M I N U T E S ASC-2010-2
The Audit Committee met on Thursday, May 13, 2010, at 8:37 a.m. in the Council Chamber, Regional Administrative Headquarters, 10 Peel Centre Drive, Brampton.
|E. Kolb, C. Corbasson, G. Miles*, A. Thompson, R. Whitehead*|
|D. Szwarc, Chief Administrative Officer; N. Trim, Chief Financial Officer and Commissioner of Corporate Services; P. Wallis, Director, Internal Audit; D. Bingham, Treasurer and Director, Corporate Finance; M. Hynes, Manager, Accounting Services; M. Grey, Supervisor, Analytical Support; C. Reid, Regional Clerk; H. West, Committee Clerk|
* See text for arrivals
¨See text for departures
Councillor Corbasson presided.
1. DECLARATIONS OF CONFLICT OF INTEREST - Nil
2. APPROVAL OF AGENDA
That the agenda for the May 13, 2010, Audit Committee meeting be approved.
a) Norma Trim, Chief Financial Officer and Commissioner of Corporate Services; Dave Bingham, Treasurer and Director of Corporate Finance; Monique Hynes, Manager of Accounting Services; and Mike Grey, Supervisor of Analytical Support, Region of Peel, Presenting the Government Finance Officers Association (GFOA) Canadian Award Recognizing Excellence in Governmental Accounting and Financial Reporting for the Regional Municipality of Peel 2008 Annual Financial Report
Norma Trim, Chief Financial Officer and Commissioner of Corporate Services announced that the Region of Peel has been presented with the GFOA Canadian award for excellence in accounting and financial reporting. She noted that this is the eighth consecutive year that the Region of Peel has received the award. Norma Trim and members of the Audit Committee presented the GFOA Canadian award plaque to Monique Hynes, Manager of Accounting Services, Dave Bingham, Treasurer and Director of Corporate Finance.Councillor Whitehead arrived at 8:43 a.m.
a) Region of Peel 2009 Audited and Consolidated Financial StatementsDave Bingham, Treasurer and Director of Corporate Finance provided an overview of the 2009 Region of Peel Financial Statements. Dave Bingham stated that there are significant changes in the municipal financial reporting which has been legislated by the Province. The 2009 financial report reflects Tangible Capital Asset (TCA) accounting which identifies TCA amortization and historic cost replacement to capital reserves. Dave Bingham provided examples of the TCA impact on Statement of Operations and on the Statement of Financial Position.
Presentation by Dave Bingham, Treasurer and Director of Corporate Finance, Region of Peel. (A copy of the power point presentation is available in the office of the Regional Clerk)
Regional Chair Kolb enquired if audits were conducted to determine if leased cars should be purchased. Dave Bingham responded that Fleet Services reviews whether or not it is better to lease a car or purchase it outright. Dave Bingham undertook to follow up with Fleet Services to investigate the matter further.
Regional Chair Kolb raised concern that development charges are removed from the Statement of Operations. He enquired how the correct financial amount for capital reserves will be determined if the debt is taken out of the Statement of Operations. Dave Bingham responded that the debt is placed as a liability on the Statement of Financial Position or a balance sheet.
Councillor Thompson enquired if the new financial reporting system will enable Regional Council to have a better understanding of the requirement of reserve contributions for the future. Dave Bingham responded that the TCA removes the capital asset from the operations statement and captures it on the balance sheet which shows the historic cost and amortization of the asset. The Corporate Asset Management (CAM) program reviews when a replacement of the capital asset is required and estimates the cost associated with the replacement. Dave Bingham noted that CAM currently identifies the Region of Peel capital replacement cost of over 14 billion dollars where the TCA accounting identifies 10 billion dollars in the historic purchase price.
Members of the Audit Committee raised concern on how the new financial process will be communicated to Members of Council and how the capital reserve program will be implemented in future budgets. Norma Trim, Chief Financial Officer and Commissioner of Corporate Services responded that Members of Council will receive further information regarding CAM and TCA for budget purposes.
Councillor Miles arrived at 9:07 a.m.
b) Peel Housing Corporation Audited 2009 Financial Statements
Receivedc) 2009 KPMG Audit Findings Report
Presentation by Kevin Travers, Associate Partner and Anna Chan, Manager of Audit, KPMG
5. COMMUNICATIONS - Nil
6. IN CAMERA MATTERS - Nil
7. OTHER BUSINESS - Nil
8. NEXT MEETING
The next meeting of the Audit Committee is scheduled for May 27, 2010 at 8:30 a.m., Regional Administrative Headquarters, Council Chamber, 5th floor, 10 Peel Centre Drive, Suite A, Brampton, ON.
Please forward regrets to Helena West, Legislative Specialist, (905) 791-7800, extension 44697 or email@example.com.
The meeting adjourned at 9:21 a.m.