Discussion:

The detailed status report for all outstanding audit recommendations is attached as Appendix A and is as of December 31, 2019. As of that date, management is tracking the status of twenty-seven (27) audit recommendations, of which eighteen (18) audit recommendations are considered open and delayed. Since the beginning of PwC's contract as outsourced internal auditor in April 2013, there have been two hundred fortytwo (242) audit recommendations accepted by City Council. Administration has successfully implemented two hundred fifteen (215) of them since April 2013 (of which twenty-four (24) will be included in the next validation review by PwC). Further information relative to these items is reflected in the current status column in Appendix A.

The management action plans that accompany each PwC audit report establish timelines for the implementation of each item. Given that these timelines are often estimates and other business issues and priorities compete for management attention, it is not unexpected that occasional minor delays will occur. In some cases, a minor delay is preferable to allow the recommendation to be properly and fully implemented with adequate resources.

Risk Analysis:

The tracking of the implementation status of all audit recommendations was a key risk mitigation strategy for all of the management action plans submitted with each PwC audit report. The Executive Initiatives Coordinator in the Office of the City Treasurer liaises directly with both PwC and the assigned operating department to ensure that the implementation of audit recommendations is kept top of mind and on schedule. PwC also follows up to verify and test that audit recommendations have been appropriately implemented.

Financial Matters:

Following each audit by PwC and direction from City Council, City management proceeds with the implementation of each recommendation within existing operational budgets. In cases where additional funds may be required, the affected operating department would submit a request to City Council. No additional funding is being requested at this time.

Consultations:

Pricewaterhouse Coopers LLP

Conclusion:

City administration monitors the status of all audit recommendations following the acceptance by City Council of each PwC audit report and the direction by Council to proceed with implementation. The management action plan that accompanies each PwC audit report establishes timelines for the implementation for each item, though occasional variances from these timelines occur for a variety of reasons.