1997 Management Letter - Hostel Services Division

 The Strategic Policies and Priorities Committee submits, for the information of Council, the following transmittal letter (July 8, 1998) from the Audit Committee and reports having received same:

 Recommendation:

 That the report (June 25, 1998) from the City Auditor attaching the management letter of the Hostel Services Division, together with the report (June 15, 1998) from Commissioner of Community and Neighbourhood Services in response, be received and forwarded to Council for information.

 Background:

 On July 7, 1998, the Audit Committee had before it a report (June 25, 1998) from the City Auditor attaching the management letter of the Hostel Services Division, together with the response from the Commissioner of Community and Neighbourhood Services.

 The Audit Committee advises that it received the aforementioned reports and directed that copies be forwarded to your Committee and City Council for information.

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 (Report dated June 25, 1998, addressed to the

Audit Committee from the

City Auditor)

 Recommendation:

 It is recommended that the 1997 management letter and the corresponding response relating to the audits of the accounts of the Hostel Services Division, Department of Community and Neighbourhood Services, be received for information.

 Comments:

 I have completed the 1997 audits of the accounts of the Department of Community and Neighbourhood Services, Hostel Services Division, for the year ended December 31, 1997. As a bi-product of my audit, the attached management letter was issued to the Commissioner of Community and Neighbourhood Services. A response from the Commissioner has been received.

 Conclusion:

 I have reviewed the response to the management letter prepared by the Department. The responses are appropriate and will be followed up as part of our future audit work.

 Contact Name and Telephone No.:

 Rafiq Dosani, 392-8438.

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 (Report dated June 25, 1998, addressed to the

Audit Committee from the

Commissioner of Community and Neighbourhood Services)

 Purpose:

 This report provides the responses of the Hostel Services Division to recommendations made in the Audit Management letter regarding Hostel Services.

 Funding Sources, Financial Implications and Impact Statement:

 None

 Recommendation:

 It is recommended that this report be received for information.

 Council Reference/Background/History:

 None.

 Comments and/or Discussion and/or Justification:

 The following are the staff responses to the recommendations submitted by City Audit.

General:

 Recommendation No. (1):

 Staff agree with the recommendation and will revisit it in 1999 at which time the majority of capital renovations and associated relocations will be finished and thus final computer systems will be in place.

 Robertson House/Family Residence/Women's Residence:

 Recommendation No. (2):

 Staff agree with this recommendation. While there are supervisory reviews of files, no formal guidelines or records of the reviews are currently in place. Staff from the three locations will meet during 1998 to develop these forms.

 Recommendation No. (3):

 Systematic on-line checks of residents do occur prior to issuance of allowances. There are circumstances, however, where a client could show as being on active assistance and using the shelter system. For example, a family who was illegally evicted could come into the shelter early in the month having already used most of their cheque to pay rent. This family would require Personal Needs Allowance (PNA) to cover food and basic needs while in the motel program. There could also be circumstances where a client would show as active on an on-line check when in fact they had only received a drug card and had not in fact received a cash issuance.

 Staff are aware that there may be some possibility of duplicate payment but do not feel the amount involved warrants weekly on-line checks of every single family/individual in the program. At the present time, there is no way for welfare workers doing a similar check regarding hostel users. This capacity may be available in the system in the future.

 Recommendation No. (4):

 Staff agree with this recommendation. The pilot of the computer software, which will do the reconciliation, will begin at Family Residence on July 1. The program will then be extended to other locations if found to be successful. Managers will approve these reconciliations.

 Purchased Hostel Services:

 Recommendations No. (5) and No. (6):

 Staff agree with these recommendations. The Divisional Goals for 1998-99 includes the development of a site check list which will include a basic review of billing procedures. Also included in the Divisional Goals is the development of an annual comprehensive review of shelters which would include a method for reviewing financial statements and projections.

 Seaton House:

 Recommendations No. (7) and No. (8):

 A review of the billings records for April, May and June 1998 indicate that in any given month less than 5 per cent of clients have not paid their rent. The total cost of this unpaid rent is less than $2,600.00. Rental owed and paid by residents are recorded, though not in an accounts receivable ledger. Staff are able to calculate "written off" fees without difficulty. It appears that the essential information is available, though perhaps not in the computerized ledger form which would be preferred by Audit. At this time, staff do not feel that this issue is priority, but will consider the recommendation when the redesign of Seaton House is completed with the concurrent changes to the computer system which will be required.

 Recommendation No. (9):

 Staff agree with this recommendation. Password policies and lockout features will be introduced in 1998.

 Conclusions:

 Divisional staff will proceed with the implementation of recommendations where appropriate.

 Contact Name:

 Anne Longair, Hostel Services Division, Tel: (416-392-5417), Fax: (416-392-8876).

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 (Copy of the 1997 audits of the accounts of the Department of Community and Neighbourhood Services, Hostel Services Division for the year ended December 31, 1997, has been forwarded to all Members of Council with the agenda of the Strategic Policies and Priorities Committee for its meeting on July 24, 1998, and a copy thereof is also on file with the City Clerk.)