Summary of internal audit results

Report classification

In general, controls are properly designed and are operating effectively for the purpose envisaged. Given the nature of this audit, we are providing an overall assessment using performance auditing measures as well as our standard internal controls assessment.

Performance-based audit results 2

In accordance with performance auditing standards, given that performance measures were not previously defined for the subject matter area, we worked with management to identify performance measures which could be used to measure the value and/or performance related to purchased winter services. The winter road clearing financial and operational performance objectives were established in coordination with the City’s Public Works - Operations prior to the commencement of our field work. The results are based on our detailed review of selected monthly vendor payment certificates and data analytics on available GPS records for vendor salters/plow trucks over the 2017/2018 and 2018/2019 seasons.

Performance Objective	Assessment (% Attained)	Summary
1. Aggregate certificates: Aggregate payments certificates were issued with no more than a 2% aggregated variance for all certificates tested	Attained 100%	We identified a total overpayment of $37,751 made over the course of both seasons due to incorrect utilization of the CPI rates in calculation of annual Consumer Price Index (CPI) adjustment factors. The overpayment accounted for 0.87% of the total payment of $4,328,790 (over the two seasons). As a result of our work on this audit, the City has recovered the overpayment amount from the vendor and corrected the annual operating rates retrospectively for 2017/2018 and 2018/2019 seasons. The starting operating rates for the 2019/2020 season were set up correctly.
2. Individual certificates: Individual payment certificates were issued with no more than a 5% variance for all certificates tested.	Attained 100%	Based on our detailed testing of a sample of 4 monthly certificates, we did not note any individual payment errors. The 4 monthly certificates sampled related to $2,766,080 (63.9%) of the total $4,328,790 payments rendered.