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HomeMy WebLinkAboutTR-101-81 µ`S/ NIEOG[ DJ CORPORATION OF THE TOWN OF NEWCASTLE 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO L1C3A6 TELEPHONE 623.3379 Report to the Chairman and Members of the General Purpose and Administration Committee meeting held on December 7, 1981. Report Number: TR-101-81 Subject: Audit Requirements for Local Boards --------------------------------------------------------------------------------------- Recommendation: It is respectfully recommended: "That this report be received for information and discussion". -------------------------------------------------------------------------------------- Background and Comment: Attached please find a letter dated November 23, 1981 received from Deloittes, Haskins & Sells which list the information required for preparation of the financial statements as at December 31, 1981 for the Town and the various local boards listed below: Public Library Board " Bowmanville Cemetery jBond Head Cemetery Board Bowmanville Museum Clarke Museum and Archives Board of Management - Bowmanville Central Business Improvement Area Orono Central Business Improvement Area Newcastle Central Business Improvement Area ' Bowmanville and Darlington Arenas Orono and Newcastle Arenas I have sent a letter to the various boards to inform them of these requirements and of the dates involved inorder for the auditors to complete their audit on a timely basis. Committee may wish to sit as an audit committee in early January 1982, to review and discuss how these requirements might best be met. Respectfully submitted, Kathryn A. Campbell , C.A. , B.Com. , � Treasurer I ' 02 12 81 R81-AF-1 Deloiftec�) HaskinsAells Chartered Accountants Bank of Commerce Building 2 Simcoe Street South P.O. Box 800 Oshawa, Ontario L1H 7N1 (416) 579-8202 (Toronto area 683-9051) Town of Newcastle November 23, 1981 Municipal Offices '40 Temperance Street Bowmanville, Ontario LIC 3A6 Attention Ms. K. Campbell, Treasurer Dear Kathryn:. AUDIT REQUIREMENTS Further to our discussions, we are enclosing a list of information required for the preparation of the financial statements as at December 31, 1981 for the Town of Newcastle nnd, where rap] Ienble, for the following local boards: Public Library Board Bowmanville Cemetery Bondhead Cemetery Board Bowmanville Museum Board Clarke Museum and Archives Board of Management - Bowmanville Central Business Improvement Area Orono Central Business Improvement Area Newcastle Central Business Improvement Area Bowmanville and Darlington Arenas If there are any questions concerning the items requested, please contact our office and we will provide the necessary explanations. Yours very truly, Enclosure TOWN OF NEWCASTLE 1981 AUDIT REQUIREMENTS Date Required Required February 15, 1982 Cash Bank reconciliations for all accounts, including detailed listing of outstanding, deposits, outstanding cheques showing cheque number and amount and any other reconciling items. Taxes Receivable Summary of sub—ledger as at December 31st reconciled to general ledger. i February 22, 1982 Accounts Receivable Aged listings of all receivable accounts showing names, amounts and subsequent collections. The receivables should be classified in accordance with financial statement requirements and balanced to your trial balance as at December 31st. Typed receivable confirmation requests. Selected account names will be supplied by auditors. Do not mail, return to auditors. February 15, 1982 Reserve for Taxes Receivable Analysis supporting adequacy of the reserve. February 22, 1982 Reserve for Accounts Receivable Listing of accounts considered doubtful (account name, December 31st balance, subsequent collections, amount provided for loss) and related correspondence. February 15, 1982 Inventory . A detailed listing of the arenas and public works inventories, valued at cost, as at December 31st reconciled to the general ledger. Investments A continuity schedule of investments at balance sheet date showing serial numbers, principal amount, interest rate and maturity date. i TOWN OF NEWCASTLE Page 2 1981 AUDIT REQUIREMENTS Date Required Required December 7, 1981 Prepaid Expenses Composition of general ledger prepaid balances, with description of each item and details of calculations referenced to supporting vouchers. February 15, 1982 Accounts Payable Accounts payable listing - by voucher unpaid at December 31st. Reconciliation to general 'ledger, including supporting listings (or calculations) for miscellaneous accruals. Retain all supplier statements. Amount of debit balances, if any, in accounts payable. Payroll Liabilities Analysis of December 31st general ledger balance of payroll liabilities, including calculations (referenced to payroll journals) and cheque