Item - 2025.TTA2.2

The TTC Audit & Risk Management Committee:

1. Received the appended Draft Consolidated Financial Statements of Toronto Transit Commission for the year ended December 31, 2024; and

2. Forwarded this report and the appended Draft TTC Consolidated Financial Statements for approval at the June 23, 2025 Board meeting, and subsequently to the City Clerk for submission to the next City Audit Committee meeting.

The TTC is required to prepare audited annual financial statements under Public Sector Accounting Standards and to forward them to City Council for information through the City’s Audit Committee.

Effective January 1, 2024, the TTC implemented PS 3400 Revenue, PS 3160 Public Private Partnerships, and PSG-8 Purchased Intangibles. PS 3400 Revenue was adopted on a prospective basis, as permitted by the transitional provisions. As a result, no prior period amounts were restated for comparative purposes. For PS 3160 Public Private Partnerships and PSG-8 Purchased Intangibles, the TTC determined that the adoption did not have an impact on the amounts presented in the Financial Statements.

The 2024 accounting surplus is $503.2 million, which reflects an increase of $49.3 million over the 2023 accounting surplus and is comprised mainly of the value of subsidy revenue earned on capital asset additions, and other expenses funded through capital programs, such as environmental liabilities and asset retirement obligations, partially offset by the depreciation of assets in use. Operating activities do not generally contribute to the accounting surplus or shortfall, as operating expenses are funded in full by operating revenues and subsidies received.