Town of P
Audit engagement & Gov
Petrolia
vernance presentation
1
Baker Tilly Sarnia
Baker Tilly Sarnia has b
Municipalities in Lambto
years.
Our network of professi
Chatham-Kent region in
managers and over 50 s
Expertise and best prac
within the Baker Tilly Ne
been auditing
on County for over 20
ionals in the Lambton-
nclude 18 partners, 20
senior staff members.
ctice knowledge sharing
etwork.
Public Sector Accountin
PSAB has the authority to
standards for the public s
Objectives include:
– Issuing recommendations
the usefulness of public se
financial/non-financial perf
In meeting its objectives,
process and encourages
while bringing objectivity
issues.
ng - PSAB
o set accounting
sector.
and guidance that enhance
ector financial statement and
formance information.
, PSAB follows due
s input from stakeholders
to the consideration of
PSAB – Financial Sustai
Sustain
Ability to main
programs an
without raisi
increasi
Flexibility Mun
Fina
Ability to raise taxes
or increase debt to
meet service needs
and obligations
The key to financial sustaina
steps to manage both short
and financial risks
inability
nability
ntain existing
nd services
ing taxes or
ing debt
nicipal Vulnerability
ances
Dependence on
revenue sources
outside its control
ability is taking the necessary
and long-term organizational
What Determines Sustain
Factors that identify financia
– The level of services provid
municipalities with approxim
– Being able to adjust servic
in transfer payments.
– Infrastructure is maintained
– There are sufficient reserve
replace infrastructure at the
– The capital investment plan
to changes in the rate of gr
– The budgeting process is p
effective manner, meeting
taxpayers.
nability?
al sustainability:
ded comparable to other similar
mately same tax effort.
ce levels in response to changes
d and in a state of good repair.
es and/or debt capacity to
e appropriate time.
n can be adjusted in response
rowth.
prepared and maintained in an
the requirements of the
Governance – Reporting
g Framework
Governance
Governance is the combinati
structures implemented by C
manage and monitor the acti
toward the achievement of it
Sustainability)
It also includes the overall ac
planning and performance of
As there is no finance or aud
governance has been delega
of governance for the Town o
ion of processes and
Council to inform, direct,
ivities of the Municipality
ts objectives. (Financial
ccountability of the strategic
f the Town.
dit committee that
ated to, Council is in charge
of Petrolia.
Governance (con’t)
The governance process is a
− Promoting appropriate ethi
organization.
− Ensuring effective organiza
management and accounta
− Communicating risk and co
appropriate areas of the or
− Coordinating the activities o
information among Council
management.
accomplished through:
ics and values within the
ational performance
ability.
ontrol information to
rganization.
of and communicating
l, the external auditors, and
Independence
Canadian Auditing Standards ("CAS") req
you regarding all relationships between t
professional judgement, may effect our in
In determining which relationships to rep
relevant rules and related interpretations
Accountants of Ontario and applicable le
− holding a financial interest or position
right or responsibility to exert significa
accounting policies of a client;
− personal or business relationships of
partners or retired partners, either dir
− economic dependence on a client; an
− provision of services in addition to the
quire that we communicate annually with
the municipality and us that, in our
ndependence.
port, these standards require us to consider
prescribed by the Chartered Professional
egislation, covering such matters as:
n, either directly or indirectly, that gives the
ant influence over the financial or
immediate family, close relatives,
rectly or indirectly, with a client;
nd
e audit engagement.
Independence (con’t)
We can confirm that our enga
other Baker Tilly offices are in
the Town of Petrolia within th
Professional Conduct of the C
Accountants of Ontario.
Any issues that may come up
life of the agreement will be a
agement team, our Firm and
ndependent with respect to
he meaning of the Rules of
Chartered Professional
p during the audit or over the
addressed accordingly.
The Audit Engagement
What will Baker Tilly be doing as t
− The objective, scope and limitati
engagement letter.
