HomeMy WebLinkAboutAudit Committee Minutes September 29, 2021 Cape Breton Regional Municipality
Audit Committee Minutes
Wednesday,
September 29, 2021
10:00 a.m.
Via Videoconference
Deputy Mayor Earlene MacMullin called the meeting to order.
Present: Deputy Mayor Earlene MacMullin, Chair
Councillor Cyril MacDonald
Councillor Glenn Paruch
Councillor Steve Parsons, Vice-Chair
Councillor Lorne Green
Mark Galley, Citizen Appointee
Rakesh Kochhar, Citizen Appointee
Staff. Marie Walsh, Chief Administrative Officer
Jennifer Campbell, Chief Financial Officer
Deborah Campbell Ryan, Municipal Clerk
John MacKinnon, Deputy Chief Administrative Officer
Demetri Kachafanas, QC, Regional Solicitor
Wayne MacDonald, Director of Engineering &Public Works
Michael Ruus, Director of Planning & Development
Deanna Evely, Director of Human Resources
Bill Murphy, Director of Parks, Grounds, Buildings & Facilities
Adam MacNeil, Manager of Finance
Sharon MacSween, Recording Secretary
Also Attending: Mayor Amanda M. McDougall
Councillor Steve Gillespie
Councillor Darren O'Quinn
CBRM Audit Committee
September 29 2021 Approved October 28,2024 Page 2 of 6
Summary of Decisions
Roll Call
1. Approval of Minutes:
Motion to approve the Audit Committee Minutes of:
➢ July 6, 2021
Motion Carried.
2. Approval of Agenda:
Motion to approve the September 29, 2021, Audit Committee agenda as circulated.
Carried.
3. Presentations:
a) Annual Financial Report- Year Ended March 31, 2021:
A presentation was provided by the Chief Financial Officer regarding the Annual
Financial Report- Year Ended March 31, 2021.
i. Draft CBRM Consolidated Financial Statements for Year
Ended March 31, 2021:
ii. Draft CBRM Water Utility Financial Statements for Year
Ended March 31, 2021:
b) Audit Findings Report to the Audit Committee for Year Ended
March 31, 2021:
C) Draft Management Letter:
Motion that a recommendation be made to Council to approve and release the:
• CBRM Consolidated Financial Statements for the Year Ended March 31, 2021
• CBRM Water Utility Financial Statements for the Year Ended March 31, 2021
Motion Carried.
Motion that a recommendation be made to Council to approve and release the:
• Audit Findings Report for the Year Ended March 31, 2021
Motion Carried.
Continued...
CBRM Audit Committee
September 29 2021 Approved October 28,2024 Page 3 of 6
Summary of Decisions (Cont'd)
Annual Financial Report- Year Ended March 31, 2021 (Cont'd).
Motion that a recommendation be made to Council to approve and release the:
• Management Letter
Motion Carried.
4. Audit Services —Request for Proposals:
The finalization of the March 31, 2021, year end audit concludes the 5-year contract with
MNP. An RFP will be issued in the coming weeks for the next 5-year term.
For information only.
Adiournment
CBRM Audit Committee Minutes
September 29,2021 Approved October 28,2024 Page 4 of 6
Roll Call
1. Approval of Minutes:
Motion:
Moved by Councillor Cyril MacDonald, seconded by Councillor Parsons, approval of the
Audit Committee Minutes of:
➢ July 6, 2021
Motion Carried.
2. Approval of Agenda:
Motion:
Moved by Councillor Green, seconded by Councillor Parsons, approval of the September
29, 2021, Audit Committee Agenda as circulated.
Motion Carried.
3. Presentations:
a) Annual Financial Report- Year Ended March 31, 2021:
i. Draft CBRM Consolidated Financial Statements for Year
Ended March 31, 2021:
Jennifer Campbell, Chief Financial Officer, provided and explained the Annual Financial
Report presentation for Year ended March 31, 2021, and noted that despite continuous
changes due to challenges the Covid-19 during pandemic, there are highlights of the
report.
In response to questions by Councillor Parsons, the CFO advised that staff vacancies are
presently trying to be filled, but in some cases the process is lengthier due do certificate
and training requirements. The CFO also advised a follow up can be provided on where
the information on receivables for waste disposal and residential taxes are in the
presentation when the Auditor is presenting.
The CFO advised that Council is used to receiving financial statements by Department.
To comply with financial reporting by provincial legislation, financials look different as
they are reported by government function for FRAM format. She reviewed the categories
and the departments falling into the each:
Government Services
• Protective Services
• Environmental Development
• Transportation
• Environmental Health
• Recreation & Culture
Continued...
CBRM Audit Committee Minutes
September 29,2021 Approved October 28,2024 Page 5 of 6
Annual Financial Report-Draft CBRM Consolidated Financial Statements for Year Ended
March 31,2021 (Cont'd):
• Public Health and Welfare
• Educational Services
The CFO advised that with the change being able to follow and how the departments are
allocated, and the rearrangement is significant in how fiscal expenditures and conditional
transfers are assigned as there cannot be an operating surplus, and surplus funds have and
are transferred to operating reserve and net expenses are required to always be $0.
Jennifer Campbell reviewed and explained legislative requirements, generally accepted
accounting principles (GAAP), UARB, and PSAB standards. The CFO continued with
the CBRM Operating Report followed by the Capital Fund and Debt Report, including
discussion on capital projects, schedule of operating fund, and reserve funds.
In response to a question from Councillor Parsons, the CFO advised there are limits on
borrowing duration terms, but borrowing depends on what a municipality can afford. The
CFO advised the CBRM can implement an investment policy.
ii) Draft CBRM Water Utility Financial Statements for Year
Ended March 31, 2021:
The CFO continued with the presentation, noting that the Water Utility follows a special
reporting framework as required by the UARB. Each of the individual fund schedules and
consolidated statements have also been presented. The CFO continued with presenting
the Draft Financial Condition Index.
In response to a question from Councillor Parsons, the CFO advised there will be a
follow up with the Legal Department with a value of CBRM surplus assets in the
inventory database.
b) Audit Findings Report to the Audit Committee for Year Ended
March 31, 2021:
Darren Chiasson, CPA, CA, MNP Partner and Business Advisor, provided an overview
of the Auditors Report. Darren advised of the process and requirements to issue the
Auditors Report for final release.
C) Draft Management Letter:
Darren Chiasson, CPA, CA — MNP Partner Business, reviewed the Draft Management
Letter to reference improvement opportunities and recommendations, noting the covid
pandemic had created challenges. Discussion took place regarding SAP costs and
vacation accruals. The CFO provided a summary of revenues to year end compared to
prior year.
Continued...
CBRM Audit Committee Minutes
September 29,2021 Approved October 28,2024 Page 6 of 6
Annual Financial Report-Year Ended March 31,2021 —Draft Management Letter
Cont'd :
The following motions were then put forward:
Motion:
Moved by Councillor Cyril MacDonald, seconded by Councillor Paruch, that a
recommendation be made to Council to approve and release the:
• CBRM Consolidated Financial Statements for the Year Ended March 31, 2021
• CBRM Water Utility Financial Statements for the Year Ended March 31, 2021
Motion Carried.
Motion:
Moved by Councillor Paruch, seconded by Councillor Parsons, that a recommendation be
made to Council to approve and release the:
• Audit Findings Report for the Year Ended March 31, 2021
Motion Carried.
Motion:
Moved by Councillor Parsons, seconded by Councillor Cyril MacDonald, that a
recommendation be made to Council to approve and release the:
• Management Letter
Motion Carried.
4. Audit Services —Request for Proposals:
The CFO reviewed the memo, included in the agenda package, and advised that the
finalization of the March 31, 2021, year end audit concludes the 5-year contract with
MNP. An RFP will be issued in the coming weeks for the next 5-year term and staff will
provide these results and a recommendation at a future meeting, to appoint the auditor for
the fiscal year commencing March 31, 2022.
For Information Only.
Meeting Adjourned at 11:19 a.m.
Deputy Mayor Earlene MacMullin
Chair
Christa Dicks
Municipal Clerk
/slm