Minutes

Audit Committee

The Corporation of the City of Brampton

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Hybrid Meeting - Virtual Option & In-Person in Council Chambers – 4th Floor – City Hall
Members Present:
  • Regional Councillor D. Keenan, Chair
  • Regional Councillor P. Vicente, Vice Chair
  • Regional Councillor N. Kaur Brar (arrived at 2:44 p.m. - personal)
  • Regional Councillor M. Palleschi
  • Regional Councillor G. Toor
Staff Present:
  • Marlon Kallideen, Chief Administrative Officer, and Acting Commissioner, Public Works and Engineering
  • Steve Ganesh, Commissioner, Planning, Building and Growth Management
  • Alex Milojevic, Commissioner, Corporate Support Services
  • Fang (Claire) Mu, Director, Internal Audit
  • Brad Cecile, Manager, Internal Audit
  • Richard Gervais, Senior Advisor, Internal Audit
  • Maja Kuzmanov, Senior Manager, Accounting Services/Deputy Treasurer, Corporate Support Services
  • Sameer Akhtar, City Solicitor
  • Peter Fay, City Clerk
  • Charlotte Gravlev, Deputy City Clerk
  • Sonya Pacheco, Legislative Coordinator

1.
Call to Order

 

The meeting was called to order at 2:22 p.m. and adjourned at 3:13 p.m.

Note: Regional Councillor Fortini was in attendance at this meeting.

  

2.
Approval of Agenda

 

The following motion was considered.

  • AU017-2023

    That the agenda for the Audit Committee Meeting of June 12, 2023, be approved as published and circulated.

    Carried

3.
Declarations of Interest under the Municipal Conflict of Interest Act

 

Nil

  

4.
Consent

 

The following items listed with a caret (^) were considered to be routine and non-controversial by the Committee and were approved at one time.

(6.3, 6.4, 6.5, 6.6)

The following motion was considered.

  • AU018-2023

    That the following items to the Audit Committee Meeting of June 12, 2023 be approved as part of Consent:

    (6.3, 6.4, 6.5, 6.6)

    Carried

5.
Presentations\Delegations

 

5.1
Delegation from Maria Khounshnood, Lead Audit Engagement Partner, KPMG LLP, re: 2022 Audit Findings Report and Audited Consolidated Financial Statements

This item has attachments. 
1.Delegation - KPMG.pdf

Item 7.1 was brought forward and dealt with at this time.

Maria Khounshnood, Lead Audit Engagement Partner, KPMG LLP, presented KPMG's Audit Findings Report for the year ended December 31, 2022, which included the following:

  • Audit highlights:
    • Status of the audit
    • Indication that there were no significant changes to the audit plan and no significant control deficiencies were identified
    • Corrected audit misstatements
  • Significant risks and results
  • Audit risks and results, and other audit findings and results
  • Upcoming changes to accounting and auditing standards

The delegation thanked staff for their cooperation during the audit process.

The following motion was considered.

  • AU019-2023

    1. That the delegation from Maria Khounshnood, Lead Audit Engagement Partner, KPMG LLP, to the Audit Committee Meeting of June 12, 2023, re: 2022 Audit Findings Report and Audited Consolidated Financial Statements, be received; 

    2. That the report from Maja Kuzmanov, Senior Manager, Accounting Services/Deputy Treasurer, Corporate Support Services, to the Audit Committee Meeting of June 12, 2023, re: 2022 Audited Consolidated Financial Statements for the City of Brampton, be received; and

    3. That the 2022 Audited Consolidated Financial Statements for the City of Brampton, be approved.

    Carried

5.2
Staff Presentation re: Development Charges 2023

 

Item 6.1 was brought forward and dealt with at this time. 

Claire Mu, Director, Internal Audit, introduced Min Peng, who recently joined the Internal Audit team as Senior Internal Auditor, and Brad Cecile, Manager, Internal Audit. 

Brad Cecile provided a presentation to Committee regarding the Development Charges (DC) Audit, which included information on the audit objectives and scope, and the audit findings.

Committee discussion on this matter included the following:

  • DC IT systems and DC rate updates in the AMANDA system
  • Requirement to have current insurance certificates on file for developments, and potential risk of outdated certificates
    • Number of outdated insurance certificates on file and the process for obtaining updated certificates
    • Requirement for, and purpose of, site specific insurance certificates
    • Alternative options for proof of insurance 
  • Update of Standard Operating Procedures (SOPs)
  • Review of the audit report by senior management

The following motion was considered.

  • AU020-2023

    1. That the presentation by Brad Cecile, Manager, Internal Audit, to the Audit Committee Meeting of June 12, 2023, re: Development Charges 2023, be received; 

    2. That the report from Brad Cecile, Manager, Internal Audit, to the Audit Committee Meeting of June 12, 2023, re: Development Charges Audit Report 2023, be received; and

    3. That the recommendations contained in Appendix 1: Development Charges Audit 2023 Report, be approved. 

    Carried

6.
Reports - Internal Audit

 

6.1
Staff Report re: Development Charges 2023

This item has attachments. 
1.Report - Development Charges Audit Report 2023(1).pdf
2.Appendix 1 - Development Charges Audit Report.pdf
3.Appendix 2 - Criteria for Evaluating Audit Findings(1).pdf
4.Appendix 3 - Criteria for Audit Report Rating(1).pdf
5.Appendix 4 - Presentation Slides_June 12.pdf

