SUNDRE - Having substantially completed an audit of the municipality’s 2019 financial statements, accountants with PricewaterhouseCoopers said no major red flags were identified.
The audit had been delayed due to the pandemic and was prseneted to council last month.
Angela Loo, partner with PWC LLP, who presented with Jasmine Kwong, said, “There were no deficiencies. So, that is a really great news story.”
Additionally, Loo said, “During our audit, no fraud involving senior management or employees have come to our attention…I will just ask of mayor and council today if you would like to please reconfirm that you are not aware of any such frauds or illegal acts, or suspected frauds or illegal acts that we should be made aware of today.”
Mayor Terry Leslie offered council a few moments to speak, but no concerns were raised.
“I would say publicly, that we are not aware — as a council — of any fraudulent dealings at this time,” said Leslie.
A motion to accept the presentation as information carried, and was followed by a roughly 15-minute in-camera session with the auditors.
Upon resuming the regular session, council carried a motion accepting the 2019 auditor’s report, the 2019 audited financial statements, and the 2019 financial information return as presented by PWC, and directed administration to forward the documents to the minister of Municipal Affairs as per provincial legislation.
During a later council meeting Chris Albert, director of corporate services, told council PricewaterhouseCoopers LLP (PwC) has served as the municipality’s auditor for the past few years following a 2017 request for proposals for audit services to be provided for the 2017, 2018 and 2019 fiscal years, with an option to extend the services for two additional one-year terms.
“Administration would like to take advantage of that first, one-year extension this year for 2020,” he said.
“We have had a good working relationship with PwC over the last couple of years,” he said, adding the estimated cost of the 2020 audit was quoted at about $44,000.
“That is based on their experience over the last couple of years of how much it has cost them to do these audits. It is actually over budget — our estimated budget is about $35,000 for audits," he said.
Albert explained costs have been escalating across the board in recent years, and expressed administration’s preference for continuing to work with the same auditor.
Coun. Charlene Preston moved for council to appoint PwC as the municipality’s auditor for the 2020 fiscal year.
Seeing as the expense quoted was a bit higher than originally estimated, Coun. Richard Warnock asked if the extra cost will be covered by the stabilization fund.
“We don’t believe that it’ll actually be required to come from the stabilization fund,” said Albert. “We believe other costs will offset that."
Warnock’s motion carried unopposed.
