MINUTES

AUDIT COMMITTEE

Thursday, November 17, 2022 at 9:30 A.m. - 11:55 P.m.

ENGINEERING TRADITIONS COMMITTEE ROOM

PRESENT:

• Councillor R. Pootmans, Chair
• Councillor E. Spencer, Vice-Chair
• Councillor T. Wong (Remote Participation)
• Councillor J. Wyness
• Citizen Representative L. Caltagirone
• Citizen Representative K. Kim
• Citizen Representative M. Lambert (Partial Remote Participation)

ALSO PRESENT:

• City Auditor L. Ormsby
• Chief Financial Officer C. Male
• Executive Advisor C. Smillie
• Legislative Advisor D. Williams
• Legislative Advisor J. Clement

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1.

CALL TO ORDER

Councillor Pootmans called the Meeting to order at 9:30 a.m.

ROLL CALL

Councillor Spencer, Councillor Wyness, Citizen Representative Lambert, Citizen Representative Kim, Citizen Representative Caltagirone, and Councillor Pootmans.

Absent from Roll Call: Councillor Wong

2.

OPENING REMARKS

Councillor Pootmans provided opening remarks and Councillor Spencer provided a traditional land acknowledgement. 

3.

CONFIRMATION OF AGENDA

• Moved by Councillor Spencer

  That the Agenda for today's meeting be amended by postponing the following Items to the 2023 January 19 Regular Meeting of the Audit Committee:

  • 7.1 2022 Law Audit Report, AC2022-1273
  • 10.1.8 2021-2022 Audit Committee Self-Assessment Survey, AC2022-1194
  MOTION CARRIED
• Moved by Councillor Wyness

  That the Agenda for the 2022 November 17 Regular Meeting of the Audit Committee be confirmed, as amended.

  MOTION CARRIED

4.

CONFIRMATION OF MINUTES

4.1

Minutes of the Regular Meeting of the Audit Committee, 2022 October 20

• Moved by Councillor Spencer

  That the Minutes of the 2022 October 20 Regular Meeting of the Audit Committee be confirmed.

  MOTION CARRIED

5.

CONSENT AGENDA

5.1

DEFERRALS AND PROCEDURAL REQUESTS

None

6.

POSTPONED REPORTS

None

7.

ITEMS FROM OFFICERS, ADMINISTRATION AND COMMITTEES

7.1

2022 Law Audit Report, AC2022-1273

This Item was postponed to the 2023 January 19 Regular Meeting of the Audit Committee during Confirmation of Agenda.

7.2

Green Line Program Baseline Schedule Audit, AC2022-1191

• Moved by Councillor Wyness

  That with respect to Report AC2022-1191, 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. 

  For: (6)

  Citizen Representative Lambert, Citizen Representative Caltagirone, Councillor Spencer, Councillor Pootmans, Councillor Wyness, and Citizen Representative Kim

  MOTION CARRIED

7.3

2023 Data Analytics Areas of Focus, AC2022-1213

• Moved by Citizen Representative Kim

  That with respect to Report AC2022-1213, 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.

  For: (6)

  Citizen Representative Lambert, Citizen Representative Caltagirone, Councillor Spencer, Councillor Pootmans, Councillor Wyness, and Citizen Representative Kim

  MOTION CARRIED

7.4

City Auditor's Office 2023 Audit Plan, AC2022-1218

• Moved by Citizen Representative Kim

  That with respect to Report AC2022-1218, the following be approved:

  That the Audit Committee:

  1. Approve the City Auditor’s Office 2023 Audit Plan;
  2. Receive this Report for the Corporate Record; and
  3. Recommend that Council receive this Report for the Corporate Record.

  For: (6)

  Citizen Representative Lambert, Citizen Representative Caltagirone, Councillor Spencer, Councillor Pootmans, Councillor Wyness, and Citizen Representative Kim

  MOTION CARRIED

7.5

Audit Committee 2023 Work Plan, AC2022-1193

• Moved by Citizen Representative Lambert

  That with respect to Report AC2022-1193, the following be approved:

  That the Audit Committee:

  1. Approve the Audit Committee’s 2023 Work Plan (Attachment 1); and
  2. Recommend that Council receive this Report and Attachment for the Corporate Record.

