Audit Function Review

Council has voted to fully accept all recommendations outlined in the Municipal Audit Function Review Report, details in the News Feed.

The City of St. John’s has struck a 3-person Panel to advise if the current governance process for its Internal Audit Function best serves the goals of accountability and transparency to members of the public. Members of the Panel are: Mr. Terry Paddon, CPA, CA – Chair; Ms. Lynn Zurel, CPA, CA; Mr. Simon Lono.

The city currently has an internal audit team of two persons who reports to Council, and administratively, to the City Manager and Council. There is an Audit Advisory Committee chaired by a member of Council which has two public members as well which reports to Committee of the Whole. The audit team prepares an audit plan annually and focuses on process and procedure audits primarily. The audit of the City’s financial statements is completed by an external firm.

There is no consistency across Canada in how audit functions are structured within municipalities. However, having some internal audit function is common. Some municipalities have a Municipal Auditor General – appointed either by provincial legislation or municipal by-law. Some larger municipalities have both internal audit and a Municipal Auditor General. Auditor Generals are typically appointed for a limited term, 5 to 7 years, and report to Council. Some may also report publicly.

The Panel has identified some broad areas for consideration to this point. These are ideas only at this time. The external review team is looking for feedback from the public before it makes recommendations back to Council.

Options include: Status Quo; Status quo with governance changes; Enshrine mandate of Internal Audit in City by-laws; Increase external membership on Audit Committee; Audit Committee have a greater role in Internal Audit resourcing; Increase Internal Audit Function staff with governance changes; Move to a Municipal Auditor General structure.