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HomeMy WebLinkAboutAudit - 2018-06-11 AUDIT COMMITTEE MINUTES JUNE 11, 2018 CITY OF KITCHENER The Audit Committee met this date commencing at 2:37 p.m. Present: Mayor B. Vrbanovic - Chair Councillors S. Davey, F. Etherington, Y. Fernandes, K. Galloway-Sealock, J. Gazzola, B. Ioannidis, S. Marsh, P. Singh and D. Schnider. Staff: D. Chapman, Chief Administrative Officer M. May, Deputy CAO, Community Services J. Readman, General Manager, Development Services J. Lautenbach, Chief Financial Officer, Financial Services D. McGoldrick, General Manager, Infrastructure Services M. Goldrup, Director, Human Resources B. Johnson, Director of Accounting, Financial Services R. LeBrun, Manager of Accounting, Financial Services S. Brisbane, Supervisor, Financial Reporting C. Tasker, Internal Auditor J. Rodrigues, Committee Administrator 1. FIN-18-012 - 2017 AUDITED FINANCIAL STATEMENTS The Committee considered Finance and Corporate Services Department report FCS-18-012, dated June 4, 2018, to which was attached the “City of Kitchener Financial Report for the Year Ended December 31, 2017” and the KPMG report entitled “Audit Findings Report for the year ending December 31, 2017”. Ms. S. Brisbane presented the Financial Report and provided an overview of the municipal financial condition as of December 31, 2017. She highlighted the differences between the operating and enterprises results in March 2018 to those included in the 2017 Audited Consolidated Financial Statements. She advised the City should continue to reduce debt, build reserve balances, and retain long-term investments to maintain its strong financial position. She provided a comparison of Kitchener’s debt to reserve ratio and financial position per capita to other Ontario municipalities. She further indicated the City’s debt levels will be reduced when the Economic Development Investment Fund decreases. Mr. M. Betik, KPMG, the City’s external Auditor, presented the Audit Findings Report for the year ending December 31, 2017. He advised there have been no significant changes from the external Audit Plan presented to the Audit Committee on December 11, 2017. He provided an overview of the external audit process of the consolidated financial statements, indicating there were no misstatements identified during the audit. He advised there were no corrections resulting from KPMG’s external audit. On motion by Councillor S. Davey - it was resolved: “That the 2017 Audited Consolidated Financial Statements of the City of Kitchener be approved.” 2. CAO-18-013 - SECOND QUARTER AUDIT STATUS REPORT nd The Committee considered Chief Administrative Office report CAO-18-013 entitled “2 Quarter Audit Status Report”, dated April 6, 2018, providing a summary of the internal audit activities completed from March to June, 2018. Ms. C. Tasker presented the results of the value for money audit for the use of consultants and professional services in Engineering Services and the comprehensive audit conducted for the City’s winter maintenance. In response to questions with respect to the winter maintenance, Ms. Tasker advised in three months she will follow-up with the Operations Division on the action plan created to prioritize the recommendations resulting from the comprehensive audit. The Committee requested staff provide a list of the prioritized recommendations to Council for consideration prior to Winter 2018/2019. Ms. Tasker also agreed to provide the Committee via email the number of kilometres of curb-facing sidewalk located within the City. Mayor B. Vrbanovic left the meeting at this time and Councillor S. Davey assumed the Chair. AUDIT COMMITTEE MINUTES JUNE 11, 2018 - 3 - CITY OF KITCHENER 2. CAO-18-013 - SECOND QUARTER AUDIT STATUS REPORT (CONT’D) In response to questions regarding windrows, Ms. Tasker advised staff is bringing forward an Issue Paper on windrows for Council to decide on their preferred service-level option. Ms. D. McGoldrick advised staff will provide details on a City-wide comprehensive windrow program for Council to consider. Mayor B. Vrbanovic re-entered the meeting and resumed the chair. 3. ADJOURNMENT This meeting adjourned at 4:53 p.m. J. Rodrigues Committee Administrator