THE REGIONAL MUNICIPALITY OF PEEL

AUDIT COMMITTEE

M I N U T E S    AC-2013-5


The Audit Committee met on Thursday, November 7, 2013, at 9:50 a.m. in the Council Chamber, Regional Administrative Headquarters, 10 Peel Centre Drive, Suite A, Brampton.

Members Present:
C. Fonseca*; E. Kolb*; J. Sanderson; A. Thompson; R. Whitehead
 
Members Absent:
R. Starr, due to other municipal business
 
Other Regional Councillors Present:
S. Hames
Also Present:
D. Szwarc, Chief Administrative Officer; S. VanOfwegen, Acting Chief Financial Officer and Commissioner of Corporate Services; D. Labrecque, Commissioner of Public Works; C. Cecchini, Acting Commissioner of Employee and Business Services; A. Persaud, Director, Internal Audit; A. Macintyre, Acting Regional Clerk; H. West, Committee Clerk; S. Valleau, Legislative Assistant

_______________________________
* See text for arrivals
¨See text for departures


Chaired by Councillor Whitehead.


1. DECLARATIONS OF CONFLICTS OF INTEREST
- Nil


2. APPROVAL OF AGENDA

RECOMMENDATION AC-8-2013:

That the agenda for the November 7, 2013 Audit Committee meeting, be approved.


3. DELEGATIONS
- Nil


4. REPORTS

a) 2013 Government Finance Officers’ Association (GFOA) Distinguished Budget Award

Received

Councillor Whitehead congratulated Steve VanOfwegen, Director, Business Planning and Financial Support Services, Financial Support Services staff and the Business and Capital Planning team for receiving the 2013 Government Finance Officers’ Association (GFOA) Distinguished Budget Award. Members of the Business and Capital Planning team were presented with the GFOA Distinguished Budget Award plaque.

  b) Procurement Update - Supplementary Information
Presentation by James Macintyre, Director, Purchasing and Project Management

Received

A copy of the presentation is available from the Office of the Regional Clerk.

James Macintyre, Director, Purchasing and Project Management, provided an overview of public sector procurement, the role of Regional Council in terms of procurement, the Purchasing By-law review and provided information in response to questions posed by Members at the September 19, 2013 Audit Committee meeting.

Regional Chair Kolb stated that Councillor Starr had requested that the proposal to increase the Chief Financial Officer’s (CFO’s) authority for Direct Negotiations (DN’s) remain at $250,000 and not be increased to $500,000. Regional Chair Kolb directed that the proposed Purchasing By-law maintain the CFO’s authority for DN’s at $250,000.

Councillor Saito noted that a Regional Council Code of Conduct Committee would be formed and requested that James Macintyre provide language that could be used in the proposed Purchasing By-law regarding ‘lobbying’, to avoid duplication in the Regional Council Code of Conduct. James Macintyre undertook to provide the wording to Councillor Saito.

Councillor Fonseca requested data on how many low bid irregular tender results there have been since 2009 and the reasons for projects that have gone under or over budget. David Szwarc, Chief Administrative Officer, noted that staff currently provides semi-annual reports to Regional Council regarding completed projects and undertook to highlight irregular results in the next report.

Regional Chair Kolb requested that staff review the feasibility of assigning end dates to infrastructure projects and the imposition of penalties if the end date is not met.

  c) Procurement Update

Received

  d) Integrated Risk Management Policy
Presentation by Anil Persaud, Director, Internal Audit; and Michelle Morris, Advisor, Integrated Risk Management

Received

RECOMMENDATION AC-9-2013:

That the Integrated Risk Management Policy, attached as Appendix I to the report of the Director, Internal Audit, dated September 23, 2013, titled “Integrated Risk Management Policy”, be approved.

A copy of the presentation is available from the Office of the Regional Clerk.

Anil Persaud, Director, Internal Audit and Michelle Morris, Advisor, Integrated Risk Management, provided an overview of the Integrated Risk Management (IRM) policy, the implementation strategy and policy highlights. Anil Persaud noted that implementation for full compliance of the IRM policy would be a work in progress during the next three to five years and as the program matures, a reporting framework would be developed to communicate the results of the risk assessment process.

Councillor Thompson inquired how asset management will be incorporated with the Risk Management Policy. David Szwarc, Chief Administrative Officer, responded that the five categories of risks (strategic, operational, financial, reputational, and compliance) will encompass and manage the risks of corporate assets.

  e) Revised 2013 Internal Audit Risk Based Work Plan
Presentation by Anil Persaud, Director, Internal Audit (Oral)

Received

RECOMMENDATION AC-10-2013:

That the changes to the 2013 Audit Work Plan as outlined in the report of the Director, Internal Audit, dated September 26, 2013, titled “Revised 2013 Internal Audit Risk Based Work Plan” be approved.

Anil Persaud provided an overview of the Work Plan highlighting that it was revised to manage potential risks more proactively and cost effectively.

Regional Chair Kolb inquired how the life span of purchased equipment is measured and reported to Members of Council. Dan Labrecque, Commissioner of Public Works, responded that staff would be providing regular progress reports to Regional Council, to advise of action plans being implemented when a vendor does not meet its contractual terms.


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 February 6, 2014, at 9:30 a.m., Council Chamber, Regional Administrative Headquarters, 10 Peel Centre Drive, Suite A, Brampton.

Please forward regrets to Helena West, Committee Clerk, (905) 791-7800, extension 4697 or helena.west@peelregion.ca.


9. ADJOURNMENT

The meeting adjourned at 10:59 a.m.