MINUTES

AUDIT COMMITTEE

-
ENGINEERING TRADITIONS
PRESENT:
  • Councillor E. Woolley, Chair
  • Councillor J. Farkas, Vice-Chair (Remote Participation)
  • Councillor J. Davison (Remote Participation)
  • Citizen Representative L. Caltagirone (Remote Participation)
  • Citizen Representative K. Kim (Remote Participation)
  • Citizen Representative M. Lambert (Remote Participation)
  • Mayor N. Nenshi, Ex-Officio (Remote Participation)
ABSENT:
  • Councillor D. Colley-Urquhart (Personal)
ALSO PRESENT:
  • City Manager D. Duckworth (Remote Participation)
  • City Auditor K. Palmer (Remote Participation)
  • Chief Financial Officer C. Male (Remote Participation)
  • External Auditor T. Nakka
  • Executive Advisor C. Smillie
  • Legislative Coordinator M. A. Cario
  • Legislative Advisor D. Williams

1.
CALL TO ORDER
 

Councillor Woolley called the Meeting to order at 1:05 p.m.

ROLL CALL
Citizen Representative Caltagirone, Citizen Representative Kim, Citizen Representative Lambert, Councillor Davison, Councillor Farkas, Mayor Nenshi and Councillor Woolley

Absent: Councillor Colley-Urquhart

2.
OPENING REMARKS
 

RECOGNITIONS
Chair of Audit Committee - Councillor Evan Woolley
Councillor Woolley advised that this was his final meeting and reflected on his eight years of service on the Audit Committee, of which six he served as Committee Chair. He spoke highly of the expertise of Administration, the tremendous contributions of the City Auditor’s Office, the incredible stewardship of Finance and the valuable insights received from Deloitte LLP. Councillor Woolley thanked all members of the Audit Committee and recognized public members, Lori Caltagirone, Karen Kim and Michael Lambert, for their incredible technical advice. He thanked Corrie Smillie, Executive Advisor for her support throughout his term.

Mayor Nenshi observed that Councillor Woolley served on Audit Committee and Council with distinction. His leadership and contributions to The City of Calgary have been extraordinary. The Mayor congratulated him on an impressive job and thanked him for his service.

Citizen members Lori Caltagirone, Karen Kim and Michael Lambert of Audit Committee recognized Councillor Woolley’s leadership, intellectual curiosity, as well as his strength, courage and wisdom.

Trevor Nakka, Deloitte LLP observed that Councillor Woolley led the Audit Committee with courage resulting in significant achievements during his tenure.

A presentation was made of a small plaque from Audit Committee inscribed with the words “Nothing happens until someone makes it happen” and “Evan Woolley, Thank you for your strength, courage and wisdom. City of Calgary Audit Committee 2013-2021”.

City Auditor - Katharine Palmer

Councillor Woolley recognized and thanked Katharine Palmer, City Auditor for her extraordinary service to The City over the last eight years. He spoke of Katharine’s leadership, relationship building and incredible contributions in the areas of governance, finance and strategy. Councillor Woolley appreciated her practical approach and sense of humour and wished her all the best in her retirement.

Mayor Nenshi thanked Katharine for her service and expressed his appreciation for her tremendous contributions to The City of Calgary.

Katharine Palmer thanked Councillor Woolley, Mayor Nenshi and the Audit Committee for their support and ensuring an effective Audit Committee over the past eight years. Kathy stated it has been a true pleasure to work with Administration and the City Manager. She expressed that working with her team in the City Auditor’s Office has been the highlight of her career.

3.
CONFIRMATION OF AGENDA
 

  • Moved byCitizen Representative Lambert

    That the Agenda for the 2021 September 09 Regular Meeting of the Audit Committee be confirmed.

    MOTION CARRIED

4.
CONFIRMATION OF MINUTES
 

4.1
Minutes of the Regular Meeting of the Audit Committee, 2021 July 22
This item has attachments. 

1.Unconfirmed Minutes-2021 July 22-Audit Committee.pdf
  • Moved byCouncillor Farkas

    That the Minutes of the 2021July 22 Regular Meeting of the Audit Committee be confirmed.

    MOTION CARRIED

5.
CONSENT AGENDA
 

6.
POSTPONED REPORTS
 

None

7.
ITEMS FROM OFFICERS, ADMINISTRATION AND COMMITTEES
 

7.1
Organization Realignment Update (Verbal), AC2021-1332
This item has attachments. 

1.Distrib-Presentation-AC2021-1332.pdf

A presentation entitled "Organization Realignment Update" was distributed with respect to Report AC2021-1332.

