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KPMG Audit Findings – Final Report

1.0 Governance (pages 11-20)
Recommendation Current Status
1.1 Set a clear and consistent “Tone from In November 2017, Council will participate in
the Top”. governance training. This will facilitate setting the
“Tone from the Top” established by Council which
upholds honesty, integrity and ethics, and in turn
1.2 Review the current structure of the will promote this behavior within the municipality.
relationships between Council and
Administration.
Setting the proper tone starts with Council and
includes all levels of Administration. The
relationship between Council and Administration
includes clearly communicating through Council
Reports, policies and procedures, or informally
during day to day operations.

1.3 Develop consistent information to be This has been addressed within Bylaw no.
provided by Administration to Council. 17/021- Chief Administrative Officer Bylaw.

1.4 Council clearly define its expectations COMPLETED

for the External Audit function.
Council had a session with the External Auditor at
the Audit and Budget Committee on April 21,
2015.

1.5 Develop and document a process to COMPLETED

support Administration’s annual This recommendation has been implemented as
representations with respect to internal part of the sign-off on all year-end financial
controls. statements, which was implemented in 2015.

1.6 Council clearly define its expectations COMPLETED

for the Municipal Auditor function. The Terms of Reference for the Audit Committee
were approved by Council at their April 26, 2016.

2.0 Council Policies (pages 21-31)

Recommendation Current Status
2.1 Implement a whistleblower policy. COMPLETED
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The Whistleblower Policy was approved by Council

at their October 6, 2015 meeting and implemented
on January 1, 2016.

2.2 Review and update Delegation Order This has been addressed within Bylaw no. 17/021-
on a regular basis to ensure it remains Chief Administrative Officer Bylaw.
current.

2.3 Review and update existing Code of COMPLETED

Conduct Policy to reflect leading It was determined at the July 2, 2015 Agenda
practices. Review meeting that Administration should revise
the existing Code of Conduct Procedure, as
opposed to developing a Council Policy on Code of
Conduct. This procedure has since been revised
and is now in place.
2.4 Implement an employee performance COMPLETED
management policy and procedure.
Council approved the Exempt Performance
Management Policy HRM-550 at their May 26,
2015 meeting.

2.5 Implement a Severance Policy and COMPLETED

Procedure. Council approved the Exempt Severance Policy
HRM-620 at their December 1, 2015 meeting.

2.6 Implement a “Learning For All” policy COMPLETED

and procedure.
Council approved the Learning Development &
Training Policy HRM-540 at their April 26, 2015
meeting.

2.7 Implement a policy covering COMPLETED

attendance at political fundraisers for Council approved the Attendance at Political
elected officials and employees and Fundraising Events and Other Events – Elected
update the current procedures to include Officials, Chief Administrative Officer and
additional guidance. Executive Directors Policy -LEG-180 at their April
28, 2015 meeting.

2.8 Implement the Grant Procedure. COMPLETED

Council approved the Community Investment

Program Policy FIN-220 at their June 24, 2014
meeting. The Internal Audit function reviews this
program on an ongoing basis for compliance.

2.9 Review all policies and procedures for COMPLETED

gaps noted in this report.
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Policy development and review is part of ongoing

business processes.

Additional Policies requested by the CAO: COMPLETED

1. Public Participation – Engagement Council approved the Public Engagement Policy

COM-130 at their October 18, 2016 meeting.

Additional Policies requested by the CAO: COMPLETED

Council approved the Municipal Sponsored
2. Groundbreaking/Ribbon Cutting Ground-Breaking and Ribbon-Cutting Ceremony
Policy COM-120 at their April 26, 2016 meeting.

3.0 Organization Review – Communications and Public

Affairs
(pages 32-36)
Recommendations Current Status
3.1 Develop and document a mandate for COMPLETED
the Public Affairs Department. Council was provided a copy of all departmental
mandates on October 7, 2015 via e-mail. The
Public Affairs function has since been realigned
within the Communications and Stakeholder
Relations Department.

4.0 Honorariums (pages 37-42)

Recommendations Current Status
4.1 Develop and implement a formal COMPLETED
honorarium policy and procedure.
Council approved the Gratuity Policy FIN-230 at
their May 26, 2015 meeting.

