2012 AG Annual Report Presentation Nov 28 13

8/13/2019 2012 AG Annual Report Presentation Nov 28 13

1/27

2012 Annual Report

Office of the Auditor GeneralNovember 28, 2013


2/27

2

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


3/27

3

Work not included in Annual Report

+ased on Le*al ad)ice the olloin* ill -e presented ater anyrelated ar-itration and.or liti*ation are co(pleted:

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

Audit o the &rocure(ent &rocess 'prin*hill LandillFollo!up to the "#1# Audit o the West 2nd Floodin* 2)entand the De)elop(ent Re)ie &rocesses ithin the 0arp Ri)erWatershed

Follo!up to the "#1# Audit o the 3acKenie +rid*eResuracin*


4/27

4

Work not included in Annual Report

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

Follo!up Audit o the &ine ie 3unicipal Gol0ourse

Audit o the /ttaa 3unicipal 0a(p*round


5/27

5

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


6/27

6

1. Treasury Function

16a 3eetin* le*islati)e and policy reuire(ents

16- &olicies and procedures consistent ith rele)antle*islation

16c For(al peror(ance (easure(ent (ethodolo*y hasnot -een de)eloped and i(ple(ented

16d Rate o R/I durin* "#11 as $6;


7/277

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


8/278

2. Corporate Credit Cards

"6a Well ad(inistered and supported -y Finance

"6- 0lear processes, super)ision and o)ersi*ht o)er

reconciliations )eriication

"6c 0o(pliance a*ainst applica-le policies and procedures

"6d 2rror rates lo and controls unctionin* as intended


9/279

2. Corporate Credit Cards

"6e Increasin* use o credit cards could yield annualsa)in*s o >"5#,###

"6 'pent ? >"$5,### in *rocery stores in "#11 ithout

preerred pricin*

"6* Reassi*nin* purchasin* to loer operational le)el stacould sa)e appro@i(ately >1#,### annually

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


10/2710

3. Client Service Centres (CSC)

$6a 2iciency sa)in*s ro( strea(linin* operations in the 0'0s

$6- Resources are not ully utiliedB annual eiciency

sa)in*s o 1$ F72s )alued at >


11/2711

3. Client Service Centres (CSC)

$6d &otential additional reco)ery o >$5,


12/2712

4. Ontario WorksEligibility Assessment Process

46a Initial eli*i-ility assess(ents (eetin* le*islati)e and policyreuire(ents

46- Rando( sa(ple o 1## recipients 8an "#11!un "#1"

pay(ents9

46c #6C= o the population tested totallin* >$,


13/27

13

4. Ontario WorksEligibility Assessment Process

46e Decreasin* nu(-er o *eneric case or%ers to -e (ore inline ith pro)incial (edian ould result in eiciency sa)in*so >165 3

46 Reducin* case or%ers sic% lea)e to 1C65 days 8as in 2ast'er)6 0entre9 or a sa)in*s o appro@i(ately >1C,###:

/ther 'er)ice 0entres 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


14/27

14

5. Construction Supervision

56a eed to e)aluate past peror(ance o contractors hendeter(inin* aard o contract

56- &ast peror(ance should -e docu(ented and a ratin*syste( esta-lished

56c In so(e instances, chan*e orders ere result oconsultants errors and o(issions

56d 2sti(ates that >16" 3 could -e reco)ered ro( chan*eorders resultin* ro( desi*n errors hen proEected o)erthe entire population o proEects


15/27

15

5. Construction Supervision

56e 0ould sa)e >4$5,### in contractor (ar%!up ee or policeassistance at intersections i 0ity paid &olice directlyrather than )ia contactor

56 'hould chan*e current (ethod o ad)ertisin* tenders toinclude a ider distri-ution and ensure the lar*este@posure possi-le or the 0ity

56* &otential sa)in*s identiied: >1,C$5,###

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


16/27

16

Fraud and Waste Hotline

Reports by Reporter Type

ReporterType

Number ofReports

Percentage

&u-lic


17/27

17

Fraud and Waste Hotline

Reporters Who Used Two-way Communication

ReviewedReport

Number ofReports

Percentage

o ; 55=

es C4 45=

7otal 14$ 1##=


18/27

18

Follow-up Reports

16 Jse o 0ity ehicles and 3ilea*e 0lai(s"6 'elected Grant Recipients ! 'i*ned A*ree(ents and

Audit 0lauses

$6 epean 'ailin* 0lu- A*ree(ent

46 'u*ar-ush 8Action anier9 A*ree(ents

56 Re)enue +ranch

C6 'tain* &rocess 0hildrens 'er)ices +ranch

6 0itys 3ana*e(ent o a Loan A*ree(ent


19/27


20/27

20

14 Follow-up Reports General Comments

'olid pro*ress on


21/27


22/27


23/27

23

Approved 2014 Audit Work Plan

Due to the ti(in* and arri)al o (y successor,this annual report does not put orth an auditor% plan -eyond that o "#1$6

Done intentionally to allo the ne AuditorGeneral to propose his audit or% plan and see%Audit 0o((ittee and 0ouncils appro)al6


24/27

24

Summary 2005 to 2012

1"" audits

1,1$ reco((endations

15" reco((endations (ana*e(ent

disa*reed ith


25/27

25

Potential Savings

/ne ti(e sa)in*s: >"C (illion

Annual sa)in*s: >"5 (illion

7otal potential sa)in*s: >51 (illion


26/27

26

Acknowledgement

3y collea*ues and I ish to e@press our appreciation or thecontinued cooperation and assistance aorded the audit tea(s

-y the 0ity 3ana*er, (ana*e(ent and sta6

Staff of the Office of the Auditor General 2012

'uanne +ertrand

Ray Kostuch

Alain Lalonde

Dan &resse

Louise &roul@

Lise Renaud

Laura Roe


27/27

27

Questions

7han% you

2012 AG Annual Report Presentation Nov 28 13

Documents