|
CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
February 25, 2004 | |
Author: |
Terry Corrigan | |
Phone No.: |
604-873-7225 | |
RTS No.: |
003935 | |
CC File No.: |
1503 | |
Meeting Date: |
March 9, 2004 |
TO: |
Vancouver City Council |
FROM: |
General Manager of Corporate Services/Director of Finance |
SUBJECT: |
Appointment of External Auditor for 2004 |
RECOMMENDATION
A. THAT the accounting firm of KPMG LLP (KPMG) be confirmed as the City's External Auditor for the fiscal year 2004 in accordance with the terms of the Form of Agreement between the City and KPMG to supply audit services to the City for a period of five years commencing with the audit of the 2003 fiscal year.
B. THAT the audit fee be set at $ 134,624 (exclusive of GST). Funding is included in the 2004 operating budget.
COUNCIL POLICY
On December 10, 2002, Council approved the appointment of KPMG as the City's External Auditor for a five year term commencing with the fiscal year 2003. 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 2004.
DISCUSSION
The City's audit service requirements include:
· Auditing of the City's annual financial statements for the year ended December 31, 2004 in accordance with generally accepted auditing standards.
· Reporting to Council on or before April 30 of the following year, an opinion on whether or not the financial statements, which include all City boards as well as all owned and controlled corporations, fairly present the City's financial position and results of operations in accordance with generally accepted accounting principles for local governments.
· Providing as part of the annual audit, advice and recommendations on the City's management and internal control procedures.
· Attending meetings with City officials as required for the planning and review of the external audit process and the financial statements.
· Responding to requirements and duties of the auditors as outlined in the provisions of the Vancouver Charter in Sections 231 to 235.
· Auditing the Vancouver Public Housing Corporation's annual financial statements for the year ending December 31, 2004 in accordance with generally accepted auditing standards.
The fee proposal for 2004 amounts to $ 134,624 (exclusive of GST). The 2004 fee reflects a 1.4% increase over 2003 based on the percentage change in the Vancouver CPI (all items) period October, 2002 to October, 2003. The proposed fee is in accordance with the terms of the contract awarded to KPMG for audit services which limits the annual increases in fees after the audit of the 2003 financial statements to the annual change in the CPI (all items)for the City of Vancouver.
FINANCIAL IMPLICATIONS
The table below shows the Year 2004 proposed fee by audit entity compared with 2003 fees (excluding GST).
Audit Program |
2003 Fees |
2004 Fees |
Increase |
% |
City general and related funds |
$ 123,265 |
$ 124,991 |
$ 1,726 |
1.4 |
City Public Housing Corporation |
9,500 |
$ 9,633 |
$ 133 |
1.4 |
Total Basic Fee |
132,765 |
$ 134,624 |
$ 1,859 |
1.4 |
Funding is provided in the 2004 annual operating budget.
CONCLUSION
Appointment of KPMG 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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