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From YouTube: Audit Committee – February 26, 2015
Description
Audit Committee meeting – February 26, 2015 – Audio Stream
Agenda and background materials can be found at http://www.ottawa.ca/agendas.
B
B
My
personal
thanks
to
Council
for
selecting
me
as
chair
and
to
councillor
Croce
for
agreeing
to
serve
as
our
vice
chair.
Thanks
to
councillor
Manette,
Wilkinson,
Alison,
Carey
and
Council
of
Jerusalem
with
us,
the
Audit
Committee
will
be
taking
on
an
important
role
during
the
next
four
years,
as
we
work
with
our
Auditor
General
and
our
city
management
to
review
our
programs
and
services
for
efficiencies.
I
would
like
to
recognize
Brian
Madden,
the
president
of
qp5
all
three
for
his
contribution
to
these
efforts.
B
As
it
is
often
our
employees
who
develop
our
best
ideas
for
savings,
we
will
be
responsible
for
reviewing
and
recommending
to
Council
the
annual
audit
plan,
along
with
any
subsequent
audits,
submitted
or
adjustments
or
submitted
by
council
members
and
the
office
of
the
Auditor
General.
We
will
receive
and
resolve
any
audit
recommendations
where
management
does
not
agree
as
directed
by
Council
and
ensure
that
any
policy
recommendations
coming
out
of
an
audit
are
referred
to
the
appropriate
Standing
Committee.
You
may
recall
how
audits
in
the
past
contain
recommendations
which
management
action
has
been
directed.
B
We
will
now
be
responsible
for
reviewing
reports
from
the
office
of
the
Auditor
General
on
the
status
and
implementation
of
these
audit
recommendations.
We
achieving
the
projected
savings
as
implementation
been
completed
instead
of
just
being
reported
on
with
the
audit
findings,
we
will
be
receiving
regular
status
reports
on
the
city's
implementation
of
accepted
audit
recommendations.
B
Focus
will
be
to
ensure
that
checks
and
balances
continue
to
be
in
place
within
our
various
programs
and
services
to
protect
our
residents
tax
dollars.
We
want
to
tell
the
story
the
many
people
working
for
the
residents
of
Ottawa
every
day
and
contribute
to
the
conspiracy
and
accountability
that
our
mayor
and
council
are
deeply
committed
to
on
behalf
of
our
residents.
One
important
initiative
that
we
will
be
highlighting
is
a
fraud
and
waste
hotline.
B
B
B
One
thing
we
can
say
is
we're
going
to
meet
a
more
frequent
basis
than
that.
So
item
number
one:
the
city,
manager's
office,
city,
treasurer
and
finance,
the
Ernst
&
Young
LLP
2014
audit
plan-
is
this
received.
As
the
questions
you
have
questions.
Okay,
we'll
hold
that
councillor.
Wilkinson
has
the
questions.
B
Item
number
two:
the
2015
draft
operating
and
capital
budget
for
the
audit
committee.
Is
there
any
questions
or
we're
good?
So
Carrie?
Thank
you
and
item
3
Audit
Committee
terms
of
references,
so
everybody
is
okay
with
the
terms
we
can
carry.
Okay,
it's
okay!
Thank
you!
So,
going
back,
then,
to
item
number
one:
the
Ernst
and
Young
plan
cancer.
Wilkinson
you
had
questions.
A
D
Thank
You
mr.
chair,
my
name
is
Suzanne
Janek
and
I
am
the
partner
on
the
audit
of
the
city,
financial
statements
and
I'm
here
with
Duchenne
and
I.
Do
who's
the
manager
on
the
audit
walks
through
our
presentation,
we're
happy
to
answer
any
questions
as
we
move
through
it
at
a
table
of
contents,
I'll
move
through
all
right,
so
the
services
we
provide.
D
We
provide
an
opinion
on
the
consolidated
financial
statements,
as
well
as
on
financial
information
for
a
number
of
related
entities
and
programs
that
are
run
by
the
city
and
have
audits
associated
with
them.
If
written
consent
is
needed
for
auditors
report
and
any
documents
we'll
provide
written
consent
for
that,
as
we
do
our
audit,
if
we
identify
any
internal
control
deficiencies
and
the
significant
deficiencies,
we
would
bring
to
your
attention
and
the
other
deficiencies
we
ways
with
management
so
that
they
can
deal
with
those.
D
When
we
determine
our
planning
materiality,
we
look
at
both
qualitative
and
quantitative
information.
We
look
at
the
amount
of
spending
for
the
city
and
determine
what
would
what
what
level
of
adjustment
would
potentially
impact
the
user,
the
financials,
the
financial
statements,
decision-making
based
on
new
2014
operating
budget.
We
determine
materiality
to
be
1.5
percent
to
budgeted
operating
expenditures
or
forty
three
point:
seven
million.
This
is
well
within
the
range
in
the
CPA
handbook,
which
is
point
five
to
two
percent.
D
Just
mincer
there's
any
changes
and
expenses,
then
we'll
adjust
our
materiality
accordingly.
When
we
do
our
testing
in
the
audit,
we
do
testing
at
much
lower
threshold
from
planning
materiality.
