AGENDA - Finance Advisory Committee - 20200915Town of Aurora
Finance Advisory Committee
Meeting Agenda
Date:Tuesday, September 15, 2020
Time:5:45 p.m.
Location:Video Conference
Pages
1.Procedural Notes
This meeting will be held electronically as per Section 19. i) of the Town's
Procedure By-law No. 6228-19, as amended, due to the COVID-19 situation.
2.Approval of the Agenda
3.Declarations of Pecuniary Interest and General Nature Thereof
4.Receipt of the Minutes
4.1 Finance Advisory Committee Meeting Minutes of March 10, 2020 1
That the Finance Advisory Committee meeting minutes of March 10,
2020, be received for information.
5.Delegations
6.Consideration of Items
6.1 Review of Detailed Financial Budget Information; Re: Planning and
Development Services
5
That the comments and suggestions of the Review of Detailed
Financial Budget Information for Planning and Development
Services be received and referred to staff for consideration and
action as appropriate.
1.
6.2 Memorandum from Project Management Office; Re: Town’s Major
Capital Projects Update
14
That the memorandum regarding Town’s Major Capital Projects
Update be received for information.
1.
6.3 Council Report No. FIN20-015 – 2019 Year-End Budget Report – as at
December 31, 2019
20
That Council Report No. FIN20-015 – 2019 Year-End Budget
Report – as at December 31, 2019, be referred back to Council
for receipt.
1.
6.4 Audit Committee Report No. FIN20-016 – 2019 Audited Financial
Statements with Audit Report
37
That Audit Committee Report No. FIN20-016 – 2019 Audited
Financial Statements with Audit Report be received for
information.
1.
6.5 Distribution and Introduction of Detailed Financial Budget Information;
Re: Aurora Cultural Centre (ACC)
130
That the detailed financial budget information for the Aurora
Cultural Centre be received and deferred for discussion and
detailed review at the October 13, 2020 meeting of the Finance
Advisory Committee.
1.
6.6 Updated 2020 Work Plan for Finance Advisory Committee 148
That the updated 2020 Work Plan for the Finance Advisory
Committee be received for information.
1.
7.New Business
8.Adjournment
Town of Aurora
Finance Advisory Committee
Meeting Minutes
Date: Tuesday, March 10, 2020
Time and Location: 5:45 p.m., Holland Room, Aurora Town Hall
Committee Members: Councillor John Gallo (Chair), Councillor Michael Thompson,
Mayor Tom Mrakas
Member(s) Absent: None
Other Attendees: Councillor Rachel Gilliland, Councillor Wendy Gaertner,
Councillor Sandra Humfryes, Rachel Wainwright-van
Kessel, Director of Finance, Jason Gaertner, Manager,
Financial Management Services, Tracy Evans, Financial
Management Advisor, Ishita Soneji, Council/Committee
Coordinator
The Chair called the meeting to order at 5:45 p.m.
1. Approval of the Agenda
Moved by Mayor Mrakas
Seconded by Councillor Thompson
That the agenda as circulated by Legislative Services be approved.
Carried
2. Declarations of Pecuniary Interest and General Nature Thereof
There were no declarations of pecuniary interest under the Municipal Conflict of
Interest Act, R.S.O. 1990, c. M.50.
Page 1 of 149
Finance Advisory Committee Meeting Minutes
Tuesday, March 10, 2020 Page 2 of 4
3. Receipt of the Minutes
Finance Advisory Committee Meeting Minutes of January 28, 2020
Moved by Councillor Thompson
Seconded by Mayor Mrakas
That the Finance Advisory Committee meeting minutes of January 28, 2020, be
received for information.
Carried
4. Delegations
None
5. Consideration of Items
1. FAC20-002 – 2021 to 2022 Budget Process
Staff provided a brief overview of the report and outlined the changes
proposed to the budget process for the 2021 to 2022 budget including details
on the operating budget reaffirmation process, capital budget process, and the
upcoming 2020 Budget Committee meeting schedule.
The Committee requested that two additional budget meetings – a public
consultation meeting in June 2020 and a Budget Committee review meeting in
November 2020, be added to the schedule.
Moved by Mayor Mrakas
Seconded by Councillor Thompson
1. That Report No. FAC20-002 be received; and
2. That Report No. FAC20-002 be endorsed and referred to General
Committee for consideration.
Carried
Page 2 of 149
Finance Advisory Committee Meeting Minutes
Tuesday, March 10, 2020 Page 3 of 4
2. Memorandum from Project Management Office
Re: Town’s Major Capital Projects Update
Staff provided a status update of the Town’s current major capital projects,
noting that the projects are on schedule. The Committee sought clarification on
the project status reporting with respect to any changing timelines, and
suggested that an additional field be included on the project budget summary
outlining the project status as per any revised dates.
Moved by Councillor Thompson
Seconded by Mayor Mrakas
1. That the memorandum regarding Town’s Major Capital Projects Update be
received for information.
Carried
3. Distribution and Introduction of Detailed Financial Budget Information
Re: Planning and Development Services
Staff noted that David Waters, Director of Planning and Development Services
would be present at the next meeting to review the detailed budget information
for the Planning and Development Services department.
Moved by Mayor Mrakas
Seconded by Councillor Thompson
1. That the detailed financial budget information for Planning and
Development Services be received and deferred for discussion and
detailed review at the April 14, 2020 meeting of the Finance Advisory
Committee.
Carried
4. Updated 2020 Work Plan for Finance Advisory Committee
Staff provided an overview of the updated schedule. The Committee inquired
about the status of the recreation fee structure review, and staff noted that a
fee study by the Community Services department is ongoing. The Committee
requested that it be brought to a future Committee meeting upon completion.
Page 3 of 149
Finance Advisory Committee Meeting Minutes
Tuesday, March 10, 2020 Page 4 of 4
Moved by Councillor Thompson
Seconded by Mayor Mrakas
1. That the updated 2020 Work Plan for the Finance Advisory Committee be
received for information.
Carried
6. New Business
None
7. Adjournment
Moved by Mayor Mrakas
Seconded by Councillor Thompson
That the meeting be adjourned at 6:05 p.m.
Carried
Page 4 of 149
2016 2017 2018 2019 2019 2019 Fcst vs 2019 Fcst vsFull Year Full Year Full Year Approved Forecast 2018 Actual 2018 Actual Variance Explanation
Actuals Actuals Actuals Budget to Year-end Increase / (Decrease)Increase / (Decrease)
REVENUE:
3-1005 RESIDENTIAL BUILDING PERMITS -4,130,081 -2,807,704 -1,378,587 -1,501,200 -1,208,996 -169,591 (14.0%)2019 activity was lower than 2018
3-1007 PLUMBING PERMITS -120,795 -104,780 --2,095 -2,095 (100.0%)
3-1013 OFFICIAL PLAN APPLICATIONS -96,984 -85,439 -60,280 -47,700 -100,329 40,049 39.9%Increased development activity
3-1014 SUBDIVISION APPLICATIONS -317,826 -230,536 -104,489 -124,300 -132,609 28,120 21.2%Increased development activity
3-1015 SITE PLAN APPLICATIONS -187,411 -193,069 -184,962 -314,000 -264,547 79,585 30.1%Increased development activity
3-1016 ZONING APPLICATIONS -177,589 -146,592 -63,958 -92,800 -116,283 52,325 45.0%Increased development activity
3-1017 PART LOT APPLICATIONS -27,864 -7,125 -9,700 -15,000 -3,750 -5,950 (158.7%)
3-1018 CONDOMINIUM APPLICATIONS -96,654 -80,640 -57,189 -120,000 -40,806 -16,383 (40.1%)
3-1019 PDS-RADIO COMMUNICATIONS APPLICATIONS ----16,000 -5,000 5,000 100.0%
3-1020 COMMERCIAL BUILDING PERMITS --262,729 -665,006 -505,900 -518,099 -146,907 (28.4%)Commercial building permits are less predictable than residential
permits. The variance is due to one more permit in 2018 compared to
2019.
3-1021 SEWAGE SYS MTCE INSPECTION FEE ----6,200 -2,850 2,850 100.0%
3-1022 SP REVIEW FEE/STABLE NEIGHBRHD COMPL ---5,271 --31,446 26,175 83.2%Fee was initiated in-year 2018.
3-1100 PDS-FILE MAINTENANCE APPLICATION FEES -3,150 --7,420 -5,000 -6,272 -1,148 (18.3%)
3-1101 PDS-OMB REFERRAL FEE -1,704 -9,860 -1,764 -2,000 -6,611 4,847 73.3%
3-1102 ADMINISTRATIVE FEES -10,527 -2,902 -2,710 -1,000 -805 -1,905 (236.6%)
3-1104 PDS-PLANNING ENGINEERING FEE-SITE PLAN -160,817 -334,369 -151,760 -91,000 -250,069 98,309 39.3%Increased development activity
3-1105 ENGINEERING FEES -807,137 -640,413 -874,016 -457,700 -711,539 -162,477 (22.8%)This revenue is development driven and fluctuates each year.
3-1107 COMMITTEE OF ADJUSTMENT FEES -112,466 -157,526 -111,153 -110,000 -106,109 -5,044 (4.8%)
3-1110 SURVEY CERTIFICATES -21,655 -9,970 -7,014 -12,000 -6,878 -136 (2.0%)
3-1111 COMPLIANCE LETTERS -3,598 -14,755 -10,383 -10,000 -10,000 -383 (3.8%)
3-1114 FREEDOM OF INFORMATION FEES -3,302 -10,740 -2,737 -2,900 -3,886 1,149 29.6%
3-1115 REGISTRATION OF SECONDARY SUITES -1,800 -3,150 -2,550 -3,000 -1,954 -596 (30.5%)
3-1118 PDS-MUNICIPAL ADDRESS CHANGE FEE -21,322 -25,600 -14,602 -10,000 -4,288 -10,314 (240.5%)
3-1119 PDS-PLANNING ENGINEERING FEE-SUBDIVISION -289,972 -647,422 -729,374 -365,500 -687,171 -42,203 (6.1%)
3-1120 PDS-STREET NAME CHANGE APPLICATION ---1,608 ---1,608 -
3-1121 PDS-PLANNING ENGINEERING FEE-LOT GRDG --186,341 -1,971 -7,500 -9,196 7,225 78.6%
3-1122 PDS-ZONING APP PROPOSAL FEE --6,000 -5,837 ---5,837 -
3-1201 OTHER -1,525 -7,105 -5,035 -39,500 -72,560 67,525 93.1%This revenue stream was captured under 03100 in 2018 and was moved as part of the reoganization of Engineering Services under Planning &
Development. This revenue is from Bell Canada and Rogers for Municipal
Consent (Plan review fee for the use of municipal right of ways for their
infrastructure).
3-1206 DONATIONS -25,000 --65,000 --65,000 --
3-1333 CONTRIBUTIONS FROM DEVELOPERS -412,800 -57,400 -600,000 -1,000 --600,000 -
3-1900 CONTRIBUTION FROM CAPITAL --91,895 -----
3-1901 CONTRIBUTION FROM DISCRETIONARY RESERVES --13,662 -454,505 -390,785 -135,228 -319,277 (236.1%)The activity to (4-8003) and from (3-1901) the reserve in 2018 resulted in a net contribution of $140,518 to the Building reserve. Activity for 2019
forecasts a required draw of $135,228 to balance the department.
Page 5 of 149
2016 2017 2018 2019 2019 2019 Fcst vs 2019 Fcst vsFull Year Full Year Full Year Approved Forecast 2018 Actual 2018 Actual Variance Explanation
Actuals Actuals Actuals Budget to Year-end Increase / (Decrease)Increase / (Decrease)
3-1907 SANI SEWER R&R RES CONT'N -10,053 -13,972 -18,322 -40,184 -40,184 21,862 54.4%Funding for capital related engineering salaries - it varies each year
depending on the projects undertaken.
3-1917 ENGINEERING CONTRIBUTION -320,157 -315,800 -----
3-1925 BLDG, FURN & FIX R&R RESERVE CONT'N -67,022 ------
3-1927 RDS/SDWLKS/ST LGTS R&R RESERVE CONT'N -170,907 -204,662 -214,666 -253,266 -230,638 15,972 6.9%
3-1961 GENERAL GOV'T DC CONT'N -260,000 -130,000 -130,000 ---130,000 -
3-1968 WATER SYSTEM DC CONT'N -63,671 ------
3-1975 CIL PARKLAND CONTRIBUTION ----10,000 -7,500 7,500 100.0%
3-1978 Storm Sewers Contribution --171,798 -182,695 -223,266 -215,891 33,196 15.4%Funding for capital related engineering salaries - it varies each year
depending on the projects undertaken.
3-1979 WATER & SEWER CONTRIBUTION -23,458 -36,737 -41,107 -42,000 -42,000 893 2.1%
Total Revenue -7,947,247 -7,010,693 -6,165,671 -4,820,701 -5,036,399 -1,129,272 (22.4%)
EXPENSE:
4-2000 SALARIES - F/T 3,491,163 3,221,765 3,173,022 3,958,894 3,483,948 310,926 8.9%
4-2001 SALARIES - O/T 2,291 616 214 12,000 -(214)-
4-2002 SALARIES - P/T 141,242 131,105 119,975 66,664 49,833 (70,142)(140.8%)Conversion of position from Contract Construction Project Administrator
to FTE increased Fulltime Salaries and decreased Part-time Salaries.
4-2003 VACATION PAY 2,440 ------
4-2004 SICK PAY 556 ------
4-2005 LIEU TIME 23 ------
4-2090 YEAR END ACCRUALS -3,219 -15,358 117,345 --13,202 (130,547)(988.8%)
4-2100 BENEFITS - OMERS 356,856 357,477 338,629 433,915 351,915 13,286 3.8%
4-2101 BENEFITS - EHT 65,695 65,444 64,026 77,491 66,448 2,422 3.6%
4-2102 BENEFITS - WSIB 22,702 22,763 22,370 29,805 25,028 2,658 10.6%
4-2103 BENEFITS - CPP 97,716 100,323 100,690 115,624 104,209 3,519 3.4%
4-2104 BENEFITS - EI 51,848 46,318 47,208 54,014 46,349 (859)(1.9%)
4-2105 BENEFITS - DENTAL 55,126 57,207 47,096 75,430 48,967 1,871 3.8%
4-2106 BENEFITS - HEALTH 103,927 102,972 87,189 132,085 93,975 6,786 7.2%
4-2107 BENEFITS - LTD/ADD 56,191 56,188 59,429 88,483 67,045 7,616 11.4%
4-2108 BENEFITS - OTHER 14,902 14,947 14,440 20,213 14,591 151 1.0%
4-2201 SALARY SAVINGS ----11,459 -11,459 (11,459)(100.0%)
TOTAL SALARIES & BENEFITS 4,459,459 4,161,767 4,191,633 5,053,159 4,327,647 136,014 3.1%
4-4000 OFFICE SUPPLIES 11,835 10,956 7,339 13,100 11,671 4,332 37.1%
4-4004 SUBSCRIPTIONS/PUBLICATIONS 1,736 2,021 2,399 2,450 2,307 (92)(4.0%)
4-4006 OFFICE EQUIPMENT 2,020 1,796 1,634 2,000 2,396 762 31.8%
4-4007 COMPUTER SUPPLIES ---500 500 500 100.0%
4-4010 CLOTHING ALLOWANCE 823 778 1,158 3,300 3,300 2,142 64.9%
4-4015 OPERATING MATERIALS 607 125 1,539 1,500 1,500 (39)(2.6%)
4-4025 PROGRAM MATERIALS 2,797 1,457 3,001 --(3,001)-
Page 6 of 149
2016 2017 2018 2019 2019 2019 Fcst vs 2019 Fcst vsFull Year Full Year Full Year Approved Forecast 2018 Actual 2018 Actual Variance Explanation
Actuals Actuals Actuals Budget to Year-end Increase / (Decrease)Increase / (Decrease)
4-4028 COST REALLOCATIONS 476,600 453,800 455,100 515,400 515,400 60,300 11.7%This is the allocation of Town overhead costs to the Building Department
as required under legislation. It is based on formulas and all support
departments (Finance, Corporate Services, Council & Administration) approved budgets. As all department costs increase annually, so does
this charge.
4-4045 MUNICIPAL BUSINESS 3,463 1,979 3,703 4,600 2,769 (934)(33.7%)
4-4060 CENTRAL SUPPLIES 2,192 8,725 1,336 1,000 1,064 (272)(25.6%)
4-5021 MOBILE PLAN CHARGES 3,668 3,830 12,080 13,555 10,825 (1,255)(11.6%)
4-5026 COURSES & SEMINARS 15,516 9,577 10,968 17,869 18,514 7,546 40.8%
4-5027 MANDATORY COURSES & SEMINARS 1,989 1,464 -2,600 ---
4-5028 MEMBERSHIPS 13,624 13,378 17,946 21,375 17,784 (162)(0.9%)
4-5029 MILEAGE 19,681 16,908 27,496 27,700 27,183 (313)(1.2%)
4-5031 GENERAL OFFICE EQUIPMENT 3,011 1,540 707 4,800 4,213 3,506 83.2%
4-5043 CONSULTING 18,798 27,842 26,607 24,500 39,914 13,307 33.3%
4-5045 PHOTOCOPIER CHARGES 9,891 12,830 12,988 13,420 17,441 4,453 25.5%
4-5046 PRINTING 8,946 7,819 11,923 16,500 13,693 1,770 12.9%
4-5050 APPRAISALS ---22,900 35,840 35,840 100.0%Reorganization of appraisal costs from Legal Services started in 2019.
4-5059 CONTRACTS 43,360 69,683 120,620 69,000 66,669 (53,951)(80.9%)2018 expense includes one-time costs associated with subdivision
abutting Newmarket
4-5075 CORPORATE PROMOTIONAL MATERIAL 20,040 15,869 21,478 28,300 23,523 2,045 8.7%
4-5500 CONTRACTS ----40,400 40,400 100.0%BIA expense. Inflow of revenue is captured under Taxation totals.
