Presentation on Request For Proposal For Audit Services at GFOA BC

1. Finance & Supply Presentation on Request For Proposal For Audit Services at GFOA BC Canadian Municipal Accounting and Auditing Best Practices Workshop November 4 - 5, 2004 Presented by Anne Tourigny The City of Calgary Budget and Financial Overview

2. Finance & Supply Developing a RFP • Consider • Legislative guidance • Municipal guidance • Organizational structure • Audit Committee • The advertisement • Supporting the RFP • Recap Budget and Financial Overview

3. Finance & Supply Guidance for Engaging an Auditor • Key Municipal Government Act Legislation • Frequency of appointment • Required accounting standards • Key Municipal policy or practice as set by Council • I.e. Frequency of appointment Budget and Financial Overview

4. Finance & Supply History of Auditors 1960-1963 Harvey Morrision /Clarkson Gordon 1964-1967 Alger, Bless, Nichol & Co. 1968-1970 Riddell Stead & Co. 1971-1975 Collins Hames 1976-1980 Coopers Lybrand 1981-1985 Deloitte Haskins & Sells 1986-1990 Peat Marwick Thorne 1991-2002 Deloitte & Touche LLP 2003 - Ernst & Young LLP Budget and Financial Overview

5. City of Calgary - Org Structure Finance & Supply Standing Policy Committees COUNCIL Special Committees City Auditor Audit Committee External Auditor City Clerks Office City Manager Law Other Administration Budget and Financial Overview

6. Finance & Supply Audit Committee WHO : 5 Council members appointed annually 2 Citizen members appointed for 2 years • WHAT : Ensure Administration’s accountability to Council HOW: Meet Monthly to discuss specified items on the agenda – Supported by administration Budget and Financial Overview

7. CALL FOR PROPOSAL • External Auditors • The City of Calgary’s Audit Committee is seeking proposals from interested audit firms to act as the City of Calgary’s external auditor for the years 2003-2007. • Interested parties are invited to submit a brief proposal describing their qualifications and experience relevant to this project. A description of likely approach and staffing should be included. • Proposals will be received until 3:00 p.m., September 27 and can be sent to Mr. W. Ardiel, Aldermanic Office (#8001A), P.O. Box 2100, Station M, Calgary, AB T2P 2M5, or delivered to the Aldermanic Office, 3rd Floor, City Hall (Macleod Trail and 7 Avenue SE). Selected firms will be invited to make extended proposals, including a presentation to Audit Committee. • Further information may be obtained from • Mr. W. (Bill) Ardiel • Legislative Resource Group • Telephone (403) 268-1534 • Fax (403) 268-8091 Budget and Financial Overview

8. Finance & Supply Supporting the RFP • Before the close date Administration provided information to any firm interested in responding • Finance • ITS • City Auditors’ Office • ENMAX and other subsidiaries Budget and Financial Overview

9. Supporting the RFP Finance & Supply • Procedures to be followed throughout the process • Description of accounting systems & financial reporting • State of controls & issues • Any contentious audit or accounting issues • Auditing standards to be applied • Audit time table • Reporting requirements above audit report ( ie mgmnt letter) • Fee basis • Level of assistance available • Desired level of detail in the submission • Evaluation criteria Budget and Financial Overview

10. Finance & Supply Recap - Setting up an RFP ? • Know your - • Governing legislation • Applicable city bylaws/policies & procedures • Organizational structure • Determine • Audit Scope - which audits are included • Term covered by the RFP (how many years) • Provide administrative experts to provide information to applicants Budget and Financial Overview