Report titled 'Internal Audit Work Plan 2025-2027’ dated February 4, 2025, be approved.

1:30:57Thank you, Councillor Goller. So good afternoon, council. Before we get into the details of the 24 to 27 audit plan and discuss the results of execution of the 2024 plan, I wanted to highlight a few things about the process of setting the plan.

1:31:23As in prior years, the audit plan was developed using a number of input factors. These include feedback from management and council, consideration of emerging trends, and results from an internal audit risk assessment utilizing self assessments completed by all department leaders.

1:31:40I also want to assert that all internal audit activity from setting this plan to executing audits was done independently and objectively with no undue influence from the management team.

1:31:51The 2024 plan listed in attachment three within the report highlights that as of year end, all four of the scheduled audits were completed. In addition, we began audit work on a 2025 schedule project, the use of external consultants audit in quarter four.

1:32:08This audit substantially, this audit is substantially completed, sorry, and an information report will be presented to council in late March. In addition, the volunteer enterprise risk management initiative was advanced.

1:32:20A policy and framework have been finalized and reviewed with the executive team and council will be asked to receive these shortly.

1:32:27As part of the implementation plan, an enterprise risk assessment that includes interviews with both the executive and leadership team, stakeholders was kicked off and is currently underway and will continue here in early 2025.

1:32:39Once completed, an ERM working group will prioritize and assess the identified organizational risks and present the risk register report to the executive team and council in June 2025.

1:32:51The audit plan for 2025 listed in attachment one will focus on the completion of two value for money reviews once again this year.

1:32:58Areas of review selected for this year will be facilities cleaning services across the city and building permit approvals and inspection services within the planning and building services department.

1:33:11These reports will be executed using the value for money framework and operational review of fleet maintenance will also be executed along with these three large reviews work on the ERM implementation will continue.

1:33:23Attachment two in the report highlights potential projects to be completed for 2026 to 2027.

1:33:29As part of our continuous commitment to continuous improvement at the end of each audit we ask clients to complete a survey using the results to identify opportunities to enhance the audit process.

1:33:41The benchmark standard is a score of 85%. A satisfaction survey of 92% was achieved in 2024.

1:33:48Are there any questions?

1:33:50Thank you for that presentation to my council colleagues any questions or comments at this time?

1:33:57Councillor O'Rourke.

1:33:59Thank you chair Goller through you to Mr. Jelacic. I'm very excited about the enterprise wide risk management and the value for money audits as you know.

1:34:08I am curious going forward. What will be the process to identify what areas are subject to a value for money audit? Is it strictly consultation with senior leadership? Is there consultation with council?

1:34:21What does that look like going forward?

1:34:27Chair Goller to Councillor O'Rourke. Yeah, absolutely. I mean, as with audit plan setting, we welcome council's input into those.

1:34:35We did use an approach this year where we use some of the information that was generated from the budget process from the previous year to help identify some potential projects along with some discussions with senior management.

1:34:47And we do have, I do have a list of potential projects for the future, but certainly would welcome council's input. And again, as is customary done, you know, I'm always available and you can certainly reach out whenever you feel like there might be a project you want us to consider and look at.

1:35:01Thank you. And through Chair Goller, a comment if I can, I'm really excited about the enterprise wide risk management about council seeing that risk registry and it becoming an input into our budget deliberations, right?

1:35:16Because when we're guided by community plan, by the strap plan, all these other things we need to know what else might be lurking that we're not aware of.

1:35:25And we need to be anticipating those risks so that we can be proper stewards of the corporation city of Guelph for the benefit of the city and the whole community. So I'm really excited to see that's moving forward. Thanks.

1:35:41Thank you, Councillor O'Rourke. Any other questions or comments from the council colleagues?

1:35:47Thank you, Councillor Morer.

1:35:48Thank you, and through you, Chair.

1:35:50Just a quick question of clarity, I guess, in regards to the audit that you are looking to do for like inspections, building departments, inspections and such.

1:36:01It will be a little bit greater or more broad than just like numbers, right? Like, I'm hoping, and you can correct me if I'm wrong, but I'm hoping it's not like X amount we're called in for and we did, we ended up doing a Y.

1:36:15and this is the time frame of what we were wanting to do them and we accomplished 95% of whatever in adherence.

1:36:24Like there's also sort of the process part as well and the interaction part and the relational part between city staff and people that are getting their businesses inspected and such.

1:36:39Is that going to be part of some of the questioning some of the deeper dive that you're going to look into and try to capture as part of the report back on this audit?

1:36:50Absolutely. As I mentioned, this is going to be a value for money review. So we're going to utilize the framework that we have that captures a lot more than what we do in our typical audit.

1:36:59So we'll be looking at business process. What are the outcomes? What are the successes for outcome?

1:37:03We will make sure we look at all those steps as well as continuing with our sort of audit themed approach of a risk based assessment.

1:37:11So we will identify the various risks that are associated with that process and that unit, including the customer service risk and we'll incorporate that into our scope and objectives of the audit.

