ADMINISTRATIVE REPORT

Date: December 3, 2000
Author/Local: T. Corrigan/7225

RTS No. 01756

CC File No. 1503

Council: January 9, 2001

TO:	Vancouver City Council
FROM:	General Manager of Corporate Services/Director of Finance
SUBJECT:	Appointment of External Auditor for 2001

RECOMMENDATION

A. THAT the accounting firm of KPMG LLP (KPMG) be confirmed as the City's External Auditor for the fiscal year 2001 as required under Section 230 of the Vancouver Charter in accordance with the terms of engagement as set out in the attached letter from KPMG dated November 27, 2000 (on file in City Clerk's Office).

B. THAT the audit fee be set at $131,890 (exclusive of GST). Funding is included in the 2001 operating budget.

POLICY

On October 31, 2000, Council approved the appointment of KPMG, as the City's External Auditor for a two year term commencing with the fiscal year 2001. This appointment is subject to confirmation on an annual basis in order to meet the requirements of Section 230 of the Vancouver Charter.

PURPOSE

The purpose of this report is to recommend confirmation of KPMG as the City's External Auditor for 2001.

DISCUSSION

We have received a letter from KPMG, dated November 27, 2000, requesting confirmation of their appointment as the City's External Auditor for 2001. Their letter is attached as the Appendix (on file in the City Clerk's Office) to this report.

The fee proposal for 2001 amounts to $131,890 exclusive of GST. The 2001 fee reflects a 2.9% increase over 2000 based on the change in the Vancouver CPI for the period November, 1999 to October, 2000. The proposed fee is in accordance with the terms of their appointment for the fiscal period 2001 and 2002.

FINANCIAL IMPLICATION

The table below shows the Year 2001 proposed fee by audit entity compared with 2000 fees (excluding GST).

Audit Program	2000 Fees	2001 Fees	Increase	%
City general and related funds	$119,385	$122,847	$3,462	2.9
City Public Housing Corporation	8,788	9,043	255	2.9
Total Basic Fee	128,173	131,890	3,717	2.9

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