4-6001 BANK CHARGES 11,306 10,991 9,468 8,000 8,930 (538)(6.0%)
4-8003 CONTRIBUTIONS TO DISCRETIONARY RESERVES 2,352,211 1,215,958 1,071,303 1,000 65,000 (1,006,303)(1,548.2%)Contribution to reserves of payments received from developers for future
development and maintenance costs related to the developments.
TOTAL OTHER EXPENSES 3,024,114 1,889,326 1,820,793 815,369 930,836 (889,957)(95.6%)
TOTAL EXPENSES 7,483,573 6,051,093 6,012,426 5,868,528 5,258,483 (753,943)(14.3%)
NET BUDGET -463,674 -959,600 -153,245 1,047,827 222,084 375,329 169.0%
Page 7 of 149
2016 2017 2018 2019 2019 2019 Fcst vs 2019 Fcst vsFull Year Full Year Full Year Approved Forecast 2018 Actual 2018 Actual Variance Explanation
Actuals Actuals Actuals Budget to Year-end Increase / (Decrease)Increase / (Decrease)
REVENUE:
3-1005 RESIDENTIAL BUILDING PERMITS -4,130,081 -2,807,704 -1,378,587 -1,501,200 -1,208,996 -169,591 (14.0%)2019 activity was lower than 2018
3-1007 PLUMBING PERMITS -120,795 -104,780 --2,095 -2,095 (100.0%)
3-1020 COMMERCIAL BUILDING PERMITS --262,729 -665,006 -505,900 -518,099 -146,907 (28.4%)Commercial building permits are less predictable than residential
permits. The variance is due to one more permit in 2018 compared to
2019.
3-1021 SEWAGE SYS MTCE INSPECTION FEE ----6,200 -2,850 2,850 100.0%
3-1110 SURVEY CERTIFICATES -21,655 -9,970 -7,014 -12,000 -6,878 -136 (2.0%)
3-1111 COMPLIANCE LETTERS -3,598 -14,755 -10,383 -10,000 -10,000 -383 (3.8%)
3-1114 FREEDOM OF INFORMATION FEES -3,302 -10,740 -2,737 -2,900 -3,886 1,149 29.6%
3-1115 REGISTRATION OF SECONDARY SUITES -1,800 -3,150 -2,550 -3,000 -1,954 -596 (30.5%)
3-1201 OTHER -279 -4,861 -4,856 -4,000 -5,197 341 6.6%
3-1901 CONTRIBUTION FROM DISCRETIONARY RESERVES ---454,505 -390,785 -135,228 -319,277 (236.1%)The activity to (4-8003) and from (3-1901) the reserve in 2018 resulted in
a net contribution of $140,518 to the Building reserve. Activity for 2019
forecasts a required draw of $135,228 to balance the department.
Total Revenue -4,281,510 -3,218,689 -2,525,638 -2,435,985 -1,890,993 -634,645 (33.6%)
EXPENSE:
4-2000 SALARIES - F/T 1,390,390 1,181,966 1,177,760 1,420,145 1,025,234 (152,526)(14.9%)Two positions were eliminated, Manager of Zoning & Administration and
a Building Inspector
4-2001 SALARIES - O/T 1,497 --12,000 ---
4-2002 SALARIES - P/T 35,006 65,057 32,749 27,469 13,339 (19,410)(145.5%)
4-2003 VACATION PAY 659 ------
4-2004 SICK PAY 86 ------
4-2090 YEAR END ACCRUALS 10,504 -19,170 -124 -1 125 12,500.0%
4-2100 BENEFITS - OMERS 150,524 129,707 115,674 155,693 99,240 (16,434)(16.6%)
4-2101 BENEFITS - EHT 27,690 24,382 22,863 28,432 21,535 (1,328)(6.2%)
4-2102 BENEFITS - WSIB 9,579 8,611 8,151 10,935 8,238 87 1.1%
4-2103 BENEFITS - CPP 41,504 40,009 35,775 44,721 33,796 (1,979)(5.9%)
4-2104 BENEFITS - EI 22,008 18,502 16,673 20,858 14,857 (1,816)(12.2%)
4-2105 BENEFITS - DENTAL 23,207 21,639 18,123 29,860 19,531 1,408 7.2%
4-2106 BENEFITS - HEALTH 44,927 38,817 32,508 52,287 34,014 1,506 4.4%
4-2107 BENEFITS - LTD/ADD 24,008 21,015 21,079 32,228 22,465 1,386 6.2%
4-2108 BENEFITS - OTHER 6,332 5,493 4,941 7,362 4,699 (242)(5.2%)
TOTAL SALARIES & BENEFITS 1,787,921 1,536,028 1,486,172 1,841,990 1,296,949 (189,223)(14.6%)
4-4000 OFFICE SUPPLIES 7,017 7,204 3,519 6,500 6,500 2,981 45.9%
4-4004 SUBSCRIPTIONS/PUBLICATIONS 1,172 1,117 1,139 1,200 1,228 89 7.2%
4-4006 OFFICE EQUIPMENT 2,020 1,796 1,634 2,000 2,396 762 31.8%
4-4010 CLOTHING ALLOWANCE 823 778 736 2,200 2,200 1,464 66.5%
Page 8 of 149
2016 2017 2018 2019 2019 2019 Fcst vs 2019 Fcst vsFull Year Full Year Full Year Approved Forecast 2018 Actual 2018 Actual Variance Explanation
Actuals Actuals Actuals Budget to Year-end Increase / (Decrease)Increase / (Decrease)
4-4028 COST REALLOCATIONS 476,600 453,800 455,100 515,400 515,400 60,300 11.7%This is the allocation of Town overhead costs to the Building Department
as required under legislation. It is based on formulas and all support
departments (Finance, Corporate Services, Council & Administration) approved budgets. As all department costs increase annually, so does
this charge.
4-4045 MUNICIPAL BUSINESS 2,079 581 550 900 900 350 38.9%
4-4060 CENTRAL SUPPLIES 2,192 8,725 1,336 1,000 1,064 (272)(25.6%)
4-5021 MOBILE PLAN CHARGES 3,668 3,830 4,202 4,796 4,796 594 12.4%
4-5026 COURSES & SEMINARS 10,755 2,661 7,009 7,600 8,229 1,220 14.8%
4-5027 MANDATORY COURSES & SEMINARS 1,989 1,464 -2,600 ---
4-5028 MEMBERSHIPS 5,756 5,822 4,658 6,000 6,000 1,342 22.4%
4-5029 MILEAGE 17,199 15,665 13,560 15,500 15,500 1,940 12.5%
4-5043 CONSULTING 6,874 2,005 687 9,000 9,814 9,127 93.0%
4-5045 PHOTOCOPIER CHARGES 4,729 7,666 2,946 6,300 6,312 3,366 53.3%
4-5059 CONTRACTS --2,335 5,000 4,777 2,442 51.1%
4-6001 BANK CHARGES 11,306 10,991 9,468 8,000 8,930 (538)(6.0%)
4-8003 CONTRIBUTIONS TO DISCRETIONARY RESERVES 1,939,411 1,158,558 531,303 --(531,303)-
TOTAL OTHER EXPENSES 2,493,590 1,682,663 1,040,182 593,996 594,046 (446,136)(75.1%)
TOTAL EXPENSES 4,281,511 3,218,691 2,526,354 2,435,986 1,890,995 (635,359)(33.6%)
NET BUDGET 1 2 716 1 2 (714)(35,700.0%)
Page 9 of 149
2016 2017 2018 2019 2019 2019 Fcst vs 2019 Fcst vsFull Year Full Year Full Year Approved Forecast 2018 Actual 2018 Actual Variance Explanation
Actuals Actuals Actuals Budget to Year-end Increase / (Decrease)Increase / (Decrease)
REVENUE:
3-1102 ADMINISTRATIVE FEES -10,527 -2,902 -2,710 -1,000 -805 -1,905 (236.6%)
3-1105 ENGINEERING FEES -450,493 -640,413 -874,016 -457,700 -711,539 -162,477 (22.8%)This revenue is development driven and fluctuates each year.
3-1201 OTHER --1,462 --35,000 -66,830 66,830 100.0%This revenue stream was captured under 03100 in 2018 and was moved
as part of the reoganization of Engineering Services under Planning &
Development. This revenue is from Bell Canada and Rogers for Municipal
Consent (Plan review fee for the use of municipal right of ways for their
infrastructure).
3-1907 SANI SEWER R&R RES CONT'N -10,053 -13,972 -18,322 -40,184 -40,184 21,862 54.4%Funding for capital related engineering salaries - it varies each year
depending on the projects undertaken.
3-1917 ENGINEERING CONTRIBUTION -320,157 -315,800 -----
3-1925 BLDG, FURN & FIX R&R RESERVE CONT'N -67,022 ------
3-1927 RDS/SDWLKS/ST LGTS R&R RESERVE CONT'N -170,907 -204,662 -214,666 -253,266 -230,638 15,972 6.9%
3-1968 WATER SYSTEM DC CONT'N -63,671 ------
3-1978 Storm Sewers Contribution --171,798 -182,695 -223,266 -215,891 33,196 15.4%Funding for capital related engineering salaries - it varies each year
depending on the projects undertaken.
3-1979 WATER & SEWER CONTRIBUTION -23,458 -36,737 -41,107 -42,000 -42,000 893 2.1%
Total Revenue -1,116,288 -1,387,746 -1,333,516 -1,052,416 -1,307,887 -25,629 (2.0%)
EXPENSE:
4-2000 SALARIES - F/T 744,320 720,046 762,697 1,150,887 1,122,188 359,491 32.0%Reorganization of Engineering Services from Operational Services to
Planning & Development Services rquired the redistribution of salaries
that had been previously charged to other areas, such as 03100, to be
consolidated under 03200.
Conversion of position from Contract Construction Project Administrator
to FTE increased Fulltime Salaries and decreased Part-time Salaries.
4-2001 SALARIES - O/T 69 616 214 --(214)-
4-2002 SALARIES - P/T 73,556 56,350 66,959 28,639 16,738 (50,221)(300.0%)Conversion of position from Contract Construction Project Administrator
to FTE increased Fulltime Salaries and decreased Part-time Salaries.
4-2003 VACATION PAY 306 ------
4-2004 SICK PAY 91 ------
4-2090 YEAR END ACCRUALS -5,206 -5,828 127,855 --(127,855)-
4-2100 BENEFITS - OMERS 46,996 78,706 86,038 123,451 103,566 17,528 16.9%
4-2101 BENEFITS - EHT 9,883 15,005 16,608 21,802 18,278 1,670 9.1%
4-2102 BENEFITS - WSIB 3,631 5,243 5,721 8,386 6,785 1,064 15.7%
4-2103 BENEFITS - CPP 15,346 21,890 23,682 30,784 27,262 3,580 13.1%
4-2104 BENEFITS - EI 8,158 10,101 11,021 14,503 12,267 1,246 10.2%
4-2105 BENEFITS - DENTAL 9,217 13,053 10,802 19,530 12,150 1,348 11.1%
4-2106 BENEFITS - HEALTH 16,795 24,680 21,871 34,199 23,545 1,674 7.1%
4-2107 BENEFITS - LTD/ADD 7,723 12,603 15,346 24,760 18,165 2,819 15.5%
Page 10 of 149
2016 2017 2018 2019 2019 2019 Fcst vs 2019 Fcst vsFull Year Full Year Full Year Approved Forecast 2018 Actual 2018 Actual Variance Explanation
Actuals Actuals Actuals Budget to Year-end Increase / (Decrease)Increase / (Decrease)
4-2108 BENEFITS - OTHER 1,962 3,298 3,672 5,656 4,153 481 11.6%
TOTAL SALARIES & BENEFITS 932,847 955,763 1,152,486 1,462,597 1,365,097 212,611 15.6%
4-4000 OFFICE SUPPLIES --1,688 1,100 1,100 (588)(53.5%)
4-4004 SUBSCRIPTIONS/PUBLICATIONS --49 300 300 251 83.7%
4-4007 COMPUTER SUPPLIES ---500 500 500 100.0%
4-4010 CLOTHING ALLOWANCE --422 1,100 1,100 678 61.6%
4-4015 OPERATING MATERIALS 607 125 1,539 1,500 1,500 (39)(2.6%)
4-4025 PROGRAM MATERIALS 770 1,457 -----
4-4045 MUNICIPAL BUSINESS --240 450 450 210 46.7%
4-5021 MOBILE PLAN CHARGES --4,844 5,386 5,386 542 10.1%
4-5026 COURSES & SEMINARS --2,527 4,200 4,200 1,673 39.8%
4-5028 MEMBERSHIPS --1,778 4,300 4,300 2,522 58.7%
4-5029 MILEAGE --12,070 10,000 10,000 (2,070)(20.7%)
4-5031 GENERAL OFFICE EQUIPMENT ---1,500 1,500 1,500 100.0%
4-5043 CONSULTING --4,712 5,000 5,000 288 5.8%
4-5045 PHOTOCOPIER CHARGES --4,514 3,000 3,216 (1,298)(40.4%)
4-5046 PRINTING 2,117 902 1,539 1,500 1,500 (39)(2.6%)
4-5059 CONTRACTS 26,429 47,593 41,366 40,000 40,000 (1,366)(3.4%)
TOTAL OTHER EXPENSES 29,923 50,077 77,288 79,836 80,052 2,764 3.5%
TOTAL EXPENSES 962,770 1,005,840 1,229,774 1,542,433 1,445,149 215,375 14.9%
NET BUDGET -153,518 -381,906 -103,742 490,017 137,262 241,004 175.6%
Page 11 of 149
2016 2017 2018 2019 2019 2019 Fcst vs 2019 Fcst vsFull Year Full Year Full Year Approved Forecast 2018 Actual 2018 Actual Variance Explanation
Actuals Actuals Actuals Budget to Year-end Increase / (Decrease)Increase / (Decrease)
REVENUE:
3-1013 OFFICIAL PLAN APPLICATIONS -96,984 -85,439 -60,280 -47,700 -100,329 40,049 39.9%Increased development activity
3-1014 SUBDIVISION APPLICATIONS -317,826 -230,536 -104,489 -124,300 -132,609 28,120 21.2%Increased development activity
3-1015 SITE PLAN APPLICATIONS -187,411 -193,069 -184,962 -314,000 -264,547 79,585 30.1%Increased development activity
3-1016 ZONING APPLICATIONS -177,589 -146,592 -63,958 -92,800 -116,283 52,325 45.0%Increased development activity
3-1017 PART LOT APPLICATIONS -27,864 -7,125 -9,700 -15,000 -3,750 -5,950 (158.7%)
3-1018 CONDOMINIUM APPLICATIONS -96,654 -80,640 -57,189 -120,000 -40,806 -16,383 (40.1%)
3-1019 PDS-RADIO COMMUNICATIONS APPLICATIONS ----16,000 -5,000 5,000 100.0%
3-1022 SP REVIEW FEE/STABLE NEIGHBRHD COMPL ---5,271 --31,446 26,175 83.2%Fee was initiated in-year 2018.
