6.     2008 City of OTTAWA CONSOLIDATED FINANCIAL STATEMENTS

 

ÉTATS FINANCIERS CONSOLIDÉS DE 2008 DE LA VILLE D’OTTAWA

 

 

 

COMMITTEE RECOMMENDATION

 

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

 

1.      City Treasurer’s report dated 1 June 2009 (ACS2008-CMR-FIN-0025)

 

2.      Extract of Draft Minutes


Report to/Rapport au :

 

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

 

and Council / et au Conseil

 

1 June 2009 / le 1 juin 2009

 

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

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2009-CMR-FIN-0025

 

 

SUBJECT:

2008 City of OTTAWA CONSOLIDATED FINANCIAL STATEMENTS

 

 

OBJET :

ÉTATS FINANCIERS CONSOLIDÉS DE 2008 DE LA VILLE D’OTTAWA

 

 

REPORT RECOMMENDATION

 

That the Corporate Services and Economic Development Committee and Council approve the 2008 City of Ottawa Consolidated Financial Statements.

 

 

RECOMMANDATION DU RAPPORT

 

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.

 

 

BACKGROUND

 

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.

 

 

CONSULTATION

 

The public consultation process is not applicable.

 

 

LEGAL/RISK MANAGEMENT

 

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

 

 

FINANCIAL IMPLICATIONS

 

Not applicable.

 

 

SUPPORTING DOCUMENTATION

 

Document 1 –   2008 City of Ottawa Consolidated Financial Statements

Document 2 -   Ernst & Young Audit Results - Year Ended December 31, 2008

 

 

DISPOSITION

 

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