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1. 2010 City of OTTAWA CONSOLIDATED FINANCIAL STATEMENTS
ÉTATS FINANCIERS CONSOLIDÉS
DE 2010 DE LA VILLE D’OTTAWA |
That Council approve the revised 2010 City of Ottawa Consolidated Financial Statements.
RecommandationS
du ComitÉ
Que le Conseil
approuve les États financiers consolidés révisés de 2010 de la Ville
d’Ottawa.
DOCUMENTATION
1. City Treasurer’s report dated 17 May 2011 (ACS2011-CMR-FIN-0027).
2. Extract of Audit Sub-Committee Draft Minutes dated 26 May 2011.
Audit Sub-Committee
Sous-comité de la vérification
and / et au
Finance and Economic Development Committee
Comité des finances et du développement
économique
and Council / et au Conseil
Submitted by/Soumis par : Marian Simulik, City Treasurer/trésorière municipale
Contact Person/personne-ressource : Mona
Monkman, Deputy City Treasurer—Corporate
Finance /trésorière municipale adjointe — Finances municipales
Finance Department/Service
des finances
613-580-2424 ext./poste 41723, Mona.Monkman@ottawa.ca
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Ref N°: ACS2011-CMR-FIN-0027 |
SUBJECT:
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OBJET :
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That the Audit Sub-Committee recommend that the Finance and Economic Development Committee recommend Council approve the 2010 City of Ottawa Consolidated Financial Statements.
Que le Sous-comité de la vérification
recommande au Comité des finances et du développement économique de recommander
à son tour au Conseil d’approuver les États financiers consolidés de 2010 de la
Ville d’Ottawa.
The Municipal Act, 2001 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 made available to the public.
On January 24, 2011 Ernst &Young LLP provided a planning memo outlining the scope and key issues affecting the 2010 audit for the information of Committee and Council. The 2010 audit is now complete and Ernst & Young LLP is providing the attached report on their audit of City’s consolidated financial statements.
The Financial Statements have been prepared by management in accordance with the accounting policies prescribed by the Public Sector Accounting Board (“PSAB”) of the Canadian Institute of Chartered Accountants. These accounting policies require the reporting of revenues and expenses on the accrual basis of accounting. The accrual basis of accounting recognizes revenues, as they are earned and measurable; expenses 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. PSAB accounting policies require that the financial statements show a comparison of the actual financial results for the period to those originally planned (budgeted). These policies also state that those “planned” (budgeted) results should be presented for the same scope of activities and on a basis consistent with that used for actual results. Since the City prepares its Operating and Capital budgets on a different basis from that used to account for transactions in the consolidated financial statements, it is necessary to provide a reconciliation of Council’s approved budgets to the budget figures reported in the financial statements. This reconciliation is provided in note 19 to the financial statements.
The City’s external auditors have performed an audit of the Draft Consolidated Financial Statements. Under new accounting standards, the City’s external auditors are required to extend their subsequent events review procedures up until Council approves the Draft Consolidated Statements. These audit procedures include the review of bank statements, payments and receipts in the subsequent period as well as additional standard inquiries. In order to reduce the amount of post audit review, the City is recommending that this report rise to Council at the earliest opportunity. Once Council approves the Draft Consolidated Statements, the City will receive the signed audit report, at which time the statements will be considered final and be posted on the City’s web site. The City also prepares a financial information return for submission to the Province, based on the financial results contained in the consolidated financial statements. That information is also available publicly through the Province of Ontario’s Financial Information web site.
No public consultation was required.
There are no legal/risk management impediments to receiving this report. Section 294.1 of the Municipal Act, 2001 requires the City to prepare an annual audited financial statement in accordance with generally accepted accounting principles for local governments as recommended from time to time by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants.
Not applicable.
TECHNICAL IMPLICATIONS
Not applicable.
CITY STRATEGIC PLAN
Not applicable.
RURAL IMPLICATIONS
There are no rural implications associated with this report.
Document 1 – 2010 City of Ottawa Consolidated Financial Statements
Document 2 – Ernst & Young Audit Results, Consolidated Financial Statements
Following consideration by the Audit Sub-Committee, this report will be forwarded to the Finance and Economic Development Committee and Council.
2010 City of OTTAWA CONSOLIDATED FINANCIAL STATEMENTS
ÉTATS FINANCIERS CONSOLIDÉS DE 2010
DE LA VILLE D’OTTAWA
ACS2011-CMR-FIN-0027
city-wide / À l’Échelle de la ville
REPORT RECOMMENDATION:
That the Audit Sub-Committee recommend that the Finance and Economic Development Committee recommend Council approve the 2010 City of Ottawa Consolidated Financial Statements.
Ms. Marian Simulik, City Treasurer, spoke to a PowerPoint presentation, which served to provide Committee with an overview of the staff report. Ms. Deanna Monaghan and Mr. John Dervin, from the firm of Ernst & Young, then provided some comments on the audit results. A copy of Ms. Simulik’s presentation is held on file with the City Clerk.
Following these presentations, Ms. Simulik, Ms. Monaghan and Mr. Dervin responded to Members’ questions.
The report recommendation was then put to Committee and CARRIED, as presented.
direction to staff :
That staff amend the “Notes” to explain the different figures relative to municipal taxation revenues.