Audit Committee

Meeting #:
Date:
Time:
-
Location:
Council Chambers, Civic Centre, 2nd Floor
300 City Centre Drive, Mississauga, Ontario, L5B 3C1
and Online Video Conference
Members Present
  • Mayor (Vacant)
  • Councillor Alvin Tedjo, Ward 2
  • Councillor Chris Fonseca, Ward 3 (Vice-chair)
  • Councillor John Kovac, Ward 4
  • Councillor Joe Horneck, Ward 6 (Chair)

Staff Present
Geoff Wright, City Manager and Chief Administrative Officer
Shari Lichterman, Commissioner of Corporate Services and Chief Financial Officer

Andra Maxell, City Solicitor

Luis Souza, Director, Internal Audit
Marisa Chiu, Director, Finance 
Wesley Anderson, Manager, Financial and Treasury Services
Amy Truong, Senior Internal Auditor
Allyson D'Ovidio, Legislative Coordinator, Acting Team Lead
 
Others Present
Maria Khoushnood, Partner, KPMG Enterprise

1.
CALL TO ORDER

 

Councillor J. Horneck, Chair called the meeting to order at 9:30 AM.

2.
INDIGENOUS LAND STATEMENT

 

“We acknowledge the lands which constitute the present-day City of Mississauga as being part of the Treaty and Traditional Territory of the Mississaugas of the Credit First Nation, The Haudenosaunee Confederacy the Huron-Wendat and Wyandotte Nations. We recognize these peoples and their ancestors as peoples who inhabited these lands since time immemorial. The City of Mississauga is home to many global Indigenous Peoples.


As a municipality, the City of Mississauga is actively working towards reconciliation by confronting our past and our present, providing space for Indigenous peoples within their territory, to recognize and uphold their Treaty Rights and to support Indigenous Peoples. We formally recognize the Anishinaabe origins of our name and continue to make Mississauga a safe space for all Indigenous peoples.”

Councillor J. Horneck, Chair recited the Indigenous Land Statement.

3.
APPROVAL OF AGENDA

 

Approved (Councillor J. Kovac)

 

4.
DECLARATION OF CONFLICT OF INTEREST

 

Nil

5.
MINUTES OF PREVIOUS MEETING

 

6.
DEPUTATIONS

 

Any member of the public interested in making a deputation to an item listed on the agenda must register by calling 905-615-3200 ext. 8587 or by emailing [email protected] by Thursday, May 9, 2024 before 4:00 PM.

Each Deputation to Committee is limited to speaking not more than 10 minutes.

Pursuant to Section 57.1 of the Council Procedure By-law 0044-2022, as amended:

Deputations shall be received and the matter shall be referred to staff for a report, unless there is a resolution or recommendation passed to “receive” the Deputation. After a Deputation is completed, Members shall each have one opportunity to make a preamble statement and ask questions to the Deputant(s) or staff for clarification purposes only, and without debate.

6.1
Item 9.1 - Wesley Anderson, Manager, Business Planning and Financial Services

This item has attachments. 
1.2023 Financial Results.pdf

W. Anderson presented the 2023 Audited Financial Statements. Councillor J. Horneck enquired about sustainability standards and deferred revenue. W. Anderson responded to questions.

  • RECOMMENDATIONAC-0005-2024
    Moved ByCouncillor J. Kovac

    That the deputation and associated presentation from Wesley Anderson, Manager, Business Planning and Financial Services regarding the report dated April 15, 2024 entitled “2023 Audited Financial Statements” from the City Manager and Chief Administrative Officer, be received.

    Received

6.2
Item 9.2 - Maria Khoushnood, Partner, KPMG LLP and Wesley Anderson, Manager, Business Planning and Financial Services

 

M. Khoushnood, spoke to the 2023 External Audit Findings Report and identified audit highlights; significant risks and results; misstatements; and additional matters. Councillor J. Horneck enquired about the asset retirement obligations, and asbestos remediation in fire halls. W. Anderson and Shari Lichterman, City Manager and Chief Administrative Officer (CAO) responded to questions.

