June 16, 2021, at 12:00 PM

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1.   Disclosures of Pecuniary Interest

That it BE NOTED that no pecuniary interests were disclosed.

2.   Consent

None.

3.   Scheduled Items

None.

4.   Items for Direction

4.1   2020 Financial Audit

2021-06-16 Staff Report - 2020 Financial Audit

That the following actions be taken:

a) the 2020 Financial Report of The Corporation of the City of London, BE RECEIVED, it being noted that the Audit Committee received a presentation from the Director, Financial Services with respect to this matter; and,

b) the Audit Findings Report 2020 as prepared by KPMG for the year ending December 31, 2020, BE RECEIVED, it being noted that the Audit Committee received a presentation from KPMG with respect to this matter.

Motion Passed

4.1.a   2020 Financial Statements

2021-06-16 Submission - 2020 Financial Statements

4.1.b   Audit Findings Report to the Audit Committee for the Year Ending December 31, 2020

2021-06-16 Submission - Audit Findings-KPMG

4.2   Request for Proposal Internal Audit Services

2021-06-16 Staff Report - Request for Proposal Internal Audit Services

That, on the recommendation of the Deputy City Manager, Finance Supports the following actions be taken with respect to internal audit services:

a) the report dated June 16, 2021 titled “Request for Proposal Internal Audit Services” which outlines the scope of work including timelines and general parameters included in the Request for Proposal (RFP) for internal audit services BE RECEIVED;

b) the striking of an Internal Audit Services Evaluation Committee BE APPROVED consisting of: Audit Committee Chair; Audit Committee Vice Chair; a representative from the City Manager’s office and from the Finance Supports Service Area; Deputy City Manager, Finance Supports; with support by appropriate members of the Civic Administration including Purchasing & Supply; and,

c) the City Clerk BE DIRECTED to establish an additional meeting of the Audit Committee in October 2021 to complete the RFP evaluation process.

Motion Passed

4.3   Internal Audit Summary Update

2021-06-16 Submission - Internal Audit Summary Update

That the communication dated June 16, 2021, from Deloitte, with respect to the internal audit summary update, BE RECEIVED.

Motion Passed

4.4   Internal Audit Dashboard as at June 4, 2021

2021-06-16 Submission - Internal Audit Dashboard

That the communication from Deloitte, regarding the internal audit dashboard as of June 4, 2021, BE RECEIVED.

Motion Passed

4.5   Revised Internal Audit Plan - 2021

2021-06-16 Submission - Revised Internal Audit Plan

That the Revised Internal Audit Plan - FY 2021 from Deloitte dated June 16, 2021, BE APPROVED.

Motion Passed

4.6   Audit Committee Observation Summary as at June 4, 2021

2021-06-16 Submission - Observation Authority

That the revised attached Observation Summary from Deloitte, as of June 15, 2021, BE RECEIVED.

Motion Passed

5.   Deferred Matters/Additional Business

None.

6.   Adjournment

That the meeting be adjourned.

Motion Passed

The meeting adjourned at 12:45 PM.

Full Transcript

Transcript provided by Lillian Skinner’s London Council Archive. Note: This is an automated speech-to-text transcript and may contain errors. Speaker names are not identified.

View full transcript (54 minutes)

colleagues who are committee members, if you could just turn on your camera so I can ensure that we have quorum and then I will start the meeting. That’s enough for quorum. I see Councillor Hummer’s also on the line, so I’m sure he’s ready to go as well. And I will call the audit committee meeting to order.

I wanna make just a short statement. The City of London is committed to making every effort to provide alternate formats and communication supports for council standing or advisory committee meetings and information upon request. To make any request for any city service, please contact accessibility@lendant.ca or 519-661-2489, extension 2425. This meeting is being held under the COVID-19 emergency.

It can be viewed via live streaming on the YouTube channel or the city’s website. If you’re hearing me say that, you’ve probably already found it, so great job. I will start with disclosures of pecuniary interest and look to the committee members to see if they have any declarations. Okay, I see none.

There are no consent items. There are no scheduled items. We have multiple items for direction. I will just let colleagues know how I intend to proceed through these.

