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HomeMy WebLinkAboutFIN 16-25Report to Executive Committee Report Number: FIN 16-25 Date: October 6, 2025 From: Stan Karwowski Director, Finance & Treasurer Subject: 2025 Audit Service Plan - File: F-3300-001 Recommendation: 1. That the 2025 Audit Service Plan as submitted by Deloitte LLP, set out in Attachment 1 to this report, be received. 2. That the Chief Administrative Officer and the Director, Finance & Treasurer be authorized to sign the Engagement Letter, set out in Attachment 2 to this report, on behalf of the City. 3. That Deloitte LLP be appointed in 2025 for the audit of the Municipal Service Corporation, Destination Pickering. Executive Summary: The purpose of this report is to present the 2025 Audit Service Plan and authorize the Chief Administrative Officer and the Director, Finance & Treasurer to sign the Engagement letter on behalf of the City. In accordance with generally accepted auditing standards, the 2025 Audit Service Plan is prepared to communicate the auditor’s approach and reporting responsibilities to the Executive Committee, who has oversight responsibility for the financial reporting process. This plan is submitted at the commencement of the year end audit. Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Corporate Key: Good Governance/Customer Service Excellence. Financial Implications: The base audit fee for City and Library is estimated at $99,650. Sufficient provision is available in the 2025 Budget. Discussion: The purpose of this report is to present the 2025 Audit Service Plan and authorize the Chief Administrative Officer and the Director, Finance & Treasurer to sign the Engagement letter on behalf of the City. In the Committee’s role as the body responsible for oversight of the financial reporting process, it must review the Audit Service Plan for the 2025 year end audit. The Audit Service Plan includes the scope of the audit services to be provided, FIN 16-25 October 6, 2025 Page 2 the auditor’s reporting responsibilities and an outline of the audit approach. It is included as Attachment 1 to this report. The recommendation to the reappointed Deloitte LLP as the City’s external auditors for a period of three years from and including the audits for 2025 to 2027 reflected in Report 15-25 of the October 6, 2025, Executive Committee Meeting Agenda. Deloitte LLP requires an annual Engagement Letter to be executed at the start of the audit which summarizes the services they will provide, their responsibilities, management’s responsibilities, and the estimate of the audit fees. The Engagement Letter is included as Attachment 2 to this report. The City of Pickering began collection Municipal Accommodation Tax (MAT) in June 2025, and the collection of MAT is shared with Destination Pickering. Destination Pickering requires a separate audit and financial statements for year-end 2025 for the newly created corporation. Destination Pickering was established under the Ontario Not-for-Profit Corporation Act, 2010 through Council Resolution #666/25. The purpose of Destination Pickering is to establish and promote tourism and economic development within the City of Pickering. Deloitte is already a trusted external audit service provider and has extensive knowledge and experience with the City of Pickering. The Treasurer will be recommending to the Destination Pickering Board that Deloitte LLP be appointed to undertake their audit. Destination Pickering will be financially responsible for paying their audit fee. Attachments: 1. 2025 Audit Service Plan 2.Engagement Letter Prepared By: Approved/Endorsed By: Susan Marsh Stan Karwowski Senior Accounting Analyst, Internal Audit Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original Signed By:Original Signed By: Original Signed By: Deloitte Audit Service Plan for the Corporation of the City of Pickering FOR THE YEAR ENDING DECEMBER 31, 2025 ,----..... MAKINGAN \ IMPACTTHAT \ MATIERS ., ·--t-c-.-<{1-j....__ Attachment 1 to Report FIN 16-25 Attachment 2 to Report FIN 16-25