Audit Committee Meeting Minutes

Wednesday, February 12, 2025 at 10:30 A.m. - 12:00 P.m.

McNaughton Room - 3rd Floor, City Hall

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1.

Audit Committee Meeting 01-2025

Chair: John Friday

Newly Appointed Chair:  Councillor Shelby Ch'ng

2.

Members

Linda Baca
Mayor Ken Boshcoff
Councillor Shelby Ch’ng
John Friday
Andrew Garro

3.

Officials

John Collin, City Manager
Keri Greaves, Commissioner - Corporate Services & City Treasurer
Andrea Morrison, Director - Finance
John Tyson, Manager - Internal Audit 
Shannon Lane, Manager - Corporate Financial Services
Crystal DePeuter, Council & Committee Clerk

4.

Auditors

Ania Berezowski, MNP LLP
Dave Kubinec, MNP LLP

5.

Disclosures of Interest

6.

Agenda Approval

WITH RESPECT to the February 12, 2025 meeting of the Audit Committee, we recommend that the agenda as printed, including any additional information and new business, be confirmed.

MOVED BY: Councillor Shelby Ch'ng
SECONDED BY: Andrew Garro

WITH RESPECT to the February 12, 2025 meeting of the Audit Committee, we recommend that the agenda as printed, including any additional information and new business, be confirmed.

CARRIED

7.

Confirmation of Previous Minutes

The Minutes of Meeting 03-2024 of the Audit Committee, held on October 15, 2024, to be confirmed.

THAT the Minutes of Meeting 03-2024 Audit Committee, held on October 15, 2024, be confirmed.

MOVED BY: Linda Bacca
SECONDED BY: Mayor Ken Boshcoff

THAT the Minutes of Meeting 03-2024 Audit Committee, held on October 15, 2024, be confirmed.

CARRIED

8.

Terms of Reference

Council and Committee Clerk Crystal DePeuter to provide an update on the Audit Committee Terms of Reference.

Council and Committee Clerk Crystal DePeuter provided an update on work done by the Office of the City Clerk to standardize the format of Council Committee Terms of Reference. A re-formatted Terms of Reference will be available for the Committee to review at a future meeting.  

9.

Election of Chair and Vice Chair

Council and Committee Clerk Crystal DePeuter to administer nominations for the positions of Chair and Vice-Chair of the Audit Committee for 2025.

The newly-appointed Chair will assume the position of Chair for the remainder of the meeting.

Council and Committee Clerk Crystal DePeuter administered nominations for Chair of the Audit Committee for 2025.

MOVED BY:     Mayor Boshcoff          
SECONDED BY:     Andrew Garro   

WITH RESECT to the position of Chair on the Audit Committee, we recommend that Councillor Shelby Ch'ng be appointed Chair of the Committee for the remainder of the 2025 calendar year, and until a replacement has been appointed, as required annually.

CARRIED

Council and Committee Clerk Crystal DePeuter administered the nomination for Vice-Chair of the Audit Committee for 2025.

MOVED BY:      Councillor Shelby Ch'ng         
SECONDED BY:  Andrew Garro     

WITH RESPECT to the position of Vice-Chair of the Audit Committee, we recommend that Linda Bacca be appointed Vice-Chair of the Committee for the remainder of the 2025 calendar year, and until a replacement has been appointed, as required annually.

CARRIED

The newly appointed Chair, Councillor Shelby Ch'ng, assumed the position of Chair for the remainder of the meeting.

10.

Internal Audit Charter

Internal Audit Charter, dated January 2025, for review. 

Manager - Internal Audit & Corporate Projects John Tyson advised that there was a minor change to reflect updated position titles.

There was discussion relative to the Internal Audit Charter scope and reporting best practices.

MOVED BY:  Mayor Ken Boshcoff

SECONDED BY: John Friday

THAT the Internal Audit Charter, as presented at the February 12, 2025 meeting of the Audit Committee, be accepted. 

11.

Confirmation of Independence - Internal Audit

Memorandum from Manager - Internal Audit & Corporate Projects John Tyson, dated February 12, 2025 confirming organizational independence of internal audit activity, for information.

12.

Internal Audit Work Plan

Manager – Internal Audit John Tyson to provide an overview relative to the Internal Audit Work Plan 2024-2026, for review.

Manager – Internal Audit John Tyson provided an overview relative to the Internal Audit Work Plan 2024-2026 with a focus on the current year.

There was discussion held relative to priorities and number of projects, including a new beverage sales audit. 

There was discussion held relative to visibility and communications of internal audit reports. 

There was discussion held relative to the role of the Internal Audit in overseeing the risk associated with cybersecurity. Manager - Internal Audit John Tyson advised that cybersecurity is reflected on the 3-year work plan, though not on the 1-year plan presented. It was agreed that the full 3-year work plan would be brought to the Committee for review. Commissioner - Corporate Services & City Treasurer advised that cybersecurity is also reflected on the City Manager's Work Plan. 

 

MOVED BY: Mayor Ken Boshcoff

SECONDED BY: Andrew Garro 

 

WITH RESPECT to the 2024-2026 Internal Audit Workplan, the Audit Committee approves the current 1-year plan as presented by John Tyson, Manager - Internal Audit at the February 12, 2025 Audit Committee Meeting;

AND THAT the complete 2024-2026 Internal Audit Workplan be presented to the Audit Committee at the next meeting.

13.

Audit Planning Report

Ania Berezowski and Dave Kubinec, BDO Canada LLP to provide an overview of the Audit Planning Report for the year ended December 31, 2024.
To be distributed separately.

Ania Berezowski and Dave Kubinec, MNP LLP provided an overview of the Audit Planning Report for the year ended December 31, 2024 that was distributed separately on February 10, 2025.

There was discussion relative to the sale of BDO Canada LLP to MNP and the transition process for the account. 

There was discussion relative to having financial statements for external entities that have financial relationship with the City of Thunder Bay reflected in the audited statements and access of those statements for Audit Committee members. 

MOVED BY: Linda Bacca

SECONDED BY: Andrew Garro

WITH RESPECT to the Audit Planning Report, the Audit Committee accepts the plan for the audit of the consolidated financial statements of The Corporation of the City of Thunder Bay for the year ending December 31, 2024, as presented by MNP LLP at the February 12, 2025 committee meeting. 

There was discussion relative to City Council's general understanding of the audit process and ensuring members of Council are fully informed when required to approve associated reports and statements. 

 

MOVED BY: Andrew Garro

SECONDED BY: Mayor Ken Boshcoff

WITH RESPECT to sharing information with City Council relative to the audit process, we recommend that Commissioner Greaves discuss options that promote higher understanding with the City Clerk and report back to the Committee.

13.1

Audit Planning Report

Ania Berezowski and Dave Kubinec, BDO Canada LLP to provide an overview of the Audit Planning Report for the year ended December 31, 2024. Distributed separately on February 10, 2025. 

14.

Audit Committee Planning and Education

Chair to lead a discussion on Audit Committee planning and education. 

Member John Friday led a discussion on Audit Committee planning and education.

There was discussion held relative to increasing the number of meetings to allow for more in-depth discussion and an opportunity to adopt additional best practices.

There was discussion held relative to ways financial information can be presented to Committee members. It was determined that a binder to include financial statements will be prepared for Committee members and presented at the June meeting. 

There was discussion held relative to the scope of the Terms of Reference and including a financial advisory role outside of the audit process. 

15.

New Business

16.

Next Meeting

The next meeting date is to be determined. 

17.

Adjournment

The meeting adjourned at 12:20 p.m.