Audit Committee

Meeting #:

Date:

Monday, May 16, 2022

Time:

9:30 A.m. - 12:30 P.m.

Location:

Online Video Conference

Members Absent

• Mayor Bonnie Crombie
• Councillor Stephen Dasko, Ward 1 (Vice-Chair)
• Councillor Pat Mullin, Ward 2
• Councillor Ron Starr, Ward 6
• Councillor Dipika Damerla , Ward 7 (Chair) (Leave of Absence)

Staff Present
Paul Mitcham, City Manager and Chief Administrative Officer
Shari Lichterman, Commissioner of Corporate Services and Chief Financial Officer
Geoff Wright, Commissioner of Transportation and Works 
Luis Souza, Director, Internal Audit
Jeff Jackson, Director, Finance 
Wesley Anderson, Manager, Financial and Treasury Services
Barbara Webster, Senior Internal Auditor
Amy Truong, Senior Internal Auditor
Vandana Waghela, Information Technology Auditor
Helen Noehammer, Director of Infrastructure Planning and Engineering Services
Silvio Cesario, Manager of Capital Works Delivery
Nelson Dimaano, Business Advisor 
Helen Chin-Donofrio, Director of IT and Chief Information Officer
Sven Tretrop, Senior Manager of Architecture and Innovation
Paul Kus, Program Manager of IT Systems Architecture and Security
Dayna Obaseki, Legislative Coordinator, Acting Team Lead
 
Others Present
Maria Khoushnood, Partner, KPMG Enterprise
Peter Morin, Principal, Grant Thornton LLP
David Florio, Partner, Grant Thornton LLP
Austin Creighton, Senior Manager, Grant Thornton LLP

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1.

CALL TO ORDER

Councillor Dasko, Vice-Chair called the meeting to order at 9:31AM.

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 Dasko, Vice-Chair recited Indigenous Land Statement. 

Mayor Crombie joined the meeting at 9:32AM during the Indigenous Land Statement.

3.

APPROVAL OF AGENDA

Approved (Councillor Mullin)

4.

DECLARATION OF CONFLICT OF INTEREST

Nil.

5.

MINUTES OF PREVIOUS MEETING

5.1

Audit Committee DRAFT Minutes - March 7, 2022

Approved (Mayor Crombie)

6.

DEPUTATIONS

NOTE: That the order of the deputations was amended as followed; Item 6.2 followed by Item 6.1.

6.1

Item 9.1 - Maria Khoushnood, Partner, KPMG Enterprise

2021 External Audit Findings Report

Ms. Khoushnood spoke to the External Audit Planning Report and noted the Audit Quality Framework, Audit Highlights and Risks as well as revenue, contingent liabilities, audit misstatements and upcoming changes to auditing standards.

No discussion took place.

Item 9.1 was brought forward and was voted on.

• RECOMMENDATION AC-0004-2022
  Moved By Councillor P. Mullin

  That the deputation by Maria Khoushnood, Partner, KPMG Enterprise regarding Appendix 1 to the corporate report dated April 28, 2022 entitled "2021 External Audit Findings Report" be received. 

  Received

6.2

Item 9.2 - Wesley Anderson, Manager, Financial and Treasury Services

2021 Audited Financial Statements

Ms. Anderson provided an overview on the 2021 Audited Financial Statements and noted the financial position, assets, and liabilities as well as investments, technology, obligatory reserve funds, surplus, revenue, expenses, Safe Restart Funding Agreement and sustainable reporting. 

Members of Committee spoke to the matter and raised the following questions and concerns regarding the climate change impact, the difference between land improvements and land as well as tax penalties and assumed assets.

Mr. Anderson and Jeff Jackson, Director of Finance and Treasurer responded to questions from the Committee.

Item 9.2 was brought forward for discussion and was voted on.

• RECOMMENDATION AC-0005-2022
  Moved By Councillor P. Mullin

  That the deputation and associated presentation by Wesley Anderson, Manager, Financial and Treasury Services regarding corporate report dated April 28, 2022 entitled "2021 Audited Financial Statements" be received for information. 

  Received

7.

PUBLIC QUESTION PERIOD - 15 Minute Limit

Public Comments: Advance registration is required to participate and/or to make comments in the virtual public meeting. Any member of the public interested in speaking to an item listed on the agenda must register by calling 905-615-3200 ext. 5425 or by emailing  before Thursday, May 12, 2022 at 4:00PM.

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 shall 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.

No members of the public registered to speak. 

8.

CONSENT AGENDA

No items were approved under the consent agenda.

9.

MATTERS CONSIDERED

9.1

2021 External Audit Findings Report

This item was previously discussed and voted upon under Item 6.1.

