Item - 2024.AU5.1

The Audit Committee recommends that:  

1. City Council approve the 2023 Consolidated Financial Statements in Appendix B to the report (June 20, 2024) from the Chief Financial Officer and Treasurer and the Interim Controller and Executive Director, Finance Shared Services.

2. City Council approve the 2023 Sinking Funds Financial Statements in Appendix C to the report (June 20, 2024) from the Chief Financial Officer and Treasurer and the Interim Controller and Executive Director, Finance Shared Services.

3. City Council approve the 2023 Consolidated Trust Funds Financial Statements in Appendix D to the report (June 20, 2024) from the Chief Financial Officer and Treasurer and the Interim Controller and Executive Director, Finance Shared Services.

Project Director, Accounting Service, Mark Rozic, and Director, Accounting Services, Duri Lee, gave a presentation on the 2023 Audited Financial Statements - Consolidated City, Sinking Funds, and Consolidated Trust Funds.

This report presents the City of Toronto's (City) Consolidated Financial Statements, the Sinking Funds Financial Statements and the Consolidated Trust Funds Financial Statements for the year ended December 31, 2023.

All City financial statements are prepared in accordance with Public Sector Accounting Standards established by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada.

Management is highlighting the following items in relation to the City's financial statements:

- The Sinking Funds Financial Statements have now been prepared in accordance with Public Sector Accounting Standards as a result of the introduction of PS 3450 - Financial Instruments.

- The City's tangible capital asset balances detailed in the City's Consolidated Financial Statements contain corrective adjustments recommended by the City's external auditors, KPMG LLP (KPMG), during the 2023 year-end audit;

- The City's 2023 Consolidated Financial Statements have incorporated only those entities significant to the City's overall financial position and performance; and

The City's external auditors, KPMG, are responsible for providing an opinion on the fair presentation of the above financial statements in accordance with Public Sector Accounting Standards. KPMG has issued a clean audit opinion (also referred to as an unqualified audit opinion) on the City's 2023 Consolidated Financial Statements, Sinking Funds Financial Statements, and Consolidated Trust Funds Financial Statements.

The Audit Committee is responsible for adopting the financial statements prior to City Council's approval.