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From YouTube: Audit Committee - June 13, 2022 (2 of 2)
Description
Audit Committee - Agenda 16 - Monday, June 13, 2022
Agenda and supporting documents available at www.ottawa.ca/agendas
A
A
A
A
Good
afternoon,
everyone
for
the
benefit
of
those
joining
us
online.
The
audit
committee
just
met
in-camera
in
order
to
receive
a
presentation
of
the
office
of
the
auditor
general
a
cyber
security
investigation
report.
These
matters
will
not
be
reported
out
as
they
relate
to
subsection
131a,
the
security
of
the
property
of
the
city.
During
the
in-camera
session,
no
votes
were
taken
other
than
procedural
motions
and
or
directions
to
staff.
The
report
recommendation
is
that
the
audit
committee
received
the
cyber
security
investigation
report
and
recommended
council
recommend
recommend
that
council
consider
and
approve
the
recommendation.
A
A
A
A
A
So
we
are
reporting
a
surplus
for
the
year
ended
december,
31
2021
of
1.388
billion,
which
is
different
from
the
52.2
million
surplus
reported
at
the
end
of
2021
for
budget
purposes.
Financial
statements
are
reported
based
on
canadian
public
sector
accrual
accounting
standards,
whereas
the
budget
is
reported
on
a
modified
cash
basis.
A
In
2021
revenues
increased
by
452
million,
primarily
due
to
an
increase
in
government
transfers
of
129
million,
mainly
for
covid
related
funding,
as
well
as
an
increase
of
168
million
for
contributed
assets
and
an
increase
in
taxation
and
fees
and
user
charge.
Revenue
of
107
million
total
expenses
for
2021
increased
by
158
million
there.
There
were
increased
expenses
related
to
covet
for
public
health
and
social
housing,
129
million,
as
well
as
additional
cost
environmental
services,
28
million
related
to
higher
repairs
and
maintenance
expenditures,
higher
amortization
and
higher
loss
loss
on
disposal
of
assets.
Next
slide.
A
A
A
Accounts
payable
and
accrued
liabilities
has
increased
by
491
million,
primarily
due
to
stage
two
of
lrt
where
services
were
received,
but
not
yet
paid
as
well
as
short-term
promissory
note
that
was
issued
in
2021
as
part
of
ongoing
cash
flow
management
and
will
mature
in
2022
deferred
revenue
has
increased
by
83
million,
primarily
due
to
an
increased
collection
of
development
charges.
Development
charge
receipts
are
recorded
as
deferred
revenue
until
the
fiscal
year
when
the
related
expenses
are
incurred,
at
which
time
they
are
then
recorded
as
revenue.
A
The
next
slides
will
provide
additional
details
on
the
next
two
major
items:
employee
future
benefits
and
pensions,
as
well
as
the
net
long-term
debt.
Next
slide,
employee
future
benefits
increase
this
year.
These
liabilities
represent
benefits,
earned
but
not
payable
until
future
years.
The
amount
payable
in
the
current
year
is
budgeted
for
each
year
and
changes
in
future
liabilities
are
primarily
because
of
changes
in
actuarial
assumptions
and
legislation.
A
The
most
significant
changes
include
post-retirement
and
post-employment
benefits
increased
by
27
million,
based
on
the
actuarial
consultants,
estimation
of
post-retirement
and
post-employment
benefits.
The
city
of
ottawa,
superannuation
fund
cost
of
living
indexation
liability
increased
by
1
million,
and
these
increases
were
offset
by
7
million
reduction
to
the
estimated
future
liability
for
wsib
next
slide.
A
A
Our
net
long-term
debt
increased
reflecting
the
issuance
of
225
million
of
new
debt
for
transit
projects,
which
is
offset
by
139
million
of
debt,
principal
repayments,
principal
and
interest
payments
are
restricted
in
two
ways.
Council
has
established
a
specific
target
for
debt
whereby
principal
and
interest
payments
for
tax
and
rate
and
support
and
rate
supported
debt
are
not
to
exceed
a
combined
target
of
8.5
percent
of
the
city's
own
source
revenue
in
2021,
this
percentage
was
5.85.
A
The
provincial
measure
looks
at
it
at
the
cost
of
debt
issued
including
mortgages
as
a
percentage
of
own
source
revenues,
and
that
limit
is
25
in
2021.
This
measure
is
calculated
as
9.1
percent,
which
is
far
below
the
provincial
limit
compared
to
other
large
municipalities.
Ottawa
continues
to
have
one
of
the
lowest
total
debt
per
capita.
A
A
As
mentioned
the
lrt
stage,
2
capital
asset
costs
are
still
accumulating
within
the
assets
under
construction
category.
Once
stage
2
is
put
into
service.
Those
asset
costs
will
then
be
transferred
to
the
lrt
asset
category.
This
concludes
my
presentation
and
I
will
now
pass
it
to
mina
myers
from
ey
for
an
overview
of
the
audit
results.
A
A
A
A
A
So,
there's
a
number
of
areas
of
audit
emphasis
that
we
focused
our
procedures
over
these.
The
areas
are
consistent
with
prior
year,
as
well
as
as
with
the
audit
plan
we
presented
back
in
december,
so
the
first
area
we
focused
this
year
was
the
kovid
19
impact.
We
began
our
procedures
by
inquiring
with
management,
to
understand
any
impact
on
the
city's
financial
statements
and
they
then
adapted
our
extent,
nature
and
timing
our
procedures.
A
Accordingly,
we
did
review
any
significant
accounting
estimates
that
were
impacted
by
covid19,
as
well
as
tested
some
of
the
additional
funding
received
from
the
province
and
reviewed
the
related
significant
contracts.
For
that
overall,
we
have
not
identified
any
issues
related
to
covet
19.
next
slide.
A
Our
second
area
of
focus
is
revenue
recognition,
so
we
performed
a
test
of
details
over
a
sample
of
revenue
transactions
across
all
revenue
streams,
and
we
also
perform
analytical
procedures
and
obtain
some
confirmations.
Overall.
We
had
no
issues
to
identify
for
contingent
liabilities.
