MINUTES

AUDIT COMMITTEE

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ENGINEERING TRADITIONS COMMITTEE ROOM
PRESENT:
  • Councillor E. Spencer, Chair
  • Councillor R. Pootmans, Vice-Chair
  • Councillor C. Walcott (Remote Participation)
  • Councillor J. Wyness (Remote Participation)
  • Public Member K. Kim
  • Public Member C. McGillivray
  • Public Member J. Naicker
ALSO PRESENT:
  • Chief Operating Officer S. Dalgleish (Partial Remote Participation)
  • General Manager K. Black (Remote Participation)
  • A/Chief Financial Officer L. Tochor
  • City Auditor L. Ormsby
  • External Auditor H. Gill
  • Executive Advisor C. Smillie
  • A/City Clerk S. Lancashire
  • Legislative Advisor J. Booth

1.
CALL TO ORDER

 

Councillor Spencer called the meeting to order at 9:31 a.m. 

ROLL CALL

Councillor Pootmans, Councillor Walcott, Councillor Wyness, Public Member Kim, Public Member McGillivray, Public Member Naicker, and Councillor Spencer

2.
OPENING REMARKS

 

Councillor Spencer provided opening remarks and a traditional land acknowledgement.

3.
CONFIRMATION OF AGENDA

 
  • Moved byCouncillor Pootmans

    That the Agenda for the 2024 June 13 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, 2024 May 23

This item has attachments. 
1.Unconfirmed Minutes-2024-05-23-Audit Committee.pdf
  • Moved byPublic Member Kim

    That the Minutes of the 2024 May 23 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
The City of Calgary Investment Governance Review Report, AC2024-0459

This item has attachments. 
1.The City of Calgary Investment Governance Review Report - AC2024-0459.pdf
2.Attach 1 - Background and Previous Council Direction - AC2024-0459.pdf
3.Attach 2 - Governance Review - AC2024-0459.pdf
4.Attach 3 - CFA Institute - Investment Governance for Fiduciaries - AC2024-0459.pdf
5.Attach 4 - Presentation Investment Governance Review - AC2024-0459.pdf

By General Consent, Committee postponed Item 7.1 to the Call of the Chair in order to discuss the Item in Closed Meeting.

Committee then dealt with Item 7.2.

Committee returned to this Item following the rise and report motion on Item 7.6.

  • People in attendance during the Closed Meeting discussions with respect to Report AC2024-0459:

    Clerks: S. Lancashire, J. Booth, and K. Picketts. Advice: S. Dalgleish, K. Black, L. Tochor, L. Ormsby, C. Smillie, R. Babineau, S. Brandt, A. Mackay, and A. Brown. External: H. Gill, S. Milojevik, S. Rajani, and N. Torgrimson.
    Moved byCouncillor Wyness

    That with respect to Report AC2024-0459, the following be approved, after amendment:

    That the Audit Committee

    1. Receive the Investment Governance Report and supporting documents for the Corporate Record; and
    2. Direct that the Closed Meeting discussions be held confidential pursuant to Section 24 (Advice from officials) of the Freedom of Information and Protection of Privacy Act.
    For: (6)Councillor Spencer, Councillor Walcott, Councillor Wyness, Public Member Kim, Public Member McGillivray, and Public Member Naicker
    MOTION CARRIED

    Committee then dealt with Item 7.6.


7.2
External Auditor 2023 Management Letter, AC2024-0536

This item has attachments. 
1.External Auditor 2023 Management Letter - AC2024-0536.pdf
2.Attach 1 - City of Calgary 2023 Deloitte Letter of Recommendations June 13 2024 Meeting - AC2024-0536.pdf

This Item was dealt with following Item 7.1.

  • Moved byPublic Member McGillivray

    That with respect to Report AC2024-0536, the following be approved:

    That the Audit Committee:

    1. Requests the External Auditor provide an update regarding the implementation status of the recommendation contained in the 2023 Management Letter (Attachment) at the 2025 January Audit Committee meeting; and
    2. Recommends that Council receives this Report and Attachment for the Corporate Record.