Dealt with under Item 5.2 - Recommendation AU020-2023

   

6.2
Staff Report re: Audit Committee Terms of Reference and Internal Audit Charter

This item has attachments. 
1.Report - Audit Committee Terms of Reference and Internal Audit Charter.pdf
2.Appendix 1 - By-law to Establish Audit Committee Terms of Reference and Internal Audit Charter.pdf
3.Appendix 2 - Internal Audit Charter Version 2023.pdf
4.Appendix 3 - Audit Committee Terms of Reference 2023.pdf
5.Appendix 4 - A Chronology of Changes.pdf

At the request of Committee, Claire Mu, Director, Internal Audit, provided an overview of the subject report, highlighted the changes to the Audit Charter, and acknowledged the staff that worked on combining the Audit Committee Terms of Reference and Internal Audit Charter.

The following motion was considered.

  • AU021-2023

    1. That the report from Claire Mu, Director, Internal Audit, to the Audit Committee Meeting of June 12, 2023, re: Audit Committee Terms of Reference and Internal Audit Charter, be received;

    2. That the combined and updated Audit Committee Terms of Reference and Internal Audit Charter, as set out in Appendix 1: By-law to Establish Audit Committee Terms of Reference and Internal Audit Charter to this report, be approved and enacted in a By-law; and

    3. That Administrative Authority By-law 216-2017, as amended, be further amended to delegate authority to the Director of Internal Audit to make amendments to the Schedule contained in the proposed Audit Committee Terms of Reference and Audit Charter By-law to make required Schedule updates as set out in the Institute of Internal Auditors ("IIA") Standards, with regular reporting to the Audit Committee on any changes made to the by-law Schedule.

    Carried

6.3
^ Staff Report re: Corporate Fraud Governance Structure

This item has attachments. 
1.Report - Corporate Fraud Governance Structure.docx.pdf
2.Appendix 1 - Corporate Fraud Prevention Policy 2023.pdf
3.Appendix 2 - Corporate Fraud Prevention Policy GOV-110- v September 2019.pdf
4.Appendix 3 - Operational Approach.pdf
  • AU022-2023

    1. That the report from Claire Mu, Director, Internal Audit, to the Audit Committee Meeting of June 12, 2023, re: Corporate Fraud Governance Structure, be received; and

    2. That the updated Corporate Fraud Governance Structure and the Corporate Fraud Prevention Policy, as set out in Appendix 1, be approved.

    Carried

6.4
^ Staff Report re: Internal Audit Work Plan Status Update

This item has attachments. 
1.Report - Internal Audit Work Plan Status Update.pdf
2.Appendix 1 - 2023 Internal Audit Work Plan.pdf
  • AU023-2023

    That the report from Richard Gervais, Senior Advisor, Internal Audit, to the Audit Committee Meeting of June 12, 2023, re: Internal Audit Work Plan Status Update, be received.

    Carried

6.5
^ Staff Report re: Status of Management Action Plans - Q1 2023

This item has attachments. 
1.Report - Status of Management Action Plans - Q1 2023.pdf
2.Appendix 1 Management Action Plans as of March 31 2023.pdf
3.Appendix 2 Management Action Plan Status Details as of March 31 2023.pdf
  • AU024-2023

    That the report from Richard Gervais, Senior Advisor, Internal Audit, to the Audit Committee Meeting of June 12, 2023, re: Status of Management Actions Plans- Q1 2023, be received.

    Carried

6.6
^ Staff Report re: Corporate Ethics Hotline Quarterly Report

This item has attachments. 
1.Report - Corporate Ethics Hotline Quarterly Report.pdf
  • AU025-2023

    That the report from Richard Gervais, Senior Auditor, Internal Audit, to the Audit Committee Meeting of June 12, 2023, re: Corporate Ethics Hotline Quarterly Report, be received.

    Carried

7.
Reports - Finance

 

8.
Other/New Business

 

8.1
Discussion Item re: Citizen Member Appointments to Audit Committee

 

Peter Fay, City Clerk, provided an overview of the recommendations passed by the Audit Committee and the Citizen Appointments Committee, directing that two citizen members be appointed, and the Audit Committee assume responsibility for these appointments. Mr. Fay advised that three applications were received by the City Clerk's Office for these positions and suggested that a meeting of the Audit Committee be scheduled to review the applications.

Committee discussion on this matter included the following:

  • Review of the citizen applications by the Director of Internal Audit
    • Clarification that the Director may review a blind copy of the applications for the purpose of evaluating qualifications/credentials, but will not participate in the appointments process 
  •  Suggestion to refer the applications to the next Citizen Appointments Committee meeting 

The following motion was considered.

  • AU026-2023

    1. That the Director of Internal Audit be requested to review the current set of applicants with respect to the audit related credentials and experience; and

    2. That the recommended candidates identified by the Citizen Appointments Committee be endorsed by the Audit Committee.

    Carried

9.
Question Period

 

Nil

  

10.
Public Question Period

 

The public was given the opportunity to submit questions in person or via e-mail to the City Clerk’s Office regarding any decisions made at this meeting. P. Fay, City Clerk, confirmed that no questions were submitted.

  

11.
Closed Session

 

Nil

  

12.
Adjournment

 

The following motion was considered.

  • AU027-2023

    That the Audit Committee do now adjourn to meet again at the call of the Chair. 

    Carried
No Item Selected