TOWNSHIP OF ESQUIMALT MEMORANDUM
MEETING DATE: September 23, 2024 Report No. FIN-24-014
TO: Council
FROM: Ian Irvine, Director of Financial Services
SUBJECT: Appointment of External Auditors
INFORMATION:
Council initially appointed KPMG as the Township of Esquimalt's external auditors in 2004, and the firm has performed the Township's annual financial audit since that time. The latest four year agreement expired after the 2023 audit, which has presented an opportunity to explore the procurement of auditing services from other firms. During the May 6 Council meeting when the 2023 audit results were discussed, staff asked whether there was any interest in soliciting proposals from other audit firms.
While Council raised questions about the length of the existing appointment and any impacts on independence, there was acknowledgement of the importance placed on the positive working relationship between staff and the audit team as well as familiarity with the Township processes and operational environment. As a result, Council did not make a resolution to seek other alternatives and staff subsequently initiated discussions with KPMG regarding a new, long term agreement.
With a focus on continuity, certainty and fiscal responsibility, the Township requested a proposal to cover the next three years (2024-2026) with options for 2 - 2 year extensions (2027-2028 and 2029-2030) based on mutual agreement. As part of the negotiation, KPMG stated that the Township currently enjoys the lowest audit fees when compared to all their clients in the Capital Regional District. While this new agreement will result in an annual fee increase, the Township will maintain the existing relationship with fees that remain one of the lowest in the region.
Section 169 of the Community Charter states that Council must appoint an auditor for the municipality. While this is typically performed each year through approval of the Council appointments, an agreement needs to be executed...
Click here for full text