ADMINISTRATIVE REPORT

Date: January 2, 2002
Author/Local: T. Corrigan/7225

RTS No.02429

CC File No. 1503

Council: January 15, 2002

TO:	Vancouver City Council
FROM:	General Manager of Corporate Services/Director of Finance
SUBJECT:	Appointment of External Auditor for 2002

RECOMMENDATION

A. THAT the accounting firm of KPMG LLP (KPMG) be confirmed as the City's External Auditor for the fiscal year 2002 in accordance with the terms of engagement as set out in the attached letter from KPMG dated December 10, 2001.

B. THAT the audit fee be set at $ 133,473 (exclusive of GST). Funding is included in the 2002 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 2002.

DISCUSSION

We have received a letter from KPMG, dated December 10, 2001, requesting confirmation of their appointment as the City's External Auditor for 2002. Their letter is attached to this report.

The fee proposal for 2002 amounts to $ 133,473 exclusive of GST. The 2002 fee reflects a 1.2% increase over 2001 based on the change in the Vancouver CPI for the period November, 2000 to October, 2001. 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 2002 proposed fee by audit entity compared with 2001 fees (excluding GST).

Audit Program	2001 Fees	2002 Fees	Increase	%
City general and related funds	$122,847	$124,321	$1,474	1.2
City Public Housing Corporation	9,043	9,152	109	1.2
Total Basic Fee	131,890	133,473	1,583	1.2

Funding is provided in the 2002 annual operating budget.

CONCLUSION

Appointment of KPMG LLP as the City's external auditor will satisfy the requirements of Section 230 of the Vancouver Charter that Council appoint an auditor to audit the accounts and transactions of the City and every other administrative body for the year.

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(c) 1998 City of Vancouver