THE REGIONAL MUNICIPALITY OF PEEL

AUDIT SUBCOMMITTEE

M I N U T E S      ASC-2006-4


The Audit Subcommittee met on June 29, 2006, at 8:35 a.m. in the Council Chamber, Regional Administrative Headquarters, 10 Peel Centre Dr., Brampton.

Members Present: N. Iannicca, E. Kolb*, G. Miles, R. Paterak, N. Stewart
     
Members Absent:   Nil
     
Also Present:   D. Szwarc, Chief Administrative Officer; D. Labrecque, Treasurer and Commissioner of Finance; J. MacCrae, Director of Finance, Housing and Property; S. Hewitt, Director, Business and Information Services, Public Works; B. Wilson, Director, Internal Audit; K. Travers, Associate Partner, KPMG; S. Jurrius, Acting Legislative Co-ordinator, Legislative Services

*see text for arrivals
¨
see text for departures

Chaired by Councillor N. Stewart


1. DECLARATIONS OF CONFLICTS OF INTEREST


2. APPROVAL OF AGENDA

RECOMMENDATION ASC-4-2006:

That the agenda for the June 29, 2006 Audit Subcommittee meeting be approved.


3. DELEGATIONS/PRESENTATIONS

Regional Chair Kolb arrived at 8:41 a.m.


4. REPORTS

a) Update on Purchasing By-law Review
Presentation by James Macintyre, Purchasing Manager, Finance

Received

Dan Labrecque, Treasurer and Commissioner of Finance, provided a brief background on the Purchasing By-law review. He informed the Committee that in accordance with Section 271 of the Municipal Act, 2001 S.O. 2001, Chapter 25, the Manager of Purchasing is required to review the by-law every five years and report to Council accordingly.

James Macintyre, Purchasing Manager, Finance, provided an overview of the review of the Purchasing By-law conducted by staff. He informed the Committee that to date, findings suggest no major changes are required to the by-law. James Macintyre noted that a report outlining the results of the comprehensive review of the by-law and related procedures will be presented to the Audit Subcommittee, Peel Police Services Board and Regional Council for approval in the first quarter of 2007.


b) Tangible Capital Asset Accounting - Update

Received

Dan Labrecque, Treasurer and Commissioner of Finance, provided a brief overview of the new regulation on tangible capital assets contained in the subject report. He informed the Committee that the Public Sector Accounting Board (PSAB) recently approved the recommendations requiring local governments to report tangible capital assets in their financial statements effective January 1, 2009. Dan Labrecque stated that the new requirements will have a significant impact on Peel with regard to transitional activities, operating processes, information systems and policies. He indicated that the new initiatives and their impact to the Region will be included in the 2007 Regional budget and will be presented to Regional Council in the first quarter of 2007.

Members of the Audit Subcommittee expressed concerns with respect to the value of reporting tangible capital assets and its impact to the Region. Kevin Travers, Associate Partner, KPMG, stated that the new regulation will provide better financial reporting in enhancing the quality, value and comparability of the financial statements of the Region.

c) Results of the 2005 Audit Effectiveness Surveys

Received


d) Terms of Reference for Audit Subcommittee Operations Update

RECOMMENDATION ASC-5-2006:

That the Audit Subcommittee Terms of Reference be approved as outlined in the report of the Chief Administrative Officer, dated June 1, 2006 and titled "Terms of Reference for Audit Subcommittee Operations Update".

See also Item 4e


e) Internal Audit Charter Update

RECOMMENDATION ASC-6-2006:

That the Internal Audit Charter be approved as outlined in the report of the Director, Internal Audit, dated June 6, 2006 and titled "Internal Audit Charter Update".

See also Item 4d

Beate Wilson, Director of Internal Audit, provided an overview of the revised Audit Subcommittee (ASC) Terms of Reference and the Internal Audit Charter and noted that both reports are complimentary to each other. Beate Wilson noted that the ASC Terms of Reference was last reviewed in February 2004. At that meeting, the Committee directed that the next review of the Terms of Reference be presented to the outgoing ASC for review and approval. Beate Wilson informed the Committee that some of the significant amendments include: changes in municipal election term; assumption of oversight responsibilities for Peel Housing Corporation (PHC), and three new oversight responsibilities related to the Internal Audit activities in the Region. New sections on the accountability and authority of the Director of Internal Audit and the responsibility to establish quality assurance programs for the Internal Audit function have been added to the amended Internal Audit Charter.


5. COMMUNICATIONS


6. OTHER BUSINESS


7. SCHEDULE OF FUTURE MEETINGS

October 5, 2006
8:30 a.m. - 9:30 a.m.
Regional Administrative Headquarters
Council Chamber, 5th Floor
10 Peel Centre Dr.
Brampton, Ontario


8. ADJOURNMENT

The meeting adjourned at 9:06 a.m.