Our
work
remains
ongoing
on
this
matter,
as
we
must
continue
our
procedures
up
until
issuance
of
the
financial
statements
next
week.
A
The
next
area
is
investments.
We've
confirmed
the
city's
investment
maturity,
dates
par
values,
market
values
and
coupon
rates
with
the
various
custodians
we
also
test
a
sample
of
market
value
investments
and
recalculate
the
carrying
value
in
the
accrued
entrance
for
financial
statement
purposes.
Finally,
we
perform
a
reasonability
over
the
investment
income
and
test
for
any
possible
impairment.
A
We
have
not
identified
any
issues
in
investments
for
employee
future
benefits.
We
do
engage
our
internal
actuarial
specialists
to
review
the
key
assumptions
and
the
valuation
models
used
within
each
of
the
employee
future
benefit,
which
include
the
superannuation
fund,
the
oc
transport
pension
plan,
other
non-pension,
post
employment
and
post
retirement
benefits,
as
well
as
the
wsib
plan.
A
We
did
note
one
misstatement
within
the
employee
future
benefits,
and
this
item
has
been
recurring
for
a
number
of
years
and
will
remain
occurring
and
reducing
gradually
each
year
so
this
year.
This
is
related
to
the
a
carry
forward
error
for
the
clarification
of
certain
pre-existing
plan
provisions
that
has
been
amortized
over
time
this
year.
The
net
impact
is
an
understatement
of
the
annual
surplus
of
about
five
hundred
thousand
dollars,
an
understatement
of
the
liabilities
of
4.9
million.
The
difference
goes
to
the
accumulated
surplus.
A
Next
slide.
Please
tangible
capital
assets
is
the
next
area
of
emphasis
and
we
test
a
variety
of
additions.
Disposals
as
well
as
recalculations
around
the
amortization
we
did
review
the
significant
agreements
related
to
the
ottawa
light
trail
transit
project
to
determine
that
the
appropriate
accounting
has
been
in
place
for
those
as
a
result
of
our
procedures.
We
have
one
air
identified
again
that
is
recurring
since
2012
and
will
continue
to
recur
until
these
assets
are
fully
amortized.
A
A
A
So,
with
respect
to
other
than
the
presumed
risk
of
management
override,
there
were
no
fraud
risk
identified,
which
could
be
material
ticket
consolidated
financial
statements,
and
we
presented
here
a
summary
of
the
net
impact
of
the
differences
that
were
mentioned
in
our
areas
of
audit
emphasis,
with
a
net
impact
on
the
annual
surplus
of
one
understatement
of
1.6
million
dollars.
There
were
no
other
significant
uncorrected
disclosure
differences
identified.
A
A
Thank
you
very
much,
both
for
both
city
staff
and
ernst
young
for
your
presentations.
Are
there
any
questions
from
my
colleague
committee
members
vice
chairman?
Thank
you
chair.
I
I
just
want
to
go
back
to
one
of
the.
I
think
the
final
slides
that
ms
jasmine
had
just
wanted
clarification.
The
principle
and
interest
is
that
9.1
percent.
A
Just
need
an
explanation
of
what
that
actually
is.
That
is
that
the
overall
interest
rate
that
we're
paying
down
our
debt.
I
just
want
to
understand
that
9.1,
it's
it's!
So
it's
it's
9.1
of
the
total
debt
servicing
for
that
includes,
but
not
just
the
tax
debt
and
the
rate
debt,
but
also
development,
charge,
debt
and
gas
tax
debt
as
a
percentage
of
total
revenue.
A
A
Okay,
what
what
are
we
paying?
What
what
are
we
generally
paying
on
our
debt?
What's
the
interest
rate
right
now,
I
think
believe
the
last
one
was
at
4.11,
but
we've
had
we've
enjoyed
very
low
interest
rates
over
the
past
several
years,
so
our
average
rate
is
much
lower
and
is
it
is
it
possible
to
say
how
much
we're
pay
I
mean
our
debt
has
grown
over
the
past
several
years?
A
We're
not
we're
not
tackling
it,
we're
not
bringing
it
down.
Can
we
so
the
amount
of
debt
is
commensurate
with
the
investments
that
we're
making
in
our
tangible
capital
assets
so
as
we're
developing
assets
that
will
serve
future
taxpayers
and
super
is
future
users
of
those
services.
We
are
incurring
debt,
but
we
are
maintaining
debt
within
own
source
revenue
percentages
and
so,
as
we
take
on
debt,
we're
also
retiring
debt
because
we're
also
paying
down
principal
on
old
debt.
A
So
it's
it's
switching
out,
and
so
it's
gradually
we
are
increasing,
but
not
at
the
same
rate
as
we're
bringing
on
debt.
If
that
makes
sense,
so
our
total
principal
repaid
this
in
2021
was
approximately
135
million
and
interest.
Also
135
135
million,
so
about
240
million
total
debt
servicing
in
2021..
A
A
We
manage
within
our
budgets,
so
if
interest
rates
are
higher,
we
just
issue
less
debt,
so
we
we
always
make
sure
that
we
only
issue
enough
debt
that
we
can
afford
as
part
of
our
budget,
and
we
have
to
consider
that
as
part
of
the
2023
budget,
how
much
we
will
be
able
to
afford
okay.
Thank
you
very
much.
Thank
thank
you
and
I
have
the
counselor
cavanaugh
and
el
shanteria
on
the
list.
But
what?
What
is
the
average
interest
rate
that
we're
paying
4.11
might
have
been
the
last
debt
that
we
incurred?
A
Well,
I
can
get
back
to
you
on
that.
Okay,
thank
you,
councillor
cavanaugh,
please
thank
you.
I'm
looking
at
the
future
debts
and
such
as
what
we
have
to
pay
out
for
retirements,
etc
and
anecdotally.
It
looks
like
after
covid
and
all
that's
happened,
that
people
are
taking
more
early
retirements
and
taking
more
and
sometimes
long-term
leaves
et
cetera.
A
Thank
you
taryn,
and
I
can
make
an
attempt
counsellor,
I'm
not
sure
about
the
impact
on
the
debt.