3-1100 PDS-FILE MAINTENANCE APPLICATION FEES -3,150 --7,420 -5,000 -6,272 -1,148 (18.3%)
3-1101 PDS-OMB REFERRAL FEE -1,704 -9,860 -1,764 -2,000 -6,611 4,847 73.3%
3-1104 PDS-PLANNING ENGINEERING FEE-SITE PLAN -160,817 -334,369 -151,760 -91,000 -250,069 98,309 39.3%Increased development activity
3-1105 ENGINEERING FEES -356,645 ------
3-1107 COMMITTEE OF ADJUSTMENT FEES -112,466 -157,526 -111,153 -110,000 -106,109 -5,044 (4.8%)
3-1118 PDS-MUNICIPAL ADDRESS CHANGE FEE -21,322 -25,600 -14,602 -10,000 -4,288 -10,314 (240.5%)
3-1119 PDS-PLANNING ENGINEERING FEE-SUBDIVISION -289,972 -647,422 -729,374 -365,500 -687,171 -42,203 (6.1%)
3-1120 PDS-STREET NAME CHANGE APPLICATION ---1,608 ---1,608 -
3-1121 PDS-PLANNING ENGINEERING FEE-LOT GRDG --186,341 -1,971 -7,500 -9,196 7,225 78.6%
3-1122 PDS-ZONING APP PROPOSAL FEE --6,000 -5,837 ---5,837 -
3-1201 OTHER -1,247 -782 -179 -500 -533 354 66.4%
3-1206 DONATIONS -25,000 --65,000 --65,000 --
3-1333 CONTRIBUTIONS FROM DEVELOPERS -412,800 -57,400 -600,000 -1,000 --600,000 -
3-1900 CONTRIBUTION FROM CAPITAL --91,895 -----
3-1901 CONTRIBUTION FROM DISCRETIONARY RESERVES --13,662 -----
3-1961 GENERAL GOV'T DC CONT'N -260,000 -130,000 -130,000 ---130,000 -
3-1975 CIL PARKLAND CONTRIBUTION ----10,000 -7,500 7,500 100.0%
Total Revenue -2,549,451 -2,404,258 -2,306,517 -1,332,300 -1,837,519 -468,998 (25.5%)
EXPENSE:
4-2000 SALARIES - F/T 1,356,454 1,319,753 1,232,565 1,387,862 1,336,527 103,962 7.8%
4-2001 SALARIES - O/T 725 ------
4-2002 SALARIES - P/T 32,680 9,699 20,268 10,555 19,756 (512)(2.6%)
4-2003 VACATION PAY 1,475 ------
4-2004 SICK PAY 380 ------
4-2005 LIEU TIME 23 ------
4-2090 YEAR END ACCRUALS -8,516 9,640 -10,386 --13,202 (2,816)(21.3%)
4-2100 BENEFITS - OMERS 159,336 149,064 136,917 154,772 149,110 12,193 8.2%
4-2101 BENEFITS - EHT 28,122 26,057 24,556 27,257 26,635 2,079 7.8%
4-2102 BENEFITS - WSIB 9,491 8,910 8,498 10,484 10,006 1,508 15.1%
4-2103 BENEFITS - CPP 40,867 38,424 41,233 40,119 43,151 1,918 4.4%
4-2104 BENEFITS - EI 21,682 17,715 19,514 18,652 19,225 (289)(1.5%)
4-2105 BENEFITS - DENTAL 22,702 22,514 18,171 26,040 17,286 (885)(5.1%)
Page 12 of 149
2016 2017 2018 2019 2019 2019 Fcst vs 2019 Fcst vsFull Year Full Year Full Year Approved Forecast 2018 Actual 2018 Actual Variance Explanation
Actuals Actuals Actuals Budget to Year-end Increase / (Decrease)Increase / (Decrease)
4-2106 BENEFITS - HEALTH 42,204 39,475 32,809 45,599 36,416 3,607 9.9%
4-2107 BENEFITS - LTD/ADD 24,460 22,570 23,004 31,495 26,415 3,411 12.9%
4-2108 BENEFITS - OTHER 6,608 6,157 5,827 7,195 5,739 (88)(1.5%)
4-2201 SALARY SAVINGS ----11,459 -11,459 (11,459)(100.0%)
TOTAL SALARIES & BENEFITS 1,738,693 1,669,978 1,552,976 1,748,571 1,665,605 112,629 6.8%
4-4000 OFFICE SUPPLIES 4,818 3,752 2,132 5,500 4,071 1,939 47.6%
4-4004 SUBSCRIPTIONS/PUBLICATIONS 563 904 1,211 950 779 (432)(55.5%)
4-4025 PROGRAM MATERIALS 2,027 -3,001 --(3,001)-
4-4045 MUNICIPAL BUSINESS 1,384 1,398 2,913 3,250 1,419 (1,494)(105.3%)
4-5021 MOBILE PLAN CHARGES --3,034 3,373 642 (2,392)(372.6%)
4-5026 COURSES & SEMINARS 4,761 6,916 1,432 6,069 6,085 4,653 76.5%
4-5028 MEMBERSHIPS 7,868 7,556 11,510 11,075 7,484 (4,026)(53.8%)
4-5029 MILEAGE 2,482 1,244 1,866 2,200 1,684 (182)(10.8%)
4-5031 GENERAL OFFICE EQUIPMENT 3,011 1,540 707 3,300 2,713 2,006 73.9%
4-5043 CONSULTING 11,924 25,837 21,208 10,500 25,100 3,892 15.5%
4-5045 PHOTOCOPIER CHARGES 5,162 5,164 5,528 4,120 7,913 2,385 30.1%
4-5046 PRINTING 6,829 6,917 10,384 15,000 12,192 1,808 14.8%
4-5050 APPRAISALS ---22,900 35,840 35,840 100.0%Reorganization of appraisal costs from Legal Services started in 2019.
4-5059 CONTRACTS 16,931 22,090 76,919 24,000 21,893 (55,026)(251.3%)2018 expense includes one-time costs associated with subdivision abutting Newmarket
4-5075 CORPORATE PROMOTIONAL MATERIAL 20,040 15,869 21,478 28,300 23,523 2,045 8.7%
4-5500 CONTRACTS ----40,400 40,400 100.0%BIA expense. Inflow of revenue is captured under Taxation totals.
4-8003 CONTRIBUTIONS TO DISCRETIONARY RESERVES 412,800 57,400 540,000 1,000 65,000 (475,000)(730.8%)Contribution to reserves of payments received from developers for future
development and maintenance costs related to the developments.
TOTAL OTHER EXPENSES 500,600 156,587 703,323 141,537 256,738 (446,585)(173.9%)
TOTAL EXPENSES 2,239,293 1,826,565 2,256,299 1,890,108 1,922,343 (333,956)(17.4%)
NET BUDGET -310,158 -577,693 -50,218 557,808 84,824 135,042 159.2%
Page 13 of 149
100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca
Town of Aurora Memorandum
Corporate Services
______________________________________________________________________
Re: Town’s Major Capital Projects Update
To: Finance Advisory Committee
From: Lianne Jalali, Project Management Office
Date: September 15, 2020
______________________________________________________________________
Recommendation
1. That the memorandum regarding Town’s Major Capital Projects Update be
received for information.
Background
The Town currently has multiple major capital projects underway in varying stages of
completion. These major projects include the following:
• Library Square
• Fire Hall 4-5
• Joint Operations Centre Additional Work
Analysis
Library Square
Overall, the project is on track for success. The tender for the services of a General
Contractor officially closed on July 20th. Chandos Construction‘s bid came in at
$41,009,865 which made them the lowest qualified bidder.
The Town was notified by the Province on August 7, 2020 that the Library Square
infrastructure grant application requesting a total of $31.6 million from the Investing in
Canada Infrastructure Program (ICIP) was unsuccessful. Following the grant application
outcome, the Library Square project’s funding strategy adjusted to the Council’s
previously approved “no grant” funding strategy.
Page 14 of 149
Town’s Major Capital Projects Update
September 15, 2020 2 of 5
The recommended funding strategy has been approved by the Town’s Council on
August 25, 2020, and staff directed to proceed with awarding the contract to Chandos
Construction Ltd. for the construction of the Library Square project.
Schedule Status:
The project management team (PMT) is currently focusing on finalizing the contract
agreement with Chandos Construction Ltd., organizing a kick-off meeting and updating
the project documents in anticipation of Construction Mobilization.
The impact of COVID-19 on the project schedule has been minimal up to this point,
however it is expected Chandos will provide critical feedback on the proposed
Construction schedule and advise of any forecast delays resulting from labour and
material shortages.
Milestone Expected Completion Status
Design Development August 2019 Complete
Construction Documents March 2020 Complete
Tender Period March - June 2020 Complete
Bids Evaluation May - June 2020 Complete
Award Contract September 2020 In progress
Construction Mobilization September 2020 Not Started
Completion September 2022 Not Started
Budget Status:
The total cost of the project is $51,939,489, which is approximately $327,790 above the
approved project budget of $51,611,700 but within the 5% agreeable increase in project
budget.
Page 15 of 149
Town’s Major Capital Projects Update
September 15, 2020 3 of 5
Current Project Status Cost Notes
Project Budget Baseline $51,939,489
Committed $5,119,084 9.86% of Project Budget
Approved Change Orders $0
The overall status update for this project can be found under Attachment #1.
Fire Hall 4-5
The contract for the construction of Station 4-5 was awarded to Remo General
Contracting Ltd. for $10,836,817.
Project Schedule:
The site work commenced on May 20, 2020. The project completion currently
scheduled for the winter 2021; however subject to change. The project is progressing as
scheduled up to this point.
Budget Status:
Non-Construction Costs Approved Budget Payments to Date
Architect $600,000 $384,552
Furniture, Fixture, Signage etc. $506,500 $0
Prefab shed for training $250,000 $0
Allowance for props $100,000 $0
Total $1,456,500 $384,552
Construction Costs
Tender Revised Bid $10,836,817 $1,334,140
Non-Recoverable HST (1.76%) $190,728 $0
Contingency (10%) $1,083,682 $69,268
Total $13,567,727 $1,787,960
The total amount of the approved change orders to date is $2,604.75.
Page 16 of 149
Town’s Major Capital Projects Update
September 15, 2020 4 of 5
In addition to this budget, the Town of Aurora has also included $87,300 for project
management fees and public art from its own reserves.
The overall status update for this project can be found under Attachment #1.
Joint Operations Centre Additional Work
The objective of this project is to complete the outstanding capital works of the JOC.
The project is divided into the following sub-projects of which eight (8) sub-projects have
been completed and five (5) sub-projects will be completed in 2020.
Sub-Project Status
Back Lot Paving and Full Build Out Complete
Upper Parking Lot and Rear Yard Complete
JOC Landscaping In progress – Completion in Spring 2021
Garbage Tipping Station Complete
Storage Buildings In progress – Completion in Summer 2021
Automated Gate Control In progress – Completion in Fall 2020
South Side Exterior Finishing In progress – Completion by end of 2020
Furniture Complete
Entry Pylon Exterior Sign Complete
Intercom System Completion by end of 2020
Third Floor Build Out Complete
Building Exterior Sign Complete
Soil Quality at Back of Property Complete
Page 17 of 149
Town’s Major Capital Projects Update
September 15, 2020 5 of 5
Budget Status:
Current Project Status Cost Notes
Approved Budget $2,185,200
Committed $1,354,123 62% of Project Budget
The overall status update for this project can be found under Attachment #1.
Attachments
Attachment #1 – Major Capital Project Update:
• Library Square
• Fire Hall 4-5
• Joint Operations Centre Additional Work
Page 18 of 149
PROJECT NAME BEGIN FINISH # of DAYS STATUS PROJECTED ACTUAL REMAINDER STATUS
Firehall May 20, 2020 March 1, 2021 285 On schedule $13,567,727 $2,172,512 $11,395,215 On budgetJOC - Additional October 1, 2018 September 30, 2021 1095 On schedule $2,185,200 $1,354,123 $831,077 On budgetLibrary Square July 2, 2018 September 30, 2022 1551 On schedule $51,939,489 $5,119,084 $46,820,405 On budgetTotal $67,692,416 $8,645,719 $59,046,697
Project Status LegendOn schedule Everything is progressing as planned. No intervention from the sponsor is required Concerned Some risks and issues have been identified but the project team is handling and monitoring them Delayed/Over budgetMajor problems affected the project timeline and budget. The sponsor's intervention is required in this case
Row Labels Sum of REMAINDER Sum of ACTUAL Sum of PROJECTED
Firehall 11395215 2172512 13567727Library Square 46820405 5119084 51939489JOC - Additional Work 831077 1354123 2185200Grand Total 59046697 8645719 67692416
Attachment #1Major Capital Projects Update Summary - September 2020
Timeline BUDGET
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Firehall Library Square JOC - Additional Work
Project Budget Summary
Sum of REMAINDER
Sum of ACTUAL
Sum of PROJECTED
Values
PROJECT NAME
Page 19 of 149
Town of Aurora
Council Report 1R ),1
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Item R9
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Item R9
Page 2 of 17
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June 23, 2020 Page 11 of 11 Report No. FIN20-015
Attachments
Attachment #1 – Final Net Tax Levy Funded Operations Results
Attachment #2 – Final Net User Rate Funded Operations Results
Attachment #3 – 2019 Departmental Accomplishments
Previous Reports
None
Pre-submission Review
Agenda Management Team review on May 28, 2019
Departmental Approval Approved for Agenda
____________________________________ ______________________________
Rachel Wainwright-van Kessel, CPA, CMA Doug Nadorozny
Director of Finance/Treasurer Chief Administrative Officer
Digitally signed by Rachel
Wainwright-van Kessel, CPA,
CMA
Date: 2020.06.16 08:40:11 -04'00'
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Page 40 of 149
June 23, 2020 Page 5 of 5 Report No. FIN20-016
Departmental Approval Approved for Agenda
Rachel Wainwright-van Kessel, CPA, CMA Doug Nadorozny
Director, Finance/Treasurer Chief Administrative Officer
Digitally signed by Rachel
Wainwright-van Kessel, CPA,
CMA
Date: 2020.06.16 09:23:53 -04'00'
Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 5 of 93
Page 41 of 149
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. AUDIT FINAL REPORT TO THE AUDIT COMMITTEE MEMBERS June 23, 2020 THE CORPORATION OF THE TOWN OF AURORA $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 6 of 93Page 42 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019TABLE OF CONTENTSSUMMARYCOVID-19AUDIT FINDINGSINTERNAL CONTROL MATTERSOTHER REQUIRED COMMUNICATIONSAPPENDIX A: INDEPENDENT AUDITOR’S REPORTAPPENDIX B: INDEPENDENCE UPDATEAPPENDIX C: UNADJUSTED DIFFERENCESAPPENDIX D: REPRESENTATION LETTERAPPENDIX E: BDO RESOURCES $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 7 of 93Page 43 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019SUMMARY Status of the Audit As of the date of this report, we have substantially completed our audit of the 2019 consolidated financial statements, pending completion of the following items: XReceipt of signed management representation letterXReceipt of outstanding legal confirmationsXSubsequent events review through to financial statement approval dateXApproval of consolidated financial statements by the Board of DirectorsWe conducted our audit in accordance with Canadian generally accepted auditing standards. The objective of our audit was to obtain reasonable, not absolute, assurance about whether the consolidated financial statements are free from material misstatement. See Appendix A for our draft independent auditor’s report. The scope of the work performed was substantially the same as that described in our Planning Report to the Audit Committee Members dated March 18, 2020. Materiality As communicated to you in our Planning Report to the Audit Committee Members, preliminary materiality was $9,224,000 for financial statement areas surrounding tangible capital assets and specific materiality was $2,042,000 for the remaining financial statement areas. Final materiality was $9,224,000 and $1,853,000 respectively. Audit Findings Our audit focused on the risks specific to your business and key accounts. Our discussion points below focus on areas of significant risks of material misstatement, or the following items: XManagement override of controlsXRevenue recognition – assumed lands and developer chargesXTangible capital asset adjustmentOur audit and therefore this report will not necessarily identify all matters that may be of interest to the Audit Committee Members in fulfilling its responsibilities. This report has been prepared solely for the use of the Audit Committee Members and should not be distributed without our prior consent. Consequently, we accept no responsibility to a third party that uses this communication. $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 8 of 93Page 44 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019Internal Control Matters We are required to report to you in writing, any significant deficiencies in internal control that we have identified. The specifics of this communication are included in our report below. Independence Our annual letter confirming our independence was previously provided to you. We know of no circumstances that would cause us to amend the previously provided letter. Unadjusted Differences We have disclosed all significant unadjusted differences and disclosure omissions identified through the course of our audit engagement. Each of these items has been discussed with management. Management has determined that the unadjusted differences are immaterial both individually and in aggregate to the consolidated financial statements taken as a whole. Should the Audit Committee Members agree with this assessment, we do not propose further adjustments. For purposes of our discussion, a summary of unadjusted differences has been presented in Appendix C.$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 9 of 93Page 45 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019Management Representations During the course of our audit, management made certain representations to us. These representations were verbal or written and therefore explicit, or they were implied through the consolidated financial statements. Management provided representations in response to specific queries from us, as well as unsolicited representations. Such representations were part of the evidence gathered by us to be able to draw reasonable conclusions on which to base our audit opinion. These representations were documented by including in the audit working papers memoranda of discussions with management and written representations received from management. A summary of the representation we have requested from management is set out in the representation letter included in Appendix D to the report. Fraud Discussion Through our planning process, and current and prior years’ audits, we have developed an understanding of your oversight processes. We are not currently aware of any fraud affecting the company. If you are aware of changes to processes or are aware of any instances of actual, suspected or alleged fraud affecting the Town since our discussions held at planning, we request that you provide us with this information. Please refer to the Auditor’s Responsibilities for Detecting Fraud in the Planning Report to the Audit Committee Members. COVID-19 As global reactions and responses to coronavirus (COVID-19) continue to evolve and change, BDO Canada has issued a number of publications on the financial reporting and tax implications resulting from the outbreak to assist companies in navigating these challenging times. This includes publications on the accounting implications arising from changing economic conditions, understanding available government assistance, crisis management and responding to liquidity changes. For additional information on COVID-19 can have on all aspects of a company’s operations, refer to the following link: https://www.bdo.ca/en-ca/covid-19/home/ $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 10 of 93Page 46 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019AUDIT FINDINGS SIGNIFICANT RISKS OF MATERIAL MISSTATEMENT RISKS NOTED AUDIT FINDINGS Management override of internal controls A common significant risk in all audit engagements is the risk of Management override of controls and fraud risk that may occur in the deferred revenue cycle. In accordance with auditing standards, BDO has performed specific procedures that include testing journal entries, reviewing accounting estimates for biases and obtaining and evaluating the business rationale for transactions that are outside the normal course of operations for the organization, if any. Developer land contributions, developer charges, and gas tax revenue There is a significant risk regarding the fair value estimates of the land assumed by the town as the transactions are not officially made at arm’s length on the open market. Additionally, recorded developer charges and gas tax revenues represent a significant amount on the financial statements and are subject to greater scrutiny due to the elevated risk of fraud regarding the contributions. In accordance with auditing standards, BDO has performed specific procedures that include reviewing fair value estimates for bias, sampling developer charges and obtaining and evaluating the business rationale of transactions that are outside the normal course of operations for the organization, if any. BDO also reviewed deferred revenue recognition policies for the organization and noted that their treatment is consistent with Public Service Accounting Standards and management was applying the policy properly. BDO’s testing of developer charges revenue and deferred revenue identified a misstatement in these balances in the current and prior year. Due to the value of the misstatement, the error was corrected through a prior period adjustment. Additional testing related to these balances and around financial statement presentation and disclosure, was required and performed as a result of the error identified. As part of our ongoing communications with you, we are required to have a discussion on our views about significant qualitative aspects of the Town's accounting practices, including accounting policies, accounting estimates and financial statement disclosures. In order to have a frank and open discussion, these matters will be discussed verbally with you. A summary of the key discussion points are as follows: $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 11 of 93Page 47 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019Tangible capital asset adjustment There was an increased risk of error noted as the result of the Citywide reconciliation performed by management uncovering a significant number of assets unrecognized in the previous year’s financial statements. Additional un-budgeted work was performed to verify the reconciliation was performed correctly by the organization’s third party consultant. Procedures performed included; sampling of tangible capital asset additions and disposals that had previously been unrecorded and ensuring adjustments were accurately reflected in the capital asset continuity schedule and financial statements. $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 12 of 93Page 48 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019INTERNAL CONTROL MATTERS During the course of our audit, we performed the following procedures with respect to the Town’s internal control environment: XDocumented operating systems to assess the design and implementation of control activities that were relevant to the audit.XDiscussed and considered potential audit risks with management.The results of these procedures were considered in determining the extent and nature of substantive audit testing required. We are required to report to you in writing, significant deficiencies in internal control that we have identified during the audit. A significant deficiency is defined as a deficiency or combination of deficiencies in internal control that, in the auditor's professional judgment, is of sufficient importance to merit the attention of those charged with governance. As the purpose of the audit is for us to express an opinion on the Town’s consolidated financial statements, our audit cannot be expected to disclose all matters that may be of interest to you. As part of our work, we considered internal control relevant to the preparation of the consolidated financial statements such that we were able to design appropriate audit procedures. This work was not for the purpose of expressing an opinion on the effectiveness of internal control. $WWDFKPHQWAudit Committee Meeting Agenda Tuesday, June 23, 2020 Item 1 Page 13 of 93Page 49 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019OTHER REQUIRED COMMUNICATIONS Potential effect on the financial statements of any material risks and exposures, such as pending litigation, that are required to be disclosed in the financial statements.•BDO Response: N/AMaterial uncertainties related to events and conditions that may cast significant doubt on the entity's ability to continue as a going concern.•BDO Response: N/ADisagreements with management about matters that, individually or in the aggregate, could be significant to the entity's financial statements or our audit report.•BDO Response: N/AMatters involving non-compliance with laws and regulations.•BDO Response: N/ASignificant related party transactions that are not in the normal course of operations and which involve significant judgments made by management concerning measurement or disclosure.•BDO Response: N/AManagement consultation with other accountants about significant auditing and accounting matters.•BDO Response: N/AOther Matters•BDO Response: N/AProfessional standards require independent auditors to communicate with those charged with governance certain matters in relation to an audit. In addition to the points communicated within this letter, the attached table summarizes these additional required communications.$WWDFKPHQW Audit Committee Meeting Agenda Tuesday, June 23, 2020 Item 1Page 14 of 93Page 50 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019APPENDICES Appendix A: Independent auditor’s report Appendix B: Independence update Appendix C: Unadjusted differences Appendix D: Representation letter Appendix E: BDO resources $WWDFKPHQWAudit Committee Meeting Agenda Tuesday, June 23, 2020 Item 1Page 15 of 93Page 51 of 149
Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019
APPENDIX A: INDEPENDENT AUDITOR’S REPORT
Independent Auditor's Report
To the Members of the Audit Committee, The Corporation of the Town of Aurora
Opinion
We have audited the consolidated financial statements of The Corporation of the Town of Aurora, which
comprise the consolidated statement of financial position as at December 31, 2019, and the consolidated
statements of operations and accumulated surplus, consolidated statement of changes in net financial assets
and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the
consolidated financial position of The Corporation of the Town of Aurora as at December 31, 2019, and the
consolidated results of its operations, changes in net financial assets, and cash flows for the year then ended in
accordance with Canadian public sector accounting standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of
the Consolidated Financial Statements section of our report. We are independent of the Entity in accordance
with the ethical requirements that are relevant to our audit of the consolidated financial statements in
Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Emphasis of Matter
We draw you attention to Note 2 of the financial statements, which explains that certain comparative
information presented for the year ended December 31, 2019 has been restated. Our opinion is not modified in
respect of this matter.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements
in accordance with Canadian public sector accounting standards and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Entity’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Entity’s financial reporting process.
