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Report To: General Government Committee
Date of Meeting: June 6, 2022 Report Number: FSD-025-22
Submitted By:
Reviewed By:
Trevor Pinn, Director of Financial Services/Treasurer Mary-Anne
Dempster, CAO Resolution#: GG-236-22
File Number: By-law Number:
Report Subject: Delegation of Authority for Approval of 2021 Financial Statements
Recommendations:
1.That Report FSD-025-22 and any related delegations or communication items, be
received;
2.That the Terms of Reference for the Audit and Accountability Committee be
amended to delegate authority to approve annual audited financial statements; and
3.That all interested parties listed in Report FSD-025-22 and any delegations be
advised of Council’s decision.
Municipality of Clarington Page 2
Report FSD-025-22
Report Overview
The Audit and Accountability Committee (AAC) was created in 2020 with mandate to provide
recommendations to Council regarding financial statements, external audit, internal audit,
corporate control framework and risk management.
In 2021, Council delegated authority to approve the 2020 Audited Financial Statements to
the AAC. Canadian Accounting Standards require that the audit report date cannot occur
prior to the date that those with authority to approve the statements do so; therefore, Staff
are looking to delegate the authority to approve the financial statements to the AAC which is
in line with their mandate.
1. Background
1.1 The terms of reference for the Audit and Accountability Committee currently include the
responsibility to “review and recommend for approval the annual audited consolidated
financial statements and associated statements.”
1.2 Canadian Auditing Standards require that the audit report date cannot occur prior to the
date that those with the recognized authority have asserted that they have taken
responsibility for those financial statements.
1.3 Prior to the creation of the AAC, the authority was with the audit committee which
included the Mayor, CAO, and Treasurer. In 2020, Council created the Audit and
Accountability Committee which includes three members of Council and one alternate.
The AAC fills the intended role for oversight of financial reporting and in 2021 delegated
authority was provided to the AAC specifically for the 2020 financial statements.
1.4 Given the role of the AAC, and given that the audit cannot be concluded until those with
oversight approve the statements, Staff are seeking a change to the terms of reference
of the AAC to remove the reference to “recommend”. This clarifies that the AAC has the
authority to approve the statements, which would still be provided to Council.
1.5 Approval of the statements in a timely manner allows the Municipality to meet the
requirements of banking agreements, funding agreements, Province of Ontario reporting
requirements and provides timely financial reporting to the public.
2. Concurrence
Not Applicable.
Municipality of Clarington Page 3
Report FSD-025-22
3. Conclusion
It is respectfully recommended that the terms of reference of the AAC be amended to
delegate the authority for approval of the annual financial statements to the Committee.
Staff Contact: Trevor Pinn, CPA, CA, Deputy CAO/Treasurer, 905-623-3379 ext. 2602 or
tpinn@clarington.net.
Attachments:
Not Applicable
Interested Parties:
There are no interested parties to be notified of Council's decision.