audits to assist "Council in holding itself and its administrators accountable for the quality and stewardship over public funds."*

*Municipal Act, 2001 Sections 223.19 to 223.23"

On September 23, 2019, by Council Resolution CR 485/2019, City Council approved the following:

That the report of administration dated August 22, 2019 entitled "Response to CQ2-2019, Options for the Establishment of an Independent Auditor General," BE RECEIVED; and further,

That City Council APPROVE the implementation of an Independent Auditor General with direct reporting to the Corporate Services Standing Committee of City Council; and,

That City Council ADOPT Option 1 in the administrative report which utilizes a fully outsourced Auditor General's Office and appoint a designated person as the Auditor General being Christopher O'Conner, Partner, PricewaterhouseCoopers LLP (PwC); and,

That Administration ASSIST Council by negotiating with PwC on integrating this function into their current contract; and further,

That Administration BE AUTHORIZED to negotiate with PwC on extending their current contract for a further 5 year term; and,

That a clause BE ADDED to the agreement, whereby if Council at any time deems the service provider's performance as unacceptable, that Council may terminate the relationship by giving 120 days written notice without penalty.

Discussion:

The current engagement letter with PwC will be amended to integrate the services of an Auditor General. The contract term will also be extended for an additional five (5) years to March 2025, with budgeted hours such that up to four (4) projects will be conducted annually during the term of the engagement. The number of projects per audit year may vary and will be determined by the type of audit and effort required to complete such audits.

Christopher O'Connor, Partner with PwC, has been designated as the City's Auditor General (AG) and partner responsible for the services provided to the City under the agreement. Should the designated partner leave the firm, PwC will reassign this role in consultation and based on the direction of City Council.

The terms and conditions of the current engagement letter, except as otherwise amended, will continue to apply to the Auditor General Services, which will be provided by PwC. Additionally, current language within the engagement letter will remain whereby if City Council at any time deems PwC's performance to be unsatisfactory that the City may cancel the contract with one hundred and twenty (120) days written notice without penalty. Furthermore this language also provides that in the event that future