HomeMy WebLinkAboutAudit Committee Minutes July 6, 2021 Cape Breton Regional Municipality
Audit Committee Minutes
Tuesday,
July 6, 2021
10:00 a.m.
Via Videoconference
Deputy Mayor Earlene MacMullin called the meeting to order.
Present: Deputy Mayor Earlene MacMullin, Chair
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
Adam MacNeil, Manager of Finance
Angela Ross, Clerk's Department
Sharon MacSween, Recording Secretary
Absent: Councillor Cyril MacDonald (Regrets)
Also Attending: Councillor Eldon MacDonald
CBRM Audit Committee
July 6,2021 Approved September 29,2021 Page 2 of 5
Summary of Decisions
Roll Call
1. Approval of Minutes:
Motion to approve the Audit Committee Minutes of:
➢ May 11, 2021
Motion Carried.
2. Approval of Agenda:
Motion to approve the July 6, 2021 Audit Committee agenda as circulated. Carried.
3. Presentation:
A presentation was provided by Archway Insurance regarding the Cape Breton Regional
Municipality Insurance and Risk Management Program.
For Information Only.
4. Banking Services Agreement—Request for Proposals:
Motion that a recommendation be made to Council that RFP P08-2021 — Banking
Services be awarded to the Bank of Montreal. Carried.
Adiournment
CBRM Audit Committee Minutes
July 6,2021 DRAFT Page 3 of 5
Roll Call
1. Approval of Minutes:
Motion:
Moved by Councillor Green, seconded by Citizen Galley, approval of the Audit
Committee Minutes of:
➢ May 11, 2021
Motion Carried.
2. Approval of Agenda:
Motion:
Moved by Citizen Kochhar, seconded by Councillor Paruch, approval of the July 6, 2021
Audit Committee Agenda as circulated.
Motion Carried.
3. Presentation:
a) Archway Insurance:
Keith MacDonald, Commercial Lines Manager with Archway Insurance Brokers, and
Gwen Tassone, VP Public Sector Practice Leader from Marsh Canada, provided a
presentation on the Cape Breton Regional Municipality Insurance and Risk Management
Program.
Keith MacDonald discussed:
Uncertainty in the municipal landscape
Overview of Leading Public Entity Organization action
• Municipal Insurance—Challenging class of business
• Risk Strategies
• Purpose of Insurance Program—Financial protection and access to expertise
• Insurance Program Consisting of Various Insurance Policies (Casualty {Liability}
Property / Equipment Breakdown, Crime, Auto, Accident Benefits and Cyber
Insurance)
Gwen Tassone highlighted:
• Insurance Program Coverage Highlights —Canadian Councils Liability Policy
• Insurance Program Coverage Requirements
Casualty Market—Canadian Overview
• Property Market—Canadian Overview
Continued...
CBRM Audit Committee Minutes
July 6,2021 Approved September 29,2021 Page 4 of 5
Presentation -Archway Insurance (Cont'd):
Keith MacDonald then reviewed:
• Strategies to improve renewal results regarding:
o Property
o Liability
o Automobile
o Crime
• Claims Process Overview
Following the presentation, an opportunity for questions was provided. Discussion took
place regarding the following:
• Annual insurance premium increases can range from 25 to 35%, however the
increase for CBRM was 15% as of March 31;
• This year, the driving force of insurance premium increase was due to liability
policy, however traditionally, annual increases are usually split between evenly
due to liability and property policies;
• Importance of training for staff due to the direct correlation of potential future
losses as a result of incidents i.e. accidents,
• Longevity relationships with an insurer impact premiums, as do claims;
• Asset upgrades and additions impact annual premiums, i.e. Glace Bay Arena,
Boardwalk extension, new and fire station under constructions in Sydney, 2nd
Berth;
• Identifying risks and engaging with the municipality to mitigate and ensure
protections are in place regarding potential risks, i.e. cyber security, which can
include recommendations such as cyber audits;
• Cyber Insurance Policies consist of the traditional insurance coverage as well as
risk, prevention and mitigation tools.
Deputy Mayor MacMullin thanked Keith MacDonald and Gwen Tassone for their
presentation.
For Information Only.
4. Banking Services Agreement—Request for Proposals:
Jennifer Campbell, Chief Financial Officer (CFO) reviewed her Memo which was
included in the agenda package.
In response to a question by Councillor Parsons, the Chief Financial Officer advised that
a net of 0.5% savings was realized from BMO as a long-standing service provider to
CBRM.
Continued...
CBRM Audit Committee Minutes
July 6,2021 Approved September 29,2021 Page 5 of 5
Banking Services Agreement—Request for Proposals (Cont'd):
Deputy Mayor MacMullin advised the Committee if there are any other questions
regarding the RFP responses that may require more detail than provided, to contact the
CFO she will provide that additional information.
There was discussion regarding the transition costs during the last RFP process. The
CFO advised that for this RFP, CBRM wanted to ensure that any transition costs were
quoted in their bid. The CFO advised that all financial institutions were offering almost
identical services, and that the most important factor from a finance perspective is that
there are significant line items in our budget for short term interest.
Marie Walsh, Chief Administrative Officer, advised that the recommendation was mostly
based on the rate of return. She further advised that when the transition to BMO took
place a number of years ago, transition costs were not included as part of the RFP.
The following motion was then put forward:
Motion:
Moved by Councillor Parsons, seconded by Councillor Green, that a recommendation be
made to Council that RFP P08-2021 — Banking Services be awarded to the Bank of
Montreal.
Motion Carried.
Meeting Adiourned at 10:45 a.m.
Deputy Mayor Earlene MacMullin Deborah Campbell Ryan
Chair Municipal Clerk
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