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RFD- 3423 Public Delegations   Item #   5. a.    
Regular Council Meeting Agenda
Meeting Date: 10/22/2018  
Title:    KPMG 2018 Audit Plan - Pungur-Buick
Department: Corporate Services  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal: n/a

Information
Request for Decision Summary
To provide the City's external auditor, KPMG LLP, an opportunity to present their plan for the audit of the 2018 financial statements; and to provide an opportunity for KPMG to review the audit process with Council.

Proposed Motion
That KPMG's Audit Planning Report for the year ended December 31, 2018 be received as information.

Background/Analysis
Section 278 of the Municipal Government Act (MGA) stipulates that a municipality must submit its financial information return and the auditor's report in the financial return and its financial statements and the auditor's report on the financial statements to the Minister by May 1 of the year following for which the financial information return and statements are prepared. KPMG LLP was appointed by Council as the external auditor in compliance with Section 280(1) of the MGA on September 10, 2018.

Section 281 of the MGA stipulates what the auditor must report on. The audit plan is a document provided by the external auditors to Council each year which provides context for how the audit opinion is formed at the end of the audit.  It outlines audit timelines, any significant changes to accounting and audit standards, and the regulatory environment or City operations that would impact the audit.  This document also outlines the auditors' assessment of significant accounts and risks and the proposed audit approach to address those areas.

Auditors report directly to Council as the City's financial oversight body.  To ensure Council is consulted about the audit process, it is appropriate to present the plan to Council before audit work begins. Council relies on the audit opinion when approving the financial statements, thus an understanding of how this opinion is formed enhances understanding of the results. 

Should Council have any questions regarding the proposed audit approach for significant areas of the financial statements, they can be directed to the representatives from KPMG before audit work is undertaken.  In addition, if there are items not specifically addressed in the audit plan that Council feels are significant, these can be raised and KPMG will determine if they have been appropriately addressed through the planned approach.
Options/Alternatives
n/a

 

Consultation/Engagement
n/a
Implementation/Communication

Interim audit work is scheduled in early November, and the final audit will take place in March, 2019. 

KPMG will present the audit results along with the 2018 financial statements to Council at the end of April, 2019. The audit report is the results of their review of the financial statements and financial information, as well as opinion and observations on key areas or deficiencies they may have identified in the course of their audit and within the scope of the audit plan. Administration then provides a response and prepares an appropriate action plan to address these issues, which is reported to Council. 

Impacts
In compliance with Section 283 of the MGA, the municipality must support the work of the auditors as the auditor considers necessary. The external audit occurs each year and the organization has planned its activities to ensure it is able to undertake work to support the auditors. 
Attachments
KPMG Presentation
2018 Audit Planning Report

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