Committee discussion took place with respect to the hiring process for the Director of Internal Audit and included the following:
- Authority of the Audit Committee, as outlined in the Audit Charter (March 2019), relating to the Chief Audit Executive (CAE) position, including the appointment, dismissal, performance review and remuneration
- Indication that the language in the Audit Charter is ambiguous and there is a need for clarification on the role of the Audit Committee and CAO in the hiring of the CAE / Director of Internal Audit
- Indication that the Director of Internal Audit reports functionally to the Audit Committee and administratively to the CAO
- Provisions in the Municipal Act regarding the CAO's responsibility for the management of the City, and potential conflict with the Audit Charter as it relates to the hiring of the Director of Internal Audit
- Previous recruitment process for the Director of Internal Audit
- Suggestion to establish a sub-committee of the Audit Committee to work with the CAO on the recruitment process
- Suggestion that the recruitment process be clarified and documented for future reference, and that a legal opinion be obtained
- Clarification regarding Council's position on the Auditor General Model, and confirmation that this model is not being considered at this time
- Information regarding the hybrid Auditor General Model in the City of Hamilton
- Indication that the Audit Charter conforms to the International Standards for the Professional Practice of Internal Auditing
The following motion was introduced:
That staff be directed to clarify and report back on a process and timeline for the hire of a Director of Internal Audit, with consideration of alignment with the Municipal Act and the Internal Audit Charter (2019).
Further Committee discussion included the following:
- Active recruitment for an Internal Audit Manager
- Questions as to whether Audit Committee citizen members can participate in the hiring process for the Director of Internal Audit
A motion to refer the following motion to the June 16, 2021 Council meeting was introduced:
That staff be directed to clarify and report back on a process and timeline for the hire of a Director of Internal Audit, with consideration of alignment with the Municipal Act, the Internal Audit Charter (2019), and Legal and Human Resource advice on the inclusion of Audit Committee Citizen Members within the hiring process.
The following amendments to the motion were introduced and accepted by the mover:
- To add the words "and reference to previous Director of Internal Audit hiring processes employed".
- To add the words "and consideration for the establishment of a sub-committee.”
The motion, in its entirety, was considered as follows.