  • Moved byCitizen Representative Lambert

    That with respect to Report AC2021-1332, the following be approved:

    That the Audit Committee receive the presentation for the Corporate Record.

    For: (7)Councillor Woolley, Mayor Nenshi, Councillor Farkas, Councillor Davison, Citizen Representative Lambert, Citizen Representative Caltagirone, and Citizen Representative Kim
    MOTION CARRIED

7.2
2021 Municipal Election Audit, AC2021-1277
This item has attachments. 

1.2021 Municipal Election Audit - AC2021-1277.pdf
2.Attach 1 - 2021 Municipal Election Audit - AC2021-1277 .pdf
3.Attach 2 - 2021 Municipal Election Audit Presentation Slide - AC2021-1277.pdf

Councillor Davison left the Remote Meeting at 2:10 p.m.

  • Moved byCitizen Representative Kim

    That with respect to Report AC2021-1277, the following be approved:

    That the Audit Committee:

    1. Receive this report for the Corporate Record; and
    2. Recommend that Council receive this report for the Corporate Record.

    And further, that this be forwarded to the 2021 September 13 Combined Meeting of Council as an item of Urgent Business.

    For: (5)Councillor Woolley, Councillor Farkas, Citizen Representative Lambert, Citizen Representative Caltagirone, and Citizen Representative Kim
    MOTION CARRIED

7.3
PeopleSoft Financials and Supply Chain Management Continuous Auditing, AC2021-1251
This item has attachments. 

1.PeopleSoft Financials and Supply Chain Management Continuous Auditing - AC2021-1251.pdf
2.Attach 1 - PeopleSoft FSCM Access Scorecard Summary (May and August 2021) - AC2021-1251.pdf
3.Attach 2 - PeopleSoft FSCM Access Continuous Auditing Presentation Slide - AC2021-1251.pdf
  • Moved byCitizen Representative Caltagirone

    That with respect to Report AC2021-1251, the following be approved:

    That the Audit Committee:

    1. Receive this report for the Corporate Record; and
    2. Recommend that Council receive this report for the Corporate Record.

    And further, that this be forwarded to the 2021 September 13 Combined Meeting of Council as an item of Urgent Business.

    For: (5)Councillor Woolley, Councillor Farkas, Citizen Representative Lambert, Citizen Representative Caltagirone, and Citizen Representative Kim
    MOTION CARRIED

8.
ITEMS DIRECTLY TO COMMITTEE
 

9.
URGENT BUSINESS
 

None

10.
CONFIDENTIAL ITEMS
 

  • Moved byCouncillor Farkas

    That pursuant to Sections 16 (Disclosure harmful to business interests of a third party), 17 (Disclosure harmful to personal privacy), 23 (Local public body confidences), 24 (Advice from officials), and 25 (Disclosure harmful to economic and other interests of a public body) of the Freedom of Information and Protection of Privacy Act,  Committee now move into Closed Meeting at 2:31 p.m., in the Engineering Traditions Boardroom, to discuss confidential matters with respect to the following Items:

    • 10.1.1  Shareholder Alignment Review of Wholly-Owned Subsidiaries, AC2021-1354
    • 10.1.2  Audit Forum (Verbal), AC2021-1229
    • 10.1.3 External Auditor – Provision of Additional Services, AC2021-1311
    • 10.1.5 City Auditor (Verbal), AC2021-1231

    And further, that the following be invited to attend the Closed Meeting:

    • Karun Gautam, Lance Mortlock and Kim Alexandr from Ernst & Young; and

    • Trevor Nakka, Harman Gill, Erica Vervoort, Ivana Cvitanusic and Daksha Mulay from External Auditors (Deloitte LLP).                      

    MOTION CARRIED

    By General Consent, pursuant to Section 6(1) of Procedure Bylaw 35M2017, Committee suspended Section 78(2)(b) of the Procedure Bylaw in order to forego the afternoon recess to finish the remainder Agenda.

    Committee reconvened in public meeting at 4:01 p.m. with Councillor Woolley in the Chair.


  • Moved byCouncillor Farkas

    That Committee rise and report.

    MOTION CARRIED

    ROLL CALL

    Citizen Representative Caltagirone, Citizen Representative Kim, Citizen Representative Lambert, Councillor Davison, Councillor Farkas, and Councillor Woolley

    Absent: Councillor Colley-Urquhart


10.1
ITEMS FROM OFFICERS, ADMINISTRATION AND COMMITTEES
 

10.1.1
Shareholder Alignment Review of Wholly-Owned Subsidiaries, AC2021-1354
 

Councillor Davison return to the Remote Meeting at 3:00 p.m.

