HomeMy WebLinkAboutAudit - 2016-06-27AUDIT COMMITTEE MINUTES
JUNE 27, 2016 CITY OF KITCHENER
The Audit Committee met this date commencing at 1:35 p.m.
Present: Mayor B. Vrbanovic - Chair
Councillors S. Davey, F. Etherington, Y. Fernandes, J. Gazzola, B. loannidis, Z.
Janecki, P. Singh, K. Galloway - Sealock, D. Schnider and S. Marsh
Staff: J. Willmer, Chief Administrative Officer
D. Chapman, Deputy CAO, Finance & Corporate Services
M. May, Deputy CAO, Community Services
J. Readman, Interim Deputy CAO, Infrastructure Services
C. Fletcher, Interim Deputy CAO, Infrastructure Services
B. Johnson, Director, Accounting
R. LeBrun, Manager, Accounting
S. Brisbane, Supervisor, Financial Reporting
C. Tasker, Internal Auditor
D. Saunderson, Committee Administrator
1. FCS -16 -062 - 2015 AUDITED FINANCIAL STATEMENTS
The Committee considered Finance and Corporate Services Department report FCS -16 -062,
dated June 16, 2016, to which is attached the KPMG report entitled "The City of Kitchener
Audit Findings Report for the year ending December 31, 2015 ". Ms. S. Brisbane presented the
staff report and gave an overview of the municipal financial condition as of December 31,
2015, and highlighted reporting differences between the operating results presented in March
2016 and those included in the 2015 Audited Consolidated Financial Statements.
Mr. M. Betik, KPMG, the City's external Auditor, presented the Audit Findings Report for the
year ended December 31, 2015. He provided an overview of the audit process of the
consolidated financial statements, advising that there were no identified misstatements that
were corrected during the audit. Mr. Betik advised that KPMG will be issuing a clean Auditors'
report once the consolidated financial statements have been approved.
On motion by Councillor S. Davey -
it was resolved:
"That the 2015 Audited Consolidated Financial Statements of the City of Kitchener be
approved, as outlined in Finance and Corporate Services Department report FCS -16-
062."
FCS -16 -085 - 2ND QUARTER AUDIT STATUS REPORT
The Committee was in receipt of Finance and Corporate Services Department report FCS -16-
085, dated June 20, 2016, regarding a summary of the Internal Audit activities completed
during the period of December 2015 to June 2016.
Ms. C. Tasker presented the Report advising of current audit activities and provided a review
of the comprehensive audit completed of the City's Community Centres. She advised the
objectives of the audit was to examine the services provided, inherent risks, processes,
organizational structure, resourcing and culture within the community centres. She stated the
review was also intended to identify opportunities to expand the City's support of
neighbourhoods and community partners beyond the centres, into surrounding
neighbourhoods. She provided an overview of the methodology used to conduct the review
and summarized the findings, highlighting the strengths, issues and risks, and areas for
improvement. Ms. Tasker indicated the Audit produced 74 recommendations, excluding the
recommendations related to the organizational structure of the centres.
Ms. Tasker presented six of the higher -level recommendations, including: organizational
structure changes; clearly defined community centre mandate; community centre rentals;
utilization of marketing; hours of operation; and, neighbourhood associations' risks and
opportunities. Ms. Tasker concluded that the Audit has been presented to the management
team who will be responding back with an action plan in response to the recommendations as
outlined in the report. She noted a number of recommendations have already begun to be
addressed, including changes to the organizational structure.
AUDIT COMMITTEE MINUTES
JUNE 27, 2016 - 2 - CITY OF KITCHENER
FCS -16 -085 - 2ND QUARTER AUDIT STATUS REPORT- (CONT'D
In response to questions, Ms. Tasker advised that the recommendations outlined in the Audit
have been referred to the Community Centre management team and they have three months
to respond to those recommendations with an Action Plan. She noted no feedback is being
requested from Council at this time. She further advised with regards to the recommendation
related to extending the operating hours for the community centres and any possible budget
implications, it is likely staff will bring forward an Issue Paper through the Budget process if it is
outside of the current Budget allocation.
Questions were raised regarding the current Neighbourhood Affiliation Policy and whether it
will be reviewed through this Audit. In response, Ms. Tasker advised that a review of the Policy
is being recommended as part of the second Audit report due to be rolled out in Fall 2016.
She noted staff currently anticipates completing a review of that Policy in 2017. Several
members expressed interest in endeavouring to complete a review of the Affiliation Policy prior
to 2017 if possible.
In response to questions regarding greater partnerships with the Neighbourhood Associations
and the recommendations related to increasing community centre hours of operation, Mr. M.
May noted there may be greater opportunity to utilize the volunteers from the Neighbourhood
Associations to assist with that recommendation. He noted staff in Legal Services and Risk
Management will be included as part of those discussions when reviewing community centre
hours.
Councillor Z. Janecki entered the meeting at this time.
FCS -16 -090 - RISK MANAGEMENT UPDATE
The Committee was in receipt of Finance and Corporate Services Department report FCS -16-
090, dated June 15, 2016, regarding an update of the existing and planned activities related to
risk management. Ms. C. Tasker presented the Report highlighting the service review refresh,
a risk management training update and the risk management compliance audit. Ms. Tasker
then responded to questions from the Committee.
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On motion, this meeting adjourned at 3:50 p.m.
D. Saunderson
Committee Administrator