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HomeMy WebLinkAbout2011-05-09 AUDIT COMMITTEE MINUTES MAY 9,2011 CITY OF KITCHENER The Audit Committee met this date commencing at 1 :50 p.m. Present: Mayor C. Zehr - Chair Councillors S. Davey, F. Etherington, Y. Fernandes, K. Galloway, J. Gazzola, D. Glenn- Graham, B. loannidis, Z. Janecki, P. Singh and B. Vrbanovic. Staff: C. Ladd, Chief Administrative Officer D. Chapman, Deputy CAO/Finance & Corporate Services J. Willmer, Deputy CAO/Community Services P. Houston, Deputy CAO/lnfrastructure Services M. May, Interim Director of Human Resources B. Johnson, Director of Accounting R. LeBrun, Manager of Accounting C. Tasker, Internal Auditor C. Goodeve, Committee Administrator 1. FCS-11-090 - AUDIT COMMITTEE TERMS OF REFERENCE The Committee considered Finance and Corporate Services Department report FCS-11-090, dated April 14, 2011 regarding the selection of Committee Chair and amendments to Council Policy 1-66 (Audit Committee - Terms of Reference). On motion, Councillor B. Vrbanovic brought the recommendations contained in Report FCS- 11-090 forward for consideration. The following members were nominated for Chair of the Audit Committee: Mayor C. Zehr and Councillor J. Gazzola. The approved voting procedure was then utilized, which resulted in Mayor C. Zehr being appointed as Chair of the Committee for a term concurrent with Council. Councillor Vrbanovic commented that it was his recollection that when the Audit Committee's Terms of Reference were originally considered, a discussion took place as to whether the Chair of the Committee should be the same as the Chair of the Finance and Corporate Services Committee, or if the Mayor should serve as Chair. He recalled that it was determined at that time that it would be preferable to have the Mayor act as the Chair of the Audit Committee in perpetuity. On motion, it was agreed to amend Councillor Vrbanovic's motion to further revise Council Policy 1-66 (Audit Committee - Terms of Reference) to replace the reference to the Committee Chair selection in Section 2 with a provision indicating that the Mayor shall serve as the Chair of the Audit Committee. On motion by Councillor B. Vrbanovic- it was resolved: "That the housekeeping amendments to Council Policy 1-66 (Audit Committee - Terms of Reference) attached as Appendix 'B' to Finance and Corporate Services Department report FCS-11-090, be approved; and, That the responsibility for oversight of risk management, be added to Council Policy 1- 66, as outlined in Report FCS-11-090; and further, That Section 2 of Council Policy 1-66, be further amended to remove and replace the reference to the Committee choosing a Chair from amongst its members, with a provision stating that the Mayor shall serve as Chair of the Audit Committee." 2. FCS-11-091 - 2Q AUDIT STATUS REPORT The Committee considered Finance and Corporate Services Department report FCS-11-091, dated April 22, 2011 providing a summary of the Internal Audit activities completed during the period of January to April 2011. Ms. C. Tasker presented the report. Councillor Y. Fernandes referred to the nine personal interviews conducted as part of the Community Centres Follow-Up Audit and questioned the total number of people employed at AUDIT COMMITTEE MINUTES MAY 9,2011 2. FCS-11-091 - 20 AUDIT STATUS REPORT - (CONT'D) - 4 - CITY OF KITCHENER the City's Community Centres. Mr. J. Will mer agreed to provide information on the Community Centres' staff complement. Questions were raised as to what triggered the Revenue Counter Cash Controls audit and Councillor Fernandes advised that she had requested it when the 2011 Internal Audit Work Plan was being considered. She noted that she was interested in receiving cash control information from a broad spectrum of the Corporation. In response to questions regarding the Building Division Cash Controls audit, Ms. Tasker advised that no payments are permitted in the field by staff, at any time. She confirmed that this audit was also undertaken based on a request received during the discussion of the 2011 Internal Audit Work Plan. She stated that similar to the findings of the Revenue Counter Cash Controls audit, no control deficiencies were found during the Building Division audit; and, there are no recommendations for improvement. Councillor J. Gazzola requested clarification regarding the cash handling process in the parking enterprise. Ms. Tasker confirmed that there is a separation of duties between the staff responsible for collecting the cash from the various parking facilities and those persons responsible for reconciling that all of the cash has been deposited in the bank. With respect to the transfer of risk management responsibilities from the Internal Auditor to the Corporate Program and Policy Analyst, Ms. Tasker indicated that this does not involve the hiring of a new employee, but rather the reutilization of an existing position. In response to questions regarding the process review of the Rental Water Heater Program, Ms. Tasker advised that she is not aware if all of the recommendations proposed to optimize this Program have been implemented. She noted that as this was not a formal audit, but rather a consultation requested by the Division's Director, Internal Audit staff would not typically conduct a follow-up. Ms. Houston added that as part of a process review, management staff would typically re-visit the recommendations on an annual basis. Ms. C. Ladd agreed to report back on the status of the Rental Water Heater Program recommendations, noting that as some could have budget implications they may not be implemented until 2012. 3. ADJOURNMENT On motion, this meeting adjourned at 2:32 p.m. C. Goodeve Committee Administrator