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:
PricewaterhouseCoopers LLP
Discussion:
The detailed status report for all outstanding audit recommendations is attached as Appendix A and is as of March 31, 2020. As of that date, management is tracking the status of thirty-five (35) audit recommendations, of which twenty-one (21) audit recommendations are considered open and delayed. Additionally, twenty-two (22) items have been closed since the 2019 Q4 update, as PwC has verified that they have been successfully completed. Since the beginning of PwC’s contract as outsourced internal auditor in April 2013, there have been two hundred forty-seven (247) audit recommendations accepted by City Council of which administration has successfully implemented two hundred twelve (212) of them.
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.
In light of the COVID-19 pandemic, meeting the targeted timelines may be difficult given that departmental focus has shifted to providing essential services. Administration will continue to monitor the situation understanding that a reassessment of the dates along the way may become necessary.
Risk Analysis:
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.