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Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with Canadian generally accepted auditing standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
x Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
controls.
x Obtain an understanding of internal controls relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Entity’s internal controls.
x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
x Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Entity to cease to continue as a going
concern.
x Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
x Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements. We
are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal controls that
we identify during our audit.
Chartered Professional Accountants, Licensed Public Accountants
Barrie, Ontario
June 23, 2020
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Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019
APPENDIX B: INDEPENDENCE UPDATE
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June 23, 2020
Members of the Audit Committee Members
The Corporation of the Town of Aurora
Dear Audit Committee Members:
We have been engaged to audit the consolidated financial statements of The Corporation of the
Town of Aurora (the “Town”) for the year ended December 31, 2019.
Canadian generally accepted auditing standards (GAAS) require that we communicate at least
annually with you regarding all relationships between the Town and our Firm that, in our
professional judgment, may reasonably be thought to bear on our independence.
In determining which relationships to report, these standards require us to consider relevant rules
and related interpretations prescribed by the appropriate provincial institute/order and
applicable legislation, covering such matters as:
x Holding a financial interest, either directly or indirectly in a client;
x Holding a position, either directly or indirectly, that gives the right or responsibility to exert
significant influence over the financial or accounting policies of a client;
x Personal or business relationships of immediate family, close relatives, partners or retired
partners, either directly or indirectly, with a client;
x Economic dependence on a client; and
x Provision of services in addition to the audit engagement.
We have prepared the following comments to facilitate our discussion with you regarding
independence matters arising since March 18, 2020, the date of our last letter.
We are aware of the following relationships between the Town and us that, in our professional
judgment, may reasonably be thought to have influenced our independence. The following
relationships represent matters that have occurred from March 18, 2020to June 23, 2020.
x We have provided assistance in the preparation of the consolidated financial statements,
including adjusting journal entries. These services created a self-review threat to our
independence since we subsequently expressed an opinion on whether the consolidated
financial statements presented fairly, in all material respects, the financial position, results
of operations and cash flows of the organization in accordance with (relevant GAAP).
x We, therefore, required that the following safeguards be put in place related to the above:
x Management provided us with a trial balance and draft consolidated financial
statements, including notes, prior to completion of our audit.
x Management created the source data for all the accounting entries.
x Management developed any underlying assumptions required with respect to the
accounting treatment and measurement of the entries.
x Management reviewed advice and comments provided and undertook their own
analysis considering the Town’s circumstances and generally accepted accounting
principles.
x Management reviewed and approved all journal entries prepared by us, as well as
changes to financial statement presentation and disclosure.
Audit Committee Meeting Agenda Tuesday, June 23, 2020 Item 1Page 19 of 93
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x Someone other than the preparer reviewed the proposed journal entries and
consolidated financial statements.
We hereby confirm that we are independent with respect to the Town within the meaning of the
Code of Professional Conduct of the Chartered Professional Accountants of Ontario as of June 23,
2020.
This letter is intended solely for the use of the Audit Committee, the Board of Directors,
management and others within the Town and should not be used for any other purposes.
Yours truly,
Chartered Professional Accountants, Licensed Public Accountants
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Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019
APPENDIX C: UNADJUSTED DIFFERENCES
SUMMARY OF UNADJUSTED DIFFERENCES
The following is a summary of uncorrected misstatements noted during the course of our audit engagement:
Increase (Decrease)
Assets Liabilities Equity Net Income
Allocated but unrequired gas tax monies
reversed in Q1 2019
$ -$-$ 106,122 $ (106,122)
Adjustment to opening NBV of TCAs - - (6,950,065) 6,950,065
Leisure services accounts receivable
credit balances
148,206 (148,206)
Water revenue accounts receivable
credit balances
269,466 (269,466)
Cut-off error related to supplier invoice
for capital expenditures not accrued at
year end
495,965 (495,965)
Effect of Prior Year’s Reversing Errors - - - -
Total Unadjusted Differences $ 913,637 $ (913,637) $ (6,843,943) $ 6,843,943
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Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019
APPENDIX D: REPRESENTATION LETTER
June 16, 2020
BDO Canada LLP
Chartered Professional Accountants
300 Lakeshore Dr. Suite 300
Barrie, ON
L4N 0B4
This representation letter is provided in connection with your audit of the financial statements of The Corporation
of the Town of Aurora for the year ended December 31, 2019, for the purpose of expressing an opinion as to
whether the financial statements are presented fairly, in all material respects, in accordance with Canadian public
sector accounting standards.
We confirm that to the best of our knowledge and belief, having made such inquiries as we considered necessary for
the purpose of appropriately informing ourselves:
Financial Statements
We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated March 27, 2018, for the
preparation of the financial statements in accordance with Canadian public sector accounting standards; in
particular, the financial statements are fairly presented in accordance therewith.
x Significant assumptions used by us in making accounting estimates, including those measured at fair value,
are reasonable.
x Related party relationships and transactions have been appropriately accounted for and disclosed in
accordance with the requirements of Canadian public sector accounting standards.
x All events subsequent to the date of the financial statements and for which Canadian public sector
accounting standards require adjustment or disclosure have been adjusted or disclosed.
x The financial statements of the entity use appropriate accounting policies that have been properly disclosed
and consistently applied.
x The effects of uncorrected misstatements are immaterial, both individually and in the
aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is
attached to the representation letter.
x We have reviewed and approved all journal entries recommended by the practitioners during
the audit. A list of the journal entries is attached to the representation letter.
Information Provided
x We have provided you with:
x access to all information of which we are aware that is relevant to the preparation of the financial
statements, such as records, documentation and other matters;
x additional information that you have requested from us for the purpose of the audit; and
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Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019
x unrestricted access to persons within the entity from whom you determined it necessary to obtain audit
evidence.
x We are responsible for the design, implementation and maintenance of internal controls to prevent, detect
and correct fraud and error, and have communicated to you all deficiencies in internal control of which we
are aware.
x All transactions have been recorded in the accounting records and are reflected in the financial statements.
x We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and
regulations whose effects should be considered when preparing the financial statements.
x We have disclosed to you the identity of the entity’s related parties and all the related party relationships
and transactions of which we are aware.
Fraud and Error
x We have disclosed to you the results of our assessment of the risk that the financial statements may be
materially misstated as a result of fraud.
x We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and
that affects the entity and involves:
x management;
x employees who have significant roles in internal control; or
x others where the fraud could have a material effect on the financial statements.
x We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting
the entity’s financial statements communicated by employees, former employees, analysts, regulators, or
others.
General Representations
x Where the value of any asset has been impaired, an appropriate provision has been made in the
financial statements or has otherwise been disclosed to you.
x We have provided you with significant assumptions that in our opinion are reasonable and
appropriately reflect our intent and ability to carry out specific courses of action on behalf of
the entity when relevant to the use of fair value measurements or disclosures in the financial
statements.
x We confirm that there are no derivatives or off-balance sheet financial instruments held at
year end that have not been properly recorded or disclosed in the financial statements.
x Except as disclosed in the financial statements, there have been no changes to title, control
over assets, liens or assets pledged as security for liabilities or collateral.
x The entity has complied with all provisions in its agreements related to debt and there were no
defaults in principal or interest, or in the covenants and conditions contained in such
agreements.
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Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019
x There were no direct contingencies or provisions (including those associated with guarantees or
indemnification provisions), unusual contractual obligations nor any substantial commitments,
whether oral or written, other than in the ordinary course of business, which would materially
affect the financial statements or financial position of the entity, except as disclosed in the
financial statements.
Other Representations Where the Situation Exists
x We have informed you of all known actual or possible litigation and claims, whether or not they have been
discussed with legal counsel. Since there are no actual, outstanding or possible litigation and claims, no
disclosure is required in the financial statements.
x We have provided you all the relevant information in order to appropriately record and disclose the
restatement made to correct a material misstatement in the prior period financial statements that affect
the comparative information. This restatement was for:
x Correction of deferred revenue and revenue related to development charges. Revenue was understated and
deferred revenue was overstated.
x We will provide to you, when available and prior to issuance by the entity, the final version of the
document(s) comprising the annual report.
x Disclosures included in the financial statements regarding the relevant significant business, financial, and
reporting impacts of the COVID-19 outbreak accurately reflect management’s full consideration of such
impacts.
Yours truly,
_____________________________________ _______________________________________
Signature Position
_______________________________________ _______________________________________
Signature Position
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Audit Final Report for The Corporation of the Town of Aurora For the year ended December 31, 2019APPENDIX E: BDO RESOURCES BDO is a leading provider of professional services to clients of all sizes in virtually all business sectors. Our team delivers a comprehensive range of assurance, accounting, tax, and advisory services, complemented by a deep industry knowledge gained from nearly 100 years of working within local communities. As part of the global BDO network, we are able to provide seamless and consistent cross-border services to clients with global needs. Commitment to knowledge and best practice sharing ensures that expertise is easily shared across our global network and common methodologies and information technology ensures efficient and effective service delivery to our clients. Outlined below is a summary of certain BDO resources, which may be of interest to the Audit Committee Members. BDO Canada’s national tax department issues a number of bulletins, alerts and newsletters relating to corporate federal, personal, commodity, transfer pricing and international tax matters. For additional information on tax matters and links to archived tax publications, please refer to the following link: https://www.bdo.ca/en/library/services/tax/pages/default.aspxTAX BULLETINS, ALERTS AND NEWSLETTERS PSAS PUBLICATIONS Public Sector Accounting Standards (PSAS) Update 2019 https://www.bdo.ca/BDO/media/AAPublications/PSAS_Update_09Sep19.pdf$WWDFKPHQWAudit Committee Meeting Agenda Tuesday, June 23, 2020 Item 1Page 25 of 93Page 61 of 149
The Corporation of the Town of Aurora
Consolidated Financial Statements
For the year ended December 31, 2019
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The Corporation of the Town of Aurora
Consolidated Financial Statements
For the year ended December 31, 2019
Contents
Independent Auditor's Report 1-2
Consolidated Financial Statements
Consolidated Statement of Financial Position 3
Consolidated Statement of Operations and Accumulated Surplus 4
Consolidated Statement of Change in Net Financial Assets 5
Consolidated Statement of Cash Flows 6
Notes to the Consolidated Financial Statements 7 - 22
Schedule 1 - Consolidated Schedule of Segmented Disclosure 23 - 24
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Independent Auditor's Report
To the Mayor and Councillors of The Corporation of the Town of Aurora
Opinion
We have audited the consolidated financial statements of The Corporation of the Town of Aurora, (theTown) which comprise the consolidated statement of financial position as at December 31, 2019, and the
consolidated statement of operations and accumulated surplus, consolidated statement change in net
financial assets and consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,the consolidated financial position of the Town as at December 31, 2019, and the consolidated results of its
operations, changes in net financial assets, and cash flows for the year then ended in accordance with
Canadian public sector accounting standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Ourresponsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Town in
accordance with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Emphasis of Matter
We draw you attention to Note 2 of the financial statements, which explains that certain comparative
information presented for the year ended December 31, 2019 has been restated. Our opinion is not
modified in respect of this matter.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with Canadian public sector accounting standards, and for such internal control
as management determines is necessary to enable the preparation of consolidated financial statements thatare free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Town’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Town or to cease
operations, or has no realistic alternative but to do so.
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Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with Canadian generally accepted auditing standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Town’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Town to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 29 of 93
Page 65 of 149
The Corporation of the Town of Aurora
Consolidated Statement of Financial Position
December 31 2019 2018
(Dollar amounts presented in '000's) Restated
(note 2)
Financial assets
Cash (note 4) $ 9,348 $ 10,527
Taxes receivable 9,651 10,653
User fees receivable (note 6)5,524 6,654
Accounts receivable 7,380 6,736
Portfolio investments (note 7) 134,223 128,104
166,126 162,674
Liabilities
Accounts payable and accrued liabilities 18,223 19,625
Deposits (note 9) 4,033 5,107
Deferred revenue (note 10) 44,544 35,393
Employee benefits liabilities (note 11) 1,563 1,324
Net long-term liabilities (note 12) 8,654 9,694
77,017 71,143
Net financial assets 89,109 91,531
Non-financial assets
Tangible capital assets (note 23) 471,697 459,416
Prepaid expenses 314 795
472,011 460,211
Accumulated surplus (note 13) $ 561,120 $ 551,742
Contingencies and contractual obligations (notes 19 and 20)
Subsequent events (note 3)
Approved by Council
Mayor
Chief Administrative Officer
The accompanying notes are an integral part of these consolidated financial statements
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 30 of 93
Page 66 of 149
The Corporation of the Town of Aurora
Consolidated Statement of Operations and Accumulated Surplus
Budget
For the year ended December 31 2019 2019 2018
(Dollar amounts presented in '000's) Restated
(note 2)
(note 5)
Revenue
Taxation (note 14) $ 48,059 $ 48,939 $ 46,407
User fees 35,754 35,245 36,404
Grants (note 15) 1,478 2,114 3,927
Gain on disposal of land available for sale --6,036
Loss on disposal of tangible
capital assets -(1,677)35
Gain on tangible capital asset adjusment -6,949 -
Assumed infrastructure assets -1,921 4,306
Other (note 16) 6,899 14,937 9,303
92,190 108,428 106,418
Expenses
General government 14,735 17,790 14,862
Protection to person and property 14,695 13,434 13,414
Transportation services 10,903 10,513 10,083
Environmental services 34,040 32,001 28,495
Leisure and cultural services 23,286 23,191 21,023
Planning and development 2,192 2,121 1,868
99,851 99,050 89,745
Annual surplus (deficit)(7,661)9,378 16,673
Accumulated surplus,beginning of year, as previously stated551,742 551,742 535,598
Prior period adjustment (note 2) --(529)
Accumulated surplus,beginning of year, as restated --535,069
Accumulated surplus,end of year $ 544,081 $ 561,120 $ 551,742
The accompanying notes are an integral part of these consolidated financial statements
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 31 of 93
Page 67 of 149
The Corporation of the Town of Aurora
Consolidated Statement of Change in Net Financial Assets
Budget
For the year ended December 31 2019 2019 2018
(Dollar amounts presented in '000's) Restated
(note 2)
(note 5)
Annual surplus (deficit)$ (7,661)$ 9,378 $ 16,673
Amortization of tangible capital assets 15,090 15,090 14,948
Net proceeds on disposal of tangible capitalassets -87 437
Loss (gain) on disposal of tangible capital assets -1,677 (35)
Acquisition of tangible capital assets (20,265)(20,265)(17,058)
Assumed infrastructure assets -(1,921)(4,306)
Tangible capital asset adjustment gain -(6,949)-
Change in prepaid expenses -481 (343)
Change in net financial assets (12,836)(2,422)10,316
Net financial assets, beginning of year, as previously stated 91,531 91,531 81,744
Prior period adjustment (note 2) --(529)
Net financial assets, beginning of year, as restated --81,215
Net financial assets, end of year $ 78,695 $ 89,109 $ 91,531
The accompanying notes are an integral part of these consolidated financial statements
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 32 of 93
Page 68 of 149
The Corporation of the Town of Aurora
Consolidated Statement of Cash Flows
For the year ended December 31 2019 2018
(dollar amounts presented in '000's) Restated
(note 2)
Operating transactions
Annual surplus $ 9,378 $ 16,673
Non-cash charges to operations:
Amortization of tangible capital assets 15,090 14,948
Gain on disposal of land listed for sale -(6,036)
Loss (gain) on disposal of tangible capital assets 1,677 (35)
Assumed infrastructure assets (1,921)(4,306)
Changes in non-cash operating working capital:
Taxes receivable 1,002 (2,896)
User fees receivable 1,130 60
Accounts receivable (644)362Land listed for sale --
Accounts payable and accrued liabilities (1,402)1,424
Deposits (1,074)(586)
Deferred revenue 9,151 1,164
Employee benefits liabilities 239 240
Prepaid expenses 481 (343)
Total Operating Transactions 33,107 20,669
Capital transactions
Acquisition of tangible capital assets (20,265)(17,058)
Capital asset adjustments (6,949)-
Net proceeds on disposal of land listed for sale -8,873
Net proceeds on disposal of tangible capital assets 87 437
Total Capital Transactions (27,127)(7,748)
Investing transactions
Increase in portfolio investments (6,119)(10,776)
Financing transactions
Advances / (principal repayments) on long-term liabilities (1,040)4,726
Advances / (principal repayments) of notes payable
and bank indebtedness -(5,874)
Total Financing Transactions (1,040)(1,148)
Increase in cash (1,179)997
Cash, beginning of year 10,527 9,530
Cash, end of year $ 9,348 $ 10,527
The accompanying notes are an integral part of these consolidated financial statements
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 33 of 93
Page 69 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
1. Summary of Significant Accounting Policies
The Corporation of the Town of Aurora (the "Town") is a municipality in the Province of
Ontario. The Town conducts its operations guided by the provisions of provincial statutes
such as the Municipal Act, Municipal Affairs Act and related legislation.
