REPORT Finance
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REPORT Finance To: Mayor Coté and Members of Council Date: 7/13/2020 From: Lorraine Lyle, CPA, CGA File: Acting Director of Finance Item #: 244/2020 Subject: 2019 Statement of Financial Information RECOMMENDATION THAT Council receives and approves the attached 2019 Statement of Financial Information. BACKGROUND Each year the City prepares a Statement of Financial Information (SOFI) in accordance with Section 2 of the Financial Information Act (FIA). The SOFI report includes a Schedule of Council Remuneration and Expenses prepared in accordance with Section 168 of the Community Charter. FIA Regulation Schedule 1, Section 9(2) states the SOFI report must be approved by Council and the Financial Officer. The seven attachments to this file make up the Statement of Financial Information. CONCLUSION In accordance with the Financial Information Act and Community Charter, the City is required to prepare and approve the SOFI by June 30th each year. However, due to COVID-19, there was a Ministerial Order No. M159 which extended the Statement of Financial Information deadline to August 31, 2020. Therefore, it is recommended Council approve the attached 2019 Statement of Financial Information. ATTACHMENTS Attachment #1 - Management Report Attachment #2 - Audited Consolidated Financial Statements Attachment #3 - Statement of Financial Information Approval Attachment #4 - Schedule of Council Remuneration and Expenses Attachment #5 - Schedule of Employee Remuneration and Expenses Attachment #6 - Schedule of Suppliers Goods and Services Attachment #7 - Statement of Severance Agreements Approved for Presentation to Council Lorraine Lyle, CPA, CGA Lisa Spitale Director of Finance Chief Administrative Officer Attachment #1 Management Report Attachment #2 Audited Consolidated Financial Statements Consolidated Financial Statements of the CORPORATION OF THE CITY OF NEW WESTMINSTER And Independent Auditors’ Report thereon Year ended December 31, 2019 KPMG LLP PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone (604) 691-3000 Fax (604) 691-3031 INDEPENDENT AUDITORS’ REPORT To the Mayor and Council of the Corporation of the City of New Westminster Opinion We have audited the consolidated financial statements of the Corporation of the City of New Westminster (the “City”), which comprise: • the consolidated statement of financial position as at December 31, 2019 • the consolidated statement of operations for the year then ended • the consolidated statement of change in net financial assets for the year then ended • the consolidated statement of cash flows for the year then ended • and notes to the consolidated financial statements, including a summary of significant accounting policies (Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position of the City as at December 31, 2019, and its consolidated results of operations, its consolidated changes in net financial assets and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report. We are independent of the City in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP. Corporation of the City of New Westminster Page 2 Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the City’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the City or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the City’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Corporation of the City of New Westminster Page 3 • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on City’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause City to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants Vancouver, Canada May 4, 2020 Attachment #3 Statement of Financial Information Approval Attachment #4 Schedule of Council Remuneration and Expenses Corporation of the City of New Westminster Schedule of Council Remuneration and Expenses, 2019 Other UBCM / FCM / Conferences / Other City Sponsored Total LMLGA FCM Seminars / Community Community Council Member Remuneration Conferences Committees Training Events Events Other Cote, Jonathan X. 133,596 1,550 - 3,990 193 - 28 Johnstone, Patrick 53,242 3,808 - 40 - 39 372 McEvoy, Jaimie 53,242 6,854 - 2,177 784 36 2,871 Puchmayr, Chuck 53,242 2,975 - 3,604 517 39 3,223 Trentadue, Mary 53,242 1,170 - 2,563 - 205 1,851 Das, Veechibala 53,242 1,581 - 1,572 86 78 2,173 Nakagawa, Nadine M. 53,242 2,283 - 2,432 25 24 2,145 Total 453,050 20,221 - 16,380 1,605 420 12,663 The Financial Information Regulation, Schedule 1, subsection 6 (1) defines “expenses” as follows: “includes travel expenses, membership, tuition, relocation, vehicle leases, extraordinary hiring expenses, registration fees and similar amounts paid directly to an employee, or to a third party on behalf of the employee, and which has not been included in ‘remuneration’, is not limited to expenses that are generally perceived as perquisites, or bestowing personal benefit, and may include expenditures required for employees to perform their job functions, and excludes benefits of a general nature applicable to all employees