We
do
have
some
wellness
statistics
that
we
could
share
with
council
around.
The
number
of
folks
who
are
on
long-term
disability
are
sick
leave,
numbers
and
folks
that
are
taking
either
regular
or
early
retirement,
but
I
I
sadly
don't
have
in
front
of
me
the
financial
impact
of
all
of
that
with
respect
to
the
impact
on
the
debt
and
perhaps
miss
jasmine
can
opine
on
whether
or
not
those
activities
influence
the
debt.
A
A
I
was
just
associating
it
to
retirements,
it
doesn't
impact
the
level
of
the
city's
debt,
okay
and
just
asking
if,
if
there's
a
lot
of
people
leaving
early
or
or
there's-
and
I
don't
know
if
it
includes
the
calculation
of
long-term
disability
or
not-
but
if
there's,
if
there's
that
related
to
that,
there's
a
what
we
call
a
liability
so
there's
a
long
term
liability
that
is
based
on
actuarial
estimates
yeah
and
that's
that's
what
is
shown
in
the
financial
statements
and
it's
not
called
debt.
It's
called
a
long-term
liability
long-term.
A
A
A
Chair
I
hadn't
anticipated
this
question
coming
out
of
the
financial
statements
and
I
apologize.
I
don't
know
if
liz
marland
or
fraser
allen
are
available
to
provide
some
context
for
this.
I
can
see
you
liz.
Do
you
have
something
in
front
of
you
yeah?
Thank
you
very
much
valerie.
No,
we
haven't
been
seeing.
A
Okay,
thank
you.
Thank
you.
Councillor,
cavanaugh,
council
shantiri.
Please
thank
you.
Thank
you,
mr
chair.
A
question
for
miss
myers
smiles.
We
heard
one
of
our
colleagues
ask
him
about
the
series
total
that
if,
if
I
ask
you
in
comparison
to
other
city
of
our
size,
do
you
have
an
idea
where
do
we
fit?
A
A
So
so
we
are
in
the
middle
of
the
pack.
Basically,
my
other
question.
Sometimes
we
talk,
we
focus
on
bottle
money,
but
where
do
we
fit
sometimes
borrow
that
money
could
be
a
great
beneficiary?
Because
if
we
do
the
work
earlier,
then
wait
for
a
year
or
two
till
we
have
the
money
available,
then
it
will
cost
us
a
lot
more.
So
so,
when
we,
when
we
think
about
borrow
money,
sometimes
there's
a
there's,
a
there's,
a
great
benefit
to
do
the
work,
and
then
you
know
we
have
that
discussion.
A
A
As
I
was
mentioning,
we
look
at
how
much
we
can
afford
in
debt
servicing
over
that
year
and
if
there
is
actually
a
reduction
in
interest
rates,
then
we
can
actually
issue
more
debt
because
we
can
afford
more
debt
servicing
going
forward.
But
if
interest
rates
are
going
up
as
they
are
now,
we
could
probably
afford
less
debt.
So
we
just
we
watch
the
market.
We
manage
those
fluctuations
year
over
year,
issuing
less
debt
and
years
of
high
interest
rate
and
more
debt
in
years
of
lower
interest
rates.
A
Okay,
thank
you.
Thank
you,
mr
chair,
and
I'm
glad
you
answered
the
question
about
the
unfunded
liability.
I
always
have
concern
about
that,
but
you
answer
it
to
council
cavanaugh.
Thank
you
very
much,
thank
you
and
if
I
could
just
respond
to
the
last
question
about
the
interest
rates,
I
don't
have
an
average
the
financial
statements,
but
it
does
range
from
1.8
percent
to
six
percent.
Some
of
the
older
debt
did
come
in
at
six
percent
interest,
so
there
is
a
wide
range
of
what
we're
paying
for
debt.
A
Okay,
no
other
questions,
I'm
not
seeing
any
other
questions,
and
so
thank
you
very
much
again.
I
I
good
luck
with
so
to
ernst,
young,
the
the
field
work,
and
I
know
you
did
it
virtual.
The
field
work
is
done.
You
just
need
the
final
sign
off
which
will
be
provided
at
council
as
at
june
22nd,
and
that
is
the
essence
of
your
work,
and
that
is
the
next
step
good.
Well,
thank
you
for
your
work.
A
Thank
you
for
your
service
to
the
residents
of
the
city
and
isabel
and
and
wendy
and
staff
at
finance.
Thank
you
very
much
for
your
your
work
and
to
the
residents
of
the
city.
The
recommendation
that
the
audit
committee
recommend
council
to
prove
the
2021
city
of
ottawa,
consolidated
financial
statements
is
that
carried.
A
A
There
will
be
a
briefer
presentation
by
the
auditor
general
and
the
assistant
auditor
general
and
the
deputy
auditor
general
joanne
gorenstein
after
each
presentation,
we'll
pause
to
take
questions
and
then
proceed
to
the
next
presentation,
and
so
the
first
presentation
is
on
enterprise
risk
management
audit,
and
I
just
want
to
say
that
spokes
people,
people
that
are
here
to
answer
questions,
valerie
turner,
the
general
manager,
will
mcdonald
the
associate
general
manager
elizabeth
marlin
for
human
resources
in
bronzo
human
resources.
Also,
I
believe
that's
is
that
correct.
A
A
A
My
colleagues
and
I
wish
to
express
our
appreciation
for
the
continued
cooperation
and
assistance
afforded
to
our
office
and
by
the
city,
manager,
management
and
staff.
I'd
also
like
to
thank
the
member
members
of
my
team,
without
whom
we
would
not
be
able
to
to
do
this
excellent
work
next
slide.
Please.
A
And
members
of
council,
I
would
like
to
start
with
a
bit
of
background
about
erm
within
the
city.
The
city
is
a
large
and
complex
municipality
responsible
for
delivering
a
multitude
of
services
to
ottawa
residents
and
its
visitors.
It
is
important
that
the
city
has
processes
in
place
to
identify
and
manage
risks
to
the
achievement
of
its
priorities
and
objectives.
