AUDIT COMMITTEE

 

MINUTES


February 19, 2016  –  River Valley Room

 

 

PRESENT

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

 

ABSENT

None

ALSO IN ATTENDANCE

B. Henderson, M. Walters
L. Cochrane, Acting City Manager
A. Giesbrecht, Deputy City Clerk
N. Rajan, Office of the City Clerk

 

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                                                                           2

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      3

5.          STATUS REPORT                                                                               3

6.          REPORTS                                                                                              4

6.1        Office of the City Auditor Recommendation

             Follow-Up Dashboard Report - As at February 4,

             2016                                                                                                         4

6.2        Administrative Update on Dashboard Report                             4

6.3        Coin Processing Audit                                                                       4

6.4        Administrative Response to the Coin Processing

             Audit Report                                                                                          5

6.5        Continuous Auditing: Corporate Procurement Card

             Controls                                                                                                  5

6.6        Administrative Response to the Continuous

             Auditing: Corporate Procurement Card Controls

             Audit Report                                                                                          6

6.7        Edmonton Transit System Bus and Light Rail

             Transit Review                                                                                      6

6.8        Administration Response - Edmonton Transit System

             Bus and Light Rail Transit Review                                                  6

6.9        Draft Policy on Enterprise Risk Management                              7

7.          PRIVATE REPORTS                                                                           8

7.1        External Auditors - Non-Audit Service Request                          8

8.          NOTICES OF MOTION AND MOTIONS WITHOUT CUSTOMARY

             NOTICE                                                                                                   9

9.          ADJOURNMENT                                                                                  9

 

 

 

 

Carried

Carried

See Minutes

 

See Minutes

None

None

None

None

None

 

 

 

Carried

Carried

Carried

 

Carried

 

Carried

 

 

Carried

 

Carried

 

Carried

Action

 

Carried

 

None

 

 

DECISION SUMMARY

ITEM

 

DECISION

1.

CALL TO ORDER AND RELATED BUSINESS

1.1

Call to Order

 

 

 

Mayor D. Iveson called the meeting to order at 1:32 p.m.

 

 

 

 

 

1.2

Adoption of Agenda

 

 

Moved B. Esslinger:

 

 

 

That the February 19, 2016, Audit Committee agenda be adopted with the following changes:

Additions:

·         6.9 Draft Policy on Enterprise Risk Management

·         7.1  External Auditors - Non-Audit Service Request - Private

(Sections 16 and 25 of the Freedom of Information and Protection of Privacy Act)

 

 

In Favour:

Carried

 

 

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

 

 

Absent:

 

 

 

D. Loken

 

1.3

Adoption of Minutes

 

 

Moved A. Knack:

 

 

 

That the following meeting minutes be adopted:

·         November 12, 2015, Audit Committee

·         January 20, 2016, Special Audit Committee

 

 

In Favour:

Carried

 

 

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

 

 

Absent:

 

 

 

D. Loken

 

1.4

Protocol Items

 

 

Welcome to the Guests from the State Audit Office of Vietnam
(D. Iveson)

 

 

 

Mayor D. Iveson, on behalf of Audit Committee, welcomed H. Tran and T. Dong, from the State Audit Office of Vietnam, visiting with the Office of the City Auditor to observe the City's audit practices and involves both intensive course and on-the-job training.  The visit is part of a fellowship program sponsored by the Canadian Comprehensive Auditing Foundation, which selected the City of Edmonton's Audit Office because of its outstanding performance and reputation. 

 

 

 

 

 

2.

ITEMS FOR DISCUSSION AND RELATED BUSINESS

2.1

Select Items for Debate

 

 

 

All items were selected for debate.

 

 

 

 

 

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.

 

 

 

 

 

3.

COUNCILLOR INQUIRIES

 

 

There were no Councillor Inquiries.

 

4.

REPORTS TO BE DEALT WITH AT A FUTURE MEETING - NONE

5.

STATUS REPORT - NONE

6.

REPORTS

6.1

Office of the City Auditor Recommendation Follow-Up Dashboard Report - As at February 4, 2016

 

 

 

Items 6.1 and 6.2 were dealt with together.

D. Wiun, City Auditor, made a presentation and answered the Committee's questions. L. Cochrane, Acting City Manager, answered the Committee's questions.

 

 

Moved D. Loken:

 

 

 

That the February 19, 2016, Office of the City Auditor report CR_3297, 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

 

6.2

Administrative Update on Dashboard Report

 

 

 

Items 6.1 and 6.2 were dealt with together.

 

 

Moved D. Loken:

 

 

 

That the February 19, 2016, Office of the City Manager report CR_3284, be received for information.

 

Office of the City Manager

 

 

 

In Favour:

Carried

 

 

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

 

6.3

Coin Processing Audit

 

 

 

Items 6.3 and 6.4 were dealt with together.

