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From YouTube: Audit Committee meeting – February 25, 2019
Description
Audit Committee meeting – February 25, 2019
Agenda and background materials can be found at http://www.ottawa.ca/agendas.
A
Good
morning,
everyone
balls
rule
behave
you
open
ye
open.
A
few
notes.
Couldn
t
be
special
welcome
to
our
first
meeting
of
the
Audit
Committee.
What
special
welcome
back
to
Council
else,
interior
shanty
ree,
councillor
de
Roos,
who
are
on
the
committee
last
time
and
councillor
hubli,
also
who's
absent
today.
A
Regretfully,
a
special
welcome
to
councillor
Cavanaugh
first
time
on
the
Audit
Committee
and
vice-chair
me,
and
thank
you
for
agreeing
to
serve
and
a
warm
welcome,
and
thank
you
to
the
staff
of
the
oeg
who
are
here
and
for
all
their
hard
work
and
to
members
of
the
public.
We,
we
have
a
pretty
short
agenda
today,
so,
let's
get
to
it
with
respect
and
echo
interest.
A
B
A
And
correct
this
was
there
are
no
changes
to
the
terms
of
reference
from
the
past
from
the
past
term.
This
item
carried
here
excellent.
Thank
you.
I,
remember
to
the
draft
operating
and
capital
budget
for
the
Audit
Committee.
Would
anyone
like
to
hold
this
item?
We
have
no
presentation
and
no
speakers
are
registered.
Jen
fine.
B
B
A
It's
a
pretty
short
roadmap
motion.
Any
questions
concerns
no
Carrie.
Thank
you
very
much
item
number
three
of
our
agenda
is
the
innocent
young
audit
plan,
and
we
do
have
a
presentation.
Is
the
deputy
treasurer
Jeff
and
Susan
yak
from
Ernst,
&,
Young
and
Isabel?
You
are
not
participating
in
the
presentation
no
are
here
to
to
presents.
C
Thank
you
very
much
mr.
chair
happy
to
be
here
today.
I'm
the
partner
on
the
Audion
gage
meant
for
the
City
of
Ottawa
and
I.
Have
here
with
me
the
Myers
who's
the
senior
manager
on
the
engagement
I
just
wanted
to
walk
you
through
a
lot
of
plan
today.
So
you
have
an
idea
what
we'll
be
doing
in
the
coming
months
and
then
we'll
be
back
to
report
to
you
at
the
end
of
the
completion
of
our
audit.
C
So
the
ey
services
just
you're,
aware
that
we
provide
an
opinion
on
the
consolidated
financial
statements
that
they
are
fairly
stated
in
all
material
respects,
in
accordance
with
public
sector
accounting
standards.
We
also
do
other
work
on
financial
information
of
related
entities
and
subsidiaries
of
the
city
and
other
programs,
where
the
city
is
reporting
to
other
levels
of
government,
first
company
evade
and
code
as
part
of
their
work.
We
do
look
at
internal
control,
so
if
we
identify
any
issues,
we
also
report
to
you
on
significant
efficiencies
and
we'll
provide
feedback
to
management.
C
So,
starting
with
the
planning
materiality,
this
is
one
of
the
first
thing.
First
things
we
do
as
we're
developing
our
audit
plan
and,
as
I
mentioned,
we're
formulating
an
opinion
on
the
consolidated
financial
statements
as
to
their
fail
presentation
in
all
material
respects,
in
accordance
with
the
applicable
standards.
So
planning
materiality
is
a
critical
factor.
It's
about
it's
the
level
at
which
we
think
an
error
emission
that
impact
user's
decision
when
they're
using
the
financial
statements.
C
So
we
generally
look
at
the
quantity,
different
qualitative
factors
and
we
look
at
the
city's
operating
budget
to
determine
materiality,
and
we
also
look
at
the
standards,
because
there
are
sort
of
some
set
percentages
there
you
and
for
the
city,
we
determined
that
expenditures
are
the
critical
financial
indicator,
and
so
we
have
identified
two
percent
of
budgeted
expenditures
as
the
materiality
level
for
the
audit.
This
is
sixty
eight
point:
eight
million
versus
sixty
seven
point
1
million
year.
C
The
question
that
we're
using
and
the
methodology
to
determine
materiality
in
the
line
with
prior
years
as
we
go
through
the
audit.
If
you
have
insight
issues
you
go
raises,
and
we
will
also
reconsider
materiality.
As
they
may
impact
and
destroy
United
you
a
significant
amount
of
work
at
testing
levels
well
below
planning
materiality.
This
is
the
level
when
you
combine
all
of
the
issues
that
we've
a
determine.
C
C
So
our
audit
approach,
when
you're
doing
an
audit,
you
can
do
an
audit
on
where
you
test
controls
and
you
do
detail
testing
or
you
just
do
detailed
testing,
so
substantive
audit
for
the
city
we
have
historically
and
we're
continuing
and
to
rely
on
controls.
We
have
specialists
that
look
at
IT
general
controls
over
sepm
mukthi
and
we
also
look
at
controls
over
certain
processes.
So
for
the
city,
we
look
at
the
payroll
concerns
and
we
look
at
accounts
payable
and
expenditure
controls
as
well
as
a
result
of
relying
on
those.
C
We
can
do
less
detailed
testing
because
we
have
an
overall
and
calculate
level
of
the
control
and
processes,
but
they
are
mainly
insignificant
processes.
