The Policy and Services Committee on Oct. 29 reviewed the Office of the City Auditor's audit of the Community Services Department's (CSD) equipment and materials inventory management and voted to recommend council accept the audit.

Kate Murdock, City Auditor, said the audit objective was to determine whether CSD's inventory management system operates effectively and efficiently. The audit team conducted on-site visits to multiple facilities and tested a variety of assets used across cultural and recreational programs, including audio/lighting, art supplies, kilns and AV equipment.

Murdock reported two findings and one additional observation. First, while most tested items were accounted for, CSD could not provide an up-to-date, comprehensive inventory list for each facility, and some items were not stored in a manner that protected them from theft or damage. Second, the audit found a lack of formal processes for receiving and inventorying materials and equipment; the report noted that segregation of duties and documented procedures would reduce the risk of fraud, waste and abuse. The auditor's additional observation said CSD currently uses the city's capital improvement project (CIP) process to source replacement funding, a practice that can take "upwards of 6 months" and leave programs without necessary equipment.

The audit recommended that CSD implement a centralized inventory management system, establish standard operating procedures for periodic inventory audits, designate staff responsibilities for inventory monitoring, and provide training on procurement and disposal procedures. Murdock said tying inventory to estimated replacement timelines and costs would allow replacement needs to be included in annual budget development.

Kristen O'Kane, Community Services Department director, told the committee the department agrees with the findings and will work to establish a more centralized, consistent way to track and manage inventory. O'Kane explained that large, high-cost items such as kilns and Mitchell Park AV equipment often require CIP funding and that a documented lifecycle and replacement plan would help staff include those needs in budgeting and reduce program disruption.

A committee member moved and another seconded a recommendation that the City Council accept the audit. Roll-call voting was unanimous and the motion carried.

What happens next

Staff indicated they will coordinate with Public Works and IT to leverage existing asset-management systems for different categories of CSD items and will define a reasonable threshold for what to inventory versus consumables. The audit report and staff responses will be forwarded per the committee's recommendation.