People in attendance during the Closed Meeting discussions with respect to Report AC2021-1354:

Clerks: M. A. Cario and D. Williams.  Advice: L. Kerr, A. Brown, D. Jakal, K. Palmer, L. Ormsby, C. Male, L. Tochor and C. Smillie.

External: L. Mortlock, K. Gautam, T. Nakka, H. Gill, I. Cvitanusic, D. Mulay and K. Alexandr.

A confidential distribution was received with respect to Report AC2021-1354.

  • Moved byCitizen Representative Lambert

    That with respect to Report AC2021-1354, the following be approved:

    That the Audit Committee recommend that Council:

    1. Approve the Administration Recommendations; and
    2. Direct that this Report, Recommendations, presentation, Attachments and the Closed Meeting discussions remain confidential pursuant to Sections 16 (Disclosure harmful to business interests of a third party), 24 (Advice from officials) and 25 (Disclosure harmful to economic and other interests of a public body) of the Freedom of Information and Protection of Privacy Act to be reviewed by December 31, 2022.

    And further, that this Report be forwarded to 2021 September 13 Combined Meeting of Council as an item of Urgent Business.

    MOTION CARRIED

10.1.2
Audit Forum (Verbal), AC2021-1229
 

People in attendance during the Closed Meeting discussions with respect to Report AC2021-1229:

Clerks: M. A. Cario and D. Williams. Advice:  C. Male, L. Ormsby, K. Palmer, L. Tochor, A. Brown, J. Lai and C. Smillie. External: T. Nakka, H. Gill, I. Cvitanusic, and D. Mulay.

A confidential distribution was received with respect to Report AC2021-1229.

  • Moved byCitizen Representative Caltagirone

    That with respect to Report AC2021-1229 the following be approved:

    That the Audit Committee direct that the Closed Meeting discussions and presentation remain confidential pursuant to Sections 24 (Advice from Officials), 25 (Disclosure harmful to economic and other interests of a public body) and 26 (Testing procedures, tests and audits) of the Freedom of Information and Protection of Privacy Act, to be reviewed by 2023 July 15.

    MOTION CARRIED

10.1.3
External Auditor – Provision of Additional Services, AC2021-1311
 

People in attendance during the Closed Meeting discussions with respect to Report AC2021-1311:

Clerks: M. A. Cario and D. Williams. Advice:  C. Male, L. Ormsby, K. Palmer, L. Tochor, and C. Smillie. External: T. Nakka, H. Gill, I. Cvitanusic, and D. Mulay.

  • Moved byCitizen Representative Kim

    That with respect to Report AC2021-1311, the following be approved:

    That Audit Committee:

    1. Approve the Administration Recommendations; and

    2. Direct that this report, attachment, recommendations and Closed Meeting discussions remain confidential pursuant to Sections 16 (Disclosure harmful to business interests of a third party) and 24 (Advice from officials)  of the Freedom of Information and Protection of Privacy Act; to be reviewed 2022 September 09.

    MOTION CARRIED

10.1.4
External Auditor (Verbal), AC2021-1230
 

No report given.

10.1.5
City Auditor (Verbal), AC2021-1231
 

People in attendance during the Closed Meeting discussions with respect to Report AC2021-1231:

Clerks: M. A. Cario and D. Williams. Advice:  L. Ormsby, K. Palmer and C. Smillie.

  • Moved byCitizen Representative Lambert

    That with respect to Verbal Report AC2021-1231, the following be approved:

    That the Audit Committee direct that the Closed Meeting discussions remain confidential pursuant to Sections 17 (Disclosure harmful to personal privacy) and 24 (Advice from officials) of the Freedom of Information and Protection of Privacy Act.

    MOTION CARRIED

10.2
URGENT BUSINESS
 

None

11.
ADJOURNMENT
 

  • Moved byCouncillor Farkas

    That this meeting adjourn at 4:04 p.m.

    MOTION CARRIED

    The following items have been forwarded on to the 2021 September 13 Combined Meeting of Council:

    URGENT BUSINESS 

    • 2021 Municipal Election Audit, AC2021-1277 
    • PeopleSoft Financials and Supply Chain Management Continuous Auditing, AC2021-1251 
    • Shareholder Alignment Review of Wholly-Owned Subsidiaries, AC2021-1354

    The next Regular Meeting of the Audit Committee is scheduled to be held on Friday, 2021 November 19 at 9:30 a.m.

     

    CONFIRMED BY COMMITTEE ON


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