AUDIT COMMITTEE

MINUTES

February 11, 2015 – River Valley Room

PRESENT

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel, R. Bhatia, M. Persson

ABSENT

None

ALSO IN ATTENDANCE

B. Anderson
S. Farbrother, City Manager
M. Nathoo, Office of the City Clerk
N. Rajan, Office of the City Clerk

ITEM	PAGE	DECISION
TABLE OF CONTENTS
1. CALL TO ORDER AND RELATED BUSINESS 2 1.1 Call to Order 2 1.2 Adoption of Agenda 2 1.3 Adoption of Minutes 3 1.4 Protocol Items 3 2. ITEMS FOR DISCUSSION AND RELATED BUSINESS 3 2.1 Select Items for Debate 3 2.2 Requests to Speak 3 2.3 Requests for Specific Time on Agenda 3 3. COUNCILLOR INQUIRIES 3 4. REPORTS TO BE DEALT WITH AT A FUTURE MEETING REPORTS RE-ROUTED OR POSTPONED BY AGENDA REVIEW COMMITTEE 4 4.1 Actual Numbers and Costing for the Automated Photo Enforcement Program 4 5. STATUS REPORT 4 6. REPORTS 4 6.1 Neighbourhood Renewal Program Audit - Changes to Office of the City Auditor 2015 Annual Work Plan 4 6.2 Office of the City Auditor External Quality Assessment Review 4 6.3 South Edmonton Sanitary Sewer Installation Tender Review 5 6.4 Administration Response to South East Sanitary Sewer Installation Tender Review 5 6.5 Transportation Contributed Assets Review 5 6.6 Administration Update on the Transportation Contributed Assets Review 6 6.7 Community and Recreation Facilities Cash Controls Audit 6 6.8 Administrative Update on Community and Recreation Facilities Cash Controls Audit 7 6.9 2015 - 2019 External Audit Services - Request for Proposal Documents and Evaluation Template 7 6.10 Assessment of the External Auditor's Independence 7 7. RESPONSES TO COUNCILLOR INQUIRIES 8 8. PRIVATE REPORTS 8 6.9 2015 - 2019 External Audit Services - Request for Proposal Documents and Evaluation Template 8 9. NOTICES OF MOTION AND MOTIONS WITHOUT CUSTOMARY NOTICE 9 10. ADJOURNMENT 9	Carried Carried None See Minutes None None None None See minutes See Minutes None Carried Carried Carried Carried Carried Action Carried Carried Deleted Carried None Carried None