We
do
random
sampling,
so
we're
and
the
entry
Oh
transaction
can
be
picked
up
as
well
as
key
item
testing
in
the
financial
statements.
B
A
Because
that's
why
I
was
running
way.
They
about
6
million
Morris's,
fairly
hefty
increase
over
last
year's,
and
you
I've
usually
found
with
auditors
when
they
have
multi-year
approvals
to
be
in
there
that
the
beginning
there's
a
lot
of
expense
to
set
things
up
and
get
Rhys
to
things.
But
as
you
go
on,
a
lot
of
things
are
already
in
place.
So
I
just
was
wondering
why
it's
that
much
of
an
increase
over
2013
in
the
actual
amount.
So
I
don't
think
this
was
a
job.
A
A
You
said
that
was
37
point
1
million
you
were
paid
in
Flast
in
2013,
it's
forty
three
point,
seven
million,
which
is
but
six
point
six
million
more
for
2014,
and
we
based
it
on
the
percentage
of
the
cost.
But
costs
go
up
mostly
why
we
pay
our
salaries
to
a
staff
of
things.
It's
not
a
lot
of
new
things.
A
D
So
fees
actually
have
gone
down.
That's
that
what
doesn't
represent
our
fees.
That
represents
our
planning
materiality.
So
it's
see
whoever
we
think
that
would
impact
a
user's
decision
on
the
financial
statements
and
it's
based
on
your
expenditures.
So
if
your
expenditures
go
up,
you
would
expect
planning
materiality
to
go
up
as
well,
but
that's
not
actually,
that
has
nothing
to
do
with
our
fee.
Okay,.
C
I
can
counselor
I
believe
the
fees
for
2014
were
three
hundred
and
twenty
thousand,
and
that
was
a
decrease
from
four
over
four
hundred
thousand
in
2013.
So
what
she's?
Referring
to
the
forty
three
million,
is
really
your
error
level.
So
once
you
get
to
thirty
three
million
dollars
in
what
the
auditors
would
say,
our
material
misstatements,
then
you
get
a
qualified
statement
so
where
they
have
to
set
a
threshold
as
part
of
the
process
that
they
go
through.
So
that's
we
can
have
we
never
would.
C
We
could
have
up
to
forty
three
million
dollars
in
what
they
see
as
errors
and
how
we're
representing
our
statements
before
we
would
get
to
a
qualified
statement
that
says
this
does
not
materially,
or
this
does
not
accurately
represent
the
fine,
a
state
of
the
City
of
Ottawa.
So
that's
what
the
purpose
of.
A
E
You
Jeremy
and
congratulations
on
your
your
chairmanship
and
thanks
for
your
leadership,
madam-ji
act
just
to
follow
up
on
councillor
Wilkinsons
about
the
materiality
and
and
I
know
what
materiality
last
year
was
thirty-seven
point
one
and
now
it's
43
an
increase
of
six
million
and
20
percent.
What
leads
you
to
and
I
understand
the
level
of
misstatements
before
it
needs
to
be
a
qualified
report,
but
what
led
that
large,
in
relatively
large
increase
of
approximately
twenty
percent
in
the
in
materiality.
D
So
a
couple
of
things
would
have
led
to
that
one
would
be
increased
expenditures
which
would
result
potentially
in
an
increase
in
the
materiality
level,
because
it's
a
percentage
of
those
expenditures,
but
the
other
would
be
that
we
have
professional
judgment
in
the
range
that
we
can
use
and
it's
anywhere
from
0.5
percent
to
2
percent,
and
they
believe
that
last
year
we
used
one
point:
two
five
percent
and
based
on
looking
at
the
history
with
the
city
and
various
different
aspects
of
the
city.
That
is
not
like.
E
C
E
D
From
internet
from
our
audit
perspective,
we're
looking
at
the
risks
as
they
relate
to
the
financial
statements
and
what
could
what
could
impact
the
city?
From
that
perspective,
certain
changes
in
accounting
standards
are
one
of
the
things
we
look
at.
There
are
some
changes
in
public
sector
accounting
standards
that
we.
E
Thank
you.
So
those
are
all
risks
that
the
financial
instruments,
contingent
liabilities
or
all
things
that
the
city
has
been
dealing
with
for
20
years
and
the
auditors
been
dealing
with
20
years,
no
real
changes
and
I'm,
not
talking
in
2014
or
2015,
but
on
the
horizon
as
to
how
municipalities
deal
with
their
operations.
We've
always
had
large
capital
expenditures
and
big
infrastructure
projects
that
need
to
be
managed.
You're,
not
seeing
any
big
structural
or
systemic
changes
in
municipalities
in
the
risk
to
the
financial
reporting
of
municipalities.
F
You
I
thank
you,
mr.
chair
and
I'm,
not
sure
if
you
have
a
page
number
on
this
report,
let
me
see
but
I'm
looking
for
the
estimated
fee
for
2014
what
320
and
the
actual
face
was
417.
Some
we're
talking
about
the
audit
chief
of
the
financial
statement.
Can
you
tell
me
why
is
such
a
almost
30%
different.