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Winter Street Sand Recycling and Mixing

Program Audit
______________________________________________________________________
Recommendation:
That the September 29, 2016, Office of the City Auditor report CR_4017, be received
for information.
Report Summary
This report presents the results of the Winter Street Sand Recycling and Mixing
Program Audit.
Report
The overall objective of this audit was to determine the value-for-money offered by the
Winter Street Sand Recycling and Mixing Program. The office of the City Auditor define
value-for-money as whether or not the City obtained the maximum benefit from the
services it acquired and provided, given the resources used (e.g., payment to
contractors, City assets, City staff). The office of the City Auditor identified the following
three specific audit objectives for this audit:
1. To assess the effectiveness of the Citys Winter Street Sand Recycling and
Mixing Program.
2. To determine if the City is receiving the best value from the Edmonton Waste
Management Centre of Excellence for services relating to the Winter Street Sand
Recycling and Mixing Program.
3. To determine if City property is used economically as part of the Winter Street
Sand Recycling and Mixing Program.
Overall, the office of the City Auditor found that the City did not receive value-for-money
from the current Winter Street Sand Recycling and Mixing Program. There were three
key findings that support our overall conclusion:
1. The current Winter Street Recycling and Mixing Program has not met its intended
objectives and outcomes.
2. Ambiguous terms in the contracts and failure to question the contractors
interpretation of certain contractual terms have exposed the City to additional
costs. This had a significant impact on the value received from these contracts
and the overall cost-effectiveness of the program.
3. The Winter Street Recycling and Mixing Program was not properly managed and
monitored. This has opened the City up to the risks of potential negative
regulatory or legal exposure and loss of reputation.
The office of the City Auditor did find that the City received a product that met its
specifications and was suitable for reuse on City streets.

ROUTING Audit Committee | DELEGATION - D. Wiun


September 29, 2016 Office of the City Auditor CR_4017
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Winter Street Sand Recycling and Mixing Program Audit


The office of the City Auditor made four recommendations to ensure the City will be
receiving value-for-money from its Winter Street Sand Recycling and Mixing Program.
The office of the City Auditor recommended that the Branch Manager of Parks and
Roads Services:
1. Update the goals, strategies and targets of the program, determine and
document the best way to achieve these, and review these decisions on a
periodic basis.
2. Develop, document and implement a performance management system.
3. Consult with Corporate Procurement and Supply Services Branch and the Law
Branch on all contracts related to the Winter Street Recycling and Mixing
Program to ensure the Citys interests are protected.
4. Ensure adequate program management procedures are in place.
Policy
Bylaw 16097, Audit Committee Bylaw, Section 14(d) states that, Committee will review
all reports from the City Auditor dealing with completed audit projects.
Risk Assessment
This report falls under a list of report types that, due to their nature, do not require a risk
assessment and, as such, there is no risk assessment in this report.
Attachment
1. Winter Street Sand Recycling and Mixing Program Audit

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