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HomeMy WebLinkAboutCS 18/01 - 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: - 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: - "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 - 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. .~. 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 - Recommended for the consideration of Pickering City Council . 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 - Copy: Councillor Maurice Brenner, Chair, Audit Committee Thomas J. Quinn, Chief Administrative Officer