HomeMy WebLinkAboutAudit - 2014-12-15Fill] D]110191k IkhIIa1:11 :8khIIki Lei I *y
DECEMBER 15, 2014 CITY OF KITCHENER
The Audit Committee met this date commencing at 3:32 p.m.
Present: Mayor B. Vrbanovic - Chair
Councillors S. Davey, F. Etherington, Y. Fernandes, J. Gazzola, B. loannidis, Z. Janecki
and S. Marsh, K. Galloway- Sealock and D. Schnider.
Staff: J. Willmer, Chief Administrative Officer
D. Chapman, Deputy CAO, Finance & Corporate Services
M. May, Deputy CAO, Community Services
D. Tyagi, Deputy CAO, Infrastructure Services
B. Johnson, Director, Accounting
L. Gordon, Director, Purchasing
R. Lebrun, Manager, Accounting
S. Brisbane, Supervisor, Financial Reporting
K. Dever, Manager, Service Co- ordination & Improvement
C. Tasker, Internal Auditor
D. Saunderson, Committee Administrator
FCS -14 -160 - 2014 EXTERNAL AUDIT PLANNING REPORT
The Committee considered Finance and Corporate Services Department report FCS -14 -160
dated December 8, 2014, to which is attached KPMG report titled "City of Kitchener Audit
Planning Report for the year ending December 31, 2014 ". Ms. S. Brisbane presented the staff
report and Mr. M. Betik, KPMG, was in attendance to present their report.
Councillor S. Davey entered the meeting at this time.
On motion by Councillor B. loannidis -
it was resolved:
"That the 2014 External Audit Planning Report prepared by KPMG, attached as
Appendix 1 to Finance and Corporate Services Committee report FCS -14 -160 dated
December 8, 2014, be approved."
FCS -14 -195 — 2015 INTERNAL AUDIT WORK PLAN & SERVICE REVIEW
The Committee considered Finance and Corporate Services Department report FCS -14 -195
dated December 1, 2014, regarding the internal Audit work plan and service review
prioritization for 2015.
Ms. C. Tasker presented this report noting that one of the reviews scheduled for 2015 includes
a control audit of employee expenses. She questioned whether an audit of Councils'
expenses should be included in the scope of that review.
In response to questions, Mr. D. Chapman advised that although the Engineering Services
Division has not undergone a comprehensive review, they have undergone a more focused
review on their project management approach in relation to the Infrastructure Stimulus Fund
projects and agreed to recirculate the audit for Council's information.
Several members expressed support and agreed that the recommendation should be
amended to include a review of Council's expenses as part of the Employee expense audit as
part of the 2015 Internal Audit work plan.
On motion by Councillor B. loannidis
it was resolved:
"That the 2015 Internal Audit work plan, including a review of Council expenses as part
of the Employee expense audit, be approved as outlined in Finance and Corporate
Services Committee report FCS -14 -195 dated December 1, 2014."
AUDIT COMMITTEE MINUTES
DECEMBER 15, 2014 - 6 - CITY OF KITCHENER
FCS -14 -192 - FOURTH QUARTER AUDIT STATUS REPORT
The Committee considered Finance and Corporate Services Department report FCS -14 -192
dated November 30, 2014 in which staff provides the status of Internal Audits completed
during the period of June 2014 to November 2014. Ms. C. Tasker presented this report noting
that on Page 3 -6 of the report under Compliance and Controls the last bullet regarding
Accounts Payable audit work, should have indicated that every 4th cheque is audited
regardless of the amount.
Ms. Tasker advised that the review of the Election Process Follow -up Review, Integrated
Planning Debrief and Community Resource Centres Comprehensive Audit are currently in
progress and will be brought forward for Committee consideration in 2015.
She stated that Internal Audit participates annually in a physical inventory count at the
Kitchener Operations Facility (KOF), noting that general accuracy of the ongoing inventory
records have improved greatly since the controls audit in 2008, 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 $3,447
in 2014, which represents 0.05% of the total inventory purchases for the year.
Ms. Tasker advised that the final audit that took place in the fourth quarter was a
comprehensive audit of the Purchasing section within the Supply Services division. She noted
that the data gathered and analyzed through the Purchasing comprehensive audit led to 53
recommendations for improvement. She indicated that the recommendations are focused on
minor process improvements toward improved efficiency as well as larger strategic initiatives.
She further advised that now that the review is complete the Director is expected to review and
respond to the recommendations with an action plan within a time period, to be determined
with the department Deputy Chief Administrative Officer.
Clef Dille] 11:1ki IkhI:Iki II
This meeting adjourned at 4:38 p.m.
D. Saunderson
Committee Administrator