Management's Responsibility
The consolidated financial statements of the Town are the responsibility of management.
They have been prepared in accordance with Canadian public sector accounting standards
established by the Public Sector Accounting Board ("PSAB") of The Chartered Professional
Accountants of Canada.
Basis of Consolidation
The consolidated financial statements reflect the assets, liabilities, revenue, expenditures
and fund balances of the Town and comprise all of the organizations that are accountable
for the administration of their financial affairs and resources to the Town and are owned or
controlled by the Town. These boards include:
The Aurora Public Library Board
All inter-organizational and inter-fund transactions and balances are eliminated.
Basis of Accounting
Revenue and expenses are reported on the accrual basis of accounting whereby revenue isrecognized as it is earned and measurable; and expenses are recognized in the period that
goods and services are acquired, a liability is incurred, or transfers are due.
Cash
Cash and cash equivalents are comprised of cash on hand, cash held in financial institutions
and temporary investments with maturities of 90 days or less.
Government Transfers
Government transfers, which include legislative grants, are recognized in the consolidated
financial statements in the period in which the events giving rise to the transfers occur,
providing the transfers are authorized, any eligibility criteria have been met, and
reasonable estimates of the amounts can be made, except to the extent possible that the
transfer stipulations give rise to an obligation that meets the definition of a liability.
Transfers are recognized as deferred revenue when transfer stipulations give rise to a
liability. Transfer revenue is recognized in the consolidated statement of operations as the
stipulated liabilities are settled.
Tangible Capital Assets
Tangible capital assets are recorded at cost, less accumulated amortization. Cost includes
all costs directly attributable to acquisition or construction of the tangible capital asset
including transportation costs, installation costs, design and engineering fees, legal fees and
site preparation costs. Contributed tangible capital assets are recorded at fair value at the
time of the donation, with a corresponding amount recorded as revenue. Amortization is
recorded on a straight-line basis over the estimated life of the tangible capital asset using
the following rates.
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 34 of 93
Page 70 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
1. Summary of Significant Accounting Policies (continued)
Tangible Capital Assets (continued)
Buildings 10 - 50 years
Landscaping & Other 5 - 20 years
Vehicles 7 - 15 years
Other
Machinery and Equipment 7 - 20 years
Library Collection 7 years
Computer Equipment 4 - 10 years
Facilities (excluding Buildings) 5 - 80 years
Transportation Infrastructure
Roads 20 - 36 years
Signage 1 - 36 years
Bridges and Other Structures 15 - 40 years
Environmental Infrastructure
Underground and Other Networks 15 - 100 years
One half of the annual amortization is charged in the year of acquisition and in the year of
disposal.
Non-pension Post-employment Benefits, Compensated Absences & Termination Benefits
The Town accrues its obligations under employee benefit plans as the employees render the
services necessary to earn employee future benefits. The Town has adopted the following
valuation methods and assumptions:
a) Actuarial cost method:
Accrued benefit obligations are computed using the projected benefit method
prorated on service, as defined in PSAB 3250 and PSAB 3255. The objective under
this method is to expense each member's benefit under the plan taking into
consideration projections of benefit costs to and during retirement. Under this
method an equal portion of total estimated future benefit is attributed to each year
of service.
b) Accounting policies:
Actuarial gains and losses are amortized on a linear basis over the expected average
remaining service life ("EARSL") (expected remaining payment period in respect of
the retiring allowance) of members expected to receive benefits under the plan,
with amortization commencing in the period following the determination of the gain
or loss. Obligations are attributed to the period beginning on the member's date of
hire and ending on the expected date of termination, death or retirement,
depending on the benefit value.
c) Workplace Safety and Insurance Board (WSIB):
The costs of WSIB obligations are actuarially determined and are expensed in the
period they occur. Any actuarial gains and losses that are related to WSIB benefits
are recognized immediately in the period they arise.
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 35 of 93
Page 71 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
1. Summary of Significant Accounting Policies (continued)
Pension agreements
The Town makes contributions to the Ontario Municipal Employees' Retirement System
("OMERS"), a multi-employer public sector pension fund, based on the principles of a
defined benefit plan, which specifies the amount of the retirement benefit to be received
by the employees on the basis of predefined retirement age, length of eligible service and
rates of remuneration over a fixed period of time.
Because OMERS is a multi-employer pension plan, any pension plan surpluses or deficits are
a joint responsibility of all participating Ontario municipalities and their employees. As a
result, the Town does not recognize any share of the OMERS pension surplus or deficit.
Accordingly, contributions made during the year are expensed.
Deposits
The Town receives deposits on building permits and site plan applications that ensure
restitution of any potential damage caused by the developer. These deposits are held in
trust until the work has been completed, at which point in time, the deposit is returned.
Deferred Revenue
Deferred revenue represents user charges and fees which have been collected, but for
which the related services have yet to be performed. These amounts will be recognized as
revenue in the fiscal year the services are performed.
The Town receives development charges under the authority of provincial legislation and
Town by-laws. These funds, by their nature, are restricted in their use and, until applied to
specific capital works, are recorded as deferred revenue (formerly obligatory reserve
funds).
Use of Estimates
The preparation of financial statements in accordance with Canadian public sector
accounting standards requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period. The principal
estimates used in the preparation of these financial statements are the allowance for
doubtful accounts, taxes receivable, post-employment benefits liabilities, accrued
liabilities, the net amount of development charges, the estimated useful lives of tangible
capital assets, fair value of assumed infrastructure assets and valuation of tangible capital
assets. Actual results could differ from management's best estimates as additional
information becomes available in the future.
Assumed Infrastructure Assets
Subdivision streets, lighting, sidewalks, drainage, and other infrastructure and in some
instances park fixtures and trail networks are required to be provided by subdivision
developers. Upon completion they are assumed by the Town and recorded at fair value at
the date of assumption. The Town is generally not involved in the construction of these
assets. In some instances, the Town may construct these assets on the developer's behalf on
a fully cost recoverable basis. Under either scenario the Town does not budget for the
contributions from the developer or the capital expenditure.
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 36 of 93
Page 72 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
1. Summary of Significant Accounting Policies (continued)
Revenue Recognition
Revenues are recognized as follows:
a) Taxation revenue is recognized as revenue when it is authorized and the taxable
event occurs. Related penalties and interest are recognized as revenue in the year
that they are earned. As the Town's total taxes receivable are based on
management's best estimates at the time, it is possible for the fianl amount
collected to differ as a result of property value reassessments arising from audits,
appeals or court decisions.
b) User fees and other revenues are reported when a performance obligation has been
satisfied through the delivery of a good or service or when authority to claim or
retain an economic inflow exists and a past transaction or event that gives rise to
an asset has been identified.
c) Grants
- Conditional grant revenue is recognized to the extent the conditions imposed
on it have been fulfilled.
- Unconditional grant revenue is recognized when monies are receivable.
d) Investment income earned on surplus funds is reported as revenue in the period
earned.
Investment income earned on deferred revenue amounts such as development
charges and parkland allowances, is added to the associated funds and forms part of
the respective deferred revenue balance.
Investment income earned on the Town's reserve fund balances is added to the
associated funds and forms part of the respective period ending reserve fund
balance. Reserve fund balances in a credit position are similarly charged interest.
e) Development related fees and charges are recognized over the period of services or
when required expenses occur if applicable, net of development credits.
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 37 of 93
Page 73 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
2. Restatement of Prior Period
Development charge (DC) revenue can only be utilized for specifically defined eligible
expenditures as set out in the Development Charge Act. Eligible DC expenditures relate to
the one-time costs that are put in place for the necessary infrastructure that is required in
order to maintain a consistent level of town services to a growing community. Development
charges are recorded as deferred revenue as they are collected, and then recognized as
part of the Town's annual revenue when the associated infrastructure costs are incurred.
In 2018 the Town did not recognize a sufficient amount of DC revenues, consequently DC
revenues in 2018 is herein being restated by a prior period adjustment in order to report
more recognized DC revenue for 2018 than what was previously reported as follows:
The net effect of all of the above noted prior period adjustment is a follows
2018
Statement of Financial Position:
Decrease in liabilities $ (13,833)
Increase in accumulated surplus $ (13,833)
Statement of Operations:
Decrease in accumulated surplus, beginning of year 529
Increase in user fee revenue and annual surplus (14,362)
Increase in accumulated surplus, end of year $ (13,833)
3. Subsequent Events
In March, 2020 the Town of Aurora along with the rest of the world found itself subject tothe COVID-19 pandemic. The magnitude of the impact of COVID-19 on the Town is not yet
clear, but the existing social distancing measures and economic shut-down impacts have
already had material impacts on the Town's short-term financial positon. In particular, the
Town's community program, tax and water revenues have become constrained due to
program cancellations and annouced financial relief measures. These lost or delayed
revenues have been partially offset by program delivery cost savings and upper tier
municipality financial relief measures. The Town's tax and water receiveables are expected
to continue to be subject to upward pressure over the short-term. However, the Town's
long term financial health is expected remain strong.
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 38 of 93
Page 74 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
4. Cash
The Town's bank accounts are held at one chartered bank. The bank accounts earn interest
at composite prime rate minus 1.75%. As at December 31, 2019, the rate is 2.20% (2018 -
2.20%).
The Town has an overdraft credit facility agreement with TD Bank, to be used for day to
day operations. The maximum credit limit is $1,000 with interest calculated using the
composite prime rate minus 0.25%. As at December 31, 2019, the rate is 3.70% (2018 -
3.70%) and the outstanding balance is $Nil (2018 - $Nil).
The Town has letters of credit outstanding with the bank as at December 31, 2019 of
$486,208 (2018 - $486,208), which were required by its utilities provider for security on a
development project.
5. Budget Reconciliation
The Budget for 2019 adopted by Council on March 26, 2019 was prepared on a basis not
consistent with that used to report actual results (Canadian public sector accounting
standards). The budget was prepared on a modified accrual basis, while Canadian public
sector accounting standards now require financial statements to be prepared on a fullaccrual basis. Accordingly, the budget expensed all tangible capital expenditures rather
than including amortization expense. As a result, the budget figures presented in the
statements of operations and change in net financial assets represent the 2019 budget
adopted by Council with adjustments as follows:
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 39 of 93
Page 75 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
5. Budget Reconciliation (continued)
Revenue Expense Net
Council approved budget:
Operating - Town & Library $ 67,455 $ 67,455 $ -
Operating - water/sewer 27,014 27,014 -
Capital (for multiple years) 60,564 60,564 -
Total Council approved budget 155,033 155,033 -
Less: Multiple years capital (60,564) (60,564) -
debt principal payments1 - (1,040) 1,040
Plus: 2019 Non-TCA capital - 4,957 (4,957)
transfers to/from other funds2 (2,872) (13,625) 10,753
transfers from deferred revenue 593 - 593
amortization expense3 - 15,090 (15,090)
Adjusted budget per the
consolidated statement of operations $ 92,190 $ 99,851 $ (7,661)
1 "Debt principal payments" are considered a repayment of a long-term liability and are not
considered an expense under accrual accounting - only the related interest portion
remains a valid expense under accrual accounting.
2 "Transfers to/from other funds" represents transfer to/from reserves for expenditures and
is not considered a revenue source under accrual accounting.
3 Under accrual accounting, costs related to the acquisition of "Tangible Capital Assets" are
recorded on the balance sheet - only the amortization of existing Tangible Capital Assets
is included as an expense.
6. User Fees Receivable
During the year the amount of the Town's water receivables that are in dispute were
revised upwards from $1,546 to $1,880. Management anticipates that this amount in
dispoute will be settled by the end of 2020. In management’s opinion, no further write off
of water receivables are necessary in the consolidated financial statements.
7. Portfolio Investments
Portfolio investments are comprised of fixed income securities that are primarily federal,
provincial and municipal government bonds, debentures and promissory notes and bearer
deposits that mature after more than 90 days. Portfolio investments are valued at the lower
of cost or market value.
Portfolio investments of $134,223 (2018 - $128,104) have a market value of $139,697
(2018 - $130,318).
8. Land Listed for Sale
As of December 31, 2019 the Town has no land listed for sale.
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 40 of 93
Page 76 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
9. Deposits
Beginning Ending
Balance 2019 2019 Balance
2019 Inflows Outflows 2019
Refundable Damage Deposits $ 5,107 916 (1,990)$ 4,033
10. Deferred Revenue
Beginning
Balance2019 2019Inflows 2019Outflows
Ending
Balance
2019
Restated
(note 2)
Development charges $ 19,206 13,833 (12,973)$ 20,066
Parkland purposes 8,521 4,822 (155)13,188
Federal Gas Tax 2,803 3,414 65 6,282
Revenue Deferral - General 4,104 4,650 (4,353)4,401
34,634 26,719 (17,416)43,937
Deferred Revenue
transferred to capital but
unexpensed at the end of
the year 759 - (152)607
$ 35,393 26,719 (17,568)$ 44,544
11. Employee Benefits Liabilities
2019 2018
Post-employment benefits $ 1,042 $ 924
Accrued sick leave 469 358
1,511 1,282
WSIB benefits 52 42
$ 1,563 $ 1,324
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 41 of 93
Page 77 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
11. Employee Benefits Liabilities (Continued)
Post-employment benefits
Post-employment benefits are health and dental benefits that are provided to early retirees
and employees currently on a long term disability. The Town recognizes these post-
employment costs as they are earned during the employee's tenure of service. The accrued
benefit obligations for the Town's post-employment benefits and accrued sick leave
liabilities as at December 31, 2019 are as follows:
2019 2018
Accrued benefit obligation, beginning of year $ 1,997 $ 1,852
Add: Benefit expense 222 215
Interest cost 72 67
Actuarial losses / (gain)(141)-
Less: Benefits paid for the period (151)(137)
Accrued benefit obligation, end of year 1,999 1,997
Unamortized actuarial losses (488)(715)
Accrued benefit liability $ 1,511 $ 1,282
The accrued benefit obligations for the Town's post-employment benefits liability and
accrued sick leave as at December 31, 2019 are based on actuarial valuations for
accounting purposes as at December 31, 2019 with projections to December 31, 2022.
These actuarial valuations were based on assumptions about future events. The economic
assumptions used in these valuations are management's best estimates of expected rates of:
2019 2018
Expected future inflation rates 1.75%2.00%
Discount on accrued benefit obligations 3.50%3.40%
Drug costs escalation 6.75%8.00%
Other health care costs escalation 6.75%4.00%
Dental costs escalation 3.75%4.00%
The amount of benefits paid by the Town during the year was $98 (2018 - $61).
Workplace Safety and Insurance Board (WSIB) benefits
The Town is a Schedule 2 employer under the Workplace Safety and Insurance Act and, as
such, assumes responsibility for financing its workplace safety and insurance costs. The
accrued WSIB benefit obligations for the Town's WSIB benefits liability as at December 31,
2019 are based on actuarial valuations for accounting purposes as at December 31, 2019
with projections to December 31, 2022. These actuarial valuations were based on
assumptions about future events.