       

    For: (7)Councillor Spencer, Councillor Walcott, Councillor Pootmans, Councillor Wyness, Public Member Kim, Public Member McGillivray, and Public Member Naicker
    MOTION CARRIED

7.3
Calgary Municipal Land Corporation 2023 Annual Report, AC2024-0436

This item has attachments. 
1.Calgary Municipal Land Corporation 2023 Annual Report - AC2024-0436.pdf
2.Attach 1 - CMLC Control Environment Assessment - AC2024-0436.pdf
3.Attach 2 - CMLC Management Representation Letter - AC2024-0436.pdf
4.Attach 3 - CMLC Finance and Audit Committee Mandate - AC2024-0436.pdf
5.Attach 4 - CMLC Finance and Audit Committee 2024 Workplan - AC2024-0436.pdf
6.Attach 5 - CMLC Risk Register - AC2024-0436.pdf
7.Attach 6 - CMLC External Auditor YE Report 2023 - AC2024-0436.pdf
8.Attach 7 - CMLC - Financial Statements 2023 - AC2024-0436.pdf
9.Distrib-Presentation-AC2024-0436.pdf

A presentation entitled "Presentation to Audit Committee" was distributed with respect to Report AC2024-0436.

  • Moved byPublic Member Kim

    That with respect to Report AC2024-0436, the following be approved:

    That the Audit Committee receive this report and presentation for the Corporate Record.

    For: (7)Councillor Spencer, Councillor Walcott, Councillor Pootmans, Councillor Wyness, Public Member Kim, Public Member McGillivray, and Public Member Naicker
    MOTION CARRIED

7.4
Utilities Delivery’s Utilization of the Program and Project Management System (P2M) Audit, AC2024-0707

This item has attachments. 
1.Utilities Delivery’s Utilization of the Program and Project Management System (P2M) Audit – AC2024-0707.pdf
2.Attach 1 - Utilities Deliverys Utilization of the Program and Project Management System (P2M) Audit - AC2024-0707.pdf
  • Moved byPublic Member Naicker

    That with respect to Report AC2024-0707, 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: (7)Councillor Spencer, Councillor Walcott, Councillor Pootmans, Councillor Wyness, Public Member Kim, Public Member McGillivray, and Public Member Naicker
    MOTION CARRIED

7.5
Proposed Amendments to Audit Committee Bylaw 33M2020 and City Auditor Bylaw 30M2004, AC2024-0182

This item has attachments. 
1.Proposed Amendments to Audit Committee Bylaw 33M2020 and City Auditor Bylaw 30M2004 - AC2024-0182.pdf
2.Attach 1 - Proposed Wording for Amendments to Bylaw 33M2020 Text for Discussion - AC2024-0182.pdf
3.Attach 2 - Spreadsheet - Proposed Bylaw 33M2020 Amendments - AC2024-0182.pdf
4.Attach 3 - Redline Markups on Proposed Amendments to Audit Bylaw 33M2020 - AC2024-0182.pdf
5.Attach 4 - Bylaw 33M2020 - AC2024-0182.pdf
6.Attach 5 - Proposed Wording for Amendments to Bylaw 30M2004 Text for Discussion - AC2024-0182.pdf
7.Attach 6 - Spreadsheet - Proposed Bylaw 30M2004 Amendments - AC2024-0182.pdf
8.Attach 7 - Red-Line Markups of Proposed Amendments to Bylaw 30M2004 - AC2024-0182.pdf
9.Attach 8 - (Original) 30M2004 - City Auditor - AC2024-0182.pdf
10.Distrib-Document-AC2024-0182.pdf

A document entitled “Proposed Amendments to Audit Committee Bylaw 33M2020 and City Auditor Bylaw 30M2004, AC2024-0182” was distributed with respect to Report AC2024-0182.

  • Moved byCouncillor Pootmans

    That with respect to Report AC2024-0182, the following be approved, after amendment:

    That the Audit Committee:

    1. Approve the Bylaw Review Working Group’s proposed amendments to Bylaw 33M2020 (Attachment 1);
    2. Approve the Bylaw Review Working Group’s proposed amendments to Bylaw 30M2004 (as amended) contained in Attachment 5; and
    3. Thank the Bylaw Review Working Group members for their contributions.