  • RECOMMENDATIONAC-0006-2024
    Moved ByCouncillor C. Fonseca

    That the deputation from Maria Khoushnood, Partner, KPMG LLP and Wesley Anderson, Manager, Business Planning and Financial Services regarding the report dated April 19, 2024 entitled “2023 External Audit Findings Report” from the City Manager and Chief Administrative Officer, be received

    Received

7.
PUBLIC QUESTION PERIOD - 15 Minute Limit

 

Public Comments: Members of the Public that have a question about an item listed on the agenda may pre-register by contacting the Legislative Coordinator at least 24 hours in advance of the meeting. Following the registered speakers, if time permits the Chair will acknowledge members of the public who wish to ask a question about an item listed on the agenda. Virtual participants must pre-register.


Pursuant to Section 58 of the Council Procedure By-law 0044-2022, as amended:


Audit Committee may grant permission to a member of the public to ask a question of Audit Committee, with the following provisions:

  1. Questions may be submitted to the Clerk at least 24 hours prior to the meeting;
  2. A person is limited to two (2) questions and must pertain specific item on the current agenda and the speaker will state which item the question is related to;
  3. The total speaking time shall be five (5) minutes maximum, per speaker, unless extended by the Mayor or Chair; and
  4. Any response not provided at the meeting will be provided in the format of a written response.

8.
CONSENT AGENDA

 
  • RECOMMENDATIONAC-0007-2024
    Moved ByCouncillor A. Tedjo

    That the following items were approved on the consent agenda:

    • 9.1 2023 Audited Financial Statements
    • 9.2 2023 External Audit Findings Report
    • 9.4 Status of Outstanding Audit Recommendations as of March 31, 2024
    YES (4)Councillor C. Fonseca, Councillor J. Kovac, Councillor A. Tedjo, and Councillor J. Horneck
    ABSENT (1)Mayor (Vacant)
    Carried (4 to 0)

9.
MATTERS TO BE CONSIDERED

 

9.1
2023 Audited Financial Statements

This item has attachments. 
1.2023 Audited Financial Statements - 0068-2024.pdf
2.Appendix 1_F_2023 Consolidated COM - Financial Statements_with letters.pdf
3.Appendix 2_F_2023 Trust Financial Statements with letters.pdf
4.Appendix 3_ F_2023 Library Financial Statements with letters.pdf
5.Appendix 4_F_2023_Tourism Mississauga_FinancialStatements_with letters.pdf
6.Appendix 5_F_2023 City of Mississauga Clarkson Village BIA 24741 AUD PSAS.pdf
7.Appendix 6_D_2023 City of Mississauga Port Credit BIA 24744 AUD 23 PSAS.pdf
8.Appendix 7_F_2023 City of Mississauga Streetsville BIA 24743 AUD 23 PSAS.pdf
9.Appendix 8_ D_2023 City of Mississauga Cooksville BIA 25034 AUD 23 PSAS draft 2.pdf
10.Appendix 9_D_2023_Q4_Enersource Financial Statement with Alectra-FINAL V6.pdf
11.Appendix 10_F_2023-Year-in-Review.pdf

(CONSENT)

  • RECOMMENDATIONAC-0008-2024
    Moved ByCouncillor A. Tedjo

    That the corporate report dated April 15, 2024 entitled “2023 Audited Financial Statements” from the City Manager and Chief Administrative Officer be received for information.

    YES (4)Councillor C. Fonseca, Councillor J. Kovac, Councillor A. Tedjo, and Councillor J. Horneck
    ABSENT (1)Mayor (Vacant)
    Carried (4 to 0)

9.2
2023 External Audit Findings Report

This item has attachments. 
1.2023 External Audit Findings Report - 0067-2024.pdf
2.Appendix 1_City of Mississauga MRL 2023 _unsigned.pdf
3.Appendix 2_City of Mississauga 2023 AFR - Final April 16, 2024.pdf

(CONSENT)

  • RECOMMENDATIONAC-0009-2024
    Moved ByCouncillor A. Tedjo

    That the corporate report dated April 19, 2024 entitled “2023 External Audit Findings Report”, from the City Manager and Chief Administrative Officer, be received for information.

