We provide assurance to Council through due diligence reviews of collective agreements and other significant City contracts. In February 1997, Executive Policy Committee and Council adopted a policy requiring "that prior to any ratification vote by council on any collective bargaining agreements, that it be presented by Civic Administration, the City Auditor and the external auditor, with full and long term cost impact analysis of any such recommended agreements."
Collective agreements are one of the most significant contracts the City enters. Council wants independent assurance concerning the financial costs/benefits of any tentative agreement. Audit opinions report on the reliability of the written representation by the accountable parties.
The intention of the resolution is to provide Council with audit assurance as to the fairness, completeness and accuracy of these representations. However, we believe our role can be expanded to provide more than a simple cost/benefit review. We propose to add value by commenting on improvements for the processes, practices and procedures in contract negotiations. This expanded scope will enable us to perform the required due diligence service for Council, as well as report to the Administration on the economy, efficiency and effectiveness of these processes.
We also envision a future need to provide due diligence reviews in other areas, such as business planning and contracting for major capital projects. Our involvement at significant milestones can provide assurance that strategies are on track and that financial and other risks have been identified, reported and mitigated.
Last update: 26.08.2008
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