HomeMy WebLinkAboutFIN-2024-450 - Q24-122 Audit Services
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: October 7, 2024
SUBMITTED BY: Ryan Scott, Chief Procurement Officer, 519-741-2200 ext. 7214
PREPARED BY: Jenny Ung, Procurement Specialist, 519-741-2200 ext. 7216
WARD(S) INVOLVED: N/A
DATE OF REPORT: September 16, 2024
REPORT NO.: FIN-2024-450
SUBJECT: Q24-122 Audit Services
RECOMMENDATION:
That Quotation Q24-122 Audit Services, be awarded to KPMG LLP, Kitchener, ON, at their
estimated fee of $589,300 plus HST of $76,609 for a total of $665,909 for a three (3) year
term with an option to renew for two (2) additional one (1) year terms beginning with the
fiscal year ending December 31, 2024, for the Corporation of the City of Kitchener, its
Boards and Municipal Enterprises including the Waterloo Region Municipalities
Insurance Pool with the fiscal year ending May 31, 2025, and further;
That Chapter 103 of
Upon the recommendation of the Chief Financial Officer, Council may consider a by-law
amendment to ex
appropriate time.
BACKGROUND:
In accordance with City Policy GOV-BOA-066 Audit Committee Terms of Reference; delegated
authority to approve and appoint an external auditor falls within the responsibility of the Audit
Committee.
The Audit Committee is a sub-committee of the Finance & Corporate Services Standing
Committee which deal with detailed matters relating to: corporate financial statements; the audit
process, general oversight of financial controls/reporting; compliance with financial
regulations/policies; and, risk management. The external auditor appointed reports directly to
the Audit Committee.
Under Section 296(3) of the Municipal Act, an auditor shall not be appointed for a term exceeding
five years. The Audit Committee appointed KPMG for the period of 2019-2023 and they have
now completed their five (5) year term and an auditor needs to be appointed for the next term.
REPORT:
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Quotations were advertised publicly onthe City of Kitchener website. Documents were
downloaded by four (4) interested parties and by the closing date of Friday August 23, 2024, two
(2) quotations had been received.
The following quotations were received:
Grant Thornton LLP Toronto ON
KPMG LLP Kitchener ON *
All submissions were reviewed and rated by the selection committee, comprised of: Mayor B.
Vrbanovic, Chair, Audit Committee, Councillor S. Davey, Chair, Finance and Corporate Services
Committee, J. Lautenbach, Chief Financial Officer, K. Fischer, Director of Financial Reporting &
ERP Solutions, and C. Tasker, Internal Auditor.
The selection committee rated the quotation submissions on the following criteria:
Company Profile and Qualifications
Technical Experience and Understanding
Methodology
Scheduling
Value-Added Services
Cost of Fees
The selection committee recommends awarding the project to KPMG LLP, Kitchener, Ontario.
STRATEGIC PLAN ALIGNMENT:
The recommendation of this report supports the
through the delivery of core services.
FINANCIAL IMPLICATIONS:
The total 2024 audit fee is $31,400 higher than the 2023 audit fee and increases by an
inflationary amount each year (3.5%). Staff note that recent changes in auditing and accounting
standards have contributed to an increase in the extent and complexity of work required for these
account codes.
The City of -year contract term. The
remainder is funded directly by the individual boards (Belmont Improvement Area Board of
Management, Kitchener Downtown Improvement Area Board, Kitchener Public Library Board,
the Centre in the Square Inc.) and the Waterloo Region Municipalities Insurance Pool. In addition
Kitchener Housing Inc., Kitchener Non-Profit
Property Management Inc., which will be approved by their Board and the Municipal
Accommodation Tax Review which will be approved by and shared with local area municipalities.
COMMUNITY ENGAGEMENT:
INFORM
council / committee meeting.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department