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DECEMBER 9, 2013 CITY OF KITCHENER
The Audit Committee met this date commencing at 1:08 p.m.
Present: Mayor C. Zehr - Chair
Councillors S. Davey, F. Etherington, Y. Fernandes, J. Gazzola, B. loannidis, Z.
Janecki, P. Singh and D. Glenn- Graham.
Staff: J. Willmer, Chief Administrative Officer
D. Chapman, Deputy CAO, Finance & Corporate Services
M. May, Deputy CAO, Community Services
B. Johnson, Director of Accounting
S. Brisbane, Supervisor, Financial Reporting
R. Thele, Manager, Service Coordination & Improvement
C. Tasker, Internal Auditor
D. Livingstone, Committee Administrator
1. FCS -13 -187 - 2013 EXTERNAL AUDIT PLANNING REPORT
The Committee considered Finance and Corporate Services Department report FCS -13 -187,
dated November 21, 2013, to which is attached KPMG report titled "City of Kitchener Audit
Planning Report for the year ending December 31, 2013 ". Ms. S. Brisbane presented the staff
report and Mr. M. Betik, KPMG, was in attendance to present their report.
On motion by Councillor B. loannidis -
it was resolved:
"That the 2013 External Audit Planning Report prepared by KPMG, attached as
Appendix 1 to report FCS -13 -187 dated December 9, 2013, be approved."
FCS -13 -184 - 2014 SERVICE REVIEW AND INTERNAL AUDIT WORK PLAN
The Committee considered Finance and Corporate Services Department report FCS -13 -184,
dated December 1, 2013, regarding the Internal Audit work plan and service review
prioritization for 2014. Ms. C. Tasker presented this report.
At the request of Councillor D. Glenn- Graham, Ms. Tasker agreed to circulate key definitions
for terms used within the Service Review and Internal Audit Work Plan Report.
In response to questions related to the scope of the audit of the Human Resources Division
undertaken by Ms. K. Dever, Ms. Tasker explained that hiring processes, such as the internal
and external hiring streams have been examined. She elaborated that each section of the
Division using transactional process will be under examination in the coming months. With
regard to the hiring transparency processes, Ms. Tasker indicated that she will complete a
follow -up review in the latter part of 2014.
Ms. Tasker responded to further questions, advising that the comprehensive review of Supply
Services will take place early in 2014. This will include a review of the process policies such
as the organizational structure, budget, culture, and customer service with the precise scope
still to be determined. She advised that comprehensive reviews of Community Services and
the Market will take place later in the year. Councillor S. Davey requested that Report FCS -13-
184 be circulated to the Safe & Healthy Communities Committee for information as the
committee is examining Community Resource Centres.
On motion by Councillor Y. Fernandes -
it was resolved:
"That the 2014 Internal Audit work plan be approved as outlined in report FCS -13 -184
dated December 1, 2013."
AUDIT COMMITTEE MINUTES
DECEMBER 9, 2013 - 7 - CITY OF KITCHENER
FCS -13 -183 - FOURTH QUARTER AUDIT STATUS REPORT
The Committee considered Finance and Corporate Services Department report FCS -13 -183,
dated December 1, 2013, in which staff provides the status of Internal Audits scheduled for the
4th quarter of 2013. Ms. C. Tasker presented this report.
Ms. Tasker advised that the review of the Arenas, Kitchener Memorial Auditorium and the
Election Process are currently in progress and will be brought forward for Committee
consideration in 2014.
She stated that a Parking Controls Audit has been completed and resulted in 5 discrepancies
being found; four under special circumstances and one resulting in a retro- active payment
deduction for parking. There were no material weaknesses found and the process was
deemed to be in control. With regard to the Physical Inventory Count verification, Ms. Tasker
indicated that the write -offs are at a record low of $8,000. compared with $93,000. in 2012.
She stated that Stores staff attribute the record low to increased inventory adjustments,
improved communication with those utilizing the stock and the use of aggregate to ascertain
correct inventory levels. She advised that the process is deemed to in control.
Ms. Tasker advised that there was a confidential investigation that was conducted at the
request of senior management which took place in the fourth quarter and noted in the Audit
Status Report. She indicated that the evidence collected during the investigation did not
support the claim of damage to City assets on private property by City staff.
ADJOURNMENT
This meeting adjourned at 1:28 p.m.
D. Livingstone
Committee Administrator