4.1, we will deal with separately. There are presentations related to that. 4.2 is there on the agenda and staff are prepared to answer questions. The remainder of 4.3 to 4.6 will be presented by Deloitte and we’ll move all of those as a group unless anybody wants them separated.

But for now, what we will do is start with 4.1, the 2020 financial audit. And we’ll start with A, which is the financial statements. And I’ll go to our treasurer, Ms. Barbong to introduce the financial statements.

And we’ll proceed from there. Wonderful, thank you through the chair. We’re really pleased to present on schedule our 2020 financial statements. And I think first and foremost, I have to recognize all of the contributors that Mr.

Ian Collins and Ms. Sharon Swanson that put a lot of work into getting these coordinated and all Sharon’s team. Not to mention our auditors, the boards and commissions and all the service areas to complete our second virtual audit. So I’m really pleased that they were able to get this before you as our per initial timelines in June.

So I really want to recognize the amount of work to bring this before you today. So thank you to all of the team that was able to do that. So the presentation has been included in your package. And I know all of you have received your financial statements.

So Mr. Ian Collins will walk through very briefly just the presentation and walk you through the highlights of the financial statements just because they were quite different given the pandemic and some of the results that I think it will be useful to give some context before the auditors present their findings. Through the committee, you’ll note in the agenda package, you’ll have seen a 16 page slide deck, which pretty much provides a snapshot of the financial report that is before you. And I just want to reiterate that the December, the financial statements as of December 31st, 2020 illustrates our alignment with Council’s strategic plan, which demonstrates that London’s finances are transparent and well-planned, which balances equity and affordability.

I would want to reiterate that our financial report includes 14 fully consolidated boards and commissions, our three proportionally consolidated entities, and our three government business entities. However, at the time of print, one of our consolidated boards, their financial statements weren’t approved at the time. So that is absent currently from the package. And that board is the Hamilton Road business improvement area.

Moving on to page four of the agenda package, which is entitled The Consolidated Financial Statements. I just wanted to highlight some of the changes that you will have seen in your financial report, mainly on the consolidated financial statements. One relates to loans receivable. We identified and note five of the financial report, and that’s how we’re accounting for loans.

In 2020, the city introduced the development charge, the forl and alternative payment loan. So we’ve disclosed that in our financial statements, as well as we took a bigger look in our community improvement program. So our loan receivable for 2020 has changed from what we would have reported out in 2019. So I’d like to bring that to the audit committee’s attention.

Also want to recognize that our employee benefits payable in 2020 has changed from what you would have seen in 2019. Back in 2019, we were advised that the WSIB board was no longer providing the city a report that identified some of our future obligations. So through 2020, we engaged our benefit consultant mercers to do a further actuarial study on our WSIB obligation. And you’ll note that in December 31st, 2020, our WSIB obligation increased the tune of $20 million.

Likewise, as we’re working through the impact of COVID-19, there is a new note contained within the financial statements, note 25, that pretty much builds on the note that was introduced last year with respect to the subsequent event, which is COVID-19 and what the impact has been on city operations and on the financial report. And finally, we’ve introduced a new item, which is the demand loan that the Middlesex London Health Unit took out that would assist in the fit-up and the relocation costs for the move to city plaza. The amount of the loan contained in our financial statements represents the city’s portion, which is approximately 15% of what that loan is. Moving through to the next page on the agenda package, which is what the statement of our financial position, just wanna recognize that our financial assets have increased $227 million, mainly attributable to cash and our investments.

Our financial liabilities have increased by $75 million, which relates to deferred revenue related to development charges. So overall, our net financial assets have increased $152 million over 2019. Finally, you’ll note that our non-financial assets, which are tangible capital assets, our infrastructure have increased $107 million over 2019. So at the end of the day, through 2020, our accumulated surplus increased by $259 million.

Following that, I just wanna draw your attention to some of the notable capital projects that were undertaken in 2020 that were recognized as assets. The city undertook $12.4 million of annual road rehab works that were recognized in 2020. We completed phase two of the Wilton Grove Road upgrades for 11 million. There was a lot of work done at the Dingman Creek Pumping Station, 9.4 million.

