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6. 2008 City of OTTAWA CONSOLIDATED FINANCIAL
STATEMENTS ÉTATS FINANCIERS CONSOLIDÉS DE 2008 DE LA
VILLE D’OTTAWA
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That Council approve the 2008 City of Ottawa Consolidated Financial
Statements.
Recommandation du Comité
Que le Conseil
approuve les états financiers consolidés de 2008 de la Ville d’Ottawa.
DOCUMENTATION
2.
Extract
of Draft Minutes
Corporate Services and
Economic Development Committee
Comité des services organisationnels et du développement économique
and Council / et au Conseil
Submitted
by/Soumis par : Marian
Simulik, City Treasurer/Trésorière municipale
Contact Person/Personne ressource: Peter Moutsatsos, Program Manager,
Accounting
Finance Department/Services des finances
(613) 580-2424 x 21674,
Peter.Moutsatsos@ottawa.ca
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Ref N°:
ACS2009-CMR-FIN-0025 |
SUBJECT:
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OBJET :
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Que le Comité des
services organisationnels et du développement économique et le Conseil
approuvent les états financiers consolidés de 2008 de la Ville d’Ottawa.
The Municipal Act requires
that the City prepare annual audited financial statements in accordance with
accounting policies prescribed by the Public Sector Accounting Board of the
Canadian Institute of Chartered Accountants.
These audited financial statements must be published publicly.
On
September 13, 2006, Ernst & Young LLP was appointed as the external
auditors of the City of Ottawa for the five-year term ending December 31,
2010. On September 16, 2008 Ernst &
Young LLP provided a planning memo outlining the scope and key issues affecting
the 2008 audit for the information of Committee and Council. The 2008 audit is now complete and Ernst
& Young LLP is providing the attached audited consolidated financial
statements and audit results of the City of Ottawa for the year ended December
31, 2008.
DISCUSSION
The Financial Statements have been
prepared in accordance with the accounting policies prescribed by the Public
Sector Accounting Board of the Canadian Institute of Chartered
Accountants. These accounting policies require
the reporting of revenues and expenditures on the accrual basis of
accounting. The accrual basis of
accounting recognizes revenues, as they are earned and measurable; expenditures
are recognized, as they are incurred and measurable as the result of the receipt
of goods and services and the creation of a legal obligation to pay. The City’s Operating and Capital Budgets are
based upon a modified cash basis of accounting. This results in significant differences between the City’s
external financial statements and its Operating and Capital Budgets.
These
differences are reported as amounts to be recovered in future years and
represent the timing difference between when expenditures are recognized under
the accrual method of accounting and when they are funded through property
taxes and rates as part of the Operating Budget. Specific details on the amounts to be recovered in future years
are provided in note 14 to the financial statements.
The public consultation process is not applicable.
There are no legal/risk management impediments to implementing the recommendation in this report as the Municipal Act requires that the City prepare annual audited financial statements in accordance with accounting policies prescribed by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants
Not applicable.
Document 1 – 2008 City of Ottawa Consolidated Financial
Statements
Document 2 - Ernst & Young Audit Results - Year Ended
December 31, 2008
Following consideration by Corporate Services and Economic Development Committee, this report will be forwarded to Council for its consideration.
2008 City of OTTAWA CONSOLIDATED FINANCIAL STATEMENTS
ÉTATS FINANCIERS CONSOLIDÉS DE 2008
DE LA VILLE D’OTTAWA
ACS2009-CMR-FIN-0025 city wide / À l’Échelle de la ville
Ms. Marian Simulik, City Treasurer, spoke to a PowerPoint presentation, which served to provide Committee with a brief overview of the report. A copy of her presentation is held on file.
Responding to a series of questions from Councillor El-Chantiry, Ms. Simulik confirmed that the dollar figure referenced at the bottom of page 70 of the agenda package with respect to the Endowment Fund captured the original $200M received from Ottawa Hydro. Speaking further on the Endowment Fund, she referred Committee to page 77 and explained how the fund had fluctuated in 2008 and early 2009, confirmed that the City had not drawn from it in either of the aforementioned years, but advised that if it continued to recover as it had in recent months, the City would be able to draw from it for the 2010 capital budget.
Following these exchanges, Committee voted on the item.
That the Corporate Services and Economic Development Committee and
Council approve the 2008 City of Ottawa Consolidated Financial Statements.
CARRIED