Audit Committee Minutes

Friday, December 03, 2021

9:30 A.m. - 5:30 P.m.

Council Chamber, 2nd floor, City Hall

Present:

• A. Sohi,
• A. Knack,
• K. Principe,
• E. Rutherford,
• J. Wright,
• and O. Edmondson

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1.

Call to Order and Related Business

1.1

Call to Order and Land Acknowledgement

Mayor A. Sohi called the meeting to order at 9:41 a.m., Friday, December 3, 2021, and acknowledged that Audit Committee meets on the traditional land of Treaty 6 Territory. The Chair also acknowledged the diverse Indigenous peoples whose ancestors' footsteps have marked this territory for centuries such as: Cree, Dene, Saulteaux, Blackfoot, Nakota Sioux, as well as Metis and Inuit, and now settlers from around the world.

1.2

Roll Call

Mayor A. Sohi conducted roll call and confirmed the attendance of Members of Audit Committee.

Public Member C. Burrows was absent with notice.

Councillors M. Janz, A. Paquette, A. Salvador, A. Stevenson and K. Tang; A. Corbould, City Manager; and K. Cook, Acting Deputy City Clerk; M. Barnes and R. Zheng, Office of the City Clerk, were also in attendance.

1.3

Election of Vice-Chair

Mayor A. Sohi called for nominations for the position of Vice-Chair, Audit Committee.

Councillor A. Knack nominated Councillor J. Wright for the position of Vice-Chair, Audit Committee.

Mayor A. Sohi asked if there were any further nominations. There being no other nominations, Mayor A. Sohi declared nominations closed.

• Moved by: A. Knack

  That Councillor J. Wright be elected as Vice-Chair, Audit Committee.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

1.4

Adoption of Agenda

• Moved by: J. Wright

  That the December 3, 2021, Audit Committee meeting agenda be adopted with the following changes:

  Additions:

  • 6.2 KPMG 2021 Audit Planning Report
  • 6.6 Administration Response: Electrical Services Contract Management Audit
  • 6.8 Administrative Response - Reserve Funds Governance and Management Review
  • 6.10 Administrative Response to the Office of the City Auditor - Historic Resource Management Program
  • 6.12 Administrative Update on the Auditor's Dashboard

  Replacement report:

  • 6.6 Administration Response: Electrical Services Contract Management Audit -  Report CO00499

  Replacement attachment:

  • 6.5 Electrical Services Contract Management Audit - Attachment 1

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

1.5

Approval of Minutes

There were no minutes to be approved. 

1.6

Protocol Items

1.

International Day of Persons with Disabilities (K. Tang and E. Rutherford)

Councillors K. Tang and E. Rutherford, on behalf of Audit Committee, recognized the International Day of Persons with Disabilities.

2.

Items for Discussion and Related Business

2.1

Select Items for Debate

The following items were selected for debate: 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.10, 6.11 and 6.12.

2.2

Vote on Reports not Selected for Debate

All items were selected for debate.

2.3

Requests to Speak

• Moved by: K. Principe

  That Audit Committee hear from the following speakers, in panels when appropriate:

  • 6.9 Historic Resources Management Program Audit
    1. D. Ridley, Edmonton Heritage Council
    2. D. Schamuhn, Edmonton Historical Board

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

2.4

Requests for Specific Time on Agenda

• Moved by: A. Knack

  That the following items be dealt with at a specific time on the agenda:

  • 6.9 Historic Resources Management Program Audit - To be dealt with at 1:30 p.m.
  • 6.3 Office of the City Auditor and 6.4 2022 Annual Work Plan - To be dealt with together as last items of business

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

3.

Councillor Inquiries

There were no Councillor Inquiries.

4.

Reports to be Dealt with at a Different Meeting

There were no Reports to be Dealt with at a Different Meeting.

5.

Requests to Reschedule Reports

There were no Requests to Reschedule Reports.

6.

Public Reports

6.1

Audit Committee Orientation (Office of the City Clerk/Office of the City Auditor/Chief Financial Officer) - Verbal report

The following members of Administration’s delegation made a presentation: 

• A. Giesbrecht, City Clerk
• S. Padbury, Chief Financial Officer and Deputy City Manager, Financial and Corporate Services

The following member of Administration’s delegation made a presentation and answered questions:

• H. Quach, City Auditor

• Moved by: A. Knack

  That the December 3, 2021, Office of the City Clerk verbal report OCC00870, be received for information.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.2

KPMG 2021 Audit Planning Report

The following made a presentation and answered questions:

• R. Borrelli, KPMG
• C. Coz, KPMG

• Moved by: A. Knack

  That the KPMG Audit Planning Report for the year ending December 31, 2021, as set out in Attachment 1 of the December 3, 2021, Financial and Corporate Services report FCS00865, be approved.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.3

Office of the City Auditor Strategic Plan 2022-2025

Items 6.3 and 6.4 were dealt with together.

