HomeMy WebLinkAboutFIN-09-104 - P09-051 - Audit Services
REPORT
REPORT TO:
Councillor B. Vrbanovic, Chair, and Members of
the Finance and Corporate Services Committee
DATE OF MEETING:
August 10, 2009
SUBMITTED BY:
Dan Chapman, General Manager of Financial Services & City
Treasurer
PREPARED BY:
Larry Gordon, Chief Purchasing Officer (2214)
Rosemary Upfold, Director of Accounting (2353)
WARD(S) INVOLVED:
All
DATE OF REPORT:
August 4, 2009
REPORT NO.: FIN-09-104
SUBJECT:
P09-051- AUDIT SERVICES
RECOMMENDATION:
That proposal P09-051, Audit Services, be awarded to KPMG LLP, Waterloo at their proposed
price of $769,260 plus applicable taxes, for a term of five years for the fiscal periods 2009
through 2013; and further,
That section 1.1 of Chapter 103 (Auditor) of the City’s Municipal Code be amended to effect the
appointment of KPMG LLP as the City’s Auditor.
BACKGROUND:
Under section 296(3) of the Municipal Act, 2001, a municipality cannot appoint an auditor for a
term exceeding five years. KPMG LLP has now completed their five year term and an auditor
needs to be appointed for the next five year term.
REPORT:
A Request for Proposal (RFP) for Audit Services P09-051 for the City of Kitchener, its Boards
and Enterprises, the Waterloo Region Municipalities Insurance Pool and Kitchener Housing Inc
and Kitchener Non-Profit Property Management Inc. was issued in May, 2009. The proposal did
not include Kitchener Wilmot Hydro, as their auditors have already been appointed for the next
five year period.
Proposals were requested from five known audit firms, as well as advertised publicly in The
Record, on the City of Kitchener website and the Internet through the Ontario Public Buyers
Electronic Tendering Information System. Six (6) firms downloaded proposal documents, and
th
by the closing date of Tuesday June 9, 2009, three (3) proposals had been received.
ïí ó ï
Proposals were received from KPMG LLP, Deloitte & Touche LLP and Grant Thornton LLP.
All three firms made a presentation to a selection committee comprised of the Chair of the Audit
Committee, the Chair of the Finance and Corporate Services Committee, the CAO, the General
Manager of Financial Services, the Director of Accounting, the Internal Auditor and the Chief
Purchasing Officer.
Selection criteria include:
Firm’s technical approach and experience in municipal audits as well as audits for
gasworks, the insurance industry, non- profits and library boards
Experience and qualifications of engagement team
Proposal quality and it’s responsiveness to City requirements
Understanding of scope of engagement
Presentation/Interview impact
Cost of services
References
Upon evaluation of all three proposals, the committee elected to award the proposal to KPMG
LLP and recommend the appointment of KPMG LLP as the Auditors for fiscal years 2009
through 2013.
Legal will submit to Council a by-law to amend Chapter 103 of the City of Kitchener Municipal
Code for the appointment of the Auditors.
FINANCIAL IMPLICATIONS:
Funding for the City’s audit fees will be provided from various operating account codes. The
total 2009 audit fee is 3.2% lower than the total fee for 2008 and increases by an inflationary
amount each year.
ACKNOWLEDGED BY:
Dan Chapman, General Manager of Financial Services & City
Treasurer
ïí ó î