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

 

 

Moved B. Esslinger:

 

 

 

That the February 19, 2016, Office of the City Auditor report CR_3298, 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

 

6.4

Administrative Response to the Coin Processing Audit Report

 

 

 

Items 6.3 and 6.4 were dealt with together.

 

 

Moved B. Esslinger:

 

 

 

That the February 19, 2016, Financial Services and Utilities report CR_3345, 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

 

6.5

Continuous Auditing: Corporate Procurement Card Controls

 

 

 

Items 6.5 and 6.6 were dealt with together.

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

 

 

Moved A. Knack:

 

 

 

That the February 19, 2016, Office of the City Auditor report CR_3299, 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

Administrative Response to the Continuous Auditing: Corporate Procurement Card Controls Audit Report

 

 

 

Items 6.5 and 6.6 were dealt with together.

 

 

Moved A. Knack:

 

 

 

That the February 19, 2016, Financial Services and Utilities report CR_3329, 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

 

6.7

Edmonton Transit System Bus and Light Rail Transit Review

 

 

 

Items 6.7 and 6.8 were dealt with together.

D. Wiun, City Auditor, made a presentation and answered the Committee's questions. 

D. Wandzura, General Manager, and E. Robar, Transportation Services, made a presentation and answered the Committee's questions. L. Cochrane, Acting City Manager, answered the Committee's questions.

 

 

Moved A. Knack:

 

 

 

That the February 19, 2016, Office of the City Auditor report CR_3300, 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

Administration Response - Edmonton Transit System Bus and Light Rail Transit Review

 

 

 

Items 6.7 and 6.8 were dealt with together.

 

 

Moved A. Knack:

 

 

 

That the February 19, 2016, Transportation Services report CR_3305, be received for information.

 

Transportation Svcs.

 

 

 

In Favour:

Carried

 

 

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

 

 

6.9

Draft Policy on Enterprise Risk Management

 

 

 

J. Jennax, Financial Services and Utilities, made a presentation and answered the Committee's questions.
T. Burge, Chief Financial Officer and Treasurer, and
K. Baker, Financial Services and Utilities; and L. Cochrane, Acting City Manager, answered the Committee's questions.

 

 

Moved B. Esslinger:

 

 

 

That Audit Committee recommend to Council:

That the Enterprise Risk Management Policy C587, as set out in Attachment 1 of the February 19, 2016, Financial Services and Utilities report CR_2644, be approved.

 

 

In Favour:

Carried

 

 

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

 

 

Opposed:

 

 

 

M. Nickel

 

 

Moved D. Loken:

 

 

 

Implementation of Enterprise Risk Management Policy - Progress Report

That, subject to the Enterprise Risk Management Policy C587 being approved by Council, that  Administration provide a report before the end of fourth quarter 2016, and by the end of second quarter 2017, on the progress of the implementation of the practice of risk management.

 

Financial Svcs. and Utilities

Due by: Fourth Quarter 2016

Second Quarter 2017

 

 

In Favour:

Carried

 

 

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

 

 

Opposed:

 

 

 

M. Nickel

 

7.

PRIVATE REPORTS

7.1

External Auditors - Non-Audit Service Request

 

 

Moved B. Esslinger:

 

 

 

That the Committee meet in private pursuant to sections 16 and 25 of the Freedom of Information and Protection of Privacy Act.

 

 

In Favour:

Carried

 

 

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

 

 

 

The Committee met in private at 3:58 p.m.

 

 

Moved A. Knack:

 

 

 

That the Committee meet in public.

 

 

In Favour:

Carried

 

 

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

 

 

 

The Committee met in public at 4:01 p.m.

 

 

Moved B. Esslinger:

 

 

 

1.  That the request from KPMG LLP, external auditor for the City of Edmonton, to provide a proposal for consulting services, as outlined in Attachment 1 of the February 19, 2016, Financial Services and Utilities report CR_3397, be approved.

2.  That if, after the City’s evaluation process is complete, KPMG LLP is the preferred proponent, that KPMG LLP be approved to provide the consulting services as outlined in Attachment 2 of the February 19, 2016, Financial Services and Utilities report CR_3397.

3.  That the February 19, 2016, Financial Services and Utilities report CR_3397 remain private pursuant to sections 16 and 25 of the Freedom of Information and Protection of Privacy Act.

 

Financial Svcs. & Utilities

 

 

 

In Favour:

Carried

 

 

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

 

8.

NOTICES OF MOTION AND MOTIONS WITHOUT CUSTOMARY NOTICE

 

 

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

 

 

 

 

 

9.

ADJOURNMENT

 

 

The meeting adjourned at 4:03 p.m.

 

 

 

 

 

 

 

 

______________________                                   ______________________

Chair                                                                          City Clerk