Significant upgrades were done on York Street from Talbot to Clarence, 7.6 million. Also the Thames Valley Parkway had seen some upgrades in between Richmond Street and the Adelaide Street Corridor, 7.1 million, as well as the city recognized 61.1 million dollars’ worth of contributions from our developers. One new slide that was included in this year’s audit committee package was the five year review highlights in which we compared our 2020 results to the five year average. There’s a section in our financial report that we provide annually, which looks at a five year overview of some key financial stats.

So I just brought that to audit committee’s attention. We see that in 2020, our tax arrears are up to 4.5% over the five year average of 4.1%. That is kind of a misnomer. The 4.5% is higher than it was previously, mainly due to the fact that the city deferred tax payments in 2020 in recognition of the pandemic and the impact on cash flow for our community.

So when we look back at our December 15th date where we had our final tax installments do, compared to what we would previously have experienced when our final tax installment date was October 30th, the trends are the same. So the 4.5% increase isn’t alarming to civic administration. From a financial sustainability standpoint, you’ll see that our total longterm debt is down to $279 million, which is lower than the five year average of $299 million. Our debt issued in 2020 was $36 million down from the five year average of $42.2 million.

And our annual surplus, as indicated earlier, was $259 million up from the five year average of $217 million. And the last indicator that we’ve identified was assessment growth experience in 2020 was 1.63%, which is higher than our five year average, which was 1.39%. So this slide pretty much reiterates that our financial position is relatively healthy and well-planned to sustain future operations. Recognizing that our city budget is budgeted on a different basis than how we account for items through public sector accounting standards.

Page nine of the agenda has our city budget versus PSAP accounting, which indicates how we move from a balanced budget, from a cash basis to the full accrual basis for PSAP, which shows us going from revenues equaling expenditures to a accrual basis where we have a $258.9 million surplus. The next couple pages illustrates the differences between the 2020 city budget and how we account for stuff in our financial report. So those are good indications of how we move from a balanced budget over to what you see before you. And finally, we go through our statement of operations and identify where we’ve seen expenditures increase and where we’re seeing expenditures decrease in 2020.

And likewise, we do the same for our revenues in 2020. And through our operations, we do provide a comparison of our annual year end surplus of what was reported back to the strategic priorities and policy committee back on April 27th, 2021, where we identified a $31.2 million operating budget surplus, how we then contributed that $31.2 million into our reserves and reserve funds, and then how that translates into our financial statement position that gets us to the $258.9 million cum laude surplus. Finally, our last slide includes what we can look forward to with public sector accounting board standards. We have in 2023 foreign currency translation, financial instruments and asset retirement obligation standards that we’re gonna have to look at reporting on through our financial report.

And in 2024, we have some changes in how we need to account for revenue. The one item that I just wanna put on the audit committees radar is that there have been conversations with incorporating climate change disclosure within our financial report, which is not necessarily gonna occur in 2023 and 2024, but we’re seeing that the accounting profession recognizes the impact that changes in climate will have, particularly on cities and the infrastructure. So I suspect in the future, we’ll start to see some disclosures contained within the financial reports to indicate the impacts of the changes that are occurring in climate. And with that, I’d like to pass along thanks to all the contributors within the civic administration outside of financial services who helped put together the financial report including our capital assets and projects team, financial planning and business supports, legal services, people services and risk management.

And with that, I’d like to turn it over to KPMG to present their audit finding report. Thank you. Thank you very much. Go ahead, Mr.

Denmark. Thank you, through you, Mr. Chair. We would like to walk the committee through the highlights of our audit findings report for the year, which can be found in your agenda packages.

I’m gonna start on page three of our report, which is the executive summary. Just a reminder for the committee, we do prepare this report to help you in your governance role over the external audit process. We’ve included in this report anything that we’re required to communicate with you under Canadian auditing standards as well as some additional information for you that we thought you would find useful. Regarding what’s new in 2020, there were some impacts to the audit, both as a result of the pandemic and as a result of a new auditing standard that came into effect this year regarding accounting estimates.

And so we’ll talk very briefly to those. Want to report to the committee that there have been no changes to the audit plan that was previously presented to you. So we were able to carry out all of our procedures as expected. On page four, we’ve got a list at the time that this report was mailed out of what was outstanding in order to complete the audit.