A
Erm
also
supports
a
common
understanding
of
unacceptable
risk.
Exposures
across
an
organization
currently
erm
within
the
city
is
supported
by
an
erm
policy
and
framework.
The
policy
and
framework
describe
the
general
expectations
and
roles
and
responsibilities
for
risk
management
activities
across
the
city.
A
A
The
annual
corporate
risk
register,
representing
the
corporate
risks,
is
presented
to
and
approved
by
the
senior
leadership
team,
while
identified
and
assessed
annually.
The
status
of
mitigation
strategies
are
reviewed
periodically
during
the
year
next
slide.
Please,
the
overarching
objective
of
the
audit
was
to
provide
reasonable
assurance
regarding
the
city's
erm
program.
More
specifically,
we
assess
whether
erm
processes
and
practices
have
been
established
and
are
consistently
applied
across
all
departments
that
the
city's
erm
program
enables
effective
decision
making
and
that
the
city
has
a
robust
risk
management
culture
that
encourages
ongoing
risk,
identification
and
management.
A
A
A
The
audit
did
not
assess
project
or
program
specific
risk
management
activities
and,
while
linked
these
fall
outside
of
the
erm
program,
we
recognize
that
the
cove
that
cover
19
pandemic
impacted
erm
processes
and
activities
within
our
scope
period.
As
such,
we
adjusted
our
audit
procedures
to
review
and
assess
alternative
activities
and
work
products
developed
in
response
where
appropriate.
A
A
A
While
the
current
erm
policy
and
framework
recognizes
the
value
and
the
need
for
risk
appetite
and
tolerance
levels,
they
have
not
been
established
at
the
city
or
at
departmental
levels.
These
are
important
to
ensure
a
common
understanding
of
the
city's
acceptable
and
unacceptable
risk,
tolerance,
tolerance
or
sorry.
Risk
exposures
without
express
risk,
appetite
statements
and
risk
tolerance
levels.
Each
general
manager,
manager
and
employee
is
applying
their
own
standard
to
determining
whether
a
risk
is
significant
and
acceptance
and
acceptable
for
the
city
and
or
their
department.
A
The
audit
found
that
the
erm
framework
has
not
been
updated
since
2012
and
is
not
clear
on
roles
and
responsibilities,
including
the
role
of
departmental
management
in
developing
their
risk
registers
and
the
expectations
of
risk
owners.
This
clarity
is
critical
to
ensure
that
risk
management
activities
continue
from
year
to
year
in
alignment
with
the
expectations
of
the
city.
Next
slide,
please,
while
erm
training,
materials
and
modules
are
available
to
employees,
there
is
no.
A
A
A
Some
departments
did
not
identify
risk
owners
for
their
key
risks
and
some
did
not
articulate
the
mitigations
that
would
be
implemented
to
address
the
identified
risks
without
a
centralized
role
to
provide
an
oversight
and
challenge
function.
Significant
departmental
risks
may
not
be
identified,
assessed
appropriately
and
effectively
managed.
A
Fraud
is
currently
recognized
as
one
of
many
business
process
risks
considered
within
the
erm
framework.
However,
fraud
risk
itself
has
not
been
identified
within
the
framework
as
a
specific
risk
category,
which
would
ensure
fraud.
Related
discussions
take
place
as
part
of
risk
management
activities.
At
the
same
time
establishing
the
expectation
to
undertake
a
city-wide
fraud.
Risk
assessment
would
confirm
a
fulsome
understanding
of
potential
fraud
risk
exposures
across
the
city.
A
The
audit
made
seven
recommendations
and
management
agreed
to
all
of
them.
I
should
note
that
our
auditor
general
has
agreed
to
implement
one
recommendation
with
respect
to
providing
members
of
council
with
risk
management
training.
The
independence
of
our
auditor
general's
office
is
key
to
the
execution
of
this
recommendation.
A
A
How
closely
is
it
tied
into
our
whole
the
whole
question
of
cyber
security?
Is
that
a
big
part
of
it
or
is
it
beyond
that
chair?
Thank
you
very
much
for
your
question.
Counselor.
I
I
would
say
when
it
comes
to
risk
management,
it's
tied
to
every
aspect,
every
program,
every
process,
every
activity
that
the
city
is
involved
with
there
are
always
risk
considerations
that
need
to
be
taken
into
consideration.
A
A
A
A
Obviously,
if
you
don't
have
any
risk
mitigation
measures
in
place,
so
I
would
place
the
city
at
a
level
two
and
my
hopes
would
be
to
get
them
to
a
level
three.
That
would
be
it's
it's
essentially
essentially,
industry
average,
I
wanna
say
industry
average
for
the
average
organization.
That
is
where
you
fall.
A
It
takes
money
to
continue
to
develop
and
to
mitigate
various
risks,
and
so
I
think
the
the
city
is
in
a
position
where
they
need
to
manage
their
risks,
but
they
also
have
to
look
at
the
cost
benefit
that
goes
into
that
type
of
process.
I
mean
you've
got
very
few
organizations
that
make
it
all
the
way
to
what
we
refer
to
as
like
an
optimization
stage,
which
is
your
level
five
with
regards
to
risk
management,
and
that
takes
a
lot
of
money.
A
It
takes
essentially
having
systems
and
tools
and
techniques
that
can
look
at
every
transaction.
The
organization
does
to
pull
out
risks
at
a
transactional
level,
that's
extremely
complex
and
it's
extremely
costly.
So
I
think
the
city
has
continued
to
make
progress,
and
I
think
this
audit
and
just
the
discussions
that
we
have
had
they're
already
working
towards
how
they
can
continue
to
better.
Most
specifically,
I
think
one
of
the
elements
that
we
pointed
out
was
establishing
risk
tolerance
and
risk
appetite.
A
I
think
it's
really
important
for
council
to
understand
and
to
agree
upon
what
is
the
risk
level
that
you're
willing
to
take?
