HomeMy WebLinkAboutFND-018-09
Staff Report 114
CJ!1!.-!llgton
REPORT
FINANCE DEPARTMENT
Meeting:
COUNCIL
Date:
July 13, 2009
Resolution #: C - ~ 5Y - oi
Report #: FND-018-09
File #:
By-law #:
Subject:
2008 AUDITED FINANCIAL STATEMENTS
Recommendations:
It is respectfully recommended to Council the following:
1. THAT Report FND-018-09 be received; and
2. THAT the 2008 Draft Audited Financial Statements be approved.
Submitted by:
Reviewed by:d
Franklin Wu,
Chief Administrative Officer.
NT /mst
REPORT NO.: FND-018-09
PAGE 2
BACKGROUND:
1.0 Section 296(1) of the Municipal Act, S.O. 2001, c.25 provides that
1.1
1.2
1.3
1.4
1.5
1.6
"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;
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.
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 FinancelTreasurer.
This group has the oversight responsibility for the financial reporting process.
The Municipality of Clarington's 2008 audited finflncial statements were
presented to the Audit Review Group on July 8, ~009. A copy will be circulated
to Members of Council, made available for publiC viewing, and a condensed
version posted on the Municipality's website.
A copy of the condensed financial statements for 2008 are included as
Attachment "A" to this report.
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.
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-018-09
PAGE 3
1.7 The responsibility of the auditor's is to express an opinion on these statements
based on their audit. A draft copy of the Auditor's Report for 2008 is included as
Attachment "B" and reflects what is generally referred to as a clean audit opinion.
A final report will be issued once Council approves the financial statements.
1.8 New for 2008, audited financial statements are required at the time of application
to the Province for grants available to the Clarington Library Board and the
Clarington Museum Board. Funding for these BoWds will be delayed without
audited statements forwarded to the province. As a result, the timing of this
report was advanced from the municipality's usual fall reporting.
CONCLUSION:
2.0 It is recommended that the 2008 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 2008
Attachment "B" - Draft Auditors Report for 2008
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169
CONOENSED CONSOLlOATEO STATEMENT OF FINANCIAL ACTIVITIES AND FUND BALANCE
THF r:nRPflRATlnN nF THE MUNICIPALITY OF CLARINGTON
ATTACHMENT "A"
CONDENSED CONSOLlOATED STATEMENT OF FINANCIAL ACTIVITIES AND FUND BALANCE
For the year ended December 31,2008
200B
200B 200B RESERVE AND 200B 2007
r.:tJRAFNT FUND CAPITAL FUNO RESERVE FUNDS CONSOLIDATED CONSOLlOATED
IlliIlJiEl = = = = =
$ $ $ $ $ $
REVENUES
Taxation and user charges
Property taxation 33,934,464 34,448,144 34.448,144 32,466.378
Taxation from other governments 3,364,476 3,337,237 3,337,237 3,383,529
User charges 9,036,902 9,519,957 9,519,957 10,281,542
Grants
Government of Canada 69,452 72,860 72,880 49,551
Province of Ontario 256,098 341,211 7,745,873 8,087,150 401,098
Other
Investment income 534,458 497,565 505,051 2,332,848 3,335,464 3,508,550
Penalty and interest on taxes 1,040,000 1,465,160 1,465,160 1,319,003
Fines 121,500 225,252 225,252 294,298
Donabons and contribution from others 85,173 159,491 339,098 635,889 1,134,478 2,429,960
Deferred revenue earned 2,977,764 2,986,714 3,865,558 6,852,272 10,775,314
Sale of land and equipment 76,026 76,026 70,574
Total revenues 51,420,287 53,053,677 12,531,606 2,968,737 68,554,020 64,979,797
EXPENDITURES
General government 8,670,253 8,405,308 486,479 8,891,787 8,480,730
Protection to persons and property 8,963,395 9,820,769 237,431 10,058,200 11,412,705
Transportation services 9,545,916 11,267,535 7,327,828 18,595,361 22,332,441
Environmental services 99,500 99,872 99,872 446,363
Health services 235,659 230,780 9,503 240,283 218,904
Recreational and cultural services 15,456,645 15,465,903 9,436,143 24,902,046 28,495,682
Planning and development 3,871,259 3,793,219 44,850 3,838,069 3,478,215
Total expenditures 46,842,627 49,083,386 17,542,232 66,625,618 72,865,040
VeridianCorporation
Share of net eamings 1,185,749 1,185,749 1,212,264
Net (expenditure) revenue 4,577,660 3,970,291 (5,010,626) 4,154,486 3,114,151 (6,672,979)
Net financing and transfers (2,551,519) (3,765,006) 3,937,483 (172,477)
