1. Second Quarter Audit Committee
June 26, 2017

2. 2nd quarter audit status report
FCS
2nd quarter audit status report

3. Summary Complete: Aggregates – cost/benefit analysis
Stores (tool crib) – physical inventory
Community Services Administration – Status update
Kitchener Utilities Operations Centre and Corporate Contact Centre – Status update
In progress:
Revenue – comprehensive audit

4. Cost / Benefit Analysis
aggregates

5. Overview
Concrete and asphalt crushing operation ceased at Battler Yard
Make room for new snow storage and disposal facility
Aggregates moved to KOF
Decision required on whether to continue recycling operations at the KOF or pursue other disposal and supply options

6. Objectives and Methodology
Objective: to recommend a sustainable and efficient process for concrete / asphalt disposal and supply
Methodology:
Literature review
Staff consultation
Risk assessment
Benchmarking
Cost / benefit analysis of various options

7. Sources and Uses
Contractors source their own disposal / supply of aggregates
Virgin materials are not currently required for any City applications if specifications are met

8. Pros and Cons of Battler Yard
Cost effective
Yard closed at 3pm
Control over materials
Lack of process around use of material
No waste
Yard loader staff had other duties
Large area to stockpile
No controls over testing
Ease of disposal and procurement
Lack of data integrity for volume generated and used
Close proximity to work sites
Some staff not using stockpiles
Dumping ground for scrap material
Quality of product did not meet some needs

9. Process Steps

10. Analysis - Criteria
Each option and combination of options was evaluated using this criteria:
Cost per tonne and total cost
Environmental impact
Degree of control over use of material
Staff and equipment impact
Relative amount of land required
Other pros and cons
Number of high risks

11. Evaluation
Used an evaluation matrix to compare 11 scenarios (combinations of options)
Assigned a score of 10 (best), 5, or 1 (worst) for each criteria
Criteria weighted equally
Highest total score represents preferred solution

12. Recommendations Preferred Scenario:
City staff haul material from work site to KOF
Sort it
3rd party to crush it
Use recycle materials

13. Rationale
Lowest cost per tonne ($11 / tonne cheaper than next closest option)
Lowest total cost ($115K / year cheaper than next closest option)
Best option environmentally
Less hauling, less green house gas emissions
Uses recycled materials
Not taking up space at landfills

14. Rationale continued
Material can be sorted and properly tested for contamination
Retain complete control over where material is used and quality of material
No additional staff or equipment required
No additional risk to our CVOR points
Does require the most land at the KOF
Can be mitigated through frequent crushing and better controls

15. Other Recommendations
Establish weighing process for incoming and outgoing loads
Set maximum limits for pile sizes to trigger crushing and disposal
Complete the KOF yard plan including signage and maps
Revisit quality standards in crushing tender
Investigate if permits required
Document roles and responsibilities
Contract out testing of incoming loads

16. Physical Inventory
Stores (tool crib)

17. Background
Tool crib – location which stocks tools that can be loaned out to staff
In 2008, 3 tool cribs consolidated at KOF
Database created to track the location of tools loaned out
No process to follow up on tools not returned
No physical inventory ever done

18. Objectives and Methodology
Objective: to review and improve controls and management of tools. To conduct a physical inventory.
Methodology:
Staff consultation
Review of database capabilities
Full physical inventory – in tool crib and in the field
Discussion of proper financial treatment
Development of new process and controls

19. Findings
Most tools in field will remain in field (i.e. not part of the tool crib)
Most tools in tool crib are properly listed in database
Over 50% of tools listed as being in the field could not be found
Previously damaged and disposed of
Possible theft
Value difficult to estimate but <$100K total; previously expensed

20. Recommendations Utilize “Return By” field in database
Run a weekly report on overdue tools and follow up
Inform management when tools retired and / or purchased
Monitor staff usage and hold them accountable for repeated lost or broken tools
Document process

21. Community services administration
Status Update
Community services administration

22. Background
Original Objective: to assess all administrative roles within CSD Administration section to determine capacity and resourcing needs
Original Findings:
Excess capacity in some roles while others overburdened
Lack of trained back-ups
Original Recommendations:
Combine and redistribute tasks, eliminate 1 FTE
Process improvements to decrease workload
Trained back-ups to allow coverage for absences

23. Objective & Audit Status
Objective: to hold staff accountable for implementing audit recommendations Audit Status:
Date original audit completed
August 1, 2012
# of Recommendations 9
# of Recommendations complete 6
# of Recommendations in progress
# of Recommendations not started 1
# of Recommendations not required 2

24. Benefits Realized 1 FTE declared redundant
Re-purposed for Neighbourhood Strategy Engagement Associate in 2017
Misdirected calls have decreased
Staff trained on back-up responsibilities
Workload decreased due to CRA removal of child fitness tax credit
No new recommendations and no further follow-up audits required.

25. Kitchener utilities operations Centre & corporate Contact Centre (CCC)
Status Update
Kitchener utilities operations Centre & corporate Contact Centre (CCC)

26. Background
Original Objective: to examine the options for providing dispatch and alarm monitoring services
Original Recommendations:
Transfer non-utilities dispatch and alarm monitoring to CCC
Operate CCC 24/7
After hours utilities dispatch handled by CCC

27. Objective & Audit Status
Objective: to hold staff accountable for implementing audit recommendations Audit Status:
Date original audit completed
December 3, 2012
# of Recommendations 18
# of Recommendations complete 16
# of Recommendations in progress 1
# of Recommendations not started

28. Benefits Realized Improved service levels – 24/7 service
Improved dispatching function
Improved alarm monitoring
Current process documentation
Increased employee satisfaction
Current tools
Utilities staff no longer work night shifts

29. Unaddressed Recommendations
Create a business continuity plan for the Kitchener Utilities Operations Centre
Continue implementing key performance indicators for Kitchener Utilities Operations Centre
No new recommendations and no further follow-up audits required.