Audit Committee Receives the Auditor General’s Audit of Enterprise Risk Management
The Audit Committee met this week and received an audit of the City’s Enterprise Risk Management (ERM) approach, which enables the City to make effective, risk-based decisions. The Auditor General acknowledged the City has a more mature ERM approach than other Ontario jurisdictions and made seven recommendations to strengthen risk management. Staff agreed with all recommendations and will implement them by the end of 2023.
The City will update its ERM policy and framework to better define the roles and responsibilities of management. Risk management training will be made mandatory for staff, and Councillors will receive awareness training about the City’s ERM approach. Staff will also incorporate more fraud risk in its ERM process and develop risk appetite statements and risk tolerance levels for the City.
The Committee received a review on the City’s job evaluation process. Staff agreed with all of the Auditor General’s nine recommendations to strengthen the governance and control mechanisms within the job evaluation function to ensure it supports objectivity and independence, while adhering to job evaluation principles and best practices. By the end of 2022, staff anticipate completing the majority of the recommendations.
The Committee also received a limited review of OC Transpo bus operator compliance with regulations. The Office of the Auditor General noted an issue with some bus operators not signalling when leaving a particular bus stop. Transit Services has in place a number of safety program and initiatives and will continue to communicate regularly with staff and enhance safety reminders and training to ensure compliance.
The Audit Committee received the Auditor General’s audit charter and semi-annual report on follow-up procedures, as well as the City’s audited consolidated and sinking fund financial statements for 2021.
These reports will rise to City Council on Wednesday, June 22.