M I N U T E S ASC-2006-5
The Audit Subcommittee met on October 5, 2006, at 8:43 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|
|Also Present:||D. Szwarc, Chief Administrative Officer; E. Zamparo, Acting 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
That the agenda for the October 5, 2006 Audit Subcommittee meeting be approved.
a) Development Charge Collection, Remittance, Accounting and Reporting Practices Audit
b) Corporate Wide Perspective on Goods and Services Tax (GST) and Provincial Sales Tax (PST) Issues
Councillor Paterak enquired about the possibility of receiving an exemption from the Federal government on goods and services tax (GST) and about any related costs associated with submitting regular GST remittances. He requested that David Szwarc, Chief Administrative Officer (CAO), report to a future Audit Subcommittee meeting with a review of the effectiveness of remittance to the Federal government versus seeking application for a GST tax exemption.
c) Current Status of Actions Taken as a Result of the 2005 External Audit Management Letter for Peel Housing Corporation
d) Current Status of Actions Taken as a Result of the 2004 and 2005 External Audit Management Letters
e) KPMG Audit Planning Report for the Year Ending December 31, 2006
Kevin Travers, Associate Partner, KPMG, provided a brief overview of the KPMG Audit Planning report for the year ending December 31, 2006. He noted that the manner of reporting remains the same but highlighted some of the changes to the reporting requirements, particularly, as it relates to tangible capital assets. He informed the Audit Subcommittee that the exposure draft on tangible capital assets has been approved and is now a standard by the Public Sector Accounting Board (PSAB). Municipalities are now required to report their tangible capital assets starting December 2009.
Kevin Travers also advised that the PSAB recently published exposure drafts in the reporting models and these will be applied to all levels of government namely: Financial Statement Concepts, Financial Statement Objectives and Financial Statement Presentation. The proposed amendments to these statements will establish the individual statements required within the consolidated financial statement. The final standards are expected to take effect in the third quarter of 2006.
Councillor Stewart requested that KPMG consider the costs involved when the new reporting requirement is implemented.
Councillor Miles departed at 9:00 a.m.
a) "Tone at the Top" Newsletter: July 2006
Beate Wilson provided a brief background on the newsletter from the Institute of Internal Auditors, which targets senior management, boards of directors and audit subcommittees. Members of the Audit Subcommittee indicated that they found the newsletter to be very informative and would like it to be listed under the Communications section of the Audit Subcommittee agenda on a regular basis.
Councillor Paterak enquired if staff considered copyright issues before the newsletter was published. Beate Wilson assured the Subcommittee that the quarterly publication is free and copyright was not an issue. She undertook to order a subscription for the Audit Subcommittee and have it distributed via Audit Subcommittee agendas.
6. OTHER BUSINESS
Additional Item - 6a:
a) Region of Peel Employee Benefits Package (Oral)
Regional Chair Kolb enquired if staff conducted an audit of the Region of Peel benefits package and if the Region is at par with the other regions or municipalities in terms of benefits. Beate Wilson informed the Committee that Internal Audit staff only review how Human Resources manages the benefits for the organization. She pointed out that auditing of the benefit package was conducted through Human Resources prior to implementing the changes in the new benefits package that will take effect January 1, 2007.
Regional Chair Kolb also enquired about the new legislation allowing employees to work beyond age 65. David Szwarc informed the Committee that a report will be brought forward to General Committee at its meeting on October 19, 2006 regarding the elimination of mandatory retirement and its impact to the Region of Peel. With the help of an external consultant, David Szwarc indicated that Regional staff did extensive research before the new benefits package was presented to Council. The study involved a comparison and investigation of benefits with other municipalities and ensured that the new benefits of the Region are aligned with the Cities of Brampton, Mississauga and the Town of Caledon. Further, David Szwarc informed the Subcommittee that the Chief Administrative Officers and Human Resources leaders for the upper, lower and single tier municipalities in Ontario meet regularly and maintain a database which provides all municipalities with up-to-date information on benefits and settlement with regards to police, paramedics and fire departments.
David Szwarc suggested that a meeting be arranged to further discuss the concerns of Regional Chair Kolb regarding the new benefits package and the new regulation.
7. SCHEDULE OF FUTURE MEETINGS
As there are no further meetings of the Audit Subcommittee prior to the municipal elections, Beate Wilson thanked the Members of the Audit Subcommittee for their continued support of Internal Audit and KPMG. Councillor Stewart also expressed her appreciation to the Internal Audit staff for their dedication and hard work.
February 8, 2007
8:30 a.m. - 9:30 a.m.
Regional Administrative Headquarters
Council Chamber, 5th Floor
10 Peel Centre Dr.
The meeting adjourned at 9:15 a.m.