    That the Audit Committee recommend that Council:

    1. Give three readings to the proposed bylaw to amend the Audit Committee Bylaw 33M2020 (as amended) and following first reading, amend the proposed bylaw as follows:
       
      1. Amend, Page 3 of Attachment 1, Section 12 by deleting the words “The City’s” and by substituting with the words “External Auditor’s” as follows:

    In SCHEDULE “B”, under Section 1. REGARDING THE EXTERNAL AUDITOR, subsections (a) and (b) are deleted and replaced with the following:

    “(a) prior to the commencement of the annual external financial audit, reviews the audit plan and estimated audit fees with the External Auditor and discusses the timing and extent of audit procedures, materiality, significant audit risk and areas of audit focus and overall audit strategy.  The External Auditor’s preliminary base audit fee estimates based on information available at the time of the External Auditor’s audit plan mailout and subject to change based on the full scoping of and progression of work on the audits for The City’s government business enterprise, related authorities and the ancillary audits are to be included in External Auditor’s audit plan for information purposes only.  The audit plan is forwarded to Council for information; and

    1. Give three readings to the proposed bylaw to amend the City Auditor’s Bylaw 30M2004 (as amended)
    For: (7)Councillor Spencer, Councillor Walcott, Councillor Pootmans, Councillor Wyness, Public Member Kim, Public Member McGillivray, and Public Member Naicker
    MOTION CARRIED

7.6
2023 Civic Partner Audit Report, AC2024-0282

This item has attachments. 
1.2023 Civic Partner Audit Report - AC2024-0282.pdf
2.Attach 1 - Background and Previous Council Direction - AC2024-0282.pdf
3.Attach 2 - Civic Partner Grant Funding 2021-2024 - AC2024-0282.pdf
4.Attach 3 - Definition of Rating Terms - AC2024-0282.pdf
5.Attach 33 - Admin Presentation - AC2024-0282.pdf
  • Moved byPublic Member Kim

    That pursuant to Sections 16 (Disclosure harmful to business interests of a third party), 23 (Local public body confidences), and 24 (Advice from officials) of the Freedom of Information and Protection of Privacy Act, Committee now move into Closed Meeting, at 11:01 a.m. in the Engineering Traditions Committee Room, to discuss confidential matters with respect to the following Items:

    • 7.1 The City of Calgary Investment Governance Review Report, AC2024-0459
    • 7.6 2023 Civic Partner Audit Report, AC2024-0282
    • 10.1.1 Supplier Billing Contract Compliance Continuous Auditing Project, AC2024-0708
    • 10.1.2 Audit Forum (Verbal), AC2024-0538
    • 10.1.3 External Auditor (Verbal), AC2024-0537
    • 10.1.4 City Auditor (Verbal), AC2024-0539

    And further, that the following be authorized to attend the Closed Meeting with respect to Items 7.1, 7.6, 10.1.1, and 10.1.3: Harman Gill, Sanjeev Rajani, Nicole Torgrimson, and Simona Milojevik, External Auditors (Deloitte LLP).

    And further, that pursuant to Section 6(1) of Procedure Bylaw 35M2017, Audit Committee suspend Section 78(2)(a) to forego the lunch recess to complete the Agenda.

    For: (7)Councillor Spencer, Councillor Walcott, Councillor Pootmans, Councillor Wyness, Public Member Kim, Public Member McGillivray, and Public Member Naicker
    MOTION CARRIED

    Committee recessed at 11:27 a.m. due to technical difficulties and reconvened at 11:44 a.m. in Closed Meeting with Councillor Spencer in the Chair.

    Committee reconvened in public meeting at 12:49 p.m. with Councillor Spencer in the Chair.

    ROLL CALL

    Councillor Walcott, Councillor Wyness, Public Member Kim, Public Member McGillivray, Public Member Naicker, and Councillor Spencer

    Absent from Roll Call: Councillor Pootmans


  • Moved byCouncillor Walcott

    That Committee rise and report.

    MOTION CARRIED

    Committee then dealt with Item 7.1.


  • This Item was dealt with following the vote on Item 7.1.

