1. –Fourth level FINANCIAL MANAGEMENT INSTITUTE OF CANADA – ONTARIO CHAPTER CONTROLLERSHIP February 25, 2009 Presentation by Carl J. Zehr, FCGA Mayor - City of Kitchener

2. CONTROLLERSHIP  Accounting  Processes  Financial controls

3. MODERN CONTROLLERSHIP  Controllership has to adapt  A new guiding philosophy

4. MODERN CONTROLLERSHIP From  “Command and Control” To  A more contemporary approach

5. Modern controllership is a key component of organizational culture.

6. MODERN CONTROLLERSHIP  Performance  Information  Risk Management  Control systems and ethics  Ethical practices and values Key elements:

7. PERFORMANCE INFORMATION Taxpayers expect more Shift resources and spend limited funds Achieve progress on community’s priorities and objectives

8. PERFORMANCE INFORMATION Municipal Performance Measurement Program (MPMP)

9. Progress on priorities: - Quality of life - Leadership and engagement - Diversity - Dynamic downtown - Development - Environment But Citizens want to know about...

11. BEYOND MPMP  130 Key Performance Indicators (KPI)  Kitchener

12. Annual Report to Citizens Annual Status Report

13. RISK MANAGEMENT  Hazardous materials  Pollution  Prolific use and sharing of electronic data

14. RISK MANAGEMENT Important component of modern controllership is a critical component of good governance Enterprise Risk Management Strategy Am I confident that... ? What if... ? Have I put in place... ?

15. RISK MANAGEMENT RISK REGISTER - maintained by project director or team CORPORATE RISK REGISTER - maintained by Internal Auditor

16. RISK MANAGMENT Enterprise Risk Management Policy Risk aware workplace Risk smart

17. CONTROL SYSTEMS Aligned with greatest risk A flexible instrument

18. CONTROL SYSTEMS  Fraud  Physical resources  Financial reporting  Goals and objectives  Laws and regulations Internal control over resources

19. Everyone in an organization is responsible for internal control systems and processes.

20. ENTERPRISE RESOURCE PLANNING  General ledger  Purchasing  Materials management  Accounts payable  Accounts receivable  Work order management

21. DELTA PROJECT

22.  Lower costs of operations  Reduction of financial errors  Timely, reliable financial information

23. DELTA PROJECT It’s about people It’s the right thing to do

24. ETHICS, ETHICAL PRACTICES AND VALUES  Keystone of modern controllership  Public trust

25. ETHICS, ETHICAL PRACTICES AND VALUES  A way of doing business  A way of corporate life An integral part of everything a person granted public trust does

26. ETHICS, ETHICAL PRACTICES AND VALUES Accountability and Transparency Committee  Staff  Citizens  Members of Council

27. ETHICS, ETHICAL PRACTICES AND VALUES Code of Conduct  Members of Council  Local Boards  Advisory Committees

28. ETHICS, ETHICAL PRACTICES AND VALUES Principles of integrity and honesty

30. Developed entirely by staff, for staff

31. PEOPLE PLAN “This is where we want to work We are the people of this organization. Not simply city workers – people. People who are honoured to serve this community. We are proud of what we do. And what we do is every bit as important as how we do it.”

32. ELEMENTS OF MODERN CONTROLLERSHIP  Performance information  Risk management  Control systems Accountability remains critical

33. Uphold the public trust Deliver results Manage risks Identify objectives Measure efforts Report progress

34. We are accountable, not only to today’s citizens, but also to future generations.

35. –Fourth level