− Overall our function is to report t
Town of Petrolia’s annual conso
− We will conduct our audit in acco
accepted auditing standards and
− Those standards require that we
and plan and perform the audit t
about whether the financial state
misstatement, whether due to er
the external Accountants?
ions are outlined in the
to Council an opinion on The
olidated financial statements.
ordance with Canadian generally
d will issue an audit report.
e comply with ethical requirements
to obtain reasonable assurance
ements are free from material
rror or fraud.
11
The Audit Engagement (
It is important to recognize that an
assurance that material misstatem
will be detected because of:
− Factors such as use of judgeme
data underlying the financial stat
− Inherent limitations of internal co
− The fact that much of the audit e
persuasive rather than conclusiv
Furthermore, because of the natur
concealment through collusion and
executed in accordance with Cana
standards may not detect a materi
(con’t)
n auditor cannot obtain absolute
ments in the financial statements
ent, and the use of testing of the
tements;
ontrol; and
evidence available to the auditor is
ve in nature.
re of fraud, including attempts at
d forgery, an audit designed and
adian generally accepted auditing
ial fraud.
12
The Audit Engagement (
It is important to note that wh
reduces the likelihood that m
remain undetected, it does n
For these reasons, we canno
error, irregularities or illegal a
detected when conducting an
Canadian generally accepted
(con’t)
hile effective internal control
misstatements will occur and
not eliminate that possibility.
ot guarantee that fraud,
acts, if present, will be
n audit in accordance with
d auditing standards.
13
Internal Controls
Internal control is a process put in
and all levels of personnel in an or
assurance that the organization’s o
Internal control includes all measu
mitigate exposures to risks.
Internal control refers to the policie
that provide an organization with o
to reduce error, fraud or theft and p
problems. Controls operate contin
within an organization.
place by Council, management
rganization to provide reasonable
objectives will be achieved.
ures and practices that are used to
es, procedures, and processes
operational checks and balances
provide early warning of any
nually at all times and at all levels
14
Internal Controls – Goals
The Town of Petrolia and Baker Tilly S
internal controls and procedures are e
− Operational effectiveness and efficie
− Reliability and completeness of acco
− Compliance with legislation, regulati
− Safeguarding assets
Critical elements to ensure objectives
− The control environment, which in
competence of employees.
− Risk assessment, which forms the
managed.
− Monitoring, much of which occurs t
supervisory activity.
s and Objectives
Sarnia needs to ensure that the necessary
employed to assure achievement of:
ency
ounting and management information
ions and policies
are met include:
ncludes the integrity, ethical values and
e basis of determining how risks should be
through routine management and
15
Risk Assessment & the A
An audit involves performing proced
the amounts and disclosures in the f
management.
The procedures selected depend on
the assessment of the risks of mater
statements, whether due to fraud or
specific balances and at times trans
audit testing should be increased.
An audit also includes evaluating the
policies used and the reasonablenes
management, as well as evaluating
financial statements.
Audit Approach
dures to obtain audit evidence about
financial statements prepared by
n the auditor’s judgement, including
rial misstatement of the financial
r error. Risk is also assessed for
sactions to determine areas where
e appropriateness of accounting
ss of accounting estimates made by
the overall presentation of the
16
the Audit Approach High
Substantive testing will be utiliz
level of evidence for reasonable
All PSAB accounting standards
accounting’ and that tangible ca
statement of financial position a
Budgeting must be audited and
statements.
Overall changes in net financia
on annual surplus or deficits in
debt repayment and changes to
hlights
zed to attain the appropriate
e assurance as required.
s are to be met including ‘accrual
apital assets to be setup on
and amortized annually.
d disclosed on the financial
al assets/debt are reported based
operations, capital purchasing,
o reserve balances annually
17
Thank You –
Baker Tilly Sarnia – your tru
Now, for
tomorrow
– Questions?
usted professional advisors.
