HomeMy WebLinkAboutFIN-09-065 - Request for Proposal - External Auditor
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KrTCHENER
Financial Services
REPORT TO:
DATE OF MEETING:
SUBMITTED BY:
PREPARED BY:
WARD(S) INVOLVED:
DATE OF REPORT:
REPORT NO.:
SUBJECT:
Mayor C Zehr, Chair, and Members of
the Audit Committee
June 29, 2009
Dan Chapman, General Manager of Financial Services & City
Treasurer
Rosemary Upfold, Director of Accounting
N/A
June 17, 2009
FIN-09-065
EXTERNAL AUDIT SERVICES
RECOMMENDATION: That staff be directed to report to the Finance and Corporate Services
Committee on Monday August 10th, 2009 with a recommendation for the appointment of the
Auditor for fiscal years 2009 through 2014.
BACKGROUND: The Audit Committee appointed KPMG as the City of Kitchener's external
auditors in December 2003 for fiscal years 2004 through 2008. Under section 296(3) of the
Municipal Act, 2001, a municipality cannot appoint an auditor for a term exceeding five years.
KPMG 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 was issued on May 12th,
2009. The RFP included audit services for the Corporation of the City of Kitchener, its Boards
and Municipal Enterprises, the Waterloo Region Municipalities Insurance Pool, Kitchener
Housing Inc. and Kitchener Non Profit Property Management Inc. The closing date for
submissions was June 9th, 2009. Three proposals were received:
· KPMG LLP
· Deloitte & Touche LLP
· Grant Thornton LLP
All three firms have been asked to make a presentation to the City's Auditor Selection
Committee on the morning of Monday June 29th. The Selection Committee consists 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 selection of the successful firm, a staff report will be submitted to Finance and Corporate
Services Committee on Monday August 10th, 2009 to recommend the award of audit services.
Normally the Audit Committee would appoint the auditor however, the next Audit Committee is
not until the fall. In order that an auditor may be selected and interim audit work may proceed,
staff are looking for direction from the Audit Committee to report instead to the Finance and
Corporate Services Committee on Monday August 10th, 2009 with a recommendation for the
appointment of the Auditor for fiscal years 2009 through 2014.
FINANCIAL IMPLICATIONS:
None
ACKNOWLEDGED BY:
Dan Chapman, General Manager of Financial Services & City
Treasurer