February 12, 1999

To:Audit Committee

From:City Auditor

Subject:Audit Services 1999 Operating Plan and Budget

Recommendations:

It is recommended that the attached 1999 Operating Plan and Budget be approved by the Audit Committee and forwarded to the Budget Committee.

Comments:

The 1999 Operating Plan and Budget of Audit Services contemplates a funding request of $2,227,400. This amount is $204,000 (8.4%) below the base budget target set by the Budget Committee.

Below is a comparison of the Audit Department's budgets prior and subsequent to amalgamation:

1997 1998 1999

Budget Budget Request

Gross Expenditure$4,377,800$3,663,200$2,381,600

Revenue 1,198,900 782,000 154,200

Net Expenditure$3,178,900$2,881,200$2,227,400

The 1999 budget is approximately $950,000 (30%) less than the pre-amalgamation budget of 1997.

Conclusions:

The restructuring of the Audit Department was completed in July 1998 and involved the consolidation of all audit activities both internal and external of the amalgamating municipalities. The budget document has been subject to an internal review by the Chief Administrative Officer and the Chief Financial Officer and Treasurer. No changes were recommended.

Detailed information relating to the budget is available in the Department's budget submission attached to this report.

Contact Name and Telephone Number:

Rafiq Dosani, Senior Audit Manager, 392-8438

Jeffrey Griffiths

City Auditor