ADMINISTRATIVE REPORT

Date: October 25, 1997

Author/Local: S. Harvey 6001

CC File No. 4008

TO:	City Council
FROM:	Comptroller, Budgets and Research in consultation with Director, Office of Cultural Affairs
SUBJECT:	Vancouver Museum Commission - Appointment of Auditors

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RECOMMENDATION

THAT Council approve the appointment of Ernst & Young as auditors for the Vancouver Museum Commission for the 1996 and 1997 fiscal years.

GENERAL MANAGERS' COMMENTS

The General Managers of Community and Corporate Services recommend approval.

COUNCIL POLICY

On April 2, 1996 Council approved the objects and by-laws for the Vancouver Museum Commission including By-law 71 which requires the appointment of the Commission's first auditor by City Council.

PURPOSE

The purpose of this report is to seek Council's approval for the appointment of Ernst & Young as auditors for the Vancouver Museum Commission (VMC).

BACKGROUND

Generally, the City does not participate in the appointment of auditors for independent non-profit societies. However, when the Vancouver Museum Commission was established, City staff and consultants recommended that Council reserve the right to appoint the society's first auditor and to monitor the appointment of subsequent auditors.

The Commission was incorporated on August 23, 1996 and has carried on the operations of the Vancouver Museum since that time. In preparation for the year-end audit of their first full year of operation, the VMC has undertaken a process to select audit recommendations for Council's consideration.

The VMC Audit Committee (chaired by Heather Shannon, F.C.A.) interviewed five firms, short listed two and the VMC Finance Committee (co-chaired by Jeffrey Bach, C.A.) recommended the appointment of Ernst & Young to the Commission, subject to Council approval.

The fee for the audit will to be paid by the VMC from their current operating funds.

CONCLUSION

The Vancouver Museum Commission requests Council's approval for the appointment Ernst & Young to conduct the 1996 and 1997 annual audits.

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(c) 1997 City of Vancouver