Happy to report that many of the items have been crossed off that list already. So what remains outstanding as of today’s date is obtaining an update to the legal letters that we get within about five days of council approval of the financial statements. Having our conversations with the audit committee here today, obtaining the signed management representation letter and council’s approval of the financial statements, which time we anticipate we will be able to issue a queen or an unmodified audit opinion for the fiscal 2020 year. On page five, there was one uncorrected difference that was noted during the course of our audit.

So we’ve included a table there. I will note that should say accumulated surplus on the top of the table and not annual surplus, but the uncorrected difference was just as a result of correcting for an immaterial item out of period. And so that resulted in an uncorrected statement in fiscal 2020 of just over $2 million. And you can see the detail of that in our management representation letter as well.

We’ve also included an appendix three, an independence letter, which confirms our independence from the city and its related entities. On pages six and seven, we’ve outlined here for you just some of the impacts that the pandemic had with respect to the way that we conducted our audit. So specifically around there were some additional note disclosure, as you will have seen in the financial statements, considering whether there was any significant impact to the level of materiality that we used to conduct our audit and to that benchmark that we used to calculate materiality. We performed a more thorough risk assessment as a result of the pandemic.

And we did complete our audit fully remotely this year as we did for the most part last year as well. Happy as well as Ms. Barbara mentioned that we can be here on our regular timeline. And certainly we express our big thanks to the finance team at the city for being prepared for us and responding to our requests in a timely manner to allow us to be here in June once again.

On page seven as well, we’ve included four use of information on the new auditing standard that came into effect this year around accounting estimates and some additional procedures that were performed on our end. This was an auditing standard change and not an accounting standard change. So you won’t see any changes to the financial statements themselves as a result of this. It’s more just the documentation standard that we’re required to adhere to.

And I’m gonna pass it on to Deanna to go into a little bit more detail about the various audit risks. Thank you. So on page eight of our report, we summarize for you a significant financial reporting risk which was identified and addressed through our audit. So fraud risk from management override of control is a presumed fraud risk which is present in every audit that we perform.

We’ve performed certain procedures over journal entries, retrospective review of estimates and performance of procedures over significant unusual transactions and haven’t identified any issues to report to you. On page nine of the report, we note another significant financial reporting risk which is the possess significant risk due to the level of estimation uncertainty that is involved in determining the estimate. As Katie mentioned, as of the date of this report and today’s date, the only item that’s outstanding here is obtaining an update which will be obtained closer to the audit report date. As of right now, there are no issues to report.

The next few pages go over some areas of focus. So this by no means is a representation of all of the procedures that we’ve performed but we wanted to highlight some of the results of our testing over certain balances which are significant either due to the dollar value of those estimates or perhaps whether there’s estimation involved in determining those amounts. So the first one here is landfill closure and post closure liability. We’ve summarized here the results of procedures that we’ve performed to you.

On the next page, we address accounts payable and accrued liability where we’ve summarized the results of our audit work. And again, the only item that is outstanding on this piece here is obtaining that final update on the legal accruals but as a result of the procedures that we’ve performed up to today’s date, there is nothing to report. Something to page 13 of the report. So we’ve summarized here that we’ve performed the procedures as indicated in our planning report and consistent with prior years, we’ve also leveraged that in analytic population as a whole and focus our procedures over any outliers that were identified.

On page 14, we summarize three. I realize that I’m starting to lag. So I’m just gonna turn off my camera here. I hope that that helps.

On page 14, we note procedures that we’ve performed over payroll benefits and any future liabilities that may exist. This is a significant dollar value balance and we’ve confirmed the pension liability and WSIB liability with Mercer and performed other substantive analytical procedures over payroll and benefits as well. No issues to report there. On page 15, we know that we’ve performed the procedures that we’ve identified in our planning report over debt issuances as well as taxation.

As Ian mentioned, there was an adjustment to debt issuances with respect to certain loans that had been issued in prior years and that’s reflected in the uncorrected difference like the management representation letter. On page 16, we’ve provided some information for you here on certain technologies that we’ve leveraged to perform our audit. As noted, we did perform our audit remotely. So we utilized the Clara Client Collaboration site as a means to share documents between our teams.

