HomeMy WebLinkAboutFND-019-05
;;
Cl{J!.mgtnn
REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
MONDAY, DECEMBER 5, 2005
Resolution #: 6P,q. (/1-c; Of)
, -<<.
Report #: FND-019-05
File #:
By-law #:
Subject:
APPOINTMENT OF AUDIT REVIEW GROUP
Recommendations:
It is respectfully recommended to Council the following:
1. THAT Report FND-019-05 be received; and
2. THAT the audit review group be comprised of the Mayor as Chair of Finance, the
Chief Administrative Officer and the Director of Finance/Treasurer and that this
group be delegated the oversight responsibility for the financial reporting
process.
Reviewed bd <.aJX.-S ~
Franklin Wu,
Chief Administrative Officer.
NT /hjl
CllJlipn
REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
MONDAY, DECEMBER 5, 2005
Resolution #:
Report #: FND-019-05
File #:
By-law #:
Subject:
APPOINTMENT OF AUDIT REVIEW GROUP
Recommendations:
It is respectfully recommended to Council the following:
1. THAT Report FND-019-05 be received; and
2. THAT the audit review group be comprised of the Mayor as Chair of Finance, the
Chief Administrative Officer and the Director of Finance/Treasurer and that this
group be delegated the oversight responsibility for the financial reporting
process.
Reviewed bd~.-S ~
Franklin Wu,
Chief Administrative Officer.
NT/hjl
REPORT NO.: FND-019-05
PAGE 2
BACKGROUND AND INFORMATION:
1.0 The purpose of this report is to formalize the constitution of the Audit Review
Group. 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". This section of the Handbook became
effective in December, 2002. Since that time, the auditor's have reported
annually to the Mayor, Chief Administrative Officer and Treasurer.
1.1 The Audit Review Group generally oversees three areas: financial reporting,
audit activities, and risk management and control. As a result, generally two
meetings are held each year. There is typically one meeting before the
commencement of the audit to review the audit plan, discuss key areas of risk
and audit focus, and confirm auditor independence. A second meeting is held
after the audit is complete to present the audited financial statements and report
on the results of the audit. The CICA Handbook includes items such as any
weaknesses in internal controls, significant accounting policies, any difficulties
encountered during the audit and any limitations placed on the audit as potential
items to be discussed with the Audit Review Group.
1.2 After the financial statements are reviewed by the Audit Review Group with the
Auditors, they are circulated to all Members of Council for information and a
condensed financial statement is posted on the municipality's web site to meet
the requirements for communicating to the public. Also, any recommendations
for improvements to internal controls are reported to Council (referred to as the
Audit Management Letter).
CONCLUSION:
2.0 At the request of the auditors to formalize the process, it is recommended that
the structure of the Audit Review Group be approved by Council to include the
Mayor, Chief Administrative Officer and Treasurer and that this group be
delegated the responsibility for the oversight of the Municipality's financial
reporting process.
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-4169