The following member of Administration's delegation made a presentation and answered questions:

• H. Quach, City Auditor

The following members of Administration’s delegation answered questions:

• S. Padbury, Chief Financial Officer and Deputy City Manager, Financial and Corporate Services
• J. Mryglod, Office of the City Auditor

• Moved by: A. Knack

  That Audit Committee recommend to City Council:
  1. That the December 3, 2021, Office of the City Auditor report OCA0859 be referred to the City Council Budget deliberations for consideration of the unfunded service package to increase the OCA operating budget by $230,000 on an on-going basis starting in 2022, as outlined in Attachment 2, with funding from the tax levy to support the implementation of the Office of the City Auditor strategic plan.

  2. That the Office of the City Auditor Strategic Plan 2022-2025 as outlined in Attachment 1 of the December 3, 2021, Office of the City Auditor report OCA00859, be approved.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.4

2022 Annual Work Plan

Items 6.3 and 6.4 were dealt with together.

• Moved by: A. Knack

  That Audit Committee recommend to City Council:
  That the Office of the City Auditor 2022 Annual Work Plan as outlined in Attachment 1 of the December 3, 2021, Office of the City Auditor report OCA00860, be approved.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.5

Electrical Services Contract Management Audit

Items 6.5 and 6.6 were dealt with together.

The following members of Administration’s delegation made a presentation and answered questions:

• H. Quach, City Auditor
• G. Cebryk, Deputy City Manager, City Operations
• P. Mann, City Operations

The following members of Administration’s delegation answered questions:

• C. Walbaum, Integrated Infrastructure Services 
• M. Bohn, Office of the City Manager (Legal Services)

• Items 6.5 and 6.6 were voted on together.

  Moved by: E. Rutherford

  That the December 3, 2021, Office of the City Auditor report OCA00861, be received for information.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.6

Administration Response: Electrical Services Contract Management Audit

Items 6.5 and 6.6 were dealt with together.

• Items 6.5 and 6.6 were voted on together.

  Moved by: E. Rutherford

  That the December 3, 2021, City Operations report CO00499, be received for information.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.7

Reserve Funds Governance and Management Review

Items 6.7 and 6.8 were dealt with together.

The following members of Administration’s delegation made a presentation and answered questions:

• H. Quach, City Auditor
• S. Padbury, Chief Financial Officer and Deputy City Manager, Financial and Corporate Services

The following member of Administration’s delegation answered questions:

• J. Mryglod, Office of the City Auditor

• Items 6.7 and 6.8 were voted on together.

  Moved by: E. Rutherford

  That the December 3, 2021, Office of the City Auditor report OCA00862, be received for information.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.8

Administrative Response - Reserve Funds Governance and Management Review

Items 6.7 and 6.8 were dealt with together.

• Items 6.7 and 6.8 were voted on together.

  Moved by: E. Rutherford

  That the December 3, 2021, Financial and Corporate Services report FCS00857, be received for information.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.9

Historic Resources Management Program Audit

Items 6.9 and 6.10 were dealt with together.

The following members of Administration’s delegation made a presentation:

• H. Quach, City Auditor
• K. Snyder, Urban Planning and Economy

The following public speakers made presentations:

• D. Ridley, Edmonton Heritage Council
• D. Schamuhn, Edmonton Historical Board

The following member of Administration’s delegation answered questions:

• K. Snyder, Urban Planning and Economy

• Items 6.9 and 6.10 were voted on together.

  Moved by: A. Knack

  That the December 3, 2021, Office of the City Auditor report OCA00863, be received for information.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.10

Administrative Response to the Office of the City Auditor - Historic Resource Management Program

Item 6.9 and 6.10 were dealt with together.

• Items 6.9 and 6.10 were voted on together.

  Moved by: A. Knack

  That the December 3, 2021, Urban Planning and Economy report UPE00851, be received for information.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.11

Office of the City Auditor Recommendation Follow-up Dashboard Report - As at November 10, 2021

Items 6.11 and 6.12 were dealt with together.

The following members of Administration’s delegation answered questions:

• H. Quach, City Auditor
• A. Corbould, City Manager
• G. Cebryk, Deputy City Manager, City Operations

• Items 6.11 and 6.12 were voted on together.

  Moved by: A. Knack

  That the December 3, 2021, Office of the City Auditor report OCA00864, be received for information.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

6.12

Administrative Update on the Auditor's Dashboard

Items 6.11 and 6.12 were dealt with together.

• Items 6.11 and 6.12 were voted on together.

  Moved by: A. Knack

  That the December 3, 2021, Office of the City Manager report OCM00868, be received for information.

  In Favour (6)

  O. Edmondson, A. Sohi, A. Knack, E. Rutherford, J. Wright, and K. Principe

  Carried (6 to 0)

7.

Responses to Councillor Inquiries

There were no Responses to Councillor Inquiries on the agenda.

8.

Motions Pending

There were no Motions Pending on the agenda.

9.

Private Reports

There were no Private Reports on the agenda.

10.

Notices of Motion and Motions without Customary Notice

Mayor A. Sohi asked whether there were any Notices of Motion. There were none.

11.

Adjournment

The meeting adjourned at 2:59 p.m., Friday, December 3, 2021.