Item - 2019.AU3.7

The Audit Committee recommends that: 

1.  City Council approve the 2018 Audited Consolidated Financial Statements as attached in Appendix A to the report (June 28, 2019) from the Controller and the Chief Financial Officer and Treasurer.

2.  City Council request the Chief Financial Officer and Treasurer and the Controller to review the way the City's budget documents and consolidated financial statement are prepared, with a view to increasing transparency and the ability of Members, staff and the public to easily understand the City's financial situation.  This review should include current best practices in place nationally and internationally, and enable the financial statements to be an open data item.  Further, request the Chief Financial Officer and Treasurer to report on this initiative to the Audit Committee, prior to the budget cycle of 2020. 

3.  City Council request the Chief Financial Officer and Treasurer to explore opportunities to make the consolidated financial statement an open data item.

The following City staff gave a presentation to the Audit Committee on this Item:

- Andrew Flynn, Controller

- Sandra Califaretti, Director, Accounting Services

This report presents the City of Toronto's (City), Audited Consolidated Financial Statements (Statements) for the year ended December 31, 2018, for approval, to Audit Committee and Council and provides highlights of the City’s financial performance during 2018 and financial condition as of December 31, 2018.

The City's financial statements have been prepared by management, who is responsible for ensuring that proper internal controls have been applied to the presentations in each statement.  The City's auditors, PricewaterhouseCoopers LLP (PwC) are responsible for providing an opinion on the fair presentation of the financial statements in accordance with Public Sector Accounting Standards (PSAS).  Audit Committee is responsible for approving the statements prior to City Council approval.

The Statements are attached as Appendix A.  In addition, Appendix B – 2018 Financial Statement Review, provides information about each statement and explains the City's revenue and expenditure activities and financial position for the audited fiscal year.

The City of Toronto 2018 Year End Report to the Audit Committee (Year End Report), Appendix C, includes a draft of the external auditor's opinion on the Statements.  The report contains two internal control recommendations, an unadjusted item for $85 Million which has been included on the Summary of Unadjusted items and the draft Independent Auditor's Report, which includes PwC's unqualified opinion as to the fair presentation of the Statements.  The PwC final audit opinion will be received and dated the day following City Council approval.