2008-03-10 Finance Committee MinutesFINANCE COMMITTEE
CITY OF SAINT JOHN
MINUTES
MONDAY, MARCH 10, 2008 - 5:00 p.m.
Present:
Deputy Mayor Hooton, Chairperson
Mayor Norm McFarlane
Councillor Ferguson
Kevin Fudge
Cathy Graham
Hiliary Nguyen
Greg Yeomans
Also present - Jackie Ferrar, Recording Secretary
Messrs. Bob Crowley and Jon Morine of Ernst & Young entered the meeting.
Mr. Crowley explained the purpose of the meeting today is to present the audit plan for
the 2007 Financial Statements.
Referring to their submitted presentation report, Mr. Morine reviewed the audit
methodology advising that they have completed their internal work and everything was
found satisfactory. He spoke briefly regarding Section 5751 and explained that Ernst &
Young is engaged to express an opinion on the financial statements of the City of Saint
John which includes the General Fund, Water & Sewerage Fund, Reserve and Trust
Funds, Saint John Parking Commission, Federal Gas Tax and the Employee Benefits
tax review. Mr. Crowley noted that Common Council has the ultimate responsibility for
these financial statements. During discussion Mr. Morine noted that nothing new has
been brought to their attention and advised they have an engagement letter. Mr.
Yeomans responded, stating that the engagement letter has been signed.
The discussion continued with Mr. Morine commenting with respect to risk
considerations, financial disclosures and capital disclosures pointing out that in
December 2006, the AcSB issued three new Sections which provide a complete set of
disclosure and presentation requirements for financial instruments, those being CICA
3862, CICA 3863 and CICA 1535. Responding, Mr. Yeomans explained consolidated
financial statements will be prepared and spoke regarding the task of valuing all the
City's tangible assets especially those utilities in the ground.
Referring to accounts and disclosures, Mr. Morine advised that with respect to the
Employee Pension Plan - employee future benefits disclosure and unfunded pension
obligation, they will review the note as at year -end to determine if the City has provided
sufficient information in the note. The City's inter -fund accounts will also be reviewed to
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March 10, 2008
ensure that the balances included are currently items only. Mr. Crowley commented
regarding fraud considerations noting that this audit is not designed to detect fraud, but
if they come across something they will advise the Committee accordingly.
The presentation concluded with Mr. Morine advising that the audit field work was
carried out in October and November 2007 and they anticipate completing the year end
audit work in approximately 3 weeks with an audit result report coming to the Committee
before going to Common Council.
Discussion continued with Mr. Crowley responding to questions raised by Councillor
Ferguson with respect to the HST rebate and the Pension Plan. Mrs. Graham advised
that the City has been getting all the GST back since July 1, 2006 and also receives
57.14% on the PST portion. Responding to the concerns expressed with respect to the
Pension Plan, Mr. Yeomans advised that an actuarial valuation as of December 31,
2006 was completed in 2007 and an extrapolation will be done by the actuary for 2007
and this will be shown in the statements. A brief discussion followed with Councillor
Ferguson expressing his concerns with respect full disclosure of the exact condition of
the Plan being shown clearly in the financial statements; to which Mr. Crowley
responded there is full disclosure in the financial statements.
The meeting adjourned at 6:00 p.m.
Chairperson