HomeMy WebLinkAboutFebruary 12, 2007
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Audit Committee Meeting
Minutes
Monday, February 12, 2007
Main Committee Room
4:30 PM
PRESENT:
Mayor David Ryan
Councillor Dickerson
Councillor McLean
Councillor O'Connell
ALSO PRESENT:
G. Paterson
J. Halsall
K. Senior
D. Shields
A. Payne
- Director, Corporate Services & Treasurer
- Manager, Internal Audit & Control
- Manager, Accounting Services
- Deputy Clerk
- Audit Analyst
GUESTS:
P. Jesty, Deloitte & Touche
P. Colavecchio, Deloitte & Touche
(I) ELECTION OF CHAIR
Moved by Councillor Dickerson
That Councillor McLean be appointed as Chair of the Audit Committee.
CARRIED
(II) ADOPTION OF MINUTES
Moved by Mayor Ryan
That the minutes of the meeting held on Tuesday, October 3,2006 be adopted.
CARRIED
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Audit Committee Meeting
Minutes
Monday, February 12, 2007
Main Committee Room
4:30 PM
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(III) PRESENTATIONS
1. Audit Plan for Year Endinq December 31. 2006
An overview of the Audit Plan for the Year Ending December 31,2006 was given
by Paula Colavecchio of Deloitte & Touche. Ms. Colavecchio indicated that the
financial reporting responsibilities of Deloitte & Touche are as follows:
Perform a cost-effective audit in accordance with Canadian generally
accepted auditing standards
_ Assess accounting principles and financial statement disclosures
Review key management control systems and processes and assess
audit risk
Report opportunities for improvements in control processes
Express an opinion on the fairness of presentation of the financial statements
Provide industry expertise to support the risk-basked audit approach
Ms. Jesty noted that reviewing various reports and making opinions from those
reports complete these actions. She also noted that if, during the course of an
audit, observations are made with regard to the following they would bring it to
the City's attention:
Significant weaknesses in internal control relating to the preparation of the
financial statements.
Illegal acts
Non-compliance with regulatory requirements
Significant transactions inconsistent with the ordinary course of business,
including fraud or possible fraud
New significant accounting principles or policies and other related items
Ms. Jesty noted that the rules of professional conduct requires that Deloitte and
Touche maintain an Independent relationship with the City of Pickering and
confirm that they continue to be independent under the Rules of Professional
Conduct of the Institute of Chartered Accountants of Ontario.
Discussion ensued with respect to the role and need of an Audit Committee.
Based on the discussion, the Director, Corporate Services & Treasurer was
Requested to provide information on how the Audit Committee was formed.
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Audit Committee Meeting
Minutes
Monday, February 12, 2007
Main Committee Room
4:30 PM
Moved by Mayor Ryan
That the presentation from with respect to the Audit Plan for Year Ending
December 31,2006 be received.
CARRIED
2. Role of Internal Audit
James Halsall, Manager, Internal Audit & Control provided a powerpoint
presentation on the role of the Internal Auditor. Mr. Halsall noted that like the
External Auditor the Internal Auditor also needed to be independent. He stated
that the objective of the internal audit function was to work co-operatively with
management and staff to improve the economy, efficiency, and effectiveness of
risk management, control and governance processes. He stated that he reports
directly to the Director, Corporate Services & Treasurer and where necessary
reports directly to the Audit Committee and/or Chief Administrative Officer. Mr.
Halsall noted that the Internal Audit function would follow the Standards for the
Professional Practice of Internal Audit and the Code of Ethics adopted by the
Institute of Internal Auditors.
Questions ensued with respect to the internal audit and corresponding workplan.
The Director, Corporate Services & Treasurer stated that Internal Audits have
been noted on a three-year work plan and once the exercise was completed it
would be presented to the Audit Committee.
Based on the discussion, it was requested that the Audit Committee see updates
on the work plan, specifically where we are in the plan and what we've done to
date. Mr. Paterson stated that he could supply that information for the next
meeting.
Moved by Councillor O'Connell
That the presentation of the Role of Internal Audit be received.
CARRIED
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Audit Committee Meeting
Minutes
Monday, February 12, 2007
Main Committee Room
4:30 PM
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3. Discussion re Audit Committee
This matter was discussed earlier in the meeting.
(IV) OTHER BUSINESS
1. Letter from Ministry of Municipal Affairs and Housing
Advisinq Mav 31.2006 Filinq Requirements
Moved by Mayor Ryan
That the letter from Ministry of Municipal Affairs and Housing advising of
the May 31, 2006 filing requirements be received.
CARRIED
2. Discussion ensued with Audit Committee members and the Auditors with
respect to the reporting relationship of the Internal Auditor, specifically If
the Internal Auditor should report directly to the Chief Administrative
Officer instead of the Director, Corporate Services/Treasurer when
completing audits on the Corporate Services Department - Finance
Division.
Moved by Mayor Ryan
That a letter of direction regarding the reporting process for audits within
the Finance Department be sent to the Chief Administrative Officer.
CARRIED
(V) ADJOURNMENT
The meeting adjourned at 6:40 pm.
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