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HomeMy WebLinkAboutFND-027-08Leaarag me way ~1~-~~~"Q REPORT FINANCE DEPARTMENT Meeting: General Purpose and Administration Committee Date: November 17. 2008 Report #: FND-027-08 File Resolution #:~PT7 -~ I / "©Q By-law #: Subject: 2007 AUDITED FINANCIAL STATEMENTS Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report FND-027-08 be received; and 2. THAT the 2007 Audited Financial Statements be approved. Submitted by: / Nancy T lor, B .A., C.A., Director of Finance/Treasurer. .~-~~, Reviewed by: Franklin Wu, Chief Administrative Officer. NT/hjl REPORT NO.: FND-027.08 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-001-05 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 Finance/Treasurer. This group has the oversight responsibility for the financial reporting process. 1.3 The Municipality of Clarington's 2007 audited financial statements were presented to the Audit Review Group on October 9, 2008. 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 2007 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. 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-027.08 PAGE 3 1.7 The responsibility bf the auditor's is to express an opinion on these statements based on their audit. A copy of the Auditor's Report for 2007 is included as Attachment "B" and reflects what is generally referred to as a clean audit opinion. CONCLUSION: 2.0 It is recommended that the 2007 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 2007 Attachment "B" -Auditors Report for 2007 CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T (905)623-3379 F (905)623-4169 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES AND FUND BALANCE For the year ended Dezember 31, 2007 Attachment "A" 2007 CURRENT FUND BUDGET ACTUAL E S REVENUES Taxation antl user chages Property taxation Taxation from plher govemmenis User charges G2nts Government of Danatla ProNnce of Ontario Other Investment income Penalty antl Interest on faxes Fines Donations antl conVibulion from others Deferred revenue eametl Sale of land antl e0uipmenl Total revenues EXPENDITURES General gpvemment Protection to persons antl property T2nsp0lellOn seNlCas EnWronmenbl services Heahd services Recreational and cultural services Planrnng and tlevelopment Total expentlitures Verdian Corpom6on Share of net eamings Net (expendiNre)revenue Net flnencing antl transfers 2007 2007 RESERVE AND CAPITAL FUND RESERVE FUNDS ACTUAL ACTUAL S S 2007 2006 CONSOLIDATED CONSOLIDATED ACTUAL ACTUAL S S 31,BOL251 32,466,3]6 - - 32468,3]0 29,353,860 2,814,080 3,383,529 - - 3.383,529 2,868,965 1),866,166 10,281,542 - - 10,281,542 8,462,140 25,103 3],040 12,511 - 49,551 565,419 2]0,088 312,26] 88,831 - 401 p9B 2,308,360 1,313,548 92],640 5]2,332 2,008,5]0 3,508,550 3,520,502 t 030,000 1,319,003 - - 1,319,003 1,185,80] 95,500 294.298 - - 294298 102399 1]3,56fi 303,566 1,6]9,093 24],301 2,429,960 2,024,141 2,91 e,157 2,320,]06 8,454,608 - 10,]]5,314 10,064,353 - - ]05]4 - Jo$74 2)9,311 49,30],4]9 51,645,969 11,0]],949 2,255,8]9 64,9]9.]9] 60,]55,34] 6,111,334 8,063,950 39].380 - 8,400,]30 8,401,566 8,41],6]5 9,]4fi,409 1 fifi6,296 - 11,412.]05 9,182,660 9,014,4]6 10036,512 12,295,929 - 22,332,441 18,fi]8,033 115,000 446,383 - - 446,363 11],]15 225,9]6 216,6]4 2,230 - 218,904 233,516 14,451,123 13,]90,439 12,]05 243 - 2fi 495,682 22,338,510 4,038,329 3,445,591. 32,824 3,4]8,215 3,432,481 44,3]3,91] 45,]65338 2],099,]02 ]2,865,040 62.364,689 1,212,264 1 212 264 1 21] 229 4,933,562 6,880,631 (16,021,]63) 3,466,143 (66]28]9) (412113) (3316,]61) (4,]06,505) 4,251,484 455021 nCraasa (deGaasa) In amOOn4 (O be IeLOVeretl Oebt pdnclpal repayments (1610 001) (1,456,801) - - (1458,501) (1,4]1,6c0) Increase in unfunded employee future bene(t liabllitia~ - 642,]80 - - 642,]80 52244 Proceeds of tlebenture issue 1],325,000 1],325,000 1,111 640 Nel Increase (tlecreaseJ in amounts to be reooveretl (1,618061) (818,021) 1]325,600 165089]9 (30]]16) (Decrease)Increase in non-tlnanclal assets (2],643) (2] 643) 445 01] Changeln tuntl balance - 33Q462 5,554,]31 3,823,164 9,808,35] (2]4,812) Fund balance, beginning of Year 233,588 ],648,519 51 360,140 59 242,24] 