  For: (6)

  Citizen Representative Lambert, Citizen Representative Caltagirone, Councillor Spencer, Councillor Pootmans, Councillor Wyness, and Citizen Representative Kim

  MOTION CARRIED

7.6

Calgary Parking Authority 2021 Year-End Financial Report, AC2022-1251

By General Consent, Committee postponed Items 7.6 and 7.7 to the Call of the Chair. 

Committee dealt with this Item following Item 7.7.

• That with respect to Report AC2022-1251, the following be approved:

  That the Audit Committee recommend that Council approve the Calgary Parking Authority 2021 Annual Financial Statements.

  MOTION CARRIED

7.7

External Auditor – Calgary Parking Authority 2021 Year-End Report, AC2022-1199

​People in attendance during the Closed Meeting discussions with respect to Report AC2022-1199:

Clerks: D. Williams, J. Clement, S. Lancashire, and C. Doi. City Manager: D. Duckworth. Advice: C. Male, L. Ormsby, C. Smillie, C. Blaschuk, J. Foulds L. Tochor, and D. Morgan. External: H. Gill, I. Cvitanusic, N. Torgrimson, S. Milojevik, and S. Rajani.

• Moved by Citizen Representative Lambert

  That with respect to Report AC2022-1199, the following be approved, after amendment:

  That the Audit Committee:

  1. Receive this Report and Attachments 1 and 2 for the Corporate Record;
  2. Recommend that Council receives Report AC2022-1199, External Auditor - Calgary Parking Authority 2021 Year-End Report and the Attachments, for information and the Corporate Record; and
  3. Direct that Attachment 2 and the Closed Meeting discussions remain confidential pursuant to Sections 24 (Advice from officials) and 25 (Disclosure harmful to economic interests) of the Freedom of Information and Protection of Privacy Act, to be reviewed by 2027 November 17.
  MOTION CARRIED

8.

ITEMS DIRECTLY TO COMMITTEE

8.1

REFERRED REPORTS

None

8.2

NOTICE(S) OF MOTION

None

9.

URGENT BUSINESS

None

10.

CONFIDENTIAL ITEMS

• Councillor Wong (Remote Member) joined the meeting at 11:05 a.m. 

  Moved by Councillor Spencer

  That pursuant to Sections 16 (Disclosure harmful to business interests of a third party), 19 (Confidential evaluations), 23 (Local public body confidences), 24 (Advice from officials), and 25 (Disclosure harmful to economic interests) of the Freedom of Information and Protection of Privacy Act, Committee now move into Closed Meeting at 11:06 a.m., in the Engineering Traditions Committee Room, to discuss confidential matters with respect to the following Items:

  • 7.7 External Auditor - Calgary Parking Authority 2021 Year-End Report, AC2022-1199
  • 10.1.1. Wholly-Owned Subsidiary Initiative Update, AC2022-1217
  • 10.1.2. City Auditor's Office Whistle Blower Policy Proposed Amendments - AC2022-1244
  • 10.1.3. External Auditor (Verbal), AC2022-1196
  • 10.1.4. External Auditor - Approval of Additional Advisory Services, AC2022-1253
  • 10.1.5. External Auditor - 2022 Service Plan and Fees Update, AC2022-1252
  • 10.1.6.  Audit Forum (Verbal), AC2022-1195
  • 10.1.7. City Auditor (Verbal), AC2022-1197

  And further, that the following be authorized to attend the Closed Meeting: Harman Gill, Nicole Torgrimson, Ivana Cvitanusic, Sanjeev Rajani, and Simona Milojevik, External Auditors (Deloitte LLP);

  Jared Foulds (Calgary Parking Authority), Karun Gautam, and Kiersten Ermelbaurer (Ernst & Young). 

  MOTION CARRIED

  Councillor Wong (Remote Member) left the meeting at 11:52 a.m.

  Committee reconvened in public meeting at 12:14 p.m. with Councillor Pootmans in the Chair.

  ROLL CALL

  Councillor Spencer, Councillor Wyness, Citizen Representative Lambert, Citizen Representative Kim, Citizen Representative Caltagirone, and Councillor Pootmans.

  Absent for Roll Call: Councillor Wong

  
  
• Moved by Councillor Spencer

  That Committee rise without reporting. 

  MOTION CARRIED

  By General Consent, Committee modified the lunch recess from 60 minutes to 30 minutes.

  Committee recessed at 12:16 p.m. and reconvened at 12:49 p.m. with Councillor Pootmans in the Chair. 