We
do
a
substantive
approach,
which
is
detailed
testing,
so
I'm
going
to
pass
it
over
to
me
down
here.
Give
you
a
little
more
detail
on
the
areas
about
it:
emphasis
on
a
specific
testing
that
we
do
in
these
areas.
Good.
D
Morning,
everyone
and
so
I
will
not
go
into
detail
and
testing
procedures,
but
I
just
highlight
some
of
the
procedures
that
we
perform
and
some
there
is
applauded
emphasis.
So
the
first
area
is
by
revenue,
recognition
and
then
for
for
refunded
data
analytics
over
certain
multiple
certain
significant
revenue
streams,
as
well
as
will
conduct
the
detail.
D
Other
detailed
substantive
procedures
on
the
remainder
of
the
revenue
streams
we're
going
to
perform
about
100
percent
of
the
transactions
to
look
at
the
correlation
between
revenue,
accounts
receivable
in
cash
and
should
there
be
any
anomalies,
will
investigate
further
the
dependable
capital
assets.
We
will
also
prefer
use
our
data
analytics
tool
and
perform
our
work,
while
also,
in
addition,
will
conduct
a
detailed
investigation
of
eminent
additions,
transfers
or
disposals,
and
also
look
at
the
assumptions
used
for
the
useful
life
in
the
depreciation
methods
used
by
the
city
for.
D
Other
areas
of
emphasis
in
the
such
as
investments
will
perform
substantive
procedures
and
evaluation
and
assess
the
differences
and
significant
increases
in
fair
market
value
or
and/or
in
the
gains
and
losses
as
a
result
of
the
sale
or
purchase
of
the
investments
within
play.
Future
benefits
area
similar
to
prior
years,
more
involve,
are
especially
ricotta
moment.
Assumptions
used
in
the
valuation
of
the
future
benefits
continue
abilities
and
commitments.
D
We
will
assess
we'll
look
at
the
new
agreements
entered
by
the
city
during
the
year
as
well
as
will
assess
computers
and
accuracy
of
the
disclosures
for
the
commitments,
including
commitments
of
them
at
an
electric
transit
project.
Overall,
we
will
also
assess
them
the
preparedness
of
the
financial
statement
disclosures
as
as
they
are
in
line
with
them
appropriate
standards,
as
well
as
prepared
for
the
we're
suppose
to
look
at
the
risk
of
asthma
with
our
procedures
and
we're
supposed
to
look
at
the
fraud
risk
and
assess
a
transactional
basis.
C
C
I
oughta
planning-
normally
we
would
have
been
here
MFL,
but
due
to
the
election,
we're
a
bit
later
to
presenter
out
a
plan.
We
have
done
planning
and
control
testing
at
this
point
in
it's
under
review.
We
will
be
out
to
the
city
and
March
effect,
conduct
the
audit,
and
then
we
will
report
to
you
a
moment
expect
to
issue
the
financial
statements
in
our
opinion.
After
conclude,
the
audit
and
it's
approved,
so
the
final
thing
we
want
to
talk
about.
C
There
are
some
new
accounting
developments
this
year
that
the
city
has
already
started
to
review
and
we
will
work
with
them
on
the
Blitz
them
here
and
don't
anticipate
that
they
don't
have
a
significant
impact
on
the
financial
statements.
But
we
will
continue
to
look
with
the
city
on
that
and
there
is
also
a
new
audit
report
that
has
been
this
is
effective
after
December,
15
2010,
so
that
the
end
of
the
audit,
you
will
see
that
our
audit
opinion
is
audit.
Report
is
different
than
it
was
in
the
past
right
now.
C
The
opinion
is
at
the
beginning
of
the
audit
report,
followed
by
a
basis
for
opinion
and
more
detail
on
responsibilities,
as
it
will
be
a
little
different
in
it's
a
couple
of
pages
in
length,
so
they
longer
than
in
the
past,
but
I
anticipate
that
that
shouldn't
create
any
significant
issues.
It's
everyone
has
any
audit
report
at
this
point
in
time.
So
we're
happy
to
answer
any
questions
on
our
plan.
B
We
just
got
this
report
this
morning,
so
it
didn't
give
us
very
much
time
to
look
into
it
or
definitely,
but
I
noticed
that
you're
talking
about
to
be
auditing
the
completeness
and
accuracy
of
the
disclosures
and
commitments,
including
related
to
the
LRT
project.
Are
you
talking
specifically
about
stage
one
and
what
about
stage
two?
Are
you
look?
Are
you
be
auditing
that
as
well
so.
B
C
It's
when
expenditures
incurred,
then
we
look
at
those
in
the
financial
statements
or
they're
committed
to
that.
We
would
look
at
the
disclosures,
so
the
financial
statements
are
for
the
prior
year,
so
the
December
31
2018.
So
it's
things
that
happen
in
2018
or
if
there
are
any
subsequent
events
that
took
place
in
2019
and
those
may
require
disclosure,
but
they
didn't
be
accounted
for
necessarily
in
their
2018
financial
statements.
C
B
A
A
C
Not
other
than
what
meters
already
mentioned,
and
when
we
focus
on
the
revenue
and
extensively
in
the
revenue
recognition,
we
focus
on
the
tangible
capital
assets,
the
investments
and
them
all
of
the
contingent
liabilities
and
commitments,
as
well
as
the
actuarial
valuation
associated
with
the
employee
benefits.
Because
there
are
estimates
associated
with
that
and
assumptions.