59,51],059 Fund balance, entl of year 564,050 13,203,250 55283,304 6905o,fi04 59,242,24) THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2007 2007 2006 $ $ ASSETS Financial assets Cash and cash equivalents 40,013,015 20,044,797 Investments 18,256,014 32,490,460 Accounts receivable 8,377,760 8,336,349 Taxes receivable 10,014,983 8,103,539 Inventories for resale 72,805 75,782 Promissory notes receivable 8,321,000 8,321,000 Investment in Veridian Corporation 12,201,069 11,532,805 Total financial assets 97,256,646 88,904,732 LIABILITIES Accounts payable and accrued liabilities 9,616,455 9,707,038 Employee future benefit liabilities 2,829,424 2,067,608 Net long-term liabilities 35,287,839 19,421,640 Deferred revenue-general 5,475,058 4,119,375 Deferred revenue -obligatory reserve funds 12,776,479 15,644,701 Total liabilities 65,985,255 50,960,362 Net financial assets 31,271,391 37,944,370 Non-financial assets Prepaid expenses 606,867 569,565 Inventory supplies 346,181 411,126 Total non-financial assets 953,048 980,691 Net assets 32,224,439 38,925,061 MUNICIPAL POSITION Fund balances Current fund 564,050 233,588 Capital fund 13,203,250 7,648,519 Reserves 3,330,104 3,472,852 Reserve funds-general 29,917,103 26,650,697 Reserve fund-Veridian Corporation net equity 22,036,097 21,236,591 Total fund balances 69,050,604 59,242,247 Amounts to be recovered from future revenues (36,826,165) (20,317,186) Municipal position 32,224,439 38,925,061 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON CONDENSED CONSOLIDATED SCHEDULE OF RESERVES AND RESERVE FUND BALANCES AS AT DECEMBER 31, 2007 2007 2006 $ $ Reserves set aside for specific purpose by Council: Acquisition of capital assets Capital improvements Working funds, contingencies and other Reserve Funds set aside for specifc purposes by Council: Industrial developmen[and Bowmanville BIA Debt management and general municipal purposes Acquisition of capital assets Capital improvements Recreation and culture Municipal government business partnership - Veridian Corporation CONDENSED SCHEDULE OF TRUST FUND BALANCES AS AT DECEMBER 31, 2007 Cemeteries Vanderveer Legacy Montague Trust Host Community Fund Irene Rinch Trust 2,290,268 2,414,655 90,818 83,325 949,018 974,872 3,330,104 3,472,852 174,107 9,663,199 6,527,485 12,865,477 686,835 144,635 8,774,746 6,292,222 10,975,303 463,791 29,917,103 26,650,697 22,036,097 21,236,591 55,283,304 51,360,140 2007 2006 $ S 992,420 1,000 19,192 10,000,000 149,544 927,427 1,000 18,553 10,000,000 n Total Trust Funds 11,162,156 10,946,980 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON GENERAL NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2007 These condensed consolidated financial statements reflect 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 Museum and Archives - Clarington Public Library Board - 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 - Bowmanville Santa Claus Parade Committee - Clarington Heritage Committee - Clarington Older Adult Centre Board - Newcastle Arena Board - Newcastle Community Hall Board - Orono Arena and Community Centre Board - Orono Cemetery Board - Solina Hall Board - Tyrone Community Hall 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. Deloitte Auditors' Report To the Members of Council, Inhabitants and Ratepayers of the Corporation of the Municipality of Clarington Attachment "B" Deloitte &Touche LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca We have audited the consolidated statement of financial position of the Corporation of the Municipality of Clazing[on as at December 31, 2007 and the consolidated statements of financial activities and fund balance and of changes in financial position for the yeaz then ended. These financial statements aze the responsibility of the Municipality's management. Ow responsibility is to express an opinion on these fmancial statements based on ow 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 aze 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, 2007 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. , ~a(~„[o;x(' 4~ %uui'e LLP Chartered Accountants Licensed Public Accountants July 15, 2008 Memher of Deloitte Touche Tohmatsu