And this provided sort of a central shared portal for documents to be uploaded and shared. And consistent with prior years, we have also looked at the entire balances of transactions for certain items flowing through tangible capital assets. And we’ve summarized the results of our data and analytics procedures performed here and don’t have anything to note to the committee. On page 17 of the report, we note that the form arrangement and content of the financial statements is appropriate.

And we don’t have any issues with respect to the selection of accounting policies or management process for identifying significant estimates. As Ian mentioned, there are some changes that are coming down the pipeline. And we’ve provided a bit more detail for you in Appendix 7 with respect to future developments. Page 18 simply notes that we do have one uncorrected difference, which we’ve spoken to a few times in this presentation.

And that’s summarized for you in Appendix 2 in a management representation letter. There were no differences that were identified and corrected in the financial statements. And on page 19, we note that this is a very clean audit and we don’t have any significant controlled efficiencies to report to you today. And the remainder of our report are the appendices.

So in Appendix 1, we’ve included the required communications that we have with you and where you can find each of those, as well as our management representation letter and independence letter, some information on KPMG’s audit quality process. And then starting in Appendix 6, we have provided some information for the committee around lean services for municipalities specifically, more just for your information as a service that is provided. And in Appendix 7, as Deanna mentioned, there is some information on what we’re seeing in the public sector specifically. So sort of hot topics, if you will, as well as the accounting standard changes that are coming down the pipeline.

We have included with those a little checklist with each of sort of questions to start thinking about and asking. And we’ve certainly started having conversations with management around these accounting standards and the impact of them as well. And we’ll continue to do so as the implementation date gets closer. And that summarizes our audit findings.

Happy to take any questions. Questions, radically pausing to see. Councilor Van Wollst. Thank you very much, Mr.

Chair. And through you, my gratitude to the auditors and our staff for a tremendous amount of work that seems to have been done very, very well. So I appreciate that this is often a simple procedure to go through these because of the quality of the work. So I have a question through you to our auditors.

In typically in a municipality, if there were challenges with the report or you did have to put some qualifications in your opinion, what might those be? What are the challenges that municipalities face most often? So I see that we seem to have done very well. Where were those?

Where did we overcome the most difficult challenges that other municipalities would face? So through you, Mr. Chair, I would say most often where we find audit differences, not specific to the city of London, but with other municipalities as you’ve asked has been around where there’s sort of odd or unusual transactions. So perhaps a different funding stream that has a more complicated revenue recognition or a financial instrument that has a different accounting treatment.

I would say the day-to-day operations of a municipality are generally accounted for quite well. Some other areas aside from actual audit differences that we might see as we do our control testing, it’s not uncommon to come across areas where there might be some improvements we would recommend in internal controls over financial reporting. And if we’ve tested those and all of those things, if we found any would be reported to you through this audit findings report, subject to the level of materiality and our audit statement posting threshold that we work towards. Okay, well, thank you very much.

And Mr. Chair, just again, express my appreciation and I’m very impressed. And have always been, of course, with London, I’m sure it’s the same for my colleagues. When I first became a city counselor, it became apparent that London was, well, as has been said, punching above their weight in many places and looked to as an example for how we do things.

And so there’s a great deal of excellence here and it’s nice to be a part of that, thank you. Okay, any further questions from committee members? If not, I would look for someone to make a motion to receive both the 2020 financial statements as well as the audit findings report. Councilor Van Holst is willing to move.

Seconded by Ms. Higgs, any discussion on the motion? I will just add one thing. And I think Mr.

Collins’ slide on page 17 was very appropriate, just certainly on behalf of the Audit Committee are thanks to all of the internal financial teams at the city who contributed to producing the documents and the reports as well. And as is noted, the cooperation of all of those teams that exist within our city’s boards and commissions is these are consolidated financial statements. There’s certainly a lot of work happening from a lot of people across the city to get it done on time in a year where there were certainly many challenges that they could have sparked a reasonable delay in receiving these. So thanks to both our staff as well as our auditors for getting this before the committee today.

If there are no other comments, I will look for a raise of hands all those in favor of the motion. Any opposed? I’d like to say it carries or you should do that. You’re the clerk.

Motion carries five to zero. I’ll have to take other people’s jobs here. I need to do it properly. Okay, so that’s 4.1.