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 42 of 93
Page 78 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
12. Net Long-term Liabilities
2019 2018
Debenture, bearing interest at 2.29%, maturing in
March 2026. Principal and interest is repayable in
semi-annual installments of $184.$ 2,208 $ 2,519
Debenture, bearing interest at 4.37%, maturing in
September 2025. Principal and interest is repayable insemi-annual installments of $160.1,676 1,915
Debenture, bearing interest at 2.85%, maturing in
May 2023. Principal and interest is repayable in
semi-annual installments of $318.4,770 5,260
$ 8,654 $ 9,694
Principal repayments for each of the next five years and thereafter are as follows:
2020 $ 1,072
2021 1,105
2022 1,139
2023 1,174
2024 1,210
Thereafter 2,954
$ 8,654
The interest expense related to the above long-term debt was $276 (2018 - $274).
One debenture was issued by The Regional Municipality of York in the name of the Town to
fund the construction of a recreation complex. A second debenture was issued by
Infrastructure Ontario in the name of the Town of Aurora to fund the Town's conversion of
all streetlights to LED. The third debenture also issued by Infrastructure Ontario in the
name of the Town of Aurora was utilized by the Town to fund its Joint Operations Centre.
These long-term liabilities have been approved by municipal and regional by-law. The
annual principal and interest payments required to service these liabilities are within the
annual debt repayment limit prescribed by the Ministry of Municipal Affairs and Housing.
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 43 of 93
Page 79 of 149
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
13. Accumulated Surplus
Accumulated surplus is comprised of the following:
2019 2018
Restated
(Note 2)
Non Financial Surpluses
General revenue $ 13,894 $ 31,467
Invested in tangible capital assets 471,697 459,416Less: financed by long-term liabilities (8,654)(9,694)
Total non-financial surpluses 476,937 481,189
Reserves set aside by Council for Infrastructure
Infrastructure Sustainability - Water Rate Funded 11,877 10,424
Infrastructure Sustainability - Tax Rate Funded 5,513 2,311
17,390 12,735
Reserve funds, set aside for specific purposes by Council 34,322 26,788
Proceeds of sale of Aurora Hydro 32,471 31,030
Total reserves and reserve funds 84,183 70,553
Accumulated surplus $ 561,120 $ 551,742
14. Net Taxation
2019 2018
Total taxes levied by the Town $ 144,779 $ 137,025
Less:
Taxes levied on behalf of the Boards of Education 39,102 37,011
Taxes levied on behalf of the Region of York 56,738 53,607
$ 48,939 $ 46,407
15. Grants Revenue
2019 2018
Federal $ 387 $ 1,232
Provincial 1,304 2,288
Other 423 407
$ 2,114 $ 3,927
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The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
16. Other Revenue 2019 2018
Penalties and interest on taxes $ 1,444 $ 1,188
Fines 321 191
Licenses, permits and fees 2,727 3,057
Interest income 4,468 3,432
Other 5,977 1,435
$ 14,937 $ 9,303
17. Pension Agreements
OMERS provides pension services to almost 500,000 active and retired members and their
approximately 1,000 employers. Each year an independent actuary determines the funding
status of OMERS Primary Pension Plan (the Plan) by comparing the actuarial value of
invested assets to the estimated present value of all pension benefits that members have
earned to date. The most recent actuarial valuation of the Plan was conducted at
December 31, 2019. The results of this valuation disclosed total actuarial liabilities of
$107,687 million in respect of benefits accrued for service with actuarial assets at that date
of $104,290 million indicating an actuarial deficit of $3,397 million. Because OMERS is a
multi-employer plan, any pension plan surpluses or deficits are a joint responsibility of
Ontario municipal organizations and their employees. As a result, the town does not
recognize any share of the OMERS pension surplus or deficit.
Contributions in 2019 ranged from 9.0% to 14.6% depending on the level of earnings. As a
result, $2,173 (2018 - $2,044) was contributed to OMERS for current year services.
18. Insurance Coverage
The Town is self-insured for insurance claims up to $10 for any individual claim and for any
number of claims arising out of a single occurrence.
Claim costs during the year amounted to $35 (2018 - $69).
The Town has made provisions for reserves for self-insurance claims under $10 to be used
for those claims that exceed the sum provided for in the annual budget. These reserves are
reported on the Financial Statement Operations and Accumulated Surplus under reserves setaside by Council. In 2013, the Insurance stand alone reserve was collapsed into the Town's
general Tax Rate Stabilization Reserve; this reserve will be similarly accessible for this
purpose. The balance of the Tax Rate Stabilization Reserve as of December 31, 2019 was
$7,101 (2018 - $4,695).
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The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
19. Contingencies
The Town is subject to various legal claims arising in the normal course of its operations.
The ultimate outcome of these claims cannot be determined at this time; therefore, no
amounts have been recorded in these financial statements. The Town's management believe
that the ultimate disposition of these matters will not have a material adverse effect on its
financial position.
20. Contractual Obligations
The Town committed contractual obligations on major capital projects of approximately
$18,261 during 2019, which have various contract completion dates.
Effective January 1, 2002, the Town entered into an agreement with the Town of
Newmarket with respect to the provision of Fire and Emergency services. Under the
Agreement, the Town of Newmarket assumed responsibility for the combined Central York
Fire Services. The cost of these services is shared between the two municipalities on the
basis of a pre-defined cost sharing formula. The Town's share of costs for the year was
$11,182 (2018 - $10,490).
21. Segment Information
The Town is a diversified municipal government institution that provides a wide range of
services to its citizens. Distinguishable functional segments have been separately disclosed
in the Consolidated Schedule of Segment Disclosure. The nature of the segments and the
activities they encompass are as follows:
Taxation Revenue
The Town's primary source of funding for its operations is achieved through property taxes
levied against property owners.
Governance & Corporate Support
This functional segment includes The Mayor's office and Council, CAO Office, Legislative
Services, Legal, Communication, Information Technology and Financial Services, and all
other support services.
Fire & Emergency Services
Central York Fire Services provides fire and emergency services to the residents of Aurora
and Newmarket. The cost the Town paid for these services is described in Note 20.
Building, Bylaw & Licensing Services
The Town issues a variety of licenses and permits. This segment ensures an acceptable
quality of building construction and maintenance of properties through enforcement of
construction codes, building standards and by-laws for the protection of occupants. It
enforces all zoning by-laws and the processing of building permit applications.
Roads & Related Services
This segment represents the reconstruction, repair, maintenance works and winter control
services provided to the Town's roads, sidewalks, street lighting, walkways and bridges.
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The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2019
(Dollar amounts presented in '000's)
21. Segment Information (continued)
Environmental Services
This segment represents the water/sewer services and waste management services provided
by the Public Works Department.
Community Programs & Events
This segment represents the services that the Parks & Recreation Services Department
provided through community programs and special events.
Parks & Facilities
This segment maintains numerous recreation facilities, as well as indoor community space
for booking and community use. It also maintains parks and playgrounds, open spaces and avast trail system.
Public Library Services
This segment of library services covers the Library Board and The Town's library expenses.
The funding from the Town to the Library Board is eliminated before the segment amount is
determined.
Planning & Development
This functional segment manages the Town's urban development through the development
application process. It also oversees community economic development, environmental
concerns, heritage matters, local neighbourhoods, and the Town's Official Plan.
22. Tangible Capital Assets Under Construction
Tangible capital assets under construction and other capital work in progress by the Town
having a value of $44,547 (2018 - $30,431) have not been amortized. Amortization of these
assets will commence when these noted assets are put into service. This value excludes any
developer constructed assets which have yet to be assumed.
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The Corporation of the Town of AuroraNotes to the Consolidated Financial StatementsDecember 31, 2019(Dollar amounts presented in '000's)23. Tangible Capital Assets2019GeneralInfrastructureTotalLandBuildingsVehiclesComputerand otherFacilitiesRoadsUndergroundand OtherNetworksBridges andOtherStructuresAssets UnderConstructionCostBalance, beginning of year $ 111,495$ 104,316$ 10,862$ 8,281$ 25,663$ 102,985$ 239,013$ 21,444$ 30,431$ 654,490Add: Additions during the year392 1,305 949 115 25 346 - 17,133 20,265Add: Donations and transfers- - - - 3,839 - 745 41(2,704)1,921Add: Net TCA adjustment- 1,725 - - 787 1,025 6,590 793 - 10,920Less: Disposals during the year-(18)(652)(385)(84)(470)(1,862)(204)(313)(3,988)Balance, end of year111,495106,41511,5158,84530,320103,565244,83222,07444,547683,608Accumulated amortizationBalance, beginning of year-42,2895,7725,04011,24741,19074,05115,485-195,074Add: Amortization during the year- 3,601 882 887 978 3,469 4,594 679 - 15,090Add: Net TCA adjustment- 439 - - 355 426 2,244 507 - 3,971Less: Amortization on disposals-(11)(613)(384)(86)(304)(621)(205)-(2,224)Balance, end of year-46,3186,0415,54312,49444,78180,26816,466-211,911Net book value of tangible capital assets$ 111,49560,0975,4743,30217,82658,784164,5645,60844,547471,697$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 48 of 93Page 84 of 149
The Corporation of the Town of AuroraNotes to the Consolidated Financial StatementsDecember 31, 2019(Dollar amounts presented in '000's)23. Tangible Capital Assets (continued)2018GeneralInfrastructureTotalLandBuildingsVehiclesComputerand otherFacilitiesRoadsUndergroundand OtherNetworksBridges andOtherStructuresAssets UnderConstructionCostBalance, beginning of year$ 111,257$ 102,770$ 9,994$ 8,377$ 24,223$ 97,058$ 234,506$ 21,305$ 26,049$ 635,539Add: Additions during the year621 1,254 479 309 19 229 105 14,042 17,058Add: Donations and transfers303 1,127 - - 1,131 6,753 4,458 61 (9,527) 4,306Less: Disposals during the year(65) (202) (386) (575) - (845) (180) (27) (133) (2,413)Balance, end of year111,495104,31610,8628,28125,663102,985239,01321,44430,431654,490Accumulated amortizationBalance, beginning of year-38,8365,3464,71610,40738,52569,62414,683-182,137Add: Amortization during the year- 3,655 810 898 840 3,398 4,531 816 - 14,948Less: Amortization on disposals- (202) (384) (574) - (733) (104) (14) - (2,011)Balance, end of year-42,2895,7725,04011,24741,19074,05115,485-195,074Net book value of tangible capital assets$ 111,495$ 62,027$ 5,090$ 3,241$ 14,416$ 61,795$ 164,962$ 5,959$ 30,431$ 459,416$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 49 of 93Page 85 of 149
The Corporation of the Town of AuroraConsolidated Schedule of Segmented DisclosureSchedule 1December 31, 2019(Dollar amounts presented in '000's)2019TaxationRevenueGovernance &CorporateSupportFire &EmergencyServicesBylaw &LicensingServicesRoads &RelatedServicesEnvironmentalServicesCommunityPrograms &EventsParks &FacilitiesPublic LibraryServicesPlanning &DevelopmentConsolidatedRevenueTaxation$48,939$-$-$-$-$ -$-$-$-$-$48,939User fees- 86 844 444 855 25,289 4,690 489 943 1,605 35,245Grants- 20 47 112 1,097 258 485 50 45 - 2,114Gain on tangible capital asset adjustment- 6,949 - - - - - - - - 6,949Loss on disposal of tangible capital assets-(1,677)--- -----(1,677)Assumed infrastructure assets- - - - - - - 1,921 - - 1,921Other- 6,065 - 2,233 964 3,171 1,169 796 38 501 14,937Total Revenue48,93911,4438912,7892,91628,7186,3443,2561,0262,106108,428ExpensesSalaries, wages and benefits- 6,874 - 2,966 2,993 866 3,817 6,777 2,866 1,719 28,878Amortization- 4,628 291 - 3,336 5,406 - 978 450 - 15,089Materials and supplies- 468 1 81 1,265 2,358 276 486 467 7 5,409Contracted services- 5,739 9,969 122 2,816 23,291 1,350 5,082 316 281 48,966Interest on long-term liabilities- - - - - - - 223 - - 223Others- 80 - 4 103 80 90 13 - 115 485Total Expenses-17,78910,2613,17310,51332,0015,53313,5594,0992,12299,050Annual Surplus (Deficit)$ 48,939$(6,346)$(9,370)$(384)$(7,597)$(3,283)$ 811$(10,303)$(3,073)$(16)$ 9,378$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 50 of 93Page 86 of 149
The Corporation of the Town of AuroraConsolidated Schedule of Segmented DisclosureSchedule 1December 31, 2019(Dollar amounts presented in '000's)2018 Restated (note 2) TaxationRevenueGovernance &CorporateSupportFire &EmergencyServicesBylaw &LicensingServicesRoads &RelatedServicesEnvironmentalServicesCommunityPrograms &EventsParks &FacilitiesPublic LibraryServicesPlanning &DevelopmentConsolidatedRevenueTaxation $ 46,407 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 46,407User fees - 166 3,355 33 1,985 13,694 4,102 11,094 529 1,446 36,404Grants - 71 166 - 2,981 231 433 - 45 - 3,927Gain on disposal of land listed for sale-6,036--------6,036Loss on disposal of tangible capital assets-35 - - - - - - - -35Assumed infrastructure assets-4,306--------4,306Other - 4,958 - 2,273 112 586 498 276 53 547 9,303Total Revenue46,40715,5723,5212,3065,07814,5115,03311,3706271,993106,418ExpensesSalaries, wages and benefits- 6,514 - 2,775 3,117 910 3,718 6,267 2,751 1,553 27,605Amortization - 4,631 272 - 3,587 5,158 - 840 460 - 14,948Materials and supplies - 522 - 54 1,226 2,026 282 365 214 9 4,698Contracted services - 3,055 10,113 197 2,153 20,401 1,095 4,352 259 167 41,792Interest on long-term liabilities - - - - - - - 329 - - 329Other - 140 - 3 - - 84 7 - 139 373Total Expenses-14,86210,3853,02910,08328,4955,17912,1603,6841,86889,745Annual Surplus (Deficit)$ 46,407$ 710$ (6,864)$ (723)$ (5,005)$ (13,984)$ (146)$ (790)$ (3,057)$ 125$ 16,673$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 51 of 93Page 87 of 149
–“
Year End Report for The Corporation of
the Town of Aurora
Presented by
Giselle Bodkin, CPA, CA
Emma Roy, CPA, CA
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TABLE OF CONTENTS
Where are you today?
Key Performance Results...................................................................... 2-8
Audit Committee Best Practice Recommendations................................................... 9
Summary of Audit Process........................................................................... 10-11
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TOTAL REVENUE, EXPENSES AND ANNUAL SURPLUS
(IN THOUSANDS ‘000)
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ANNUAL SURPLUS PLUS AMORTIZATION AND TCA ADDITIONS
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TOTAL NET FINANCIAL ASSETS
(IN THOUSANDS ‘000)
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 56 of 93
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TOTAL ACCUMULATED SURPLUS AND TANGIBLE CAPITAL
ASSETS
(IN THOUSANDS ‘000)
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2019 REVENUE
2014 REVENUE
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Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 58 of 93
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FIVE YEAR EXPENSE COMPARISON
(IN THOUSANDS ‘000)
2019 2018 2017 2016 2015
General government 17,790 14,862 15,232 13,329 12,006
Protection to person and property 13,434 13,414 12,855 12,749 12,654
Transportation services 10,513 10,083 9,526 9,107 8,399
Environmental services 32,001 28,495 26,050 24,638 21,478
Leisure and cultural services 23,191 21,023 20,327 19,058 19,056
Planning and development 2,121 1,868 2,068 2,106 1,944
99,050 89,745 86,058 80,987 75,537
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2019 EXPENSES
2014 EXPENSES
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Audit Committee Best Practice Recommendations
x Financial Reporting
o The Committee should receive monthly internal financial statements and ensure that
the financial statements clearly reflect the true performance of the Organization.
o The Committee should review audit adjustments made and those waived because ofimmateriality.o The Committee should review and approve the draft audited financial statements.o Is there a financial expert on the Committee? The financial expert would have the
following 5 attributes:
Understanding of the financial statements and accounting principles used to
prepare the issuer's financial statements;
Ability to assess the application of such accounting policies;
Experience preparing, auditing, analyzing or evaluating financial statements, or
experience supervising individuals engaged in preparing, auditing, analyzing or
evaluating financial statements;
An understanding of internal controls and procedures for financial reporting;
An understanding of audit committee functions
x Risks and Controls
o The Committee should create the right tone at the top to foster growth of suitable
controls.
o The Committee should have a sufficient understanding of the risks at the Organization.
o The Committee should analyze the internal control system to ensure that the risks are
adequately mitigated.
x Audit Function
o The Committee should ensure that the external auditor selected has sufficient
knowledge of and experience in the Organization’s industry.
o The Committee should review the audit fee and ensure that it is in line with the scope
of the audit.
o The Committee should confirm and discuss the auditor’s independence.
o The Committee should keep an open line of communication with the external auditors,
including such items as:
The auditor's responsibility under Canadian Auditing Standards.
The quality of the accounting principles followed by the Organization.
Disagreements with management.
Difficulties in performing the audit.
Major issues management discussed with the auditors before their retention.
x Other Issues to Consider:
o Is the Committee independent from the Organization?
o Is the Committee sufficiently financially literate?
o Are there clear position descriptions for directors?
o Is there orientation and continuing education for all directors in place?
o Is there a written code of business conduct and ethics?
o Is there a nominating committee?
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Summary of Audit Process
x Overall Approach
o Attain an understanding of processes and controls within the departments by
performing system descriptions and walkthroughs.
o Attain an understanding of internal IT and software, through discussions with the IT
department and our systems descriptions.
o Identify specific areas of the financial information which contain risk, and significant
judgment.
o From these initial stages, we determine what procedures to be performed on the
specific areas of the financial statements.
x Income Statement Approach
o Revenue
Taxation – we obtain the annual by-law and compare to the revenue recorded
following-up on significant differences.
Grants and government transfers – we obtain a sample of revenue received
and agree to the funding documents, following up on differences.
Interest income – Interest reasonability tests are performed on tax interest,
reserve interest, bank and investments.
