services
Janette Smith and Peter Dundas presented the results of the Paramedic Services Audit.
Peter Dundas reported that the audit scope had four focus areas:
- Information and technology management;
- System performance management and quality assurance;
- Roles and responsibilities;
- Policies and procedures.
Peter Dundas stated that several areas were excluded from the audit because Paramedic Services were in the process of a Ministry of Health and Long-Term Care certification process.
Peter Dundas reported that since the audit was completed, Paramedic Services received their certification which will be valid until 2011.
Areas out of the scope of this audit included:
- Deployment Strategy;
- The ten year capital plan;
- Hospital off-load delays;
- Ambulance response time;
- Negotiation of a new collective agreement.
Peter Dundas stated that the audit indicated a number of strengths in the Paramedic Services department. These included an effective payroll system in place for Paramedic Services and the highly skilled and dedicated staff.
Peter Dundas reported the audit of Paramedic Services also identified the following opportunities for improvement:
- IT Management;
- System performance management;
- Clarity in roles and responsibilities;
- Policies and procedures.
Peter Dundas stated that Internal Audit is one of the many inputs to the on-going management of Paramedic Services. He added that paramedics are among the most regulated professions in the province of Ontario and they welcome the direction that Internal Audit provides.
Councillor Paterak asked if Region of Peel ambulances are outfitted with a Global Positioning System (GPS).and, if so, is there an audit process of the GPS system to determine if ambulance trips are as efficient as possible.
Peter Dundas responded that ambulances are outfitted with GPS however there is not an audit system in place to monitor the efficiency of emergency calls.
Councillor Corbasson requested clarification on the review of storage and dispensing of narcotics.
Peter Dundas responded that the new strategy for storage and dispensing of narcotics will be in place by May, 2009 and will be implemented in 2011.
c) Current Status of Management Actions Planned as a Result of the 2006 and 2007 External Audit Management Letters for the Region of Peel
d) Current Status of Management Actions Planned as a Result of the 2007 External Audit Management Letter for the Peel Housing Corporation
5. COMMUNICATIONS - Nil
6. IN CAMERA MATTERS - Nil
7. OTHER BUSINESS - Nil
8. NEXT MEETING
November 13, 2008
8:30 a.m. - 9:30 a.m.
Council Chamber, 5th floor
Regional Administrative Headquarters
10 Peel Centre Drive
The meeting adjourned at 9:14 a.m.