What
areas
are
you
willing
to
take
more
risk
in
because
you
will
never
be
able
to
mitigate
every
risk
out
there,
especially
not
on
a
municipal
budget,
so
I
so
far
from
what
I'm
hearing
from
the
city
manager's
office
and
for
management,
I'm
very
comfortable
with
the
fact
we'll
be
moving
forward
towards
that
level.
Three
direction.
A
If
we
have
the
expertise,
I
guess
the
question
is:
why
don't
we
do?
It?
Are
our
budget
constraints
part
of
it
like
you
would
probably
ask
like?
Why?
Aren't
you
doing
this
chair,
I
would
say
absolutely.
I
think
I
think
that
I
think
that's
the
answer
for
most
things.
If
you
ask
management
and
staff
why
they
haven't
had
the
time
to
do
something,
it's
because
they're
redirecting
their
priorities
to
where
council
has
directed
that
priority.
A
You'll
see
that
in
our
report
we
make
reference
to
the
type
of
information
that
council
is
receiving.
Now,
that's
a
direct
request
from
council
direction
back
in
2013,
I
believe,
and
so
it's
one
of
the
points
that
our
report
is
highlighting
is
we
believe
that
that
direction
from
council
in
2013
could
be
hindering
members
of
council's
ability
to
make
decisions
based
off
of
risk,
because
that
information
isn't
making
its
way
to
council
members,
and
I
think
it's
important
that
being
staff
said
staff
is
doing
as
they
were
requested
to
do.
A
Well.
I
really
do
appreciate
the
recommendation
that
we
we
get
training
because
I
think
we
all
have
to
be
on
the
same
page
and
we
have
to
understand
the
decisions
that
are
made
at
all
levels,
how
it
impacts
the
city
as
a
whole,
and
certainly
risk
is
an
area
that
we
we
have
to
take
a
lot
more
seriously.
So
thank
you
very
much.
A
Thank
you
very
much.
No
other
questions.
Just
a
couple
of
just
noting
you
did
note
that
we
are
a
little
bit
better
than
a
more
mature,
I
think,
is
what
you
said
than
other
jurisdictions
in
ontario,
and
so
that
that's
comforting
and
with
respect
to
the
the
training
and
and
the
path
forward
to
in
determining
and
evaluating
and
mitigating
risks.
A
How
much
does
this
we
need
training,
but
does
the
skill
level
and
and
in
the
structure
and
in
the
culture
of
city
staff,
does
that
independence
exist
now
to
provide
counsel
with
what
we
need
to
hear
with
respect
to
risks
and
and
and
what
we
need
to
do
about
accepting
those
risks
or
or
investing
to
mitigate
those
risks?
Does
that
culture
exist
there
and
the
does
those
skills
and
do
those
skills
exist.
A
A
Yes,
deputy
auditor
general.
I
would
like
to
add
to
that
sorry.
Thank
you.
I
would
also
add
that
I
think
from
the
work
that
we
did,
we
really
did
identify
that
risk
management
is
a
constant
activity.
That
management
is
is
pursuing
activities.
Conversations
are
daily,
it's
all
really
about
risk
management
and
risk
mitigation.
A
So
what
all
this
our
report
is
flagging
is
that
there
is
obviously
opportunities
for
improvement
in
terms
of
that
formality,
so
that,
obviously,
when
making
decisions
and
making
you
know
within
when
there
are
competing
priorities,
then
information
decisions
are
made
around
the
best
information
possible.
Thank
you.
A
A
A
A
A
The
value
of
a
job
is
based
on
an
objective,
consistent
and
rational
measurement
of
job
content
and
requirements.
Job
evaluation
focuses
on
what
is
required
to
perform
the
job
responsibilities
and
duties.
Job
evaluation
is
not
a
mechanism
to
adjust
an
individual's
salary
or
for
performance
evaluation.
A
A
There
are
two
groups
of
je
staff.
Consultants
are
housed
within
the
hr
hubs.
They
are
responsible
for
performing
the
je
analysis,
working
with
the
client
department
to
develop
the
documents
required
to
support
the
creation
or
reclassification
of
a
job
and
presenting
their
assessment
to
the
rating
committee.
A
A
The
scope
of
this
review
did
not
include
an
assessment
or
verification
of
whether
job
duties
in
job
descriptions
were
valid
or
whether
the
incumbent
was
for
the
performing
them
as
stated
further,
it
did
not
cover
unionized
positions
next
slide,
please,
now
to
the
findings
of
the
review.
Overall,
we
found
that
there
is
a
need
to
strengthen
the
governance
and
control
mechanisms
within
the
je
function,
to
ensure
it
supports
objectivity
and
independence,
while
adhering
to
je
principles
and
best
practices.
A
The
review
found
that
the
current
client
service
delivery
model
can
create
inherent
conflicts
of
interest
for
job
evaluation,
as
mentioned
within
the
hr
hubs.
Consultants
are
in
place
to
support
their
client
departments
with
their
je
needs.
This
involves
them
assisting
with
job
descriptions,
completing
a
thorough
analysis
of
the
job
duties
and
relativity
within
the
organization
challenging
the
client,
as
required,
assigning
a
rating
to
the
job
and
presenting
the
job
to
the
rating
committee.
A
A
Additionally,
a
j
equality
assurance
or
challenge
activity
has
not
been
formalized.
Recently,
a
quality
assurance
process
was
introduced
whereby
consultants
are
required
to
submit
their
assessments
to
a
specialist
for
review
and
feedback
in
advance
of
presentation
to
the
audit
to
the
rating
committee.
The
specialist
review
is
intended
to
ensure
consistency,
relativity
and
objectivity.
A
During
our
file
review,
we
noted
instances
where
the
specialists
provided
a
challenge
function,
but
there
was
no
evidence
indicating
that
their
feedback
was
considered
or
resolved
without
the
quality
assurance
responsibilities
of
the
specialist
being
formalized,
the
challenge
activity
may
not
be
undertaken
or
addressed
consistently
formalizing.
The
qa
function
will
allow
the
consultants
to
provide
strong
client
service
while
ensuring
independence,
objectivity
and
expertise
is
embedded
within
the
process.