    YES (4)Councillor C. Fonseca, Councillor J. Kovac, Councillor A. Tedjo, and Councillor J. Horneck
    ABSENT (1)Mayor (Vacant)
    Carried (4 to 0)

9.3
Final Audit Reports:

This item has attachments. 
1.Corporate Report for Audit Reports - May 13 2024 AC - 0225-2024.pdf
2.Appendix 1 - CMO Legal Div Risk Mgmt - Insurance Claims Audit Report.pdf
3.Appendix 2 - TW IPE Div - Third Party Contract Admin - Audit Report.pdf
  1. City Manager’s Department, Legal Services Division, Risk Management Section – Insurance Claims Audit; and,
  2. Transportation & Works Department, Infrastructure Planning & Engineering Services Division, Capital Works Delivery Section – Third-Party Contract Administration Audit

Arlene Foster, Senior Internal Auditor provided a presentation regarding the Insurance Claims Audit. A. Foster advised that this audit resulted in a total of nine (9) recommendations. Management has agreed and committed to completing seven (7) recommendations by December 2024, another one in February 2025, and the remaining one by August 2026. Councillor J. Horneck enquired about duplication of work, reconciliation, and user access reviews. Andra Maxwell, City Solicitor, Amy Truong, Director, Internal Audit, and Shari Lichterman, City Manager and Chief Administrative Officer (CAO) responded to questions.

Samer El Barakeh, Senior Internal Auditor provided a presentation regarding the Third-Party Contract Administration Audit. S. El Barakeh advised that this audit resulted in a a total of 11 recommendations. Management has agreed and committed to completing three (3) recommendations by the end of this year, two (2) recommendations by March of 2025, and six (6) by June of 2026. Councillor J. Horneck enquired about inspection records, higher order reviews, contract management, and audit scope. S. El Barakeh, Geoff Wright, Commissioner, Transportation and Works and A. Truong responded to questions.

  • RECOMMENDATIONAC-0010-2024
    Moved ByCouncillor J. Kovac

    That the report dated April 25, 2024 from the Director, Internal Audit with respect to final audit reports:

    1. City Manager’s Department, Legal Services Division, Risk Management Section – Insurance Claims Audit; and,
    2. Transportation & Works Department, Infrastructure Planning & Engineering Services Division, Capital Works Delivery Section – Third-Party Contract Administration Audit

    be received for information.

    YES (4)Councillor C. Fonseca, Councillor J. Kovac, Councillor A. Tedjo, and Councillor J. Horneck
    ABSENT (1)Mayor (Vacant)
    Carried (4 to 0)

9.4
Status of Outstanding Audit Recommendations as of March 31, 2024

This item has attachments. 
1.Outstanding Audit Recommendations as of March 31, 2024 - 0226-2024.pdf
2.Appendix 1 - Status of Audit Recommendations Outstanding as at Mar. 31, 2024.pdf
3.Appendix 2 - Status of Audit Recs Outstanding and Ext for more than a year as of Mar 31 2024.pdf

(CONSENT)

  • RECOMMENDATIONAC-0011-2024
    Moved ByCouncillor A. Tedjo

    That the Corporate Report dated April 18, 2024 entitled, “Status of Outstanding Audit Recommendations as of March 31, 2024,” from the City Manager & Chief Administrative Officer be received for information.

    YES (4)Councillor C. Fonseca, Councillor J. Kovac, Councillor A. Tedjo, and Councillor J. Horneck
    ABSENT (1)Mayor (Vacant)
    Carried (4 to 0)

10.
ENQUIRIES

 

Nil

11.
CLOSED SESSION - Nil

 

  • Whereas the Municipal Act, 2001, as amended, requires Members of Council to pass a motion prior to closing part of a meeting to the public;

    And whereas the Act requires that the motion states the act of the holding of the closed meeting and the general nature of the matter to be considered at the closed meeting;

    Now therefore be it resolved that a portion of the Audit Committee meeting to be held on (DATE) shall be closed to the public to deal with the following matter:

    1. Pursuant to Section 239(2) of the Municipal Act, 2001
      1.  

     

    Received

     

    The Committee went into Closed Session at ...

12.
ADJOURNMENT

 

10:30 AM (Councillor J. Kovac)

No Item Selected