M I N U T E S ASC-2004-3
The Audit Subcommittee met on May 13, 2004, at 8:30 a.m. in the Council Chambers, Regional Administrative Headquarters, 10 Peel Centre Dr., Brampton.
|Members Present:||E. Kolb, G. Miles*, R. Paterak, N. Stewart|
|Members Absent:||N. Iannicca|
Councillor P. Mullin, R. Maloney, Chief Administrative Officer, D. Labrecque, Treasurer and Commissioner of Finance; M. Zamojc, Commissioner of Public Works; L. Hawes, Director, Internal Audit; S. Hewitt, Director of Finance, Public Works; I. Murray, Engagement Partner, KPMG; K. Travers, Audit Senior Manager, KPMG; J. Payne, Legislative Coordinator
Chaired by Regional Chair E. Kolb
1. DECLARATIONS OF CONFLICTS OF INTEREST
2. APPROVAL OF AGENDA
That the agenda for the May 13, 2004 Audit Subcommittee meeting be approved.
Item 4a was dealt with.
4. IN CAMERA MATTERS
The Subcommittee moved In Camera to consider a matter relating to:
a) The security of the property of the municipality or local board.
Councillor Miles arrived at 8:37 a.m.
Subcommittee moved out of In Camera.
a) Presentation on the External Audit 2003 Management Letter (Oral)
Presentation by Roger Maloney, Chief Administrative Officer; Larry Hawes, Director, Internal Audit; Mitch Zamojc, Commissioner of Public Works and Ian Murray, Engagement Partner, KPMG
Councillor Paterak asked why it was preferable for pre-engineering and pre-planning studies to be conducted through a holding account as apposed to a budgeted line item. Mitch Zamojc, Commissioner of Public Works, explained that the holding account approach was developed in response to the number of projects being worked on in the early stage and the complexity of determining cost estimates for the pre-work and taking those estimates through the budget process. This approach also facilitated new projects that came on board from the area municipalities mid year, allowing for pre-work and pre-engineering so the project could be advanced to meet the area municipality's timeline.
Councillor Paterak inquired if Council or the Audit Subcommittee receives a complete list of projects being serviced by these holding accounts. Mitch Zamojc replied that a report specific to the holding accounts is not brought forward but the projects being considered will appear in next year's capital budget books. Mitch Zamojc stated that if it was the wish of the Audit Subcommittee or Council, a report detailing pre-work could be brought forward. Councillor Paterak noted that a report on the holding accounts would provide necessary supporting information and ensure advance notice of project pre-planning and pre-engineering is provided to Council.
Councillor Stewart noted that the size of the capital projects for this year will be a test of the changes that we are implementing as a result of the External Audit findings. She inquired if there was action that Council could take to ensure Public Works projects flow more smoothly, recognizing that the work of this department is seasonal and places significant reporting pressures on staff. She further requested that if there were any recommendations to improve the process they should be reported to Council. Mitch Zamojc indicated that the holding account approach had been a response to the pressures faced, allowing Public Works to get pre-design work done in the fall and thus enabling projects to be put out to tender as soon as the capital budget is approved. This approach can continue to be used, said Mitch Zamojc, but suggested that the holding account be managed differently through the operating side.
Councillor Stewart stated that we do not want to limit the amount of business Public Works can do just because of accounting practices, we need a solution that will meet the needs of Public Works and address the concerns of the External Auditors.
Roger Maloney, Chief Administrative Officer, added that another solution to dealing with these pressures has been to have capital projects brought forward for pre-approval during the budget process so that the tendering process can be advanced as soon as possible.
Chair Kolb indicated that the processes in place at the Region have worked very well, allowing Council and staff to work together to find solutions in the most effective and efficient means possible. The system must address the concerns raised by the External Auditors and provide a full accounting of all funds spent.
b) Internal Audit Awareness Day (Oral)
Presentation by Larry Hawes, Director, Internal Audit
Larry Hawes, the Director of Internal Audit, briefly summarized the activities organized by Internal Audit to highlight Audit Awareness week as declared by the Institute of Internal Auditors.
4. IN CAMERA MATTERS
a) The security of the property of the municipality or local board
This item was dealt with earlier in the meeting
a) Financial Control By-law Update
Presentation by Norma Trim, Director, Corporate Finance and Jennifer Weinman, Supervisor, Business Planning Projects, Corporate Finance
Referred to the May 13, 2004 Regional Council meeting
7. SCHEDULE OF FUTURE MEETINGS
a) Internal Audits in Progress (Oral)
Remarks provided by Larry Hawes, Director, Internal Audit
8. OTHER BUSINESS
The meeting adjourned at 9:20 a.m.