A
A
The
process
is
designed
so
that
each
member
reviews,
the
job
evaluation
package
independently
and
then
comes
together
to
discuss
and
gain
consensus
on
a
final
rating
for
each
job
being
assessed.
Our
review
found
that
during
covid,
the
mpe
rating
committee
review
process
was
not
as
robust
as
it
was
designed
to
be.
For
example,
meetings
were
not
consistently
held
and
approvals
were
at
times
provided
by
email
by
each
individual
member
with
no
formal
discussion
without
the
formal
meeting.
The
intended
benefits
of
a
folsom
discussion
to
support,
consensus-based
decision-making
may
not
be
realized.
A
We
further
noted
that
the
quality
assurance
results
and
feedback
from
specialists
is
not
provided
to
the
it's
not
provided
with
the
consultant's
analysis
and
proposed
ratings
to
the
rating
committee.
Without
the
feedback
from
the
specialists
review,
the
rating
committee
may
not
have
all
the
insights
required
to
support
their
decision.
Making
our
review
found
that
not
all
required
mpe
jobs
are
actually
are
going
to
the
rating
committee
to
be
formally
reviewed
and
rated.
There
are
instances
where
jobs
can
be
interim
rated
where
a
rating
is
assigned
based
on
the
consultant
or
specialist's
initial
review.
A
A
We
noted
that
some
of
the
interim
rated
jobs
have
yet
to
be
presented
to
rating
committee
almost
three
years
later,
without
all
jobs
being
provided
to
the
rating
committee
for
evaluation
in
a
timely
manner.
A
critical
step
in
the
je
process
is
missed
next
slide.
Please,
the
review
found
that
a
mechanism
to
address
exceptions
within
the
standard
je
process
has
not
been
final.
Formalized
in
our
file
review.
We
noted
instances
where
the
determination
of
a
rating
of
a
job
was
directed
despite
the
supporting
documentation
not
necessarily
being
available
to
support
the
rating.
A
A
Ultimately,
there
are
no
established
criteria
to
determine
what
is
considered
an
appropriate
exception
and
who
has
the
authority
to
approve
these?
Additionally,
a
subset
of
the
directed
files
we
reviewed
were
jobs
within
hr.
Our
review
found
that
there
is
no
process
or
mechanism
in
place
for
additional
oversight
or
challenge
for
internal
hr
jobs
without
clearly
defined
criteria
and
process
for
the
treatment
of
exceptions.
There
is
a
risk
that
decisions
are
made
without
the
appropriate
level
of
transparency.
A
The
city
is
required
to
have
a
job
evaluation
plan,
which
is
the
foundation
for
reviewing
and
rating
a
job.
The
mpe
job
evaluation
plan
outlines
the
factors
and
scoring
to
support
the
rating
for
each
mpe
job.
Our
review
found
that
there
have
been
challenges
with
the
current
plan
when
using
it
as
a
tool
to
complete
job
evaluations.
A
We
learned
that
some
factors
do
not
reflect
the
current
nature
of
work.
For
example,
some
factors
are
more
heavily
weighted
on
the
dollars
and
resources.
An
individual
is
expected
to
manage
as
compared
to
the
outcomes
that
they
are
responsible
for.
Additionally,
some
factors
are
inherently
subjective
and
could
potentially
lead
to
varying
interpretations.
A
Finally,
the
review
noted
that
the
city
does
not
have
a
process
to
periodically
review
mpe
jobs.
A
job
can
only
be
evaluated
if
a
client
initiates
the
process
for
either
the
creation
or
reclassification
of
a
job.
Having
a
process
to
periodically
review
all
jobs
ensures
that
the
city
is
doing
its
due
diligence
on
an
ongoing
basis
and
demonstrates
its
efforts
in
being
prudent
with
taxpayer
dollars.
A
Country
cavanaugh,
please
thank
you,
sonny
heading
towards
the
button
there.
Thank
you
very
much
as
the
liaison
on
women
and
gender
equity.
I
I
appreciate
seeing
this
report
and
I
want
to
know
how
closely
you
work
with
the
staff
that
we've
hired
specifically
on
on
equity
issues,
including
diversity.
A
Chair,
thank
you
very
much
for
your
question
counselor.
Unfortunately,
the
scope
of
our
work
did
not
extend
to
looking
at
overall
hiring
practices
from
a
gender
equity
perspective.
We
did
make
a
comment
with
regards
to
one
of
our
recommendations
with
regards
to
the
rating
committee
as
a
whole,
just
to
ensuring
that
there
is
gender
representation
on
the
committee.
A
That
being
said,
I
know
there
has
been
in
the
past.
There's
just
been
some
turnover
recently
and
so
at
the
time
of
our
invest
at
the
time
of
our
review,
I
should
say
there
wasn't
necessarily
gender
representation,
so
I'm
not
sure
if
deputy
auditor
general
quarantine
has
anything
to
add
to
that.
But
thank
you.
I
would.
I
would
echo
what
the
auditor
general
has
said.
Our
work
was
limited
to
the
concerns
and
allegations
that
were
represented
in
the
fraud
and
waste
hotline.
A
From
this
perspective,
what
I
can
state
is
allegations
came
to
our
attention
with
regards
to
the
job
evaluation
process,
and
so
that
is
where
we
diverted
our
attention
to,
for
we
haven't
had
a
system
in
place
for
three
years.
How
long
do
you
expect
that
we
it's
going
to
take
us
to
to
get
the
you
know
the
the
policy
and
how
things
are
rated
up
to
the
standard
that
we
would
expect
at
the
city
chair?
A
Thank
you
very
much
for
your
question
counselor,
and
I
guess
I
I
would
just
make
a
comment
with
regards
to
that.
There
is
nothing.
There
are
definitely
procedures
in
place.
It's
just
ensuring
that
there's
a
more
more
robust
framework
and
policy
that's
in
place,
and
then
we've
obviously
outlined
a
little
bit
with
regards
to
some
of
the
practices
themselves.