1:37:22Great. Thank you.

1:37:24Chair, I think I think deputy CAO wants to go ahead.

1:37:27Sorry, through the chair to Mr. Mayor. So just on your comments, we are already looking at some of those customer service concerns that you might have.

1:37:38Some of the things that we are hearing, we're very interested in truthing out. If there is anything that we would like that this audit points to improving, we're interested in doing that too.

1:37:48So we're welcoming in this audit to see what we might be able to improve on.

1:37:52Great. Thank you. I appreciate that. Thank you, chair.

1:37:56Thank you to my council colleagues, councillor old, go ahead please. And then.

1:38:02Thank you chair Goller with thanks to you and in particular to Mr. Jelassik and the audit staff. I'm happy to move the motions.

1:38:12It was great working with them and looking forward to years.

1:38:16Forward.

1:38:17Okay, so that's moved by councillor old segment by Mayor Guthrie and counselor to did you also have comments go ahead.

1:38:28Yeah, thank you, Mr. chair.

1:38:30I just wanted to get a better sense of how the consideration requests from management and council in particular would be played out.

1:38:40Is it just a matter of reaching out to you or to the ET or is there some kind of process because I'm just trying to understand what the organizational risk register would entail and if that's connected in any way process wise.

1:38:59Just to check it would that be a question for our CEO or for Mr. Joseph and Mr. Jelassik.

1:39:06Okay, let's go ahead.

1:39:10Thank you through chair caller to councillor to absolutely hasn't the past emailing myself directly is the preferred probably the best way to do it there is no real protocol or process for that just directly emailing me and we can certainly have a chat about any audit matters you'd like to.

1:39:30Thank you.

1:39:31I'm going to loop in the chairs of the audit as well as for color and councillor Richardson that.

1:39:36That's, that's good. Thank you.

1:39:39Thank you, councillor to any further questions.

1:39:43See, no, no, I just have one for for you, Mr. Jelassik.

1:39:48I think there are many community members that will be following these audits wanting to to see the outcomes.

1:39:54Could you go over the reporting process and how this will be reported at what time people can expect to see the results of these audits.

1:40:05Absolutely, chair caller.

1:40:07So the odds will be doing our typical article on a process where we go through a planning phase of field work place and then at the end of it sorry phase and then the end of it we do a report for the value for money audits those will be staff reports that will come to all of council.

1:40:20And right now the estimated dates for those is we will have the value for money cleaning services audit reported to council I believe it's in July.

1:40:29And then the other two, the fleet maintenance audit will just be our regular audit, which traditional over the last few years has been reported to council through an information report.

1:40:38That will be towards the end of the year and the building services inspection processes audit, given the nature of the audit and we expect that to be a very large, larger audit and larger scope.

1:40:50That one will most likely be reported in Q1 of next year to give us some time to execute the audit later on this year.

1:40:56Okay, perfect. And did you mentioned the enterprise risk management to the time I forgot one.

1:41:01Sorry, I did not and that one the risk register will be reported to council at June staff council the whole meeting.

1:41:10In June.

1:41:12Perfect. Thank you very much. Thank you. So this item I appreciate it. It has been moved and seconded. See no questions. I'll call the vote anyone against the motion to receive the internal audit work plan for 2025 to 20.

1:41:2527.

1:41:28Seeing none. It is approved unanimously. Thank you very much. And now moving on to to the next one. I didn't 10.2 the enterprise risk management.

1:41:38I apologize for having asked about this in advance, but please go ahead with any presentation for this.

1:41:47Yeah, thank you, Councillor Collar. So yeah, I want to just wanted to do a brief presentation on this to give council an overview.

1:41:54And I just.

1:41:57All right, thank you. So in terms of.

1:42:02Our prize risk management, I think.

1:42:05Sorry.

1:42:07Reno. Sorry about that. Don't seem to be able to know how to function this thing.

1:42:20Thank you. All right. Sorry for that.

1:42:30So, you are a tool that is used to promote risk informed decision making and supports decisions to achieve both strategic and operational objectives.

1:42:38When making decisions, there are many things to consider. One of them is risk.

1:42:43The intent of this presentation is to highlight some elements of the policy guidelines and risk assessment implementation process.

1:42:50And that will be that will culminate in the development of an enterprise level strategic risk register to be used by the organization.

1:42:59So how does the RM help an organization achieve its goals and objectives?

1:43:03Firstly, the policy sets the overall intent and expectations for risk management within the city, including the overall guiding principles of the RM.

1:43:11It also underpins the risk management process within the RM framework.

1:43:15As with any framework, it is a supporting structure meant to help its users.

1:43:19The framework is used to mitigate risk and maximize the positive effects of strategic opportunities.

1:43:24Some key elements to highlight to you of our year on policy and framework.

1:43:32Firstly, it is based on the ISO 31,000 standards.

1:43:36The framework provides the structure that supports the policy and helps everyone understand how to meet its objectives.