Purpose:   The functions of the Committee are to:

1. Approve the annual long-term corporate audit plans for internal audits and recommend same to Council;



2. Recommend the selection and terms of engagement of the Internal Auditor;



3. Monitor the sufficiency of resources assigned to the audit functions and the performance of the Internal Auditor;



4. Review the terms of reference of each approved audit project as developed by the Internal Auditor;



5. Review internal audit reports, forward same to Council or Executive Committee as may be appropriate, and monitor action taken pursuant to internal audit reports;



6. Recommend the selection and terms of engagement of the External Auditor;



7. Review the annual audited financial statements with management and the External Auditor, recommend their approval to City Council, and monitor action taken as a result of recommendations of the External Auditor;



8. Request the Internal Auditor to do special investigations regarding the operations of the City upon the approval of Executive Committee;



9. Review significant accounting and reporting issues and understand their impact on the financial statements, including major issues regarding accounting systems and financial statement presentations and significant changes in the selection or application of accounting principles;



10. Review the External Auditor’s proposed audit scope and approach, including coordination of audit effort with internal audit;



11. Review with the General Manager of Corporate Services, the External Auditor, and the Internal Auditor, the systems of internal control over financial reporting to assess that they are operating effectively;



12. Review with management and the External Auditor the result of the external audit, including any difficulties encountered such as restrictions on the scope of the External Auditor’s activities or any access to requested information, and any significant disagreements with management;



13. Review the External Auditor’s management letter and management responses, with the External Auditor and management;



14. Ensure that the combined work of the Internal Auditor and External Auditor provide an appropriate level of audit coverage and is effectively coordinated to avoid duplication of effort;



15. Comment on the organization’s risk management process;



16. Through the work of the City’s Internal and External Auditors, monitor the organizations systems of internal control over financial reporting, operational effectiveness and efficiency, compliance with laws and regulations, fraud prevention and detection, and safe-guarding corporate assets;



17. Understand the scope of the Internal and External Auditor’s review of internal controls;



18. Ensure that all members of the Audit Committee receive appropriate orientation to understand the Committee’s responsibilities, financial and internal control reporting and related processes, Audit Committee processes, and key relationships;



19. Ensure that all members of the Audit Committee receive appropriate orientation on how to read and understand the City’s financial statements and related accounting issues;



20. Pursuant to the international standards for the professional practice of internal auditing, engage the services of a qualified independent reviewer or review team from outside the organization, that is certified by the Institute of Internal Auditors to undertake an external assessment of the internal audit function every five years;



21. Annually review the Committee’s mandate to ensure that the Committee continues to be an effective governance instrument; and



22. Consider any other matter referred to the Committee by Council.

Reporting Relationship:   The Committee reports to City Council.

Ms. Marlene Hall, Deputy City Clerk
City Clerk’s Office
(975-3240)

Composition:   The Audit Committee consists of five City Councillors appointed annually.

Term:   Committee members are appointed for one year.

Meetings:   The Committee meets every third Wednesday at 11:30 am (except July, August and December).