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HomeMy WebLinkAboutAudit Minutes - 2024-06-24 Audit Committee Minutes June 24, 2024, 11:00 a.m. Council Chambers - Hybrid City of Kitchener 200 King Street W, Kitchener, ON N2G 4G7 Present: Mayor B. Vrbanovic Councillor S. Davey Councillor D. Schnider Councillor J. Deneault Councillor C. Michaud Councillor A. Owodunni (virtually) Councillor P. Singh Councillor B. Ioannidis Councillor M. Johnston Councillor D. Chapman Councillor S. Stretch Staff: M. May, General Manager, Community Services and Deputy Chief Administrator J. Readman, General Manager, Development Services J. Lautenbach, Chief Financial Officer, Financial Services D. McGoldrick, General Manager, Infrastructure Services K. Fischer, Director of Financial Reporting G. Demacio, Manager of Finance, Reporting and Analysis D. Saunderson, Deputy Clerk M. Blake, Committee Coordinator _____________________________________________________________________ 1. Commencement The Audit Committee held a meeting this date commencing at 11:03 a.m. 1 2. Disclosure of Pecuniary Interest and the General Nature Thereof None. 3. Status Updates 3.1 2nd Quarter Audit Status Report, CAO-2024-166, CAO-2024-166 The Committee considered Chief Administrative Office Report CAO-2024-166, entitled "2nd Quarter Audit Status Report", dated June 13, 2024, providing a summary of the Internal Audit assurance and Consulting services completed during the period of January to June 2024. C. Tasker, Internal Auditor, presented the report and responded to questions from the Committee. C. Tasker presented the 2nd Quarter Audit Status Report, advising the Committee the completed audits performed include: external billable workorders, parking and mileage, underground locates and technology field inventory. Councillor C. Michaud and Councillor A. Owodunni entered the meeting at this time. C. Tasker presented the external billable workorders audit, stating the lean process review of external billable work orders noted multiple areas of improvement, and the proposed solutions will assist in ensuring accurate, timely billing to customers and less rework and frustration for staff. C. Tasker then presented an update on the parking and mileage expenses, noting the objective is to hold staff accountable for addressing audit findings and identify areas without significant progress. Councillor B. Ioannidis entered the meeting at this time. C. Tasker also presented the underground locates review, noting the City has not incurred any fines since the Province postponed activation of the penalties until May 2024. C. Tasker stated it is anticipated that all locates will remain in compliance moving forward. C. Tasker then presented the technology field assets inventory review, and noted implementation of a new asset management module is in process, which will ensure more accurate tracking of assets in future. 3.2 Certificate of Achievement - CAnFR Award for Fiscal 2022 G. Demacio, Manager of Finance, Reporting and Analysis, presented the award received by the City of Kitchener, for the fiscal year ending December 1, 2022. It was noted staff applied to the Government Finance Officers Association (GFOA) 2 for financial reporting and were successful in obtaining the award for excellence in financial reporting. 4. Discussion Items 4.1 2023 Audited Consolidated Financial Statements, FIN-2024-300, FIN-2024- 300 The Committee considered Financial Services report FIN-2024-300, dated June 18, 2024, to which the KPMG report entitled "Audit Findings Report" was attached. M. Betik and C. Cheal, KPMG, the City's external Auditors, were in attendance to present the Audit Finding Report for the year ending December 31, 2023. G. Demacio, Manager of Finance, Reporting and Analysis presented the 2022 financial highlights, key financial indicators, and the audit findings report prepared by KPMG. K. Fisher, Director of Financial Reporting was also in attendance to respond to questions from the Committee. M. Betik and C. Cheal, KPMG, were in attendance to present their 2023 Audited Financial Statement. M. Betik presented the audit highlights and responded to questions from the Committee. Margaret Johnston left the meeting at this time. On motion by Councillor S. Davey it was resolved: "That the 2023 Audited Consolidated Financial Statements of the Corporation of the City of Kitchener be approved, as outlined in Financial Services Department report FIN-2024-300." Carried 5. Information Items 5.1 None. 6. Adjournment On motion, this meeting adjourned at 12:11 p.m. Mariah Blake Committee Coordinator 3