  ROLL CALL

  Councillor Spencer, Councillor Wyness, Citizen Representative Kim, Citizen Representative Caltagirone, and Councillor Pootmans.

  Absent from Roll Call: Councillor Wong and Citizen Representative Lambert 

  
  
• Moved by Councillor Spencer

  That 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, Committee now move into Closed Meeting at 12:51 p.m., in the Engineering Traditions Committee Room, to discuss confidential matters with respect to the following Items:

  • 10.1.3. External Auditor (Verbal), AC2022-1196
  • 10.1.4. External Auditor - Approval of Additional Advisory Services, AC2022-1253
  • 10.1.5. External Auditor - 2022 Service Plan and Fees Update, AC2022-1252
  • 10.1.6.  Audit Forum (Verbal), AC2022-1195
  • 10.1.7. City Auditor (Verbal), AC2022-1197

  And further, that the following be authorized to attend the Closed Meeting: Harman Gill, Nicole Torgrimson, Ivana Cvitanusic, Sanjeev Rajani, and Simona Milojevik, External Auditors (Deloitte LLP). 

  MOTION CARRIED

  Citizen Representative Lambert (Remote Member) joined the meeting at 1:03 p.m.

  Committee reconvened in public meeting at 1:26 p.m. with Councillor Pootmans in the Chair.

  ROLL CALL

  Councillor Spencer, Councillor Wyness, Citizen Representative Caltagirone, Citizen Representative Kim, Citizen Representative Lambert, and Councillor Pootmans.

  Absent from Roll Call: Councillor Wong.

  
  
• Moved by Councillor Spencer

  That Committee rise and report.

  MOTION CARRIED

10.1

ITEMS FROM OFFICERS, ADMINISTRATION AND COMMITTEES

10.1.1

Wholly-Owned Subsidiary Initiative Update, AC2022-1217

​People in attendance during the Closed Meeting discussions with respect to Report AC2022-1217:

Clerks: D. Williams, J. Clement, S. Lancashire, and C. Doi. Law: M. Tolfree, S. Swinn, and L. Bonnett. Advice: C. Male, K. Black, C. Smillie, L. Ormsby, L. Tochor, D. Hnatyshyn, and L. Kerr. External: H. Gill, I. Cvitanusic, N. Torgrimson, S. Milojevik, S. Rajani, K. Gautam, and K. Ermelbauer.

• Moved by Citizen Representative Caltagirone

  That with respect to Confidential Report AC2022-1217, the following be approved:

  That the Audit Committee recommend that Council:

  1. Adopt Recommendation 1 contained in Confidential Report AC2022-1217; and 
  2. Direct that the Report, Attachments 2, 3, 4, and Closed Meeting discussions remain confidential pursuant to Sections 23 (Local public body confidences) and 24 (Advice from officials) of the Freedom of Information and Protection of Privacy Act, to be reviewed by 2027 November 17.
  MOTION CARRIED

10.1.2

City Auditor's Office Whistle Blower Policy Proposed Amendments - AC2022-1244

​People in attendance during the Closed Meeting discussions with respect to Report AC2022-1244:

Clerks: D. Williams, J. Clement, S. Lancashire, and C. Doi. Law: S. Swinn and M. Tolfree. Advice: C. Male, L. Ormsby, C. Smillie, L. Tochor, L. Kerr, R. Lehr, and A. Bleau. External: N. Torgrimson and S. Milojevik.

• Moved by Citizen Representative Caltagirone

  That with respect to Confidential Report AC2022-1244, the following be approved:

  That the Audit Committee:

  1. Recommend that Council approve the proposed amendments to Council Policy CC026; and
  2. Direct that the Attachments and Closed Meeting discussions remain confidential pursuant to Section 23 (Local public body confidences) of the Freedom of Information and Protection of Privacy Act, to be reviewed by 2022 December 30.
  MOTION CARRIED

10.1.3

External Auditor (Verbal), AC2022-1196

​People in attendance during the Closed Meeting discussions with respect to Report AC2022-1196:

Clerks: D. Williams, J. Clement, S. Lancashire, and C. Doi. Advice: C. Male, L. Ormsby, C. Smillie, and L. Tochor. External: H. Gill, I. Cvitanusic, N. Torgrimson, S. Milojevik, and S. Rajani.