numbers of subsequent payments. Sick. Leave Liability Detailed listing by employee of vested sick leave liability as at December 31st. Other Liabilities Analyses of any other liability accounts. February 22, 1982 Surplus Accounts Analyses of surplus accounts (opening balance, transactions during the year and closing balance). T014N OF NEWCASTLE Page 3 1981 AUDIT REQUIREMENTS Date Required Required February 15, 1982 Reserves Analyses showing changes for the year to the reserves for working capital, equipment replacement and garbage truck; balanced to general ledger as at December 31st. December 7, 1981 Local Improvements Listing of local improvement revenue showing description, by-law number and amount; balanced to general ledger. Special Area Rates Summary of special .areas showing area name, assessment, mill rate and taxes levied. Supplementary Taxes Analysis by batch showing the following information: . Number of months taxable. . Assessment type. . Assessment dollars (reconciled to assessment roll). Mill rate. . . Tax dollars. Distribution of tax dollars based on components of mill rate. Summary of above analysis reconciled to the general ledger. Taxes Written Off Analysis by batch of taxes written off reconciled to the general ledger, TOWN OF NEWCASTLE Page 4 1981 AUDIT REQUIREMENTS Date Required Required February 15, 1982 Professional Fees Analysis of professional services ledger balance with supporting vouchers and related correspondence. December 7, 1981 Insurance Expense Analysis of insurance expense, reconciled to the related prepaid accounts, with detail of basis of . allocations. February 15, 1982 Trial Balance i General ledger December 31st trial balance. February 22, 1982 Capital Fund (a) Capital Fund December 31st trial balance. (b) Listing of capital expenditures out of the Revenue Fund referenced to supporting documents. (c) Details of financing and expenditure for each capital project and supporting documents; balanced to the general ledger as at December 31st. (d) Analysis of net long-term liabilities by by-law number at December 31st. (e) Analysis of future .years ' debt charges (same format as previous year). Reserve Funds (a) A continuity schedule of Reserve Funds showing opening balances, details of revenues and expenditures for the year, and closing balance. (b) Bank reconciliations for all accounts, including detailed listing of outstanding deposits, outstanding cheques and any other reconciling items. TOWN OF NEWCASTLE Page 5 1981 AUDIT REQUIREMENTS Date Required Required February 22, 1982 Reserve Funds (continued) . (c) A continuity schedule of investments at balance sheet date showing serial numbers, principal amount, interest rate and maturity date. (d) A detailed analysis of all income and expenditure of all reserve funds referenced to supporting documentation. (e) Working papers detailing the interest allocation to each reserve fund. Trust Funds (a) A continuity schedule of Trust Funds showing opening balance, details of revenue and expenditures for the year, and closing balances. (b) Bank reconciliations for all accounts, including detailed listing of outstanding deposits, outstanding cheques and any other reconciling items. (c) A continuity schedule of investments at balance sheet date showing serial numbers, principal amount, interest rate and maturity date. (d) A detailed analysis of the interest earned for the year reconciled to the related investments held during the year. General Comments In order to complete our audit on a timely basis, we would also require the completed financial statement package by March 1, 1982. Due to time constraints during the final audit, we would suggest that the following working papers be prepared prior to the end of the year and available for our review during the interim audit on December 28, 1981. TOWN OF NEWCASTLE page 6 1981 AUDIT REQUIREMENTS General Comments (continued) (a) Analysis of taxation for general municipal purposes (other than supplementary taxes). (b) Analysis of taxation for regional and school board purposes (other than supplementary taxes). (c) All budget and prior year's figures can be inserted onto the draft financial statement package. (d) Analysis of charges for net long-term liabilities. (e) Analysis of net long-term liabilities. i (f) Prior year's figures on the financial review. (g) Allocation of certain payments in lieu of taxes and the resource equalization grant. (h) Capital and Reserve Fund working papers balanced to October 31, 1981, with supporting documentation. (i) Bank reconciliation to November 30, 1981. (j) Library records balanced to Town records as of October. 31, 1981. (k) Review of all general ledger accounts to November 30, 1981 to determine correct balances so as to eliminate excessive journal entries at year-end.