HomeMy WebLinkAboutAudit - 2014-06-30AUDIT COMMITTEE MINUTES
JUNE 30, 2014 CITY OF KITCHENER
The Audit Committee met this date commencing at 2 :05 p.m.
Present: Mayor C. Zehr - Chair
Councillors S. Davey, F. Etherington, Y. Fernandes, K. Galloway - Sealock, J. Gazzola,
B. loannidis, Z. Janecki, P. Singh, B. Vrbanovic, and D. Glenn- Graham
Staff: J. Willmer, Chief Administrative Officer
D. Chapman, Deputy CAO, Finance & Corporate Services
B. Johnson, Director of Accounting
R. LeBrun, Manager of Accounting
S. Brisbane, Supervisor of Financial Reporting
C. Tasker, Internal Auditor
D. Livingstone, Committee Administrator
1. FCS -14 -047 - 2013 AUDITED FINANCIAL STATEMENTS
The Committee considered Finance and Corporate Services Department report FCS -14 -047,
dated June 18, 2014, to which is attached KPMG report titled "The City of Kitchener Audit
Findings Report for the year ending December 31, 2013 ". Ms. S. Brisbane presented the staff
report and gave an overview of the municipal financial condition as at December 31, 2013 and
highlighted reporting differences between the operating results presented in March and those
included in the 2013 Audited Consolidated Financial Statements.
Mr. M. Betik, KPMG, the City's external Auditor, was in attendance to present their audit
findings report. Mr. Betik highlighted matters for discussion that were identified through their
audit including: Storm Water Management fee rebate accrual; Storm Water fee for school
boards; and two capital projects that were previously recorded as Assets Under Construction
that were determined not to be tangible capital assets in 2013. Mr. Betik concluded by advising
that KPMG has completed the audit of the consolidated financial statements. They will be
issuing a clean, unmodified auditors' report once the consolidated financial statements have
been approved. He also indicated a copy of the Independence Letter is contained within their
audit findings report.
On motion by Councillor B. loannidis —
Seconded by Councillor P. Singh
it was resolved:
"That the 2013 Audited Consolidated Financial Statements as outlined in Finance and
Corporate Services Department report FCS -14 -047 dated June 19, 2014, be approved."
2. FCS -14 -108 — 2" d QUARTER AUDIT STATUS REPORT
The Committee considered Finance and Corporate Services Department report FCS -14 -108,
dated June 20, 2014, regarding the Internal Audit activities completed during the period of
March 2014 to June 2014. Ms. C. Tasker presented this report which included a capacity
review of the Kitchener Market and an audit of Cash Deposit Controls.
In response to questions regarding the Kitchener Market Capacity Review, Ms. Tasker advised
she is recommending a part -time program assistant position to fulfill administrative functions.
She elaborated there are opportunities with the Union to discuss strategies for alleviating
concerns expressed during the Kitchener Market Capacity Review, such as performing minor
maintenance. She further responded that the timing for hiring for the position and funding
sources have not been determined and agreed to provide an update to the Committee in the
future.
With regard to the Cash Deposits Controls Audit, Ms. Tasker agreed to provide the detailed
recommendations in a confidential report to the Committee.
JUNE 30, 2014
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AUDIT COMMITTEE MINUTES
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FCS -14 -109 - RISK MANAGEMENT UPDATE
CITY OF KITCHENER
The Committee considered Finance and Corporate Services Department report FCS -14 -109,
dated June 5, 2014, providing an update of the existing and planned activities related to risk
management.
Ms. C. Tasker presented this report advising of risk management initiatives designed to
incorporate risk management into the organizational culture of the municipality. She indicated
there would be staff training made available to project managers as well as a "CapaCity"
course on risk management added to the course calendar in 2014 -2015.
Ms. Tasker responded to questions regarding risk management initiatives advising a
comprehensive risk assessment has not yet been compiled and elaborated that the Insurance
Pool performs liability analysis.
4. ADJOURNMENT
This meeting adjourned at 3:30 p.m.
D. Livingstone
Committee Administrator