• Moved by Councillor Spencer

  That with respect to Confidential Verbal Report AC2022-1196, the following be approved:

  That the Audit Committee direct that the Closed Meeting discussions remain confidential pursuant to Section 24 (Advice from officials) of the Freedom of Information and Protection of Privacy Act. 

  MOTION CARRIED

10.1.4

External Auditor - Approval of Additional Advisory Services, AC2022-1253

​People in attendance during the Closed Meeting discussions with respect to Report AC2022-1253:

Clerks: D. Williams, J. Clement, S. Lancashire, and C. Doi. Advice: C. Male, L. Ormsby, C. Smillie, and L. Tochor. External: H. Gill, I. Cvitanusic, N. Torgrimson, S. Milojevik, and S. Rajani.

• Moved by Citizen Representative Caltagirone

  That with respect to Confidential Report AC2022-1253, the following be approved:

  That the Audit Committee:

  1. Approve the Recommendations contained in Confidential Report AC2022-1253; and
  2. Direct that this Report, Attachment, Recommendations, and Closed Meeting discussions remain confidential pursuant to Sections 16 (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 2023 November 17.
  MOTION CARRIED

10.1.5

External Auditor - 2022 Service Plan and Fees Update, AC2022-1252

​People in attendance during the Closed Meeting discussions with respect to Report AC2022-1252:

Clerks: D. Williams, J. Clement, S. Lancashire, and C. Doi. Advice: C. Male, L. Ormsby, C. Smillie, and L. Tochor. External: H. Gill, I. Cvitanusic, N. Torgrimson, S. Milojevik, and S. Rajani.

• Moved by Citizen Representative Kim

  That with respect to Confidential Report AC2022-1252, the following be approved:

  That the Audit Committee:

  1. Approve the closed Recommendations 1 and 2 contained in Confidential Report AC2022-1252;
  2. Forward this report to Council for information and the Corporate Record; and
  3. Recommend that this Report, Recommendations, Attachment, and Closed Meeting discussions remain confidential pursuant to Sections 16 (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 by 2023 November 17.
  MOTION CARRIED

10.1.6

Audit Forum (Verbal), AC2022-1195

No report was given. 

10.1.7

City Auditor (Verbal), AC2022-1197

Administration in attendance during the Closed Meeting discussions with respect to Verbal Report AC2022-1197:

Clerks: D. Williams, J. Clement, S. Lancashire, and C. Doi. Advice: L. Ormsby and C. Smillie.

• Moved by Councillor Spencer

  That with respect to Confidential Verbal Report AC2022-1197, the following be approved:

  That the Audit Committee direct that the Closed Meeting discussions remain confidential pursuant to Section 24 (Advice from officials) of the Freedom of Information and Protection of Privacy Act. 

  MOTION CARRIED

10.1.8

2021 - 2022 Audit Committee Self-Assessment Survey, AC2022-1194

This Item was postponed to the 2023 January 19 Regular Meeting of the Audit Committee during Confirmation of Agenda.

10.2

URGENT BUSINESS

None

11.

BRIEFINGS

None

12.

ADJOURNMENT

• Moved by Councillor Spencer

  That this meeting adjourn at 1:29 p.m.

  MOTION CARRIED

  The following items have been forwarded on to the 2022 December 6 Combined Meeting of Council:

  CONSENT

  • Green Line Program Baseline Schedule Audit, AC2022-1191
  • 2023 Data Analytics Areas of Focus, AC2022-1213
  • City Auditor's Office 2023 Audit Plan, AC2022-1218
  • Audit Committee 2023 Work Plan, AC2022-1193
  • Calgary Parking Authority 2021 Year-End Financial Report, AC2022-1251
  • External Auditor – Calgary Parking Authority 2021 Year-End Report, AC2022-1199
  • External Auditor - 2022 Service Plan and Fees Update, AC2022-1252
  • Wholly-Owned Subsidiary Initiative Update, AC2022-1217
  • City Auditor's Office Whistle Blower Policy Proposed Amendments - AC2022-1244

  The following items have been postponed to the 2023 January 19 Regular Meeting of the Audit Committee:

  • 2022 Law Audit Report, AC2022-1273
  • 2021-2022 Audit Committee Self-Assessment Survey, AC2022-1194

  The next Regular Meeting of the Audit Committee is scheduled to be held on 2023 January 19 at 9:30 a.m.

  CONFIRMED BY COMMITTEE ON