Project purpose

We conducted a Value for Money (VFM)/Performance Audit of purchased services related to winter road clearing. Our approach was based on both Internal Audit and Performance Auditing approaches and frameworks in accordance with the Auditor General Charter. For the VFM audit, we focused on:

• a set of performance objectives evaluated as part of this audit.

• internal controls and processes over the three key areas: including financial, operational, and compliance.

Specific scope, objectives and exclusions are described in Appendix B.

What we did

To conduct our work we completed various activities including, but not limited to:

• Re-calculated CPI adjustment factor for operating rates for the 2017/2018 and 2018/2019 season and noted variance. (see finding #1)

• Re-performed the summary of operating hours and standby hours for the contractor trucks for the four sampled months based on supervisor logs and timecards provided.

• Compared the hours we summarized to the hours captured in the Summary Report prepared by the Technical Team and noted variance in cost categories. (see finding #2)

• Traced hours and penalties summarized by the Technical Team to the corresponding payment certificates for the selected four months and noted favorable variance.

• Performed data analytics on available GPS records for the contractor trucks for 2017/2018 and 2018/2019 season and identified operational deficiencies. (see finding #3)

• We evaluated internal controls over issuance of payment certificate, monitoring contractor performance and contract management practices and identified areas for improvement. (finding #1, finding #2, and finding #3)

Overall assessment

VFM/Performance Metrics: Of the seven performance objectives assessed, three ​ were ​Attained, three​ were Substantially Attained,​ and one ​was​ Not Attained​ The last metric not attained had evidence of management awareness and some level of action but not sufficient evidence for an independent reviewer to assess full adherence and timely action.

Internal Controls: While ​opportunities for improvement exist​, the controls are ​designed and operated in a manner to reasonably attain the City’s objectives within the operating budget and resource constraints.

A total of ​three findings​ have been i​ dentified ​in the financial, operational and compliance areas whereas two considerations for improvements are raised over the contract management, and oversight over supervisor log completion.