TAMRMS#: B06
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Operation and Financial Review - Internal Audit Steering Committee Selection of Consultant
Presented by: Councillor Brodhead
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RECOMMENDED MOTION
recommendation
That Council receive as information the report dated August 17, 2020 entitled "Operational and Fiscal Review - Internal Audit Steering Committee Selection of Consultant"
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PURPOSE OF REPORT
The purpose of this report is advise Council of the Internal Audit Steering Committee's selection of a consultant to carry out the Operational and Fiscal Review.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
N/A
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Services and Service Levels Inventory and Continuous Improvement Program
ALIGNMENT TO COUNCIL DIRECTION
On June 1, 2020, Council passed the following motion (CM-20-019):
That an independent third party Operational and Fiscal Review be undertaken with the objectives of:
(a) Identifying long-term, sustainable expense management solutions to ongoing budget challenges; and
(b) recommending measures to provide quality, affordable municipal programs and services in the most efficient and effective manner while maintaining responsible taxation.
That the review be carried out in two phases:
(a) Phase One, focusing on the following services to the public and corporate functions: Community Services, Economic Development, CAO Office, Recreation & Parks, Transit, Strategic Services & Information Technology Services and Environment to be completed by October 31, 2020 so that any recommendations arising from it may be considered by Council in establishing the 2021 operating and capital budgets; and
(b) Phase Two, focusing on the following services to the public and corporate functions: Planning & Development, Legal & Legislative Services, Utilities, Financial Services, Engineering Services, Public Works, Emergency Services and Human Resources & Safety to be completed by June 30, 2021 so that any recommendations arising from it may be considered by Council in establishing the 2022 operating and capital budgets.
That the review will, at a minimum:
(a) consider "what" services the City provides and "how" the services are provided, emphasizing "what" services and programs the City should deliver or can afford to deliver and at "what" level or standard of service; and
(b) identify alternative service delivery methods and opportunities that have the potential to result in expenditure reductions.
That the Internal Audit Steering Committee (IASC) be tasked with selecting the party to conduct the review after a competitive procurement process, and thereafter providing governance oversight to that party including vetting their findings and recommendations and providing those findings and recommendations to Council from both Phase One and Phase Two together with the IASC's own comments as deemed appropriate by the IASC.
That the CAO present to Council for approval the proposed scope of review and deliverables to be included in the request for proposals, prior to initiating a competitive procurement of external management consulting services to conduct the review.
That the remainder of the money allocated for the Internal Audit Committee (approx. $160,000) be reallocated as well as any money previously approved in the budget for internal service reviews (approx. $100,000) be used to fund this initiative. The remainder of the funds up to $700,000 come from the Stabilization Reserve.
On June 15, 2020, Council passed the following motion (AR-20-212):
That Council approves the Terms of Reference, including review scope and deliverables, for the Operational and Fiscal Review outlined in the report titled “Operational and Fiscal Review Terms of Reference” dated June 15, 2020 . . .
BACKGROUND AND DISCUSSION
The motions passed by Council on June 1, 2020 and June 15, 2020 (set out above) formed the basis for a Request for Proposals ("RFP") seeking a consultant to conduct an operational and fiscal review in accordance with the parameters specified by Council. The RFP was posted publicly on June 16, 2020 and closed on July 16, 2020, after which the IASC evaluated the proposals received based on the established criteria. Based on that evaluation and in accordance with the authority given to them by Council, the IASC selected Ernst & Young LPP as the successful proponent with the highest evaluated score, by motion at an open and public meeting on August 13, 2020.
Administration has informed both Ernst & Young and the unsuccessful proponents of the IASC's decision, and it is anticipated that a formal contract with Ernst & Young will be executed shortly so their work can commence.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPLICATIONS OF RECOMMENDATION
Financial:
The maximum budget set aside for completion of the Operational and Fiscal Review is $960,000.
Legal / Risk:
None at this time
Program or Service:
All existing programs and services will be reviewed as part of the Operational and Fiscal Review.
Organizational:
Administration will be required to participate in the review through meetings with the consultant to provide input and relevant information. This involvement will have impact on the organizational workload and capacity.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
N/A
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Report Date: August 17, 2020
Author: Darija Slokar
Department: Strategic Services and Information Technology
Deputy Chief Administrative Officer: Kerry Hilts
Chief Administrative Officer: Kevin Scoble