HomeMy WebLinkAboutCS 18/01
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REPORT TO COUNCIL
FROM:
Gillis A. Paterson
Director, Corporate Services & Treasurer
DATE: June 14, 2001
REPORT NUMBER: CS 18-01
SUBJECT: Audit Services - Request for Proposal
RECOMMENDATION:
It is recommended that Report CS 18-01 of the Director, Corporate Services & Treasurer be
received by Council and that:
1. a Request for Proposal (RFP) be called for Audit services for the City of Pickering, the Civic
Library, and the Transit Authority for the purpose of undertaking the annual audit and other
assignments for the fiscal years 2001 to 2005 inclusive; and,
2. the appropriate officials for the City of Pickering be given authority to give effect thereto.
ORIGIN:
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Director, Corporate Services & Treasurer
Report No. TR 10/97
AUTHORITY:
The Municipal Act, RSO 1990, as amended, Section 86 and any Regulations thereunder
FINANCIAL IMPLICATIONS:
Not applicable
EXECUTIVE SUMMARY:
Under the Municipal Act, Council must review the provision of Audit Services at least every five
years and appoint an Auditor for a period not to exceed five years. An RFP was called in 1995
and the current Auditor was appointed for a three year term, and reappointed in 1997 for a further
three year period ending with the 2000 audit. The attached correspondence is included for the
information of the Committee and Council.
BACKGROUND:
Section 86(1) states:
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"The council of every municipality shall by by-law appoint for a term of five years
or less one or more auditors who are licensed under the Public Accountancv Act.
and every person so appointed shall, in addition to his or her duties in respect of
the corporation, audit the accounts and transactions of every local board as
defined in the Municival Affairs Act. R.S.a. 1980, c. 302, s. 88(1); 1991, Vol. 2, c.
15, s. 3; 1997, c. 31, s. 155(1)."
Report to Council CS 18-01
Date: June 14,2001
Subject: Audit Services - Request for Proposal
Page 2
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The current auditor was appointed in 1995 and has been in place ever since. Much change has
taken place since that time, not only in the administration of the Finance Division, but in the
City's financial software, Provincial reporting requirements, including the Municipal
Performance Measurement Program (MPMP) in which expanded reporting requirements were
imposed upon municipalities to provide a basis for performance measurement and comparison
year over year and the requirements of the Public Sector Accounting and Auditing Board
(PSAAB) in which additional reporting requirements were imposed on public sector bodies,
including municipalities. Moreover, the seminars and training sessions held by Ministry staff
during 2000/2001 were somewhat less than helpful in regards to the foregoing. All of the
foregoing has put heavy demands upon the staff and management of the Finance Division and the
Auditor. In addition, many training and explanation seminars and courses are held by the
Ministry of Municipal Affairs and Municipal Associations over the course of any given year to
explain, answer questions and assist in implementation of provincial initiatives, all of which
must be attended by both staff and the auditor to keep current as possible on the ever-changing
environment.
First and foremost, under the Provincial Legislation it is time to review audit services in the City
of Pickering. Secondly, with the aforementioned changing environment for both staff and
auditors alike, it. is time for both parties to review all aspects of audit services to determine if
there are any changes that might come out as a result of such a review. Therefore, it is
recommended that an RFP be called for this service It is anticipated that the RFP will take place
over the months of August and September and a report will be forthcoming to the Audit
Committee in the fall with the appropriate recommendations to Council in time for the Interim
Audit which usually takes place in November of each year.
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As the City's Finance Division also provides Payroll and Accounting services, including
reporting and auditing for the Library Board and for the new Transit Authority, it is appropriate
and necessary that the RFP include all bodies. Should the Council at any time in the future at the
City of Pickering add any other Agencies, Boards, or Commissions then they would
automatically be included in the annual audit with the appropriate review of services and fees.
ATTACHMENTS;
1. Letter dated November 13, 2000 to Hurren, Flett, Sinclair Chartered Accountants
Prepared / Approved / Endorsed By;
~~A~----"
Gillis A. Paterson,
Director, Corporate Services & Treasurer
GAP;vw
Attachment
Copy; Thomas J. Quinn, Chief Administrative Officer
Linda Linton, Chief Executive Officer, Library
Ted Gallanis, General Manager, Transit Authority
Kristine Senior, Manager, Accounting Services
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Recommended for the consideration of Pickering
City Council
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CiUJ 0#
,4TTACHMEf\,I'T#J___TO REPORT # C5'fg~o;
Pickering Civic Complex
One The Esplanade
Pickering, Ontario
Canada
LlV 6K7
Direct Access (905) 420-4660
dtyofpickering.com
.JRPORATE SERVICES DEPARTMENT
Department (905) 420-4634
Facsimile (905) 420-5313
corpserv@city.pickering.on.ca
November 13,2000
Mr. Neil Sinclair
Hurren, Flett, Sinclair
Chartered Accountants
P.O. Box 458
Pickering, Ontario
Ll V 2R7
Dear Mr. Sinclair:
Re: Auditor - Term of Emplovment
I refer you to the attached copy of a letter from fuga Berry, temporary (Acting) Treasurer-
Collector, dated June 10, 1997. This letter refers to the Resolution of Council confirming your
- appointment for a three year period commencing October 1, 1997. Upon reading the report to
Council and the Council Resolution stemming from adoption of one of the Recommendations of
that report, it appeared to me that some clarification would be beneficial to both 'parties.
Specifically, the term of appointment could be, in my opinion, read to cover three calendar years
or three "audit" years (eg. September to April) depending on how one interprets it. In any event,
I wish to advise, that after consultation with the Chair of the Audit Committee, that the term of
your engagement includes the audit for the fiscal year 2000 for the City of Pickering. It is
anticipated that this matter will be addressed further in 2001.
Yours truly,
~~~
G.A. Paterson,
Director, Corporate Services & Treasurer
GAP/vw
Attachment
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Copy: Councillor Maurice Brenner, Chair, Audit Committee
Thomas J. Quinn, Chief Administrative Officer