4.2 Use a consistent form for approval of COMPLETED

honorariums.
A form and regular monitoring is part of the
4.3 Develop and implement regular Gratuity Administrative Procedure FIN-240.
monitoring of honorariums.
COMPLETED

This function is part of ongoing business

processes.
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5.0 Land Acquisitions and Expropriations (pages 43-49)

Recommendations Current Status
5.1 Municipality to document its policies COMPLETED
and procedures for land acquisitions and
expropriations. Council approved the Land Acquisition Policy
ADM-250 at their July 7, 2015 meeting.
5.2 Retain all documentations in land
acquisitions and expropriation files.

5.3 Mandate the use of the “Land

Administration Transaction Request”
form.

5.4 Include documentation of conflict of

interest and related party checks in the
land acquisition and expropriation files.

5.5 Consider implementing a data COMPLETED

processing patch in SAP to track land
acquisitions and expropriations. This item is part of the SAP priority list for
implementation.

6.0 Travel and Living Expenses (pages 50-63)

Recommendations Current Status
6.1 Determine whether or not a Fly-In- COMPLETED
Fly-Out policy is required and if so
implement a policy and procedure. Council approved the Municipally Funded
Commuting Policy HRM-510 at their April 12,
2016 meeting.

6.2 Implement a policy and procedure for COMPLETED

temporary housing. Council approved the Transitional & Temporary
Housing Policy HRM-570 at their Dec. 1, 2015
meeting.

6.3 Implement a policy and procedure for COMPLETED

taxable benefits.
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Council approved the Taxable Benefits Policy

FIN-250 at their March 10, 2015 meeting.

6.4 Review all taxable benefits related to COMPLETED

fly-in-fly-out arrangements.
This function is part of ongoing business
processes.

6.5 Update the Delegation Order and COMPLETED

LEG-050 for the gaps noted in the report.
Council approved the Elected Officials
Compensation, Travel and Expense Policy LEG-
050 at their January 17, 2017 meeting.

6.6 Utilize the Municipal Auditor to COMPLETED

perform sample testing over self-approval
of expense reports. This function is part of ongoing business
processes and is conducted by the organization’s
Internal Audit Function.

6.7 Retain appropriate evidence of COMPLETED

approval of expense reports.
This function is part of ongoing business
processes.

6.8 Reinforce the requirements of the COMPLETED

existing Expense Policy to all employees.
This function is part of ongoing business
processes.

6.9 Reinforce the requirement to submit COMPLETED

copies of receipts with expense reports.
This function is part of ongoing business
processes.

6.10 Regularly monitor taxable benefits. COMPLETED

This function is part of ongoing business

processes.

6.11 Consider implementing an COMPLETED

automated approval workflow for
expense reports. This item is part of the SAP priority list for
implementation.

6.12 Update the Delegation Order to COMPLETED

require all expenses be approved by a
more senior employee. No update required. The existing Travel &
Subsistence Administrative Procedure FIN-180
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stipulates that a more senior employee is to

approve expenses. The CAO’s expenses are
approved by the Chair of the Audit Committee.

7.0 Consultants and Contractors (pages 64-67)

Recommendations Current Status
7.1 - 7.3 Reinforce requirements of the COMPLETED
standard operating procedures and
Delegation Order related to vendor This function is part of ongoing business
performance, change orders and processes.
contract close out to all employees.

7.4 - 7.5 Reinforce the requirements for COMPLETED

change orders, including evidence of
approval, to all employees. This function is part of ongoing business
processes.

8.0 Tenders and Proposals (pages 68-73)

Recommendations Current Status
8.1 Review PUR-100, Procurement COMPLETED
Policy, in accordance with the mandatory
review dates. Council approved an amendment to Procurement
Policy PUR-100 at their January 26, 2016
meeting.

8.2 Reinforce the requirement to COMPLETED

complete a “Non-competitive Selection
Business Case” to all employees. This function is part of ongoing business
processes.

8.3 Amend policy FIN 190 to include a COMPLETED

minimum number of bids.
Administration has reviewed the matter with
KPMG and they have concurred that there is no
need to amend the Supply Chain Management
Administrative Procedure FIN-190.
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8.4 Update FIN 190 to include a COMPLETED

minimum categorical requirement for Administration has reviewed the matter with
proposal submissions. KPMG. A wording change was made in the
procedure update that addresses the ability of the
Municipality’s Supply Chain Professionals to
ensure that the procurement process is adaptable
to the various procurement activities undertaken.