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HomeMy WebLinkAboutTR-42-00 -~ -. . , THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Date: July 3, 2000 TR-42-00 FILE #: DEV File # fb3 Res. #6'lfJ- --3)j-oo By-law # Meeting: General Purpose and Administration Committee Report #: Subject: 1999 AUDIT REPORT AND MANAGEMENT LETTER RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-42-00 be received; 2. THAT the presentation by Deloitte and Touche on the 1999 Financial Statements be acknowledged with thanks; 3. THAT the Financial Statements for the year ended December 31, 1999 (under separate cover) be adopted; 4. THAT recommendations contained in the management letter (under separate cover) be reviewed by staff and addressed appropriately and report back on any necessary changes; and 5. THAT the firm of Deloitte and Touche be appointed as the Municipality's Auditors for the 2000 year end audit. BACKGROUND AND COMMENT: 1.0 The 1999 year end has now been completed and a representative of Deloitte & Touche is in attendance to present this Report. Any queries with respect to the Audit and the Management Letter should be directed to his attention at this time. 2.0 Staff are continuing in their efforts to increase and improve internal controls and the auditior's comments reflect this. The areas identified as requiring fine tuning are areas that previously were not able to be focused on from an audit perspective because other areas lacked the level of expertise that now has been achieved. 8U.5 , ~, REPORT TR-42-00 PAGE 2 3.0 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 2000 year end audit. 3. t The Municipality had 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. 3.2 The knowledge and expertise of Deloitte & 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 also allows a greater opportunity for Deloitte and Touche to provide valuable advice and assistance in other areas. 3.3 In addition, Deloitte & Touche have agreed that any fee increase will not exceed the municipal tax rate increase in each of the years identified!iThis contribution is in recognition of the Municipality's focus on the budgetary restrictions during the current economic climate. To date, they have not increased their fee since 199 t. Respectfully submitted, Reviewed by, dv-rJJQ-~ Franklin Wu, Chief Administrative Officer. rie Marano, H.B.Sc., A.M.C.T., Treasurer MM/NT /hjl 8U4