Town of
Clerks Dep
Mandi Pearson, Clerk/Operatio
Jessica Smith, Executive Assistant
Amy Grant, Customer Service/A
Petrolia
partment
ons Clerk [email protected]
t/Deputy Clerk [email protected]
Admin Asst. [email protected]
Ministry of Munic
housing
Carole Sauve, M
659 Exeter Road, Lo
(519) 873-4030 o
carole.sauve
cipal Affairs and
g (MMAH)
Municipal Advisor
ondon, ON N6E 1L3
or (800) 265-4736
[email protected]
Each year there are excellent conferences offered for our council and staff members to attend. The downfall is
that the housing and registration open and book up quickly, many months in advance of the actual
conference.
Which means that annually in October, all members of council will receive the attached conference
attendance request form. I apologize that this year is a tighter then normal deadline for response, however I
look forward to hearing back from each of you by October 31st.
2.2 Convention, Workshop or Conference
Pre-Approved attendance at a convention, workshop or conference shall be paid by the Municipality, for the
member of Council who has been authorized to attend such convention, workshop or conference:
(a) Convention, workshop or conference registration fees;
(b) Accommodation costs and parking fees;
(c) Meal Per Diem;
Full Daily $80.00
Breakfast $15.00
Lunch
$25.00
Dinner $35.00
(d) Travel costs – most economical way to travel.
(e) Attendance Pay at a Convention, workshop or conference (taxable):
0-3 hours in attendance: $60.00
Full day in attendance: $125.00 per day
Expenses incurred while attending a convention, workshop or conference, not covered through municipally
made arrangements, will be reimbursed to the member of Council upon submission of completed forms, along
with original receipts to the Clerk.
2.3 Approved Maximum Expenses for Conventions, Workshops and Conferences
1. Each member of Council shall be entitled to attend conventions, workshops and conferences each year,
as approved by the CAO/Clerk;
2. All expenses incurred, including per diems, not to exceed $4,500 per year per member of Council, any
expenses over this amount will be at the member of Council’s expense.
3. Should a member of Council need to cancel confirmed accommodation, registration on travel expense,
if a refund cannot be issued the member of Council will be responsible for the expense.
s
g
Conferences
Remuneratio
remuneration is for attendance at all Council, Committee
with Education Sessions and Specia
Established through a by-law, set for the term o
Payments – Bi-Wee
Remuneration shall be made bi-weekly, subject to any deducti
HEALTH CARE
Approved Maximum Expenses f
1. Each member of Council shall be entitled to receive a Health Care S
defined sum of $2,000.00 per calendar year (s
2. Funds remaining at the end of the calendar year, can be carried forw
3. The Health Care Spending Account can be used to cover expense
Dependent Children residing in the same household up to t
Health Care Expenses will be paid to the member of Council upon s
on
e of Council and Local Board meetings along
al Meetings of Council
of Council at the Nov 28th meeting
ekly
ions required by Federal or Provincial statutes.
for Health Care
Spending Account at the beginning of each year for the
set with each term of council);
ward to the following year at a maximum of $1,000.00;
es for Members of Council, their Spouses and their
the annual maximum amount of $2,000.00;
submission of the paid original receipt to the Clerk.
m
no
Inspirational
message
Please email your chosen
inspirational message to
[email protected] , by 12
oon on the council meeting day.
– thank you.
Acting May
~ part of our Procedur
~updated by-law to Counc
28th
PERIOD OF Bill Clark
Nov 15 – December 2022 Joel Field
January – February 2023 Chad Hyatt
March – April 2023 Ross O’Hara
May - June 2023 Debb Pitel
July - August 2023 Liz Welsh
September - October 2023 Bill Clark
November – December 2023 Joel Field
January – February 2024 Chad Hyatt
March – April 2024 Ross O’Hara
May - June 2024 Debb Pitel
July - August 2024 Liz Welsh
September - October 2024 Bill Clark
November – December 2024 Joel Field
January – February 2025 Chad Hyatt
March – April 2025 Ross O’Hara
May - June 2025 Debb Pitel
July - August 2025 Liz Welsh
September - October 2025 Bill Clark
November – December 2025 Joel Field
January – February 2026 Chad Hyatt
March – April 2026 Ross O’Hara
May - June 2026 Debb Pitel
July - August 2026 Liz Welsh
September - October 2026 Bill Clark
November 2026
yor
re By-Law
cil November
COUNCILLOR