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HomeMy WebLinkAboutJune 19, 2006 City 00 Audit Committee Meeting zip Minutes wca-m -titer Monday, June 19, 2006 Main Committee Room 4:00 PM PRESENT: Mayor David Ryan, Chair COMMITTEE MEMBERS: Councillor Ashe Councillor Brenner Councillor McLean ALSO PRESENT: T. J. Quinn - Chief Administrative Officer G. Paterson - Director, Corporate Services & Treasurer D. Bentley - City Clerk K. Senior - Manager, Accounting Services J. Halsall - Manager, Internal Audit & Control B. Wilson - Recording Secretary GUESTS: P. Jesty, Deloitte & Touche P. Colavecchio, Deloitte & Touche (I) ADOPTION OF MINUTES Moved by Councillor Brenner • That the minutes of the meeting held on Tuesday, February 7, 2006 be adopted. • CARRIED Moved by Councillor McLean • That the Audit Committee move into a closed meeting of Committee in order to discuss a matter that is subject to solicitor-client privilege, including communications necessary for that purpose. CARRIED - 1 - • o? Audit Committee Meeting 1.1- -1 Minutes NV Monday, June 19, 2006 Main Committee Room 4:00 PM (II) MATTERS FOR CONSIDERATION • 1. Director, Corporate Services & Treasurer Report CS 37-06 2005 Year End Audit P. Jesty, Deloitte & Touche provided a detailed overview of the Confidential Auditor's Report to the Audit Committee. A question and answer period ensued. A copy of the Auditor's Report dated June 13, 2006 was provided under separate cover. Based on the discussion, Mayor Ryan requested that the Director, Corporate Services & Treasurer look into the matter of assigning timelines (business workplan) to matters noted within the Confidential Audit report. Moved by Councillor McLean That the Committee rise from the `In Camera' discussion. CARRIED Moved by Councillor McLean 1. That Report CS 37-06 of the Director, Corporate Services & Treasurer be received and referred to Council for information; 2. That the Auditor's Report to the Audit Committee as submitted by Deloitte & Touche be received for information; 3. That the Management Letter from the Auditor be referred to the Director, Corporate Services & Treasurer for any further action deemed necessary and report back to the Committee; and, 4. That the 2005 draft Audited Financial Statements for the City of Pickering be received and forwarded to Council for Information. CARRIED - 2 - C`,/ 00 Audit Committee Meeting Minutes Monday, June 19, 2006 Main Committee Room 4:00 PM 2. 2005 Financial Information Return A copy of the 2005 Financial Information Return was provided as a handout to all members present. Brief discussion ensued on this matter. Based on the discussion, the Director, Corporate Services & Treasurer noted that the 2005 Financial Information Return (FIR) was not available on the City's website, however, once it had been reviewed by the Ministry of Municipal Affairs; the Ministry posted all municipalities FIR's on their website. He further noted that a copy of the 2005 Financial Information Return was available upon request. Moved by Councillor Brenner That the 2005 Financial Information Return dated June 19, 2006 be received and forwarded to Council for Information. CARRIED 3. Director, Corporate Services & Treasurer, Report CS 35-06 Internal Audit Workplan 2006-2008 The Director, Corporate Services & Treasurer briefly outlined the contents of Report CS 35-06. A question and answer period ensued. The Manager, Internal Audit & Control noted that although a three year plan of audit priorities was provided, it would be reviewed and presented annually to the Audit Committee. The Chief Administrative Officer outlined the role of the Internal Auditor and discussions held in determining the priorities of the Manager, Internal Audit & Control. In response to questions, he noted that it was his desire to have an operational audit completed sooner rather than later, and he would work with the Director, Corporate Services & Treasurer, along with the Manager, Internal Audit & Control in pursuing this. Moved by Councillor Ashe That Report CS 35-06 of the Director,.Corporate Services & Treasurer be received for information. CARRIED - 3 - e`tg °i' = Audit Committee Meeting Minutes [ ! OE Monday, June 19, 2006 Main Committee Room 4:00 PM 4. Capital Asset Reporting The Director, Corporate Services & Treasurer, provided a brief overview of the proposed new Provincial requirements for Capital Asset Reporting. He noted that this initiative had been in the discussion stage for many years and was now slated to be implemented by the year 2009. In addition he explained that this would require a significant budget increase for new software and additional manpower. He noted that at present there was no software identified and further, several other municipalities were trying to identify suitable software, with no results to date. He concluded that there are many concerns in terms of budget and value gained in regard to implementation and that further investigation would be required with updates to follow. In summary, the Chief Administrative Officer stated that he had significant concerns with the new Provincial reporting requirements and his concerns are shared by many other municipalities. He further stated that before any systems are implemented, the impact on all areas of business must be identified. He also express concern with respect to a significant increase to future budgets with no evidence that municipalities would receive additional value. He concluded by stating that the whole matter is still not finalized and that the City of Pickering, together with other municipalities are committed to extensive research/dialogue before any budget increases are made. Moved by Councillor Brenner That the verbal report of the Director, Corporate Services & Treasurer with respect to Capital Asset Reporting be received. CARRIED III) OTHER BUSINESS There were not items of Other Business presented. - 4 - cat/ 00 Audit Committee Meeting Minutes 11�� aill Monday, June 19, 2006 Main Committee Room 4:00 PM IV) ADJOURNMENT The meeting adjourned at 4:45 pm Following the Audit Committee meeting, Committee members briefly met informally with the representatives of Deloitte & Touche for the purpose of confidential discussion relating to the reports as presented. No staff were present during this discussion. • - 5 -