Increase (decrease) in amounts 10 be recovered
Debt principal repayments (2,026,141) (1,835,435) (1,835,435) (1,458,801)
Increase in unfunded employee future benefit !iabHit~ 405,710 405,710 642,780
Proceeds Of debenture issue 1,084,000 1,084,000 17,325,000
Net increase (decrease) in amounts to be recovered (2,026,141) (1,429,725) 1,084,000 (345,725) 16,508,979
(Decrease) increase innon-mancial assets (61,358) (61,358) (27,643)
Change in fund balance (1,285,798) 10,857 3,982,009 2,707,068 9,808,357
Fund balance, beginning of year 564,050 13,203,250 55,283,304 69,050,604 59,242,247
Fund balance, end of year (721.148) 13,214,107 59,265,313 71,757,672 69,050,604
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON i
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2008
. ASSETS
Financial assets
Cash and cash equivalents
Investments
Accounts receivable
Taxes receivable
Inventories for resale
Promissory notes receivable
Investment in Veridian Corporation
Total financial assets
LIABILITIES
Accounts payable and accrued liabilities
Employee future benefit liabilities
Net long-term liabilities
Deferred revenue - general
Deferred revenue - obligatory reserve funds
Total liabilities
Net financial assets
Non-financial assets
Prepaid expenses
Inventory supplies
Total non-financial assets
Net assets
MUNICIPAL POSITION
Fund balances
Current fund
Capital fund
Reserves
Reserve funds-general
Reserve fund-Verldian Corporation net equity
Total fund balances
Amounts to be recovered from future revenues
Municipal position
2008 2007
$ $
36,351,438 40,013,015
24,254,090 18,256,014
6,812,529 8,377,760
9,985,973 10,014,983
52,474 72,805
8,321,000 8,321,000
12,815,618 12,201,069
98,593,122 97.256,646
8,012,140 9,616,455
3,352,951 2,829,424
34,536,404 35,287,839
5,103,422 5,475,058
13,202,663 12,776,479
64,207,580 65,985,255
34,385,542 31,271,391
575,146 606,867
316,544 346,181
891,690 953,048
35,277,232 32,224,439
(721,748) 564,050
13,214,107 13,203,250
3,369,082 3,330,104
33,176,693 29,917,103
22,719,538 22,036.097
71,757,672 69,050,604
(36,480,440) (36,826,165)
35,277,232 32,224,439
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
CONDENSED CONSOLIDATED SCHEDULE OF RESERVES AND RESERVE FUND BALANCES
AS AT DECEMBER 31, 2008
2008 2007
$ $
2,233.935 2,290,268
87,971 90,818
1,047,176 949,018
3,369,082 3,330,104
192,262 174,107
10,522,127 9,663,199
6,678,297 6,527,485
14,990,202 12,865,477
793,805 686,835
33,176,693 29,917,103
22,719,538 22,036,097
59,265,313 55,283,304
Reserves set aside for specific purpose by Council:
Acquisition of capital assets
Capital improvements
Working 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 -
Veridian Corporation
CONDENSED SCHEDULE OF TRUST FUND BALANCES
AS AT DECEMBER 31,2008
2008 2007
$ $
Cemeteries 1,053,222 992,420
Vanderveer Legacy 1,000 1,000
Montague Trust 20.025 19,192
Host Community Fund 10,000,000 10,000,000
Irene Rinch Trust 156,031 149,544
Total Trust Funds 11,230,278 11,162,156
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTOfll
GENERAL NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31,2008
1. 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 un~er 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 statem~nts and the Auditors' Reports
thereon, for the Municipality, are available from the Finance Department.
Auditors' Report
1"'\ LLG" 11I1IlE:;.. L U
Attachment "B"
Deloitte & To he LLP
5140 Yang treet
Suite 170
Toronto N M2N 6L7
Canad
T-n~
We conducted our audit in accordance with C ian generally a epted auditing standards. Those
standards require that we plan ",!d perform u~tain r onable assurance whether the financial
statements are free of material misstatem . An au . d examining, on a test basis, evidence
supporting the amounts and disclosures' the financl ta ments. An audit also includes assessing the
accounting principles used and signific t estimates by mana~ement. as well as evaluating the
overall financial statement presentati
In our opinion, these consolidate fmancia! state ts present fairly, in all material respects, the fmancial
position of the Municipality a~ember 31, 08 and the results of its operations and the changes in
its financial position for the ded' ccordance with Canadian generally accepted accounting
principles.
FOR DISCUSSION PURPOSES ONLY