AUDIT COMMITTEE

TOWN OF MARKHAM

Canada Room, Markham Civic Centre

April 24, 2006

MINUTES

Attendance

Chair: Councillor S. Daurio Vice-Chair, Budget Councillor D. Horchik Vice-Chair, IT Reg. Councillor B. O’Donnell Members: Councillor J. Virgilio Councillor K. Usman (9:45 a.m.) Councillor A. Chiu Others: Reg. Councillor J. Jones Councillor G. McKelvey

J. Livey, Chief Administrative Officer A. Taylor, Commissioner of Corporate Services B. Cribbett, Treasurer R. Raman, Senior Financial Analyst J. Kee, Committee Clerk

The Audit Committee convened at the hour of 9:35 a. m. with Councillor S. Daurio in the Chair.

DISCLOSURE OF INTEREST

None

1. 2005 PLANNING PROGRAM (7.2)

Mr. Kevin Travers of KPMG was in attendance and presented information with respect to the 2005 Planning Program. He noted that significant issues in this year’s audit related to the Federal Gas Tax Revenues and the investment in PowerStream and Markham Enterprises Corporation.

Moved by Councillor D. Horchik

Seconded by Regional Councillor B. O’Donnell

That the information presented by Mr. Kevin Travers, KPMG regarding the 2005 Planning Program be received.

CARRIED

2. 2005 DRAFT FINANCIAL STATEMENTS (7.2)

Mr. Raj Raman, Senior Financial Analyst, gave a presentation with respect to the 2005 Draft Financial Statements. He noted that the Town’s Financial Statements are classified into three (3) Funds: Operating, Fund, Capital Fund and Reserves and Reserve Funds, and reviewed the respective Balances. He requested that the Audit Committee approve the 2005 Draft Financial Statements and related recommendations, and that they be forwarded to General Committee for its consideration.

Members queried various matters, including: establishment of the 10% Non-DC Growth Fund; reserves for Theatre, Museum & Heritage – set up by Council resolution; status of trust funds; election expenses and rebate program; and Other Revenues – Budget vs Actual. Some concern was expressed regarding the matter of outstanding capital projects, and staff advised that a report is prepared annually to inform Council on the status of Capital Projects in accordance with the Capital Budget Control Policy.

In response to the query regarding the establishment of the 10% Non-DC Growth Reserve, the Treasurer advised that the General Capital Reserve and Planning Studies Reserve were consolidated to an interest earning “10% Non-DC Growth” reserve in 2004 by Council resolution, to be funded from the sale of land.

Moved by Councillor K. Usman

Seconded by Councillor D. Horchik

That the following recommendations be presented to General Committee at its meeting on April 24, 2006:

“That the report “Draft 2005 Consolidated Financial Statements” be received;

And that Council approve the Corporation of the Town of Markham’s Draft Consolidated Financial Statements for the fiscal year ended December 31, 2005;

And that Council authorize staff to issue the Consolidated Financial Statements for the fiscal year ended December 31, 2005 upon finalization of all consolidated amounts;

And that two new reserves, the “Election Expenses Reserve” and the “Election Rebate Reserve”, be established;

And that Council authorize the transfer of $484,100 from the 2005 Surplus to the Election Expenses Reserve to fund election expenses;

And that Council authorize the transfer of $150,000 from the 2005 Surplus to the Election Rebate Reserve to fund future election rebate expenses;

And that the funds required to offset the 2006 election expenses be transferred from the Election Expenses Reserve to the Operating Fund;

And that annual transfers to, or draws from the Election Expense Reserve and the Election Rebate Reserve be considered during annual budget deliberations.”

CARRIED

Moved by Councillor K. Usman

Seconded by Councillor J. Virgilio

That staff be requested to provide an explanation of variance in relation to “Other” Revenues, shown under the Capital Fund Schedule 2 of the Draft Financial Statements, when staff bring forward the annual report on outstanding budget items.

CARRIED

3. 2004 MANAGEMENT LETTER (7.2)

Mr. Kevin Travers, KPMG, gave a brief presentation on the management letter, dated November 11, 2005, and noted that it included observations on performance improvement opportunities and matters dealing with operational or administrative efficiencies.

Moved by Regional Councillor B. O’Donnell

Seconded by Councillor G. McKelvey

That the 2004 Management Letter, dated November 11, 2005 be received.

CARRIED

Staff was requested to leave the meeting at this time.

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Moved by Councillor K. Usman

Seconded by Councillor J. Virgilio

That the meeting move into in-camera session at 10:15 a.m.

CARRIED

Moved by Regional Councillor B. O’Donnell

Seconded by Councillor G. McKelvey

That the Committee rise at 10:40 a.m.

CARRIED

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ADJOURNMENT

The Audit Committee adjourned at 10:40 a.m.