• RECOMMENDATION AC-0006-2022
  Moved By Councillor P. Mullin

  That the 2021 External Audit Findings Report, dated April 28, 2022 from the Commissioner of Corporate Services and Chief Financial Officer, which includes the Audit Findings Report from KPMG LLP for the fiscal year 2021 for the City of Mississauga, be received for information.

  YES (4)	Mayor Crombie, Councillor Dasko, Councillor R. Starr, and Councillor P. Mullin
  ABSENT (1)	Councillor Damerla

  Carried (4 to 0)

9.2

2021 Audited Financial Statements

This item was previously discussed and voted upon under Item 6.2.

• RECOMMENDATION AC-0007-2022
  Moved By Councillor P. Mullin

  That the 2021 Audited Financial Statements for the City Of Mississauga (consolidated), City of Mississauga Public Library Board, Tourism Mississauga, City of Mississauga Trust Funds, Clarkson Business Improvement Area, Cooksville Business Improvement Area, Port Credit Business Improvement Area, Streetsville Business Improvement Area, Malton Business Improvement Area, and Enersource Corporation be received for information.

  YES (4)	Mayor Crombie, Councillor Dasko, Councillor R. Starr, and Councillor P. Mullin
  ABSENT (1)	Councillor Damerla

  Carried (4 to 0)

9.3

Final Audit Reports:

1. Transportation & Works Department, Infrastructure Planning & Engineering Services Division, Capital Works Delivery Section – Capital Works Project Management Audit
2. Corporate Services Department, Corporate Business Services Division, Procurement Services Section – High Value Acquisition Audit

Amy Truong, Senior Internal Auditor provided a presentation on the Capital Works Project Management Audit and noted the background, scope, objectives and observations.  Ms. Truong highlighted the recommendations and the targeted completion dates.

Councillor Mullin spoke to the matter and raised the following question when does a Capital Works Project change require further Council approval and are all changes documented. Geoff Wright, Commissioner of Transportation and Works responded to Councillor Mullin’s questions.

Barb Webster, Senior Internal Auditor provided a presentation on the High Value Acquisition Audit and noted the background, scope, objectives and observations.  Ms. Webster highlighted the recommendations and the targeted completion dates.

No discussion took place.

• RECOMMENDATION AC-0008-2022
  Moved By Mayor Crombie

  That the report dated April 22, 2022 from the Director, Internal Audit with respect to final audit reports:

  1. Transportation & Works Department, Infrastructure Planning & Engineering Services Division, Capital Works Delivery Section – Capital Works Project Management Audit; and,
  2. Corporate Services Department, Corporate Business Services Division, Procurement Services Section – High Value Acquisition Audit

  be received for information.

  YES (4)	Mayor Crombie, Councillor Dasko, Councillor R. Starr, and Councillor P. Mullin
  ABSENT (1)	Councillor Damerla

  Carried (4 to 0)

10.

ENQUIRIES

No discussion took place. 

11.

CLOSED SESSION

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

• RECOMMENDATION

  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 May 16, 2022 shall be closed to the public to deal with the following matter:

  1. Pursuant to Section 239(2) of the Municipal Act, 2001
     1. The security of the property of the municipality or local board: Final Audit Report: Corporate Services Department, Information Technology Division, IT Security – NIST Cybersecurity Framework Assessment Audit
  Received

  The Committee went into Closed Session at 10:30AM.

  
  

11.1

The security of the property of the municipality or local board: Final Audit Report: Corporate Services Department, Information Technology Division, IT Security – NIST Cybersecurity Framework Assessment Audit

Luis Souza, Director of Internal Audit, Peter Morin, Principal and David Florio, Partner, Grant Thornton LLP provided a presentation on the matter.

Members of Committee spoke to the matter and raised questions. Mr. Souza, Mr. Morin, Mr. Florio, Helen Chin-Donofrio, Director of IT and Chief Information Officer and Paul Mitcham, City Manager and CAO responded to questions from the Committee.

• The Committee came out of Closed Session at 11:09AM.

  As a result of the Closed Session, the following recommendation was voted on during Open Session:

  RECOMMENDATION AC-0009-2022
  Moved By Councillor P. Mullin

  That the report dated April 27, 2022 from the Director, Internal Audit with respect to final audit report, Corporate Services Department, Information Technology Division, IT Security – NIST Cybersecurity Framework Assessment Audit, be received for information.

  YES (4)	Mayor Crombie, Councillor Dasko, Councillor R. Starr, and Councillor P. Mullin
  ABSENT (1)	Councillor Damerla

  Carried (4 to 0)

12.

ADJOURNMENT

11:10AM (Mayor Crombie)