4.2 colleagues will see is the request for proposal of internal audit services. This is a report from our staff. It has a number of action items in it. I would look to see if there’s a mover and a seconder for this report.

And then Ms. Barbone is available to answer questions. I see Councillor Turner to move. Councillor Vanholst to second.

Colleagues, are there any questions for Ms. Barbone or her team on this report that outlines our P process? Ms. Hakes.

Through the chair to management, just had a question and it’s coming from page 561 of the package, section 2.3 outlines the evaluation team and process. And so I’m clear from this note that the evaluation team is coming to the point of recommending a short list of candidates which will then come to the audit committee for presentations in the fall. And then there’s a reference that the audit committee will then make a recommendation for the proponent to council. I’m wondering if we can get any clarification on whether that is a scored process or how does the audit committee come to the recommendation?

Ms. Barbone. Thank you, through the chair, excellent question. So the entire process is the scored process.

So outlined in the RFP document that has gone out. The initial evaluation process is a scored process that recommends to get the highest proponents that are all scored that are through that evaluation team. And then the recommendations for, typically we try to do the top three or four depending on the number of respondents to go forward to the audit committee. There will be a scoring mechanism that will be provided to the audit committee based on predefined criteria to lay out exactly how that evaluation process is fair and consistent and transparent amongst all of the areas to provide you that information.

So subsequent to that, so procurement would assist us through that process. We would provide you all of the tools to be able to do that scoring. And then at the subsequent committee, we will have everything collated presented back to the audit committee so that you’ll be able to have all the information to make your recommendation to council. Wonderful, thank you for that clarification.

Further questions? Mr. Hummer. Thank you very much.

Just a question about the timelines that are laid out. If anything unexpected happens, what kind of sort of room is there in the schedule? And if something was delayed, if one of these meetings had to be rescheduled for some reason, are you comfortable that we was still able to make a decision before the term that we’re currently under with Deloitte is going to expire? Thank you through the chair.

So we’ve tried to build in some extra time. So primarily the first evaluation that occurs over the summer time, we’ve tried to allow ample time for scoring to be done by the committee so that the audit committee can proceed with the interviews in September. We have some leeway there. That’s one of the reasons why we’re also adding in that extra audit committee meeting is to ensure that there’s ample time that if there’s additional time required, that we have some time to be able to work through that process.

That was one of the learnings that we had through the last time around was to ensure that there was an extra audit committee meeting and there to be able to bring back the results so that you can plan forward and not try to do that at the last minute, which is always problematic for scheduling. So this should give us plenty of time. Do you have this all completed and ready well prior to the end of the year? Thank you.

Just on that, I’ll also note, I’ve certainly committed to calling the necessary audit committee meetings. You’ll see there’s an additional one recommended. I would also note for colleagues, first off, Councilor Halmer and myself will have a few extra meetings as members of the evaluation team. Before the members of audit committee, you’ll note that we do have interviews with the shortlisted candidates and that will be a longer meeting.

And so certainly as you’re planning your schedules and looking to the timeline, certainly make sure to leave an extended amount of time for the day that we are doing interviews ‘cause we want to make sure that we have the time to ask all the thoughtful questions we need to ask. So certainly if there are challenges with the timelines, I think we have the room to adjust, but I think our staff have put together a good plan to work with here. Any further questions? Okay, this is moved and seconded.

I will look for all those in favor. Okay, any opposed? Carries five to zero. Okay, so I made a small error in my recap of how I was gonna handle the meeting.

There is actually a revised internal audit plan which we will have to approve. So I am gonna have Mr. Price go through 4.3, 4.4, 4.5 and 4.6, but when we do the votes, we will receive three of the items and we will need to make a motion to approve the revised audit plan for 4.5. But I’m gonna have Mr.

Price lead us through all of those items. His memo basically summarizes them and certainly colleagues will be able to ask any questions they have on any of these components, but I’ll turn it over to Mr. Price. Okay, thank you.

Yeah, so if you turn to the internal audit summary update, the first item 4.3, as you mentioned, it is summarizing the documents that we have in there. I’m gonna consider those documents read and not go through them in detail and just provide you the highlights from those documents. So the first item in our summary update is that the 2020 plan is now complete except for the final reporting of the police services report, which is intended to go to the June 2021 meeting for the police services board. And then the intention is that that would then be shared with this committee upon their approval.

