HomeMy WebLinkAboutFND-009-01
,
~
Cl!J!-WglOn
REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
MONDAY, OCTOBER 22,2001 Resolution #O/J-tj3'l-tJ J
{
Date:
Report #: FND-009-01
File #: C/ {}-
By-law #:
Subject:
APPOINTMENT OF AUDITORS
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report FND-009-01 be received; and
2, THAT the firm of Deloitte and Touche be appointed as the Municipality's auditors
for the 2001 year end audit.
Reviewed by:
Franklin Wu
Chief Administrative Officer
NT/hjl
936
,
REPORT NO.: FND-009-01
PAGE 2
Background and Comment:
1,0 The 2000 year end audit is substantially complete. Staff experienced delays due
to the focus necessary to complete the revised 2000 Financial Information
Returns (FIR) and the Municipal Performance Measures Program. There were
significant problems experienced with the Province's electronic reporting
software for both the FIR and Performance Measures, as well as complications
stemming for the complete revision of the FI R format.
1.1 The 2000 audit was also delayed due to the implementation of Bill 140 property
tax legislation and standardized tax bills.
1.2 A further complication was the requirement to change the financial reporting
format of the annual financial statements to reflect provincially mandated Public
Sector Accounting Board (PSAB) reporting requirements effective for the 2000
financial statements.
1.3 Once complete the 2000 financial statements will be distributed to Council for
information as well as provided to homeowners, as required under the Municipal
Act.
1.4 Once received, recommendations contained in the auditors' management letter
will be be reviewed by staff and staff will report back on any changes,
2.0 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 2001 year end audit.
937
.
REPORT NO.: FND-009-01
PAGE 3
2.1 The Municipality has 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.
2,2 The knowledge and expertise of Deloitte and 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 and
municipal reporting requirements also allows a greater opportunity for Deloitte
and Touche to provide valuable advice and assistance in many areas. This is
especially valuable currently due to the many changes made by the Province and
the Province's continuing emphasis on accountability.
2,3 In addition, Deloitte and Touche have agreed that any fee increase will not
exceed the municipal tax rate increase in the year identified. This contribution is
in recognition of the Municipality's focus on the budgetary restrictions during the
current economic climate.
2.4 Staff will review and report again next year as the five year by-law expires.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-0608
938