The URL can be used to link to this page

Home My WebLink AboutFND-021-07 C;~!1l-!lJglon REPORT FINANCE DEPARTMENT Meeting: General Purpose and Administration Committee November 5, 2007 Resolution #: (1 Pit -bd 7-[) 7 Date: Report #: FND-021-07 File#: By-law #: Subject: 2006 AUDITED FINANCIAL STATEMENTS Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-021-07 be received; and 2. THAT the 2006 Audited Financial Statements be approved. Reviewed bY:O ~- dzJu Franklin Wu, Chief Administrative Officer. NT/hjl }t REPORT NO.: FND-021-07 PAGE 2 BACKGROUND: 1.0 Section 296(1) of the Municipal Act, S.O. 2001, c.25 provides that "A municipality shall appoint an auditor licensed under the Public Accounting Act who is responsible for, (a) annually auditing the accounts and transactions of the municipality and its local boards and expressing an opinion on the financial statements of these bodies based on the audit; 1.1 Deloitte & Touche, Toronto, Ontario, were appointed as the Municipality of Clarington's auditors through report COD-OO 1-05 for a five (5) year term to expire January 31,2010. 1.2 Section 5751 of the Canadian Institute of Chartered Accountant's (CICA) Handbook deals with "Communications with those having oversight responsibility for the financial reporting process". At the General Purpose and Administration Committee meeting of December 5,2005, Council approved report FND-019-05 formally appointing the Audit Review Group to include the Mayor, as Chair of Finance, the Chief Administrative Officer and the Director of FinancefTreasurer. This group has the oversight responsibility for the financial reporting process. 1.3 The Municipality of Clarington's 2006 audited financial statements were presented to the Audit Review Group on October 25, 2007. A copy was then circulated to Members of Council, made available for public viewing, and a condensed version posted on the Municipality's website. 1.4 A copy of the condensed financial statements for 2006 are included as Attachment A to this report. 1.5 The Ministry of Municipal Affairs and Housing also requires an audit letter as well as specialized financial reports entitled Financial Information Returns. The ministry reviews these and provides Financial Indicator Reviews based on the information submitted and comparable municipalities. The Municipality receives this late in the year and to date generally reflects results of low risk in all categories. 1.6 It is important to note that the financial statements are the responsibility of the Municipality's management. The financial statements have been prepared in accordance with generally accepted accounting principles applicable to local governments, and conform with accounting standards established by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants. Where the determination of assets and liabilities is dependent upon future events, amounts are based upon reasonably determined estimates and judgments (ie. Post employment benefit liability). REPORT NO.: FND-021-07 PAGE 3 1.7 The responsibility of the auditor's is to express an opinion on these statements based on their audit. A copy of the Auditor's Report for 2006 is included as Attachment "S" and reflects what is generally referred to as a clean audit opinion. CONCLUSION: 2.0 It is recommended that the 2006 audited financial statements (complete set distributed under separate cover) be approved and the auditor's be thanked for their assistance and support provided throughout the year as various issues arise. Attachments: Attachment "A" - Condensed Financial Statements for 2006 Attachment "S" - Auditors Report for 2006 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169 Attachment "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL ACTMTIE$ AND FUND BALANCE For the year ended December 31, 2006 2008 2008 RESERVES AND 2008 CAPITAL FUND RESERVE FUNDS 2006 2005 CURRENT FUND ACTIVITIES ACTIVITIES ACTIVITIES CONSOLIDATED CONSOLIDATED BUDGET ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL $ $ $ $ $ $ REVENUES Taxabon and user charges Property taxation 29,222,031 29,353.860 29,353,860 27,517.511 Taxation from other governments 2,787,860 2,888,965 2.888.965 5,192.877 User charges 8,108,057 8,462,140 8,462,140 8,488,848 G<a"~ Government of Canada 20,851 19,668 545,751 565,419 43,808 ProvinceofOntark> 118,069 256,827 2,051,533 2,308,360 439,128 other Deferred revenue earned 2.214,322 2,775,800 7,288,553 10,064,353 6,507,146 Invesb11entincome 1,163,092 1,084,764 288,017 2,147,721 3,520,502 3,524,309 sale of land and equipment 279,311 279,311 86,506 Penaltyandin1eres1 on taxes 1,025,000 1,185,897 1,185,897 1,111,791 Fines 190,500 102,399 102,399 196,661 Donationsandcontribulionfromothe~ 41,360 247,596 1,279,801 496,744 2,024,141 3,297,240 Toialrevenues 44,891,142 46,377,916 11,732,966 2,644,465 60,755,347 56,405,825 EXPENDITURES General government 7,648,340 7,990,123 411,443 8,401,566 9,904,883 Protection to persons and property 7,798,609 8,454,762 728,106 9,182,868 9,291,055 Transportation services 8,631,989 10,263,495 8,414,538 18,678,033 16,834,882 Environmental services 115,000 117,715 117,715 155,513 HeaNh services 249,469 201,286 32,230 233,516 241,414 Recreationai and cultural services 12,469,341 12,807,056 9,531,454 22,338,510 18,184,186 Planning and development 3,442,831 3,390,419 42,062 3,432,481 3,688,098 Total expenditures 40,355,579 43,224,856 19,159,833 62,384,689 58,300,031 Share of net Income of Veridian Corporation 1,217,229 1217,229 1,070,425 Net (expenditures) revenue 4,535,563 3,153,060 (7,426,867) 3,861,694 (412,113) (823,781) Netfinancingandtransfe~ (3,063,963) (1,570,648) 7,539,113 (5,968,465) Increase (decrease) in amounts to be recovered Debt prindpal repayrnents (1,471,600) (1,471,600) (1,471,600) (1,399,700) Unfunded employee future benefits liabilities 52,244 02,244 147,494 Proceeds of Debenture Issue 1,111,640 1,111,640 Increase (Decrease} in Amounts 10 be Recovered (1,471,600) (1,419,356) 1,111,640 (307,716) (1,252,206) Increase (decrease) in Non-financial Assets 445,017 445,017 (73,242) Change in Fund Balance 608,073 1,223,886 (2,106,171) (274,812) (2,149,229) Fund Batance, Beginning of year (374,485) 6.424,633 53.466,911 59,517,059 61,666,288 Fund Batance, End of year 233,588 7,648,519 51,360,140 59,242,247 59,517,059 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2006 ASSETS Financial assets Cash and cash equivalents Investments Accounts receivable Taxes receivable Inventories for resale Promissory notes receivable Investment in Vendian Corporation Total financial assets LIABILITIES Accounts payable and accrued liabilities Employee future benefilliabilities Net long-term liabilities Deferred revenue - general Deferred revenue - obligatory reserve funds Total liabilities Net financial assets Non-financial assets Prepaid expenses InventOlY supplies Total non-financial assets Net assets MUNICIPAL POSITION Fund balances Current fund Capital fund Reserves Reserve funds-general Reserve fund-Veridian Corporation net equity Total fund balances Amounts to be recovered from future revenues Municipal position 2006 2005 $ $ 20,044,797 17,903,038 32,490,480 32,716,676 8,336,349 9,896,862 8,103,539 7,715,636 75,782 48,191 8,321,000 8,321,000 11,532,805 11,131,576 88,904,732 87,732,979 9,707,038 5,880,876 2,067,808 1,947,987 19,421,640 19,781,800 4,119,375 4,720,263 15,844,701 17,045,770 50,960,362 49,376,496 37,944,370 38,356,483 569,565 329,977 411,126 205,697 980,691 535,674 38,925,061 38,892,157 233,588 (374,485) 7,648,519 6,424,633 3,472,852 4,828,934 26,650,697 28,050,054 21,236,591 20,587,923 59,242,247 59,517,059 (20,317,186) (20,624,902) 38,925,061 38,892,157 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON CONDENSED CONSOLIDATED SCHEDULE OF RESERVES AND RESERVE FUND BALANCES AS AT DECEMBER 31, 2006 2006 2005 $ $ 2,414,655 3,473,726 83,325 95,751 974,872 1,259,457 3,472,852 4,828,934 144,635 191,525 8,774,745 9,588,487 6,292,222 7,095,347 10,975,304 10,776,038 463,791 398,657 26,650,697 28,050,054 21,236,591 20,587,923 51,360,140 53,466,911 Reserves set aside for specific purpose by Council: Acquisition of capital assets Capital improvements Workin9 Funds, Contingencies and Other Reserve Funds set aside for specific purposes by Council: Industrial Development and Bowmanville BIA Debt management and General municipal purposes Acquisition of capital assets Capital improvements Recreation and Culture Municipal government business partnership CONDENSED SCHEDULE OF TRUST FUND BALANCES AS AT DECEMBER 31, 2006 2006 2005 $ $ Cemeteries 927,427 840,685 Vanderveer Legacy 1,000 1,000 Monta9ue Trust 18,553 17,885 Host Community Fund 10,000,000 10,000,000 Total Trust Funds 10,946,980 10,859,570 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON GENERAL NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31,2006 1. These condensed consolidated financial statements refiect the assets, liabilities, revenue, and expenditures of the current fund, capital fund, reserve funds and reserves and include the activities of all committees of Council and the following local boards, which are under the control of Council: Clarington Public Library Board Clarington Museum and Archives Board of Management for the Bowmanville Central Business District Improvement Area Board of Management for the Newcastle Central Business District Improvement Area Board of Management for the Orono Central Business District Improvement Area Orono Arena and Community Centre Board Newcastle Arena Board Newcastle Community Hall Board Soiina Hall Board Tyrone Community Hall Board Clarington Older Adult Centre Board Clarington Heritage Committee Bowmanville Santa Clause Parade Committee Orono Cemetery Board 2. The data presented here has been extracted from financial statements audited by Deloitte and Touche, llP. Detailed financial statements and the Auditors' Reports thereon, for the Municipality, are available from the Finance Department. Attachment "8" Deloi.tteilli Deloitte & Touche LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: (416) 601-6150 Fax: (416) 601-6151 www.deloitte.ca Auditors' Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington We have audited the consolidated statement of financial position of the Corporation ofthe Municipality of Clarington as at December 31, 2006 and the consolidated statements of financial activities and fund balance and of changes in [mancial position for the year then ended. These financial statements are the responsibility of the Municipality's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Municipality as at December 31, 2006 and the results of its operations and the changes in its financial position for the year then ended in accordance with Canadian generally accepted accounting principles. ~ 0/ ItWcL uP Chartered Accountants Licensed Public Accountants Toronto, Ontario June 1,2007 Member of Deloitte Touche Tohmat$u