    People in attendance during the Closed Meeting discussions with respect to Report AC2024-0282:

    Clerks: S. Lancashire, J. Booth, and K. Picketts. Advice: S. Dalgleish, K. Black, L. Tochor, L. Ormsby, C. Smillie, L. Kerr, K. Mustard, J. Chase, T. Mowrey, R. Turley, and M. Yong. External: H. Gill, S. Milojevik, S. Rajani, and N. Torgrimson.
    Moved byCouncillor Walcott

    That with respect to Report AC2024-0282, the following be approved, after amendment:

    That the Audit Committee recommend that Council:

    1. Receive this report for the Corporate Record; and
    2. Direct that Attachments 4, 5 and 6 through 32 and the Closed Meeting discussions be held confidential pursuant to Sections 16 (Disclosure harmful to business interests of a third party), 23 (Local public body confidences), and 24 (Advice from officials) of the Freedom of Information and Protection of Privacy Act, to be reviewed 2027 October 22.
    For: (6)Councillor Spencer, Councillor Walcott, Councillor Wyness, Public Member Kim, Public Member McGillivray, and Public Member Naicker
    MOTION CARRIED

8.
ITEMS DIRECTLY TO COMMITTEE

 

9.
URGENT BUSINESS

 

None

10.
CONFIDENTIAL ITEMS

 

10.1
ITEMS FROM OFFICERS, ADMINISTRATION AND COMMITTEES

 

10.1.1
Supplier Billing Contract Compliance Continuous Auditing Project, AC2024-0708

 

People in attendance during the Closed Meeting discussions with respect to Confidential Report AC2024-0708:

Clerks: S. Lancashire, J. Booth, and K. Picketts. Advice: L. Tochor, L. Ormsby, C. Smillie, J. Bradley, L. Ormsby, R. Visscher, S. Penwarden, M. Henriques, A. Patil, Y. Kwawu, and S. Dawson. External: H. Gill, S. Milojevik, S. Rajani, and N Torgrimson.
  • Moved byPublic Member Naicker

    That with respect to Confidential Report AC2024-0708, the following be approved:

    That the Audit Committee:

    1. Receive this Report for the Corporate Record;
    2. Recommend that Council receive this Report for the Corporate Record; and
    3. Recommend that this Confidential Report, Confidential Attachment and Closed Meeting discussions be held confidential pursuant to Section 16 (Disclosure harmful to business interests of a third party) of the Freedom of Information and Protection of Privacy Act, to be reviewed no later than 2039 June 13.
    For: (6)Councillor Spencer, Councillor Walcott, Councillor Wyness, Public Member Kim, Public Member McGillivray, and Public Member Naicker
    MOTION CARRIED

10.1.2
Audit Forum (Verbal), AC2024-0538

 

Administration in attendance during the Closed Meeting discussions with respect to Confidential Verbal Report AC2024-0538:

Clerks: S. Lancashire, J. Booth, and K. Picketts. Advice: L. Tochor, L. Ormsby, and C. Smillie. 
  • Moved byPublic Member McGillivray

    That with respect to Confidential Verbal Report AC2024-0538, the following be approved:

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

    For: (6)Councillor Spencer, Councillor Walcott, Councillor Wyness, Public Member Kim, Public Member McGillivray, and Public Member Naicker
    MOTION CARRIED

10.1.3
External Auditor (Verbal), AC2024-0537

 
No report given.

10.1.4
City Auditor (Verbal), AC2024-0539

 
No report given.

10.2
URGENT BUSINESS

 

None

11.
BRIEFINGS

 

None

12.
ADJOURNMENT

 
  • Moved byPublic Member Naicker

    That this meeting adjourn at 12:53 p.m.

    MOTION CARRIED

    The following Items have been forwarded to the 2024 July 30 Regular Meeting of Council:

    CONSENT AGENDA

    • External Auditor 2023 Management Letter, AC2024-0536
    • Utilities Delivery’s Utilization of the Program and Project Management System (P2M) Audit, AC2024-0707
    • 2023 Civic Partner Audit Report, AC2024-0282
    • Supplier Billing Contract Compliance Continuous Auditing Project, AC2024-0708

    ITEMS FROM OFFICERS, ADMINISTRATION AND COMMITTEES

    COMMITTEE REPORTS

    • Proposed Amendments to Audit Committee Bylaw 33M2020 and City Auditor Bylaw 30M2004, AC2024-0182

    The next Regular Meeting of the Audit Committee is scheduled to be held on 2024 July 25 at 9:30 a.m.

    CONFIRMED BY COMMITTEE ON


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