So that should happen in the next meeting. The updated plan is an item in your documents. It’s item 4.5. What we’ve done to complete that updated plan is to do a scan of other municipalities and the internal audit plans that they have, look to industry reports and that sort of thing as well as just general knowledge around global internal audit risks and tried to incorporate that into consideration for projects for the remainder of the year, also reflecting on the plan that we had already created in 2020.

And then with input from the senior leadership team, we looked at the plan that we had created and the adjusted for one item was the, to remove the environment asset retirement obligation assessment from the plan just given that it was not no longer relevant this year because of a delay in the implementation of that accounting standard and to replace it with a review of the vehicle fleet called the fleet inventory audit. And so that audit would envision looking at the management of fleet operations for vehicles mainly and then efficiency and the operations of that. The next item is the internal audit dashboard. If you turn to the dashboard, you’ll note that the progress so far in this year’s plan is I apologize, I’m just going to that page is 19% so far.

The one project that we’re almost complete is the review of the SaaS application review, which is cloud application review. And we’re in the process of reporting the findings and should have the report out for the next community certainly. And then we’re also in the process of then starting the traffic management process review. And then we’ll be beginning the remainder of the projects between now and the next council meeting with a plan to complete them before you’re in.

You’ll note that the project status is delayed for a couple of those projects. And really that has been a challenge from a resourcing expected though, just given some of the challenges around COVID and some of the teams that the city were actually setting up vaccine clinics and that sort of thing. So it’s nothing that was in management’s control. They’re certainly putting a lot of effort into responding to our audits.

The performance metrics here to date from a satisfaction perspective, there’s been no further updates since we have not issued any reports since the last meeting. So those are really just the statistics who are last meeting. The audit observation status summary of our high and medium priority items. You should have received an email this morning with an updated version of that document.

And the only change is really to focus on that we did get more information and work with management to actually close the comments related to the homeless prevention assessment. And so that one is now marked complete versus the document you had sent as part of the audit committee package. You’ll note that one item from our last meeting was to indicate the changes from the last report so that we’ve added an additional column in the to the right of that report that shows the estimated completion as at the last committee meeting in January and then showing what the current the estimated completion is. So you can note that the there is a few items that are around the parking revenue and the what was the other one assumptions and securities process where the timelines have extended but we’re comfortable that the main risks have been addressed.

And really the remaining items to complete those comments are looking at improving efficiency or service delivery and don’t impact the reputation or operations in the city in that regard. Some of the discussions we’ll have before the next meeting will be to look at those findings and determine if there is a cost benefit there and determine if it’s something for the remainder of the comment if the timelines can be accelerated or if there’s a cost benefit analysis that needs to be done that looking at the practicalities whether the remainder of the comment is material. And then we would report back to council on those items if they do determine that they want to accept those risks. So I believe that’s the summary of the internal audit documents.

So if there’s any questions, certainly happy to take questions to Mr. Chairman. Yes, questions from the committee. Let’s see any questions.

So the way we’ll proceed is, and again, as Mr. Price noted, 4.6 has a revised page. So certainly our receipt of the items 4.3, 4.4 and 4.6 will include that revised page as the receivable item. I would look for a motion for receipt of the reports related to 4.3, 4.4 and 4.6.

And I’ll deal with 4.5 after that. Moved by councilor Van Hall, seconded by councilor Turner. Any final questions on those answers before we vote? Okay, all those in favor?

Any opposed? Motion carries 5 to 0. Okay, 4.5, this is for approval. This is a revised internal audit plan.

I’ll look for a mover of this plan for approval. Ms. Higgs, seconded by councilor Van Hall. Any questions?

Seeing none, all those in favor? Any opposed? Motion carries 5 to 0. Thank you again, Mr.

Price, for you and your team’s work and for the presentation of those updates. We appreciate the work that you do. Item five, deferred matters and additional business. I have none.

I don’t know if there’s any for many of the committee members. I see none, then all I need is a motion to adjourn. Councilor Turner, Councilor Van Hall, all those in favor of adjournment? And motion carries 5 to 0.

And we are adjourned. Thank you for your time today, everyone.