Assumed infrastructure assets – we obtain the asset registers and recalculate.
We take a sample of additions and trace to the supporting documentation to
ensure the amounts agree. We then compare the overall asset registers to that
recorded and follow-up on any significant differences.
Gain on disposal of tangible capital assets – we review the disposals and
compare to the asset registers to ensure the cost was removed appropriately.
Also, if the assets were sold we obtain documentation on the proceeds to
ensure the calculation of the gain/loss is appropriate.
User fees, fines, licenses, permits and other revenue – we obtain a sample of
revenue received and agree to supporting documents and cash receipts,
following up on differences. We perform a test of controls in relation to water
revenues.
o Expenses
Salaries, wages and employee benefits – we perform a test of controls on a
cyclical basis. This tests various input and output controls for salaries. With
regards to benefits we perform a reasonability test based on yearly
percentages of CPP, EI, and benefits as a percentage of salaries. These are
compared to the stated rates and differences are followed up.
Materials and supplies, contracted services and other – we perform a test of
controls on a cyclical basis. The test of controls focus on controls surrounding
proper authorization of purchases.
Interest on long-term liabilities -we review the various debenture contracts
and agree the interest expensed to the interest indicated in those.
Amortization –we recalculate the amortization on a test basis and compare tothe actual amounts recorded, following up on any significant differences.
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x Balance Sheet Approach
o Assets
Cash – test of controls are performed on bank reconciliations, and a bank
confirmation is sent to the bank and agreed to the general ledger.
Taxes receivable – we perform a detailed five year comparison by aging
following-up on significant differences. We also perform a large arrears check
and follow-up to determine what the approach is to collect from that resident.
User fees and accounts receivable – we obtain the various accounts receivable
account details and for significant balances agree to the supporting
documentation or calculations. We also perform reasonability tests on various
specific balances. We perform cut-off tests to ensure that amounts have been
recorded in the proper period. We also check for deferred revenue or amounts
that have been outstanding for significant periods of time and ensure they
should not be written off.
Portfolio investments – Confirmations are sent to the investment advisors and
review of investment certificates and continuity schedules is performed.
Land listed for sale – we obtain the current year listing and for any purchases
or sales obtain the agreement and agree the amounts and recalculate any
gains/losses.
Tangible capital assets and tangible capital assets under construction – we
obtain the asset registers and recalculate. We take a sample of additions and
trace to the supporting documentation to ensure the amounts agree. We then
compare the overall asset registers to that recorded and follow-up on any
significant differences.
Prepaid expenses –we obtain supporting documentation for any material items
included in prepaid.
o Liabilities
Accounts payable and accrued liabilities – we perform cut-off testing to
ensure they have been recorded in the proper period. We test to ensure that
accruals are reasonable.
Deposits – we review the deposits and ensure that amounts received should not
be recognized through a sample of items, following up with the specific
departments.
Deferred revenue – we obtain the continuity schedule. For additions we test
the supporting grant funding letters, test the calculation of developer charges
and the reasonability of interest. For decreases we ensure they are approved
in the budget and test a sample to ensure revenue recognition criteria has been
met.
Employee benefits liabilities – we obtain the actuarial report, and review the
assumptions made and ensure they are reasonable. We then ensure that the
appropriate accounting method has been applied. We follow-up with both the
actuary and the Town’s Finance department on any unusual items, differences.
Net long-term liabilities – we obtain third party confirmation on the balance,
terms and interest rate, following up on any significant differences.
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BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. AUDIT PLANNING REPORT TO THE AUDIT COMMITTEE June 23, 2020THE CORPORATION OF THE TOWN $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 64 of 93Page 100 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020TABLE OF CONTENTS EXECUTIVE SUMMARY.................................................................................................................................................. 2YOUR DEDICATED BDO AUDIT TEAM ................................................................................................................................ 3AUDIT TIMELINE ........................................................................................................................................................ 4SIGNIFICANT AUDIT RISKS AND PLANNED RESPONSES........................................................................................................... 5MATERIALITY ............................................................................................................................................................ 6FEES ....................................................................................................................................................................... 7USING THE WORK OF OTHERS ....................................................................................................................................... 8APPENDIX A: BDO AUDIT STRATEGY ............................................................................................................................... 10APPENDIX B: ENGAGEMENT LETTER ............................................................................................................................... 11APPENDIX C: INDEPENDENCE LETTER ............................................................................................................................. 12APPENDIX D: RESPONSIBILITIES ..................................................................................................................................... 15APPENDIX E: BDO RESOURCES ...................................................................................................................................... 18$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 65 of 93Page 101 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020EXECUTIVE SUMMARY Your BDO Audit TeamGiselle Bodkin, CPA, CA will be the lead on the engagement team, supported by experts as deemed necessary. Please refer to page 4 for contact information should you have any questions or concerns regarding the financial statement audit. TimelineThe audit is scheduled to start in April with final completion scheduled for the June. See the Audit Timeline section of the report for the detailed milestones. Significant Audit Risks Our audit is focused on risks specific to your business and key accounts. Specifically, we have identified the following areas on which to focus: XManagement override of controlsXRevenue recognition – assumed lands and developer chargesMaterialityWe have determined that materiality for the current year audit will be $9,400,000 based on 2% of tangible capital assets for financial statement areas surrounding tangible capital assets. We have determined a specific materiality for the remaining financial statement areas will be $2,080,000 based on 2% of revenues. FeesWe estimate our fees for 2020 will be $31,500 for the audit of the consolidated financial statements, based on the assumptions outlined in the Fees section of this report. Engagement Objectives Our overall responsibility is to form and express an opinion on the financial statements. The performance of this audit does not relieve management or those charged with governance of their responsibilities. Please see the attached engagement letter in Appendix B for specific details regarding the scope of our work. Fraud DiscussionThrough our planning process, and prior years’ audits, we have developed an understanding of your oversight processes. We are not currently aware of any fraud affecting the Town. Please see Appendix Dfor clarification of the auditor’s responsibilities for detecting fraud. If you are aware of changes to processes or are aware of any instances of actual, suspected or alleged fraud affecting the Town, we request that you provide us with this information. $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 66 of 93Page 102 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020YOUR DEDICATED BDO AUDIT TEAM In order to ensure effective communication between the Audit Committee and BDO Canada LLP, the contact details of the engagement team are outlined below. We attempt to provide continuity of service to our clients to the greatest extent possible in accordance with mandated partner rotation rules. When rotation is required for key members of the engagement team, we will discuss this matter with the Audit Committee and determine the appropriate new individual(s) to be assigned to the engagement based on particular experience, expertise and engagement needs. NAMEROLEPHONENUMBEREMAILGiselle Bodkin, CPA, CAEngagement Partner705-797-3960gbodkin@bdo.caAndrea Nauss, CPA, CAAssurance Senior Manager705-797-3972anauss@bdo.cafname@bdo.caDirect: 403 213 2592 $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 67 of 93Page 103 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020AUDIT TIMELINE • June 2021Present audit planning report and agreed upon fees• January 2021Planning and interimfieldwork• April 2021Final audit fieldwork• June 2021Present final report to the Audit Committee• June 2021Release of Audit ReportThe following schedule outlines the anticipated timing of the audit of the consolidated financial statements of the Town. As part of the year end Audit Committee meeting, we will provide the Audit Committee with a copy of our draft audit opinion, discuss our findings, including significant estimates utilized by management, accounting policies, financial statement disclosures, and significant transactions completed during the year. We will also report any significant internal control deficiencies identified during our audit and reconfirm our independence. $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 68 of 93Page 104 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020SIGNIFICANT AUDIT RISKS AND PLANNED RESPONSES AREAS OF FOCUSRISKS NOTEDAUDIT APPROACHManagement override of controlsA common significant risk in all audit engagements is the risk of Management override of controls and fraud risk that may occur in the deferred revenue cycle.In accordance with auditing standards, BDO will perform specific procedures that include testing journal entries, reviewing accounting estimates for biases and obtaining and evaluating the business rationale for transactions that are outside the normal course of operations for the organization, if any.Revenue recognition – assumed lands and developer chargesThere is a significant risk regarding the fair value estimates of the land assumed by the town as the transactions are not officially made at arm’s length on the open market. Additionally, recorded developer charges and gas tax revenues represent a significant amount on the financial statements and are subject to greater scrutiny due to the elevated risk of fraud regarding the contributions. In accordance with auditing standards, BDO will performed specific procedures that include reviewing fair value estimates for bias, sampling developer charges and obtaining and evaluating the business rationale of transactions that are outside the normal course of operations for the organization, if any. BDO will also review deferred revenue recognition policies for the organization and assess whether they are consistent with Public Service Accounting Standards and management is applying the policy appropriately Based on our knowledge of the Town’s business, our past experience, and knowledge gained from management and the Audit Committee, we have identified the following significant risks; those risks of material misstatement that, in our judgment, require special audit consideration. Significant risks arise mainly because of the complexity of the accounting rules, the extent of estimation and judgment involved in the valuation of these financial statement areas, and the existence of new accounting pronouncements that affect them. We request your input on the following significant risks and whether there are any other areas of concern that the Audit Committee has identified.$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 69 of 93Page 105 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020MATERIALITYMisstatements, including omitted financial statement disclosures, are considered to be material if they, individually or in aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements. Judgments about materiality are made in light of surrounding circumstances and include an assessment of both quantitative and qualitative factors and can be affected by the size or nature of a misstatement, or a combination of both. Preliminary materiality was determined to be $9,400,000 based on 2% of tangible capital assets for financial statement areas surrounding tangible capital assets. A specific materiality for the remaining financial statement areas was determined to be $2,080,000 based on 2% of revenues. Our materiality calculation is based on the Town’s preliminary results. In the event that actual results vary significantly from those used to calculate preliminary materiality, we will communicate these changes to the Audit Committee as part of our year end communication. We will communicate all corrected and uncorrected misstatements identified during our audit to the Audit Committee, other than those which we determine to be “clearly trivial”. Misstatements are considered to be clearly trivial for purposes of the audit when they are inconsequential both individually and in aggregate. We encourage management to correct any misstatements identified throughout the audit process. $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 70 of 93Page 106 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020FEESWe estimate our fees for 2020 will be $31,500 for the audit of the consolidated financial statements, representing a fee of $35,000 less a 10% discount. Our estimated fees are based on the time expected to complete the audit and excludes taxes, out of pocket expenses, internal administration fees, and are based upon the following assumptions: XWe will be provided with the requested auditschedules, working papers and descriptions ofaccounting systems and processes as detailed in ourannual requirements letter upon the commencement offieldwork;XThe consolidation and draft financial statements,including notes, are prepared to a standard suitable foraudit with all balances reconciled to the underlyingaccounting records;XThere will be minimal adjusting entries; andXThe nature of the Town’s operations remain consistentwith the prior year and there have been no changes inaccounting personnel.In the event that we incur additional charges or we experience delays in completing the audit, we will advise management. AUDIT SERVICES THAT DIFFERENTIATEBDO FROM OUR COMPETITORSAlthough BDO and our larger competitors share many similarities, including our national and international structures, services and use of techniques and tools to manage engagements, it is how we deliver our services that truly differentiate us from our competition.We offer clients the full service expertise of a national firm, while maintaining a local community focus. This local presence combined with our partner to staff ratio creates the following key differentials that make us an excellent fit for our clients: fOur philosophy of “Big Enough to Know, Small Enough to Care” is paramount toour service model.fBDO is deliberately structured to allow one partner to every 6 staff (1:6). Thismeans easy access to senior staff and the “Partner in Charge” of the audit as wellas a quick turnaround on any questions.fOur partner-driven approach allows us to have our partners involved throughouteach stage of the audit. This ensures that we identify and resolve issues on atimely basis and provides you with a senior-level contact to address your concerns.fOne of our strengths that goes beyond the typical audit process is our use of in-field reviews. The benefit of these in-field reviews is that final decision makersare on site ensuring issue resolution prior to leaving the field. This guarantees thatqueries are cleared quickly so files are closed in a timely manner.fBDO’s accounting and management professionals are sensitive to meetingdeadlines. We commit to meeting the deadlines as mutually agreed upon by BDOand our clients.$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 71 of 93Page 107 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020USING THE WORK OF OTHERS ExpertsIn order for us to perform adequate audit procedures on certain financial statement areas, we will be relying on the work of, and the report prepared by, Nexus Actuarial Consultants Ltd. Canadian generally accepted auditing standards require us to communicate with the expert. We propose to discuss the following with Nexus Actuarial Consultants Ltd.: XThe objective and nature of our audit engagement and how we intend to use the expert’s findings and report.XOur assessment of the significant and risk aspects of the engagement that will affect the expert’s work.XThe requirement to advise us if they have any relationship with the organization which could impair their judgment or objectivity in the conduct oftheir engagement.XThe nature, timing and extent of the expert’s work and our planned review of it, possibly including review of their working papers.XConfirmation that the assumptions used in their calculations are consistent with those used in the prior periods and with industry standards.XTheir obligation to advise BDO Canada LLP of any matters up to the estimated audit report date that may affect their calculations and their report.We ask that the appropriate level of management review the data provided to Nexus Actuarial Consultants Ltd. and that they also review the assumptions used and results reported by the expert for reasonableness. $WWDFKPHQW Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 72 of 93Page 108 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020APPENDICESAppendix A: BDO audit strategy Appendix B: Engagement letterAppendix C: Independence letterAppendix D: Responsibilities Appendix E: BDO resources $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 73 of 93Page 109 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020APPENDIX A: BDO AUDIT STRATEGYOur overall audit strategy involves extensive partner and manager involvement in all aspects of the planning and execution of the audit and is based on our overall understanding of the Town. We will perform a risk-based audit which allows us to focus our audit effort on higher risk areas and other areas of concern for management and the Audit Committee.Identify and Assess Risk: To assess risk accurately, we need to gain a detailed understanding of the Town’s business and the environment it operates in. As well, we obtain an understanding of the system of internal control in place in order to consider the adequacy of these controls as a basis for the preparation of the consolidated financial statements, to determine whether adequate accounting records have been maintained and to assess the adequacy of these controls and records as a basis upon which to design and undertake our audit testing. Design Audit Response: Based on our risk assessment, we design an appropriate audit strategy to obtain sufficient assurance to enable us to report on the consolidated financial statements. We choose audit procedures that we believe are the most effective and efficient to reduce audit risk to an acceptable low level. The procedures are a combination of testing the operating effectiveness of internal controls, substantive analytical procedures and other tests of detailed transactions. Obtain Audit Evidence / Form Opinion / Report:Having planned our audit, we will perform audit procedures, maintaining anappropriate degree of professional skepticism, in order to collect evidence to concludewhether or not the consolidated financial statements are presented fairly, in all material respects, in accordance with Canadian public sector accounting standards. ScopingIdentify and assess risk Design audit response Obtain audit evidence Form opinion Report$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 74 of 93Page 110 of 149
Audit Planning Report for The Corporation of the Town of Aurora For the year ended December 31, 2020
APPENDIX B: ENGAGEMENT LETTER
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Tel: 705-797-3960 BDO Canada LLP Fax: 705-722-6588 300 Lakeshore Drive www.bdo.ca Suite 300 Barrie, Ontario L4N 0B4
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BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.
June 23, 2020
The Corporation of the Town of Aurora
100 John West Way
Box 1000
Aurora, Ontario
L4G 6J1
Dear Sirs/Mesdames:
We understand that you wish for us to continue as the auditors of The Corporation of the Town of
Aurora for its fiscal year ended December 31, 2020 and subsequent years.
We are pleased to continue as your auditors subject to the terms and conditions of this
Agreement, to which the attached Standard Terms and Conditions form an integral part. The
definitions set out in the Standard Terms and Conditions are applicable throughout this
Agreement. This Agreement will remain in place and fully effective for future years until varied
or replaced by another relevant written agreement.
Giselle Bodkin, CPA, CA will be the Engagement Partner for the audit work we perform for you.
The Engagement Partner will call upon other individuals with specialized knowledge to assist in
the performance of services.
Our Role as Auditors
We will conduct our audit(s) in accordance with Canadian generally accepted auditing standards.
Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements
("financial statements") prepared in accordance with Canadian public sector accounting standards
are free from material misstatement. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. Our audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by you, as well as evaluating the overall financial statement presentation.
Because of the inherent limitations of an audit, together with the inherent limitations of internal
control, there is an unavoidable risk that some material misstatements, whether by fraud or
error, may not be detected, even though the audit is properly planned and performed in
accordance with Canadian generally accepted auditing standards.
In making our risk assessments, we consider internal control relevant to your preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
your internal controls. However, we will communicate to you concerning any significant
deficiencies in internal controls relevant to the audit of the financial statements that we have
identified during the audit.
We will also communicate matters required by professional standards, to the extent that such
matters come to our attention, to you, those charged with governance and/or the board of
directors.
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Reporting
Our audit will be conducted on the basis that the financial statements have been prepared in
accordance with Canadian public sector accounting standards.
Our independent auditor’s report will be substantially in the form set out in Canadian Auditing
Standard (CAS) 700. The form and content of our report may need to be amended in the light of
our audit findings. If we are unable to issue or decline to issue an audit report, we will discuss
the reasons with you and seek to resolve any differences of view that may exist.
Role of Management and Those Charged with Governance
You acknowledge and understand that you have responsibility for:
(a) the preparation and fair presentation of the financial statements in accordance with
Canadian public sector accounting standards. The audit of the financial statements does
not relieve you of your responsibilities;
(b) such internal controls as you determine are necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or
error; and
(c) providing us with:
x access, in a timely manner, to all information of which you are aware that is relevant to
the preparation of the financial statements such as records, documentation and other
matters;
x additional information that we may request for the purpose of the audit;
x unrestricted access to persons within the entity from whom we determine it is
necessary to obtain audit evidence;
x financial and non-financial information (other information) that will be included in
document(s) containing financial statements and our audit report thereon prior to the
date of our auditor’s report. If it is not possible to provide all the other information
prior to the date of our auditor's report, you are responsible for provision of such other
information as soon as practicable; and
x written confirmation concerning representations made to us in connection with the
audit. If appropriate and adequate written representations are not provided to us,
professional standards require that we disclaim an audit opinion.
