TAMRMS#: B06
8.2
REQUEST FOR DECISION
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Appointment of Auditors
Presented by: Stanley Chan, Manager of Financial Operations and Reporting, Financial and Strategic Services
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RECOMMENDED MOTION(S)
recommendation
That KPMG be appointed as the City’s auditor for the 2026 - 2029 fiscal year ends.
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SUMMARY
To provide Council the results of the request for proposals for external audit services and to provide a recommendation for the appointment of the City’s auditor.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
Section 280 (1) of the Municipal Government Act stipulates that a council must appoint an auditor for the municipality.
BACKGROUND AND DISCUSSION
On May 20, 2026 the City issued a Request for Proposals (RFP-2026-0036) for Financial Audit Services. The contract contemplates a 4 year contract (plus an option for a 4 year extension).
The recommendation to execute a 4 year contract, with the potential for a 4 year extension, was to provide alignment with the new 4 year term of Council as well as to ensure any potential transition does not occur in the year of a Municipal election in the future.
Six proposals were received and evaluated based on four criteria.
In order to qualify for consideration, audit firms had to meet the following mandatory requirements:
• Independent and licensed to practice in Alberta.
• No conflict of interest with regard to any other work performed by the firm for the City.
• A corporate location within the Edmonton Capital Region from where the City’s audit would be directed.
• Demonstrated experience in the provision of audit services to at least two Canadian municipalities by the Edmonton corporate office.
The RFP was posted on the APC site Bids & Tenders (City’s electronic bidding system) and 6 firms submitted proposals, and all were compliant and evaluated against the published criteria. The following set of criteria was used to evaluate each proposal:
• Firm Experience
• Team Experience and Qualifications
• Project understanding, methodology, approach and work plan including schedule
• Pricing.
The proposal from KPMG had the highest ranked evaluation and therefore Administration recommends that they be appointed as the City's auditor for the period from 2026 to 2029. If the recommendation is passed by Council, Administration will being working with KMPG to prepare the audit plan for presentation to Council on October 6, 2026.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPACTS OF RECOMMENDATION(S)
Financial:
The term of the contract would be for four years, with an option for an additional four years.
The cost for external financial audit services is included in the City’s operating budget.
The budgeted amount for 2027 and forward will be adjusted to reflect these new fees.
Compliance & Legal:
This report is presented as part of the requirements of section 280 of the Municipal Government Act and are consistent with the City’s procurement practices and the requirements of the free trade agreements which are applicable to the City.
Program or Service:
None at this time
Organizational:
None at this time
Risks
None at this time
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Initiative aligned with Strategic Plan:
None at this time
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
N/A
IMPACTS OF ALTERNATIVES CONSIDERED
None at this time.
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Report Date: September 1, 2026
Author(s): Stanley Chan, Manager Financial Operations and Reporting
Department: Financial and Strategic Services
Department Director: Anne Victoor
Managing Director: Diane McMordie
Chief Administrative Officer: William Fletcher