TABLE OF CONTENTS

ITEM

PAGE

DECISION

1. CALL TO ORDER AND RELATED BUSINESS 2

1.1 Call to Order 2

1.2 Adoption of Agenda 2

1.3 Adoption of Minutes 3

1.4 Protocol Items 3

2. ITEMS FOR DISCUSSION AND RELATED BUSINESS 3

2.1 Select Items for Debate 3

2.2 Requests to Speak 3

2.3 Requests for Specific Time on Agenda 3

3. COUNCILLOR INQUIRIES 3

4. REPORTS TO BE DEALT WITH AT A FUTURE MEETING

REPORTS RE-ROUTED OR POSTPONED BY AGENDA REVIEW

COMMITTEE 4

4.1 Actual Numbers and Costing for the Automated

Photo Enforcement Program 4

5. STATUS REPORT 4

6. REPORTS 4

6.1 Neighbourhood Renewal Program Audit - Changes to

Office of the City Auditor 2015 Annual Work Plan 4

6.2 Office of the City Auditor External Quality

Assessment Review 4

6.3 South Edmonton Sanitary Sewer Installation Tender

Review 5

6.4 Administration Response to South East Sanitary

Sewer Installation Tender Review 5

6.5 Transportation Contributed Assets Review 5

6.6 Administration Update on the Transportation

Contributed Assets Review 6

6.7 Community and Recreation Facilities Cash Controls

Audit 6

6.8 Administrative Update on Community and Recreation

Facilities Cash Controls Audit 7

6.9 2015 - 2019 External Audit Services - Request for

Proposal Documents and Evaluation Template 7

6.10 Assessment of the External Auditor's Independence 7

7. RESPONSES TO COUNCILLOR INQUIRIES 8

8. PRIVATE REPORTS 8

6.9 2015 - 2019 External Audit Services - Request for

Proposal Documents and Evaluation Template 8

9. NOTICES OF MOTION AND MOTIONS WITHOUT CUSTOMARY

NOTICE 9

10. ADJOURNMENT 9

Carried

None

See Minutes

None

See minutes

See Minutes

None

Carried

Action

Carried

Deleted

Carried

None

Carried

None

DECISION SUMMARY

ITEM

DECISION

CALL TO ORDER AND RELATED BUSINESS

1.1

Call to Order

Mayor D. Iveson called the meeting to order at 1:33 p.m.

1.2

Adoption of Agenda

Moved B. Esslinger:

That the February 11, 2015, Audit Committee agenda be adopted with the following changes:

Additons:

· 6.10 Assessment of the External Auditor's Independence

· 8.1 2015-2019 External Audit Services - Request for Proposal Documents and Evaluation Template – PRIVATE
(Sections 24 and 25 of the Freedom of Information and Protection of Privacy Act)

Deletion:

· 6.9 2015-2019 External Audit Services - Request for Proposal Documents and Evaluation Template

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia

Absent:

M. Persson

1.3

Adoption of Minutes

Moved A. Knack:

That the November 25, 2014, Audit Committee meeting minutes be adopted.

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia

Absent:

M. Persson

1.4

Protocol Items

There were no protocol items.

ITEMS FOR DISCUSSION AND RELATED BUSINESS

2.1

Select Items for Debate

The following items were selected for debate: 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 6.10 and 8.1.

2.2

Requests to Speak

There were no requests to speak.

2.3

Requests for Specific Time on Agenda

There were no requests for any items to be dealt with at a specific time.

COUNCILLOR INQUIRIES

There were no Councillor Inquiries.

REPORTS TO BE DEALT WITH AT A FUTURE MEETING – NONE
REPORTS RE-ROUTED OR POSTPONED BY AGENDA REVIEW COMMITTEE

Actual Numbers and Costing for the Automated Photo Enforcement Program

Postponed to: April 15, 2015

STATUS REPORT

REPORTS

6.1

Neighbourhood Renewal Program Audit - Changes to Office of the City Auditor 2015 Annual Work Plan

Moved B. Esslinger:

That the proposed changes to the Office of the City Auditor 2015 Annual Work Plan, as set out in the February 11, 2015, Office of the City Auditor report CR_1882, be approved.

Office of the City Auditor

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia

Absent:

M. Persson

6.2

Office of the City Auditor External Quality Assessment Review

Moved B. Esslinger:

That the process for selecting a consultant to undertake an External Quality Assessment Review of the Office of the City Auditor, as set out in the February 11, 2015, Office of the City Auditor report CR_2043, be approved.

Office of the City Auditor

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia

Absent:

M. Persson

6.3

South Edmonton Sanitary Sewer Installation Tender Review

Items 6.3 and 6.4 were dealt with together.

D. Wiun, City Auditor; D. Lajeunesse, Corporate Services; and C. Ward, Financial Services and Utilities, made presentations and answered the Committee's questions.

Moved A. Knack:

That the November 25, 2014, Office of the City Auditor report CR_1850, be received for information.

Office of the City Auditor

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia

Absent:

M. Persson

6.4

Administration Response to South East Sanitary Sewer Installation Tender Review

Items 6.3 and 6.4 were dealt with together.

Moved A. Knack:

That the November 25, 2014, Corporate Services report CR_1855, be received for information.

Corporate Svcs.

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia

Absent:

M. Persson

6.5

Transportation Contributed Assets Review

Items 6.5 and 6.6 were dealt with together.

D. Wiun, City Auditor; R. Toohey, Transportation Services; and N. Domijan, Sustainable Development, made presentations and answered the Committee's questions.
S. Farbrother, City Manager; D. Wandzura, General Manager, Transportation Services, and R. G. Klassen General Manager, Sustainable Development, answered the Committee's questions.

Moved A. Knack:

That the February 11, 2015, Office of the City Auditor report CR_2044, be received for information.

Office of the City Auditor

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia, M. Persson

6.6

Administration Update on the Transportation Contributed Assets Review

Items 6.5 and 6.6 were dealt with together.

Moved A. Knack:

That the February 11, 2015, Transportation Services report CR_2034, be received for information.

Transportation Svcs.

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia, M. Persson

Moved A. Knack:

Current Warranty Periods for Contributed Transportation Assets

That Audit Committee recommend to City Council:

That Administration provide a report to Transportation Committee on the appropriateness of current warranty periods for contributed transportation assets.

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia, M. Persson

6.7

Community and Recreation Facilities Cash Controls Audit

D. Wiun, City Auditor, made a presentation, and answered the Committee's questions. L. Cochrane, General Manager, and R. Smyth, Community Services; and T. Burge, Acting Chief Financial Officer and Treasurer, answered the Committee's questions.

Moved M. Nickel:

That the February 11, 2015, Office of the City Auditor report CR_2045, be received for information.

Office of the City Auditor

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia, M. Persson

6.8

Administrative Update on Community and Recreation Facilities Cash Controls Audit

Items 6.7 and 6.8 were dealt with together.

Moved M. Nickel:

That the February 11, 2015, Financial Services and Utilities report CR_2032, be received for information.

Financial Svcs. and Utilities

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia, M. Persson

6.9

2015 - 2019 External Audit Services - Request for Proposal Documents and Evaluation Template

Item 6.9 was deleted. Now item 8.1 (See item 1.2)

6.10

Assessment of the External Auditor's Independence

C. Engelking, Financial Services and Utilities, made a presentation and answered the Committee's questions.
M. Nathoo, Office of the City Clerk, answered the Committee's questions.

Moved R. Bhatia:

A Bylaw to Amend the Audit Committee Bylaw 16097

That Administration prepare for Council’s consideration, amendments to the Audit Committee Bylaw 16097, as outlined in Attachment 1 of the February 11, 2015, Financial Services and Utilities report CR_2027.

Corporate Svcs.

Due By:
May 12, 2015

City Council

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia, M. Persson

RESPONSES TO COUNCILLOR INQUIRIES - NONE

PRIVATE REPORTS

8.1

2015 - 2019 External Audit Services - Request for Proposal Documents and Evaluation Template

Committee met in private at 3:15 p.m., pursuant to sections 24 and 25 of the Freedom of Information and Protection of Privacy Act.

Committee met in public at 3:33 p.m.

Moved B. Esslinger:

1.That the Proposal Evaluation Plan, as set out in Attachment 1 or the February 11, 2015, Financial Services and Utilities report CR_2020, be approved.

2.That the procurement Guidelines for Conducting a Tender/RFP Evaluation process as set out in Attachment 2 of the February 11, 2015, Financial Services and Utilities report CR_2020, for purposes of the role on the Evaluation Committee for the external audit services Negotiated Request For Proposal, be adopted.

3.That the issue of Negotiated Request For Proposal documents, as outlined in Attachment 4 of the February 11, 2015, Financial Services and Utilities report CR_2020, be approved.

4. That the February 11, 2015 Financial Services and Utilities report CR_2020 remain private pursuant to sections 24 and 25 of the Freedom of Information and Protection of Privacy Act.

Financial Svcs. and Utilities

In Favour:

Carried

D. Iveson, B. Esslinger, A. Knack, D. Loken, M. Nickel,
R. Bhatia, M. Persson

NOTICES OF MOTION AND MOTIONS WITHOUT CUSTOMARY NOTICE

Mayor D. Iveson asked whether there were any Notices of Motion. There were none.

10.

ADJOURNMENT

The meeting adjourned at 3:35 p.m.

______________________ ______________________

Chair City Clerk