Financial Statement Services
We will obtain your approval, if during the course of our engagement we:
(a) prepare or change a journal entry; or
(b) prepare or change an account code or a classification for a transaction.
As agreed, we will provide assistance in the preparation of the financial statements.
These services create a threat to our independence. We, therefore, require that the following
safeguards be put into place:
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(a) that you create the source data for all accounting entries;
(b)that you develop any underlying assumptions for the accounting treatment and
measurement of entries; and
(c)that you review and approve the draft financial statements, including the notes to the
financial statements.
Tax Services
Our audit is conducted primarily to enable us to express an opinion on the financial statements.
The audit process is not designed to provide us with a full understanding of your tax situation and
in particular, to allow us to determine whether the entity has specific tax compliance issues. We
understand that you are not looking to BDO to provide you with any guidance or advice in regard
to tax planning or compliance.
Additional Services
We are available to provide a wide range of services beyond those outlined in this Agreement. To
the extent that any additional services that we provide to you that are not provided under a
separate written engagement agreement, the provisions of this Agreement will apply to the
services.
Fee Estimation
The estimated fee for this engagement is as follows:
Audit services: $31,500
For each future year we will issue a Summary of Services providing details of our Services and
fees.
We will notify you on a timely basis if there are any circumstances we encounter which could
significantly affect our initial estimate of professional fees. Our fees will be invoiced and payable
as follows:
x $10,500 interim payment;
x $10,500 prior to issuance of assurance report; and
x $10,500 within 10 days after issuance of our final invoice along with any additional
required final payments.
We reserve the right to suspend our Services if any of our invoices become delinquent. Fees that
are not paid within 30 days of an invoice or by a specified payment deadline will be considered
delinquent.
Additional information relating to our fees is provided in the Standard Terms and Conditions.
Standard Terms and Conditions
A copy of our Standard Terms and Conditions is attached as Appendix 1. You should ensure that
you read and understand them. The Standard Terms and Conditions include clauses that limit
our professional liability.
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Please sign and return the attached copy of this Agreement to indicate your agreement with it. If
you have any questions concerning this Agreement, please contact us before signing it.
It is a pleasure for us to be of service and we look forward to many future years of association
with you.
Yours truly,
Chartered Professional Accountants, Licensed Public Accountants
Agreement of all the terms and conditions in this Agreement is hereby acknowledged by:
________________________________________________________________________
Signature Date
________________________________________________________________________
Name (please print) Position
Please carefully review this Agreement, which includes the attached Standard Terms and Conditions, prior to signing it. A
complete copy of the signed engagement letter should be returned to us.
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Appendix 1 - Standard Terms and Conditions
1. Overview and Interpretation
1.1 This Agreement sets forth the entire agreement between the parties in relation to Services
and it supersedes all prior agreements, negotiations or understandings, whether oral or
written, with respect to Services. To the extent that any of the provisions of the
accompanying letter conflict with these Standard Terms and Conditions, these Standard
Terms and Conditions shall prevail. This Agreement may not be changed, modified or
waived in whole or part except by an instrument in writing signed by both parties.
1.2 In this Agreement, the following words and expressions have the meanings set out below:
This Agreement – these Standard Terms and Conditions, the letter to which they are
attached, and any supporting schedules or other appendices to the letter, and any
Summary of Services letters issued in future years.
Services – the services provided or to be provided under this Agreement
We, us, our, BDO – refer to BDO Canada LLP, a Canadian limited liability partnership
organized under the laws of the Province of Ontario
You, your – the party or parties contracting with BDO under this Agreement, including the
party’s or parties’ management and those charged with corporate governance. You and
your does not include BDO, its affiliates or BDO Member Firms
BDO Member Firm or Firms – any firm or firms that form part of the international network
of independent firms that are members of BDO International Limited
Confidential Information - information that contains identifying features that can be
attributed to you or individual personnel
2. BDO Network and Sole Recourse
2.1 BDO is a member of BDO International Limited, a UK company limited by guarantee, and
forms part of the international network of independent member firms (i.e. BDO Member
Firms), each of which is a separate legal entity.
2.2 We may use other BDO Member Firms or subcontractors to provide Services; however, we
remain solely responsible for Services. You agree not to bring any claim or action against
another BDO Member Firm (or their partners, members, directors, employees or
subcontractors) or our subcontractors in respect of any liability relating to the provision of
Services.
2.3 You agree that any of our affiliates, subcontractors, and other BDO Member Firms and any
subcontractors thereof whom we directly or indirectly involve in providing Services have
the right to rely on and enforce Section 2.2 above as if they were a party to this
Agreement.
3. Respective Responsibilities
3.1 We will use reasonable efforts to complete, within any agreed-upon time frame, the
performance of Services.
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3.2 You shall be responsible for your personnel’s compliance with your obligations under this
Agreement. We will not be responsible for any delays or other consequences arising from
you not fulfilling your obligations.
4. Working Papers and Deliverables
4.1 Ownership – Any documents prepared by us, or for us, in connection with Services belong
solely to us.
4.2 Oral advice and draft deliverables – You should not rely upon any draft deliverables or
oral advice provided by us. Should you wish to rely upon something we have said to you,
please let us know and, if possible, we will provide the information that you require in
writing.
4.3 Translated documents - If you engage us to translate any documents, advice, opinions,
reports or other work product of BDO from one language to another, you are responsible
for the accuracy of the translation work.
4.4 Reliance by Third Parties – Our Services will not be planned or conducted in
contemplation of or for the purpose of reliance by any party other than you. Items of
possible interest to a third party will not be addressed and matters may exist that would be
assessed differently by a third party, possibly in connection with a specific transaction.
4.5 Consent to use the Report - Nothing in this Agreement shall be construed as consent to
the use of our report in connection with a continuous disclosure document, a public or
private offering document, an annual report or any other document and we expressly do
not provide such consent. If you request consent for the use of our report, we will
consider, at the relevant time, providing consent and any conditions that we may attach to
such consent. Our consent must be in writing.
4.6 Consent requests - In order to provide consent, professional standards require that we
read the other information in the related document and consider whether such information
is materially inconsistent with the related financial statements. Any consent request must
be made on a sufficiently timely basis to allow us to consider your identification and
resolution of events occurring in the period since the date of our report, and to obtain
updated written representation letters. Such procedures will be performed at your cost
and will be documented in a separate engagement letter.
5. Confidentiality
5.1 We agree to use Confidential Information provided by you only in relation to the Services in
connection with which the information is provided and we will not disclose the
information, except where required by law, regulation or professional obligation. We may
however, give Confidential Information to other BDO Member Firms or other subcontractors
assisting us in providing Services. Any party to whom we subcontract work will be required
to keep Confidential Information confidential either by professional obligation or contract
with us. Any BDO Member Firms or other subcontractors we use will be bound by the same
confidentiality obligations.
5.2 BDO shall be entitled to include a description of the work we render to or for you in
marketing and research materials and disclose such information to third parties, provided
that all such information will be made anonymous and not associated with you.
Additionally, we may analyze information on an industry or sector basis for internal
purposes or to provide industry/sector wide information to our clients or potential clients.
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You consent to our using information obtained from you in this way provided that the
outputs therefrom will not contain any identifying features that can be attributed to you.
6. Independence
6.1 Professional and certain regulatory standards require us to be independent, in both fact
and appearance, with respect to our clients in the performance of our Services. We will
communicate to you any relationships between BDO (including its related entities) and you
that, in our professional judgment, may reasonably be thought to bear on our
independence.
7. Offers of Employment
7.1 Any discussions that you, or any party acting on your behalf, have with professional
personnel of our Firm regarding employment could pose a threat to our independence.
Your recruitment of an engagement team member from the current or prior year's
engagement may compromise our independence and our ability to render agreed Services
to you. Engagement team members may include current and former partners and staff of
BDO, other BDO Member Firms and other firms who work under our direction. Therefore,
you agree to inform us prior to any such discussions so that you and we can implement
appropriate safeguards to maintain our independence.
8. Professional and Regulatory Oversight
8.1 As required by legal, regulatory, or professional authorities (both in Canada and abroad)
and by BDO policy, our client files must periodically be reviewed by practice inspectors to
ensure that we are adhering to professional and BDO standards. It is understood that by
entering into this Agreement, you provide your consent to us providing our files relating to
your engagement to the practice inspectors for the sole purpose of their inspection.
8.2 Certain regulatory bodies may also have the right to conduct investigations of you,
including the Services provided by us. To the extent practicable and permitted by law, we
will advise you of any such investigation request or order prior to providing our working
papers.
8.3 You agree to reimburse us for our time and expenses, including reasonable legal fees,
incurred in responding to any investigation that is requested or authorized by you or
investigations of you undertaken under government regulation or authority, court order or
other legal process.
9. Privacy and Consents
9.1 You agree we will have access to all personal information in your custody that we require
to complete our engagement. We may collect, use, transfer, store, or process such
information disclosed by you of a personal nature (personal information). Our Services are
provided on the understanding that:
(a) you have obtained any consents for collection, use and disclosure to us of personal
information required under all applicable privacy legislation; and
(b) we will hold all personal information in compliance with our Privacy Statement.
$WWDFKPHQW
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Page 8 of 11
10. Electronic Communications
10.1 Both parties recognize and accept the security risks associated with email communications,
including but not limited to the lack of security, unreliability of delivery and possible loss
of confidentiality and privilege. Unless you request in writing that we do not communicate
by internet email, you assume all responsibility and liability in respect of risk associated
with its use.
10.2 By signing this Agreement, you provide BDO with express consent to communicate with you
and your employees, as applicable, electronically, including sending BDO newsletters,
publications, announcements, invitations and other news and alerts that may be of interest
to you. You and your employees may withdraw such consent at any time by contacting BDO
at www.bdo.ca/unsubscribe.
11. Limitation of Liability
11.1 In any dispute, action, claim, demand for losses or damages arising out of the Services
performed by BDO pursuant to this Agreement, BDO shall only be liable for its
proportionate share of the total liability based on degree of fault as determined by a court
of competent jurisdiction or by an independent arbitrator as a result of the dispute
resolution procedures, notwithstanding the provisions of any statute or rule of common law
which create, or purport to create, joint and several liability.
11.2 Our liability shall be restricted to damages of a direct and compensatory nature and shall
not include indirect, consequential, aggravated or punitive damages, or damages for loss of
profits or expected tax savings, whether or not the likelihood of such loss or damage was
contemplated.
11.3 You agree that BDO shall in no event be liable to you for any actions, damages, claims,
liabilities, costs, expenses, or losses in any way arising out of or relating to the Services
performed hereunder for an aggregate amount of more than the higher of:
(a) three times the fees paid to BDO by you, in a twelve consecutive month period, for
the Services provided pursuant to this Agreement giving rise to the claim; and
(b) $25,000.
11.4 No exclusion or limitation on the liability of other responsible persons imposed or agreed at
any time shall affect any assessment of our proportionate liability hereunder, nor shall
settlement of or difficulty enforcing any claim, or the death, dissolution or insolvency of
any such other responsible persons or their ceasing to be liable for the loss or damage or
any portion thereof, affect any such assessment.
11.5 You agree claims or actions relating to the delivery of Services shall be brought against us
alone, and not against any individual. Where our individuals are described as partners, they
are acting as one of our members.
12. Indemnity
12.1 To the fullest extent permitted by applicable law and professional regulations, you agree
to indemnify and hold harmless BDO from and against all losses, costs (including solicitors'
fees), damages, expenses, claims, demands or liabilities arising out of or in consequence
of:
$WWDFKPHQW
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Page 9 of 11
13. Alternative Dispute Resolution
13.1 Both parties agree that they will first attempt to settle any dispute arising out of or
relating to this Agreement or the Services provided hereunder through good faith
negotiations.
13.2 In the event that the parties are unable to settle or resolve their dispute through
negotiation, such dispute shall be subject to mediation pursuant to the National Mediation
rules of the ADR Institute of Canada Inc. All disputes remaining unsettled for more than 60
days following the parties first meeting with a mediator or such longer period as the
parties mutually agree upon shall be subject to arbitration pursuant to the National
Arbitration Rules of the ADR Institute of Canada Inc. Such arbitration shall be final,
conclusive and binding upon the parties, and the parties shall have no right of appeal or
judicial review of the decision. The parties hereby waive any such right of appeal which
may otherwise be provided for in any provincial arbitration statute made applicable under
the National Arbitration Rules.
14. Limitation Period
14.1 You shall make any claim relating to Services or otherwise under this Agreement no later
than one year after you became aware or ought reasonably to have become aware of the
facts giving rise to any such claim.
14.2 You shall in no event make any claim relating to the Services or otherwise under this
Agreement later than two years after the completion of the Services under this Agreement.
14.3 To the extent permitted by law, the parties to this Agreement agree that the limitation
periods established in this Agreement replace any limitation periods under any limitations
act and/or any other applicable legislation and any limitation periods under any limitations
act and/or any other applicable legislation shall not alter the limitation periods specified
in this Agreement.
15.Québec Personnel
15.1 We may sometimes have individual partners and employees performing Services within the
Province of Québec who are members of the Ordre des comptables professionnels agréés du
Québec. Any such members performing professional services hereunder assumes full
personal civil liability arising from the practice of their profession, regardless of their status
within our partnership. They may not invoke the liability of our partnership as grounds for
excluding or limiting their own liability. The provisions in Sections 11 (Limitation of
Liability) and 14 (Limitation Period) shall therefore not apply to limit the personal civil
liability of partners and employees who are members of the Ordre des comptables
professionnels agréés du Québec.
(a) a misrepresentation by a member of your management or board of directors,
regardless of whether such person was acting in your interest;
(b) the Services performed by BDO pursuant to this Agreement, unless, and to the extent
that, such losses, costs, damages and expenses are found by a court of competent
jurisdiction to have been due to the gross negligence of BDO. In the event that the
matter is settled out of court, we will mutually agree on the extent of the
indemnification to be provided by you, failing which, the matter may be referred to
dispute resolution in accordance with the terms of this Agreement.
$WWDFKPHQW
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Page 10 of 11
16. Termination
16.1 This Agreement applies to Services whenever performed (including before the date of this
Agreement).
16.2 You or we may terminate this Agreement at any time upon written notice of such
termination to the other party. We will not be liable for any loss, cost or expense arising
from such termination. You agree to pay us for all Services performed up to the date of
termination, including Services performed, work-in-progress and expenses incurred by us
up to and including the effective date of the termination of this Agreement.
17. Fees and Billings
17.1 Our estimated fee is based on an assumed level of quality of your accounting records, the
agreed upon level of preparation and assistance from your personnel and adherence to the
agreed-upon timetable. Our estimated fee also assumes that your financial statements are
in accordance with the applicable financial reporting framework and that there are no
significant new or changed accounting policies or issues or internal control or other
reporting issues. We will inform you on a timely basis if these factors are not in place.
17.2 Should our assumptions with respect to the quality of your accounting records be incorrect
or should the conditions of the records, degree of cooperation, results of audit procedures,
or other matters beyond our reasonable control require additional commitments by us
beyond those upon which our estimated fees are based, we may adjust our fees and
planned completion dates.
Delays in providing the complete list of agreed upon working papers/schedules to BDO will
result in additional fees as follows:
x 1 week delay – additional 10% of estimated fees
x 1 month delay – additional 20% of estimated fees
Should a delay occur, we cannot guarantee completion of our work by your deadline.
17.3 Our professional fees will be based on our billing rates which depend on the means by
which and by whom our Services are provided. We also will bill you for our out-of-pocket
expenses, our administrative charge (described below), and applicable Goods and Services
Sales Tax, Harmonized Sales Tax, Quebec Sales Tax and Provincial Sales Tax.
17.4 Our administrative charge is calculated as a percentage of our professional fee and
represents an allocation of estimated costs associated with our technology infrastructure,
telephone charges, photocopying and some support staff time costs.
17.5 Our accounts are due when rendered and invoiced amounts are deemed to be earned when
paid. BDO may suspend the performance of Services in the event that you fail to pay an
invoice when it is due. Interest may be charged at the rate of 12% per annum on all
accounts outstanding for more than 30 days.
18. Governing Laws
18.1 The terms of our engagement shall remain operative until amended, terminated, or
superseded in writing. They shall be interpreted according to the laws of the province or
territory in which BDO’s principal Canadian office performing the engagement is located,
without regard to such province/territory’s rules on conflicts of law.
$WWDFKPHQW
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19. Survival
19.1 The provisions of this Agreement that give either of us rights or obligations beyond its
termination shall continue indefinitely following the termination of this Agreement. Any
clause that is meant to continue to apply after termination of this Agreement will do so.
20. Force Majeure
20.1 We will not be liable for any delays or failures in performance or breach of contract due to
events or circumstances beyond our reasonable control, including acts of God, war, acts by
governments and regulators, acts of terrorism, accident, fire, flood or storm or civil
disturbance.
21. Assignment
21.1 No party may assign, transfer or delegate any of the rights or obligations hereunder
without the written consent of the other party or parties. BDO may engage independent
contractors and BDO Member Firms to assist us in performing the Services in this
Agreement without your consent.
22. Severability
22.1 If a court or regulator with proper jurisdiction determines that a provision of this
Agreement is invalid, then the provision will be interpreted in a way that is valid under
applicable law or regulation. If any provision is invalid, the rest of this Agreement will
remain effective.
Version: 202002
$WWDFKPHQW
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Audit Planning Report for The Corporation of the Town of Aurora For the year ended December 31, 2020
APPENDIX C: INDEPENDENCE LETTER
$WWDFKPHQW
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Audit