HomeMy WebLinkAboutAudit - 2015-06-29AUDIT COMMITTEE MINUTES
JUNE 29, 2015
The Audit Committee met this date commencing at 2:05 p.m.
CITY OF KITCHENER
Present: Mayor B. Vrbanovic - Chair
Councillors S. Davey, F. Etherington, Y. Fernandes, K. Galloway- Sealock, B. loannidis,
P. Singh, S. Marsh, and D. Schnider
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 -15 -093 - 2014 AUDITED FINANCIAL STATEMENTS
The Committee considered Finance and Corporate Services Department report FCS -15 -093,
dated June 19, 2015, to which is attached KPMG report titled "The City of Kitchener Audit
Findings Report for the year ending December 31, 2014 ". Ms. S. Brisbane presented the staff
report and gave an overview of the municipal financial condition as at December 31, 2014 and
highlighted reporting differences between the operating results presented in March and those
included in the 2014 Audited Consolidated Financial Statements.
Mr. M. Betik, KPMG, the City's external Auditor, presented the Audit Findings Report for the
year ended December 31, 2014. He provided an overview of the audit process of the
consolidated financial statements. He advised of a recorded audit correction of $200,000.
related to Brownfield and Adaptive Re -use Agreements and stated that he is pleased to report
that management agrees with KPMG on any audit corrections and that any uncorrected audit
differences are not material to the financial statements. Mr. Betik concluded by advising that
KPMG will be issuing an unqualified auditors' report once the consolidated financial statements
have been approved.
On motion by Councillor S. Davey —
it was resolved:
"That the 2014 Audited Consolidated Financial Statements as outlined in Finance and
Corporate Services Department report FCS -15 -093 dated June 19, 2015, be approved."
FCS -15 -091 — 2nd QUARTER AUDIT STATUS REPORT
The Committee considered Finance and Corporate Services Department report FCS -15 -091,
dated June 20, 2014, regarding the Internal Audit activities completed during the period of
March 2015 to June 2015.
Ms. C. Tasker presented the Report advising of current audit activities and provided a review
of the audit completed of employee expenses within the scope of compliance and controls.
She advised that the audit found the City generally has very sound processes and controls in
place related to employee expenses in the areas of petty cash, Visa, mileage and parking,
conference and council expenses and that no fraudulent activity was found. Following the
summary of the employee expenses audit findings, Ms. Tasker recommended that Accounting
Staff develop a consolidated expense policy and instructions; establish a quarterly submission
timeline for mileage and parking claims; and, periodic reminders from Accounting regarding
common errors.
Ms. B. Johnson was in attendance and responded to questions of clarification regarding the
council expense policy.
FCS -15 -092 - RISK MANAGEMENT UPDATE
The Committee considered Finance and Corporate Services Department report FCS -14 -109,
dated June 20, 2015, providing an update of the existing and planned activities related to risk
management.
AUDIT COMMITTEE MINUTES
JUNE 29, 2015 - 3 - CITY OF KITCHENER
FCS -15 -092 - RISK MANAGEMENT UPDATE (CONT'D)
Ms. C. Tasker presented this report advising of risk management initiatives designed to
incorporate risk management into the organizational culture of the municipality. She reviewed
activities that have occurred since the 2014 risk management update in the areas of
governance, processes and tools, and staff training including the CapaCity course titled "Risky
Business ". In addition, Ms. Tasker provided an overview of future work including opportunities
to assess how risk management can be integrated into the business planning cycle in order to
meet the objectives set out in the business plan; and, staff participation in risk assessments to
promote the benefits of risk management.
4. ADJOURNMENT
This meeting adjourned at 3:14 p.m.
D. Livingstone
Committee Administrator