A
A
I
believe
management
is
committed
to
going
back
to
the
previous
process
from
a
rating
committee
perspective
to
a
meeting
in
person,
as
opposed
to
virtually
and
not
necessarily
just
in
person
and
virtually,
but
actually
having
those
some
discussions
to
ensure
that
the
process,
the
benefit
from
that
process
is
reaped.
So
I
have
no
concerns
with
regards
to
whether
or
not
management's
going
to
action
that
that
was
a
process
that
was
in
place
before,
as
I
think
you're
all
aware,
the
city
has
gone
through
many
recent.
A
I
guess
hot
potato
emergencies
that
we
could
say
whether
it
be
you
know,
response
to
coven,
19
and
and
setting
up
the
vaccination
clinics.
You
know
most
recent
natural
weather
that
we
have
had
as
well
as
recent
convoys.
So
that
being
said
from
what
I've
been
told
from
management
and
their
commitment
is
that
they
are
committed
to
going
back
to
the
previous
process,
I
would
leave
it
to
management
to
see
if
they'd
like
to
add
to
that
yeah.
Thank
you
very
much
natalie
that
that
is
correct.
A
We
plan
on
going
into
in-person
meetings,
as
well
as
supplementing
the
mp
rating
committee
with
more
extensive
documentation,
including
the
specialist
challenges
as
well
as
we
are
in
the
process
of
recruiting
for
the
mp
rating
committee
to
ensure
we
have
robust
representation
from
from
across
the
organization.
Okay,
thank
you.
I
guess
my
last
question
is
just
to
to
maybe
understand
better
when
we
don't
have
these
robust
policies
in
place.
What
what
is
the
actual
danger
to
the
city.
A
Thank
you
for
the
question
for,
from
our
perspective,
when
we're
looking
for
framework
or
policies,
we're
looking
for
that
baseline
expectation
that
the
city
would
have
in
place
so
that
all
departments,
all
employees
have
an
understanding
and
a
base
expectation
of
what
their
behavior
and
their
and
their
activities
should
be
governed
by,
and
we
also
it
would
also
outline
roles
and
responsibilities.
So
we
are
looking
for
a
level
that
would
set
the
expectation
and
ensure
that
people
do
understand
what
their
roles
and
responsibilities
are
and
if
they
don't.
A
Thank
you
for
the
question.
At
the
same
time,
a
framework
typically
would
also
have
enforcement
requirements,
so
we
did,
we
didn't
have
that
for
a
while,
so
the
framework
is
not
in
place
at
the
moment.
However,
certainly
the
practice
of
them
have
been
in
place,
so
it's
just
formalizing
them
and
enhancing
them.
A
A
Chair,
thank
you
very
much
for
your
question.
Counselor.
It
is
absolutely
a
requirement
of
of
all
organizations.
When
you
establish
roles
and
and
jobs,
you
have
to
review
them,
and
and
should
you
determine
that
they
need
to
be
reclassified
or
whether
you
need
to
create
a
new
role.
That
is
that
in
itself
is
the
process
for
job
evaluations.
A
A
So
so
we
and
the
reason
I
answered
the
first
question
just
to
so
so.
Basically,
we
need
to
as
an
organization
we
need
to
establish
a
process
in
place,
and
I
think
this
is
almost
a
moving
target
with
the
pandemic
with
the
change
of
employment.
We
understand
people
don't
come
to
the
city,
perhaps
like
their.
You
know
their
previous.
A
You
know
to
stick
around
for
30
years
or
35.
Like
I
mean
the
whole
workforce
has
been
changed.
So
when
we
talk
about
job
evaluation,
are
we
are
we
updating
what's
happening
in
in
in
the
marketplace?
Are
we
are
we
comparing
really
apple
to
apple,
because
I
think
we
I've
seen
it
have
changes
in
in
other
organizations,
whether
policing
or
other?
So
what
are
we
doing
to
to
have
a
better
understanding
about
the
concept.
A
Sure,
well,
I
think
I
could
answer
that
question
I'd
like
to
provide
management
the
opportunity
to
respond
first
yeah.
Thank
you
very
much
counselor
for
the
question.
As
part
of
the
recommendation
of
the
audit,
it
was
recommended
that
we
do
a
review
of
the
the
mp
plan
and
we
will
undertake
that
next
year
in
order
to
ensure
it's
current
of
the
other
seven
plans.
They
were
updated
and
revised
in
the
past
10
years,
which
is
fairly
current
a
normal
je
plan.
A
I
should
be
reviewed
once
every
15
years,
because
it's
very
very
labor
intensive
to
review
these
plans
management
did
have
the
review
of
the
the
mp
plan
as
part
of
the
friday
workforce
as
part
of
the
strategic
initiatives
for
this
term
of
council.
However,
due
to
the
pandemic
and
the
the
pressures
on
human
resources,
we
were
not
able
to
undertake
that
review,
but,
as
per
the
recommendation
of
the
auditor
general,
we
will
be
doing
so
really
to
reflect
the
changing
nature
of
work.
A
Thank
you,
chair,
I'd
like
to
just
add
to
that,
and
obviously
I
echo
everything
that
miss
marlin.
Just
mentioned,
I
think
the
emphasis
that
we
we
put
in
counselor.
You
definitely
mentioned
that
you
know
things
are
evolving,
which
is
why
the
importance
of
having
a
process
in
place
to
review
you
know
job
descriptions
is
to
really
go
in
and
understand.
You
know,
are
the
tasks
that
that
staff
are
currently
doing.
A
Thank
you
very
much
and
I
just
wanted
to
take
a
moment
to
reflect
and
amplify
what
the
councilor
kavanaugh
said
and-
and
I
noted
your
answer
but
the
while
the
job
evaluation
process
is
the
relative
value
and
not
skills
and
ability.
I
think
it's
important
to
to
do
those
evaluations,
through
the
lens
of
of
our
anti-racism
strategy,
2s
lgbtq
and
gender
equity,
to
make
sure
that
those
stated
skills,
abilities
and
and
the
foundational
elements
of
that
job
are
not
biased
towards
any
any
of
those
groups.
A
A
A
A
The
objective
of
our
limited
scope
review
was
to
assess
the
concerns
raised
through
the
fraud
and
waste
hotline
and
provide
a
fact-based
account
of
the
circumstances
surrounding
specific
alleged
instances
of
non-compliance
with
the
ontario
highway
traffic
act.
While
this
review
was
conducted
in
a
systematic
and
professional
manner,
the
extent
of
the
activities
undertaken
by
the
oag
was
narrow
as
compared
to
an
audit.
We
conducted
three
separate
one-hour
on-site
observations
in
april
of
2022.
A
In
the
end,
we
made
one
recommendation
to
management
as
we
concluded
that
the
oc
transfer
bus
operators
have
not
altered
their
behavior
as
a
result
of
the
communication.
Secure
circulated
by
management
in
march
of
2022
operators
continue
to
violate
section
142,
subsection
2
of
the
ontario
highway
traffic
act
and
internal
policies
designed
to
enhance
road
safety
management
has
agreed
with
the
recommendation
made
next
slide.
Please,
if
it
pleases
the
chair,
we
would
be
happy
to
take
questions.
A
Is
that
fair
to
say
chair?
I
think
it
would
be
speculation
if
I
were
to
make
that
comment,
what
I
can
say
is
the
reports
started
during
the
pandemic
and
and
obviously
they
are
wholesome
in
numbers
from
that
perspective.
So
again,
I
think
it
would
be
speculation
as
to
whether
or
not
this
is
tied
to
the
pandemic
or
not.
A
Because,
obviously
it's
been,
it's
been
a
difficult
session
for
everyone,
and
I
appreciate
that
the
auditor
general
has
done
this
report
and
it's
pretty
it's
serious
if
it's,
if
it's
against
the
the
the
highway
traffic
act-
and
I
appreciate
it-
but
I
feel
it's
best
left
with
the
management
and
with
their
union
counterparts
to
to
deal
with
this.
I
don't
know
if
oc
transpo
wants
to
make
comments
on
that.
A
Thank
you
chair.
Maybe
I
can
start
and
I
will
give
the
floor
to
paul
after
that
for
sure
safety.
There
is
no
reason
to
to
to
go
against
safety,
and
we,
we
spoke
with
the
union
regarding
this
particular
situation,
and
we
focus
a
lot
on
with
our
supervisors
to
be
to
to
be
willing
to
use
more
to
do
more
sun
civilization
and
actually
mr
trebuta
to
just
join.
A
A
The
first
one,
of
course,
is
putting
is
developing
creating
and
putting
into
place
a
performance
management
program,
so
this
relates
to
linking
certain
behaviors
by
bus
operators
to
certain
consequences
that
can
be
expected
flowing
thereof.
So
this
is
something
that's
not
been
in
place
for
the
bus
operators
at
oc
transpo
and
we're
going
to
be
working
on
that
and
putting
it
forward
and
implementing
it
by
the
first
quarter
of
2023.
A
Chair
I'll
answer
that
question,
the
best
of
my
ability
is
my
understanding
that
both
seat
transpo
bus
operators
are
subject
to
the
exact
same
traffic
regulations
as
we
are
from
driving.
So
that
being
said,
while
police
officers
don't
always
pull
people
over
for
not
signaling,
they
have
the
right
to
do
so,
and
would
it
go
to
the
operator
of
the
it
would
it
would
be
directed
to
the
operator
of
the
bus?
That
is
a
question
I
would
direct
to
staff
chair.
A
A
A
A
A
Well,
the
answer
is
both
really
well.
Let's
take
a
red
light
going
through
a
red
light,
while
there'll
be
three
demerit
points
for
the
driver
and
they'll
be
up
fine
for
the
driver
as
well,
but
the
city
will
also
receive
points
and
the
more
points
we
have
the
less
positive
it
is
for
us
are
those
points
attributed
to
the
driver.
A
A
In
these
circumstances,
the
audit,
the
review
I
apologize,
came
about
as
a
repo
as
a
as
a
consequence
of
several
fraud
and
waste
hotline
reports
and
the
safety
officer.
I
don't
know
if
it
was
or
or
his
predecessor
sent
memos
to
the
operators
to
encourage
to
educate,
to
inform
that
this
is
a
concern
and
and
that
in
in
a
general
sense,
operators
need
to
be
compliant
with
highway
traffic
act.
A
A
First
of
all,
to
get
the
floor
to
paul,
but
I'll
start
here
it
was
the
person
who
was
there
before
paul
who
sent
out
the
memo
to
sensitize
operators
and
paul
has
created
a
more
robust
structure
in
place
beyond
raising
awareness.
There's
observation
and
observation
is
designed
not
to
punish
people
but
really
to
to
ensure
that
drivers
have
the
adequate
training
they
need.
A
A
I
don't
think
I
forgot
anything.
No
you
didn't
currently
in
today
gives
opportunity
for
this
increased
education,
ongoing
encouragement
and
reinforcement.
That's
needed.
The
last
component.
That's
really
missing,
and
that's
the
one
in
that
I
described
in
my
management
response
to
this
limited
review
has
to
do
with
the
performance
management
program
at
the
current
time.
There
is
no
such
program
that
is
in
place
in
it
in
existence
which
would
define
first,
you
know
so
many
offenses
under
the
highway
traffic
act
of
a
certain
nature.
A
A
A
What
will
become
the
performance
management
review
process?
Thank
you
so
much
seeing.
No
other
questions
we're
at
the
end
of
item
number
six
and
the
report
recommendation
is
that
the
audit
committee
received
the
audit
review
and
investigation
reports
and
recommend
that
council
consider
and
approve
the
recommendation
is
that
received.
A
Thank
you
and
thank
you
all
very
much.
Merci,
norman.
It's
been
a
long
day
just
want
to
bring
to
your
attention
the
the
new
logo,
which
I
perhaps
I
should
have
pointed
out
earlier
in
the
meeting
when
the
slides
are
on
the
auditor
general
has
a
great
new
logo
and
the
audio
general's
office
has
a
wonderful,
their
own
website
at
oag,
ottawa,
dot,
ca
and
the
the
logo
is
there
bvg.