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DN: TR- 49-98
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Meeting:
General Purpose and Administration Committee
File # 1=63. A \.\
Res. #GP~ - ~g-0 ~9~
Date:
June 22, 1998
Report #:
TR-49-98
FILE #: DEV
By-law #
Subject:
1997 AUDIT REPORT AND MANAGEMENT LETTER
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1 . THAT Report TR-49-98 be received;
2. THAT the presentation by Deloitte and Touche on the 1997 Financial Statements be
acknowledged with thanks;
3. THAT the Financial Statements for the year ended December 31, 1997 (under
separate cover) be adopted;
4. THAT recommendations contained in the management letter (under separate cover)
be reviewed by staff and addressed appropriately and report back on any necessary
changes;
5. THAT the firm of Deloitte and Touche be appointed as the Municipality's Auditors
for the 1998 year end audit.
1. BACKGROUND
1.0 The 1997 year end has now been completed and a representative of Deloitte &
Touche is in attendance to present this Report. Any queries with respect to the
Audit and the Management Letter should be directed to his attention at this time.
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REPORT NO.: TR- 49-98
PAGE 2
2.0 Staff are continuing in their efforts to increase and improve internal controls and the
auditior's comments reflect this. The areas identified as requiring fine tuning are
areas that previously were not able to be focused on from an audit perspective
because other areas lacked the level of expertise that now has been achieved.
3.0 In 1996, Report TR-44-96 recommended that the firm of Deloitte and Touche be
retained for a five (5) year period. Council passed the applicable By-law which also
directed that the appointment be reviewed on an annual basis. Staff are
recommending that Deloitte and Touche be appointed as the Municipality's
Auditors for the 1998 year end audit.
3.1 The Municipality had requested the opinion of the Ministry of Municipal Affairs and
Housing, who had indicated that the cost of the audit services should not be the
determining factor in a decision to change auditors. The Ministry indicated that
other criteria, such as level of service available, reputation, timing and audit
services, etc. should be considered.
3.2 The knowledge and expertise of Deloitte & Touche with respect to the records and
operations of the Corporation adds to the efficiency of the audit. Maximization of
any available efficiencies will therefore be of benefit to the Municipality. Their
extensive knowledge of the Municipality's operations also allows a greater
opportunity for Deloitte and Touche to provide valuable advice and assistance in
other areas.
3.3 In addition, Deloitte & Touche have agreed to keep their fees at the same
rate as the municipal mill rate in each of the years identified. This contribution is in
recognition of the Municipality's focus on the budgetary restrictions during the
current economic climate. They have not increased their fee since 1991.
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REPORT NO.: TR- 49-98
PAGE 3
3.4 As indicated in Report TR-37-98, the auditors concur that the Municipality reflects a
secure financial position as indicated in the financial statements.
Respectfully submitted,
Reviewed by,
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Marie Marano, H.BSs., A.M.C.T.,
Treasurer
~
W.H. Stockwell,
Chief Administrative Officer.
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Attach.
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