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HomeMy WebLinkAboutCAO-008-22Clarftwn Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Audit and Accountability Committee Date of Meeting: August 3, 2022 Reviewed By: Mary -Anne Dempster, CAO File Number: n/a Report Number: CAO-008-22 By-law Number: Resolution#: Report Subject: Strategy, Intergovernmental Affairs and Transformation (SIT) Division Recommendation: 1. That Report CAO-008-22 be received for information. Municipality of Clarington Report CAO-008-22 Report Overview Page 2 In May 2022, the Strategy, Intergovernmental Affairs and Transformation Division was created within the CAO Office. Internal Audit has moved from Financial Services to this new division. The Internal Audit Manager is now the Project Manager, Audit and Risk. This report highlights the general workplan of this position with a focus on internal audit, service delivery reviews, value for money audits and LEAN initiatives. 1. Background 1.1 In May 2022, there were some staffing changes to the Office of the CAO with the creation of the Strategy, Intergovernmental Affairs and Transformation (SIT) Division. The Internal Audit Manager, Catherine Carr, has moved from Financial Services to the new division as the Project Manager, Audit and Risk. Samantha Gray is the Project Manager, Strategic Priorities, one of the key responsibilities of this new division. 2. Work Plan 2.1 The Project Manager, Audit and Risk has been working with the CAO and Manager of SIT to develop an amended workplan that will see the traditional scope of the internal auditor function expanded. The contents of the workplan will still fit within the original Terms of Reference of the Audit and Accountability Committee (AAC) and report to the Committee accordingly. 2.2 It is the intention of the revised workplan to provide the following outputs, which will be discussed below in greater detail. • Risk Assessment — Annually • Internal Audits — Twice per year • Value for money Audit — Once per year • Service Delivery Reviews — Twice per year • Undertake LEAN Initiatives across the organization Municipality of Clarington Report CAO-008-22 LEAN Initiatives Risk Assessment Internal Audits Risk Management Framework Value -for- Service money Delivery Audit Reviews Page 3 2.3 To build a program that can deliver results for the Municipality, it is critical that a comprehensive corporate risk assessment be undertaken. The risk assessment will provide a baseline through which insights can be gained as to where resources should be allocated to make the most efficient use of the workplan. Essentially the risk assessment will drive the work. Due to the critical nature of the risk assessment, it will be completed annually to ensure that it provides as accurate of a picture as possible. It is expected that as the program develops over time, the outputs of the subsequent pieces (audits, service reviews, etc.) will drive efficiencies for the corporation. 2.4 There will then be two internal audits conducted per year, the intention of which is to ensure that said processes have the proper controls in place to mitigate risk. The results of these assessments will provide important insights in determining the area(s) of focus for future internal audits. An example of these compliance style audits would be the recent purchasing card audit, which looked at transactions and compliance with municipal policies. 2.5 Value -for -money audits are evidence -based exercises that examine and report on fund expenditures and if they are being done in an effective and efficient manner. One of these audits will be done annually. An example of this would be reviewing the corporate cell phone program and gaining an understanding of things like usage, which positions have access to a phone, etc. Municipality of Clarington Page 4 Report CAO-008-22 2.6 Service delivery reviews have been undertaken in the past, and that will continue under this new program. These reviews are a systematic evaluation of a municipal service with the intention to find efficiencies within the current delivery model and make recommendations for change. The current provincial government has provided three intakes to its Audit and Accountability Fund (AAF), which provides municipalities like Clarington the opportunity to apply with specific efficiency style projects to obtain financial support. We have successfully applied to this fund three times. • Organizational Structure Review (completed) • Centralized Customer Service Review (completed) Process Modernization of Public Works — Payroll and Job Allocations (currently underway) 2.7 The current project (Process Modernization of Public Works) as listed above, is focused on reviewing the administrative process of managing payroll and then being able to determine how wage cost can be attributed to services. Having an accurate picture of this will allow management to be able to clearly articulate and understand costing per service area. The results of this work will be presented to the Audit and Accountability Committee in early 2023. As per the terms of the funding, this project must be conducted by a third -party provider and a final report must be posted by February 1, 2023. Due to the tight timeline, the municipality has single sourced a consultant to start the project this July. The Project Manager, Audit and Risk will oversee the project. To date, Clarington has received approximately $336,000 in funding to support these projects plus a commitment for additional funds to be received upon the completion of the current project. 2.8 It is also important to note that in the past, after a service delivery review was undertaken, the responsible department did not always report the implementation results/status. It is the intention of the new program that as these reviews are completed that the implementing department(s) provide appropriate updates that can be taken back to this committee. This will allow for better tracking of results including appropriate metrics. 2.9 As a final component of this new program, there will be a renewed focus on LEAN initiatives. LEAN initiatives are the identification, reduction, and elimination of waste within suboptimal processes - thereby creating efficiencies. In July of this year, seven municipal staff have begun working towards obtaining their LEAN Green Belt certification. This initiative will have two expected outcomes. The first being a greater bench of staff who have formal LEAN training, which can be utilized in the future. The second being that as part of obtaining the certification, each participant must be involved in a real -world LEAN project at their workplace. It is expected that once these Municipality of Clarington Page 5 Report CAO-008-22 projects are completed later this year, that the results will be reported to this committee in early 2023. 3. Concurrence Not Applicable. 4. Financial Considerations Not Applicable. 5. Conclusion It is expected that this updated program will play a critical role in the transformation and modernization of municipal services into the future. It is respectfully recommended that the committee receive this report for information. Staff Contact: Justin Maclean, Manager, Strategy, Intergovernmental Affairs and Transformation, 905-623-3379 ext 2017 or jmaclean@clarington.net. Attachments: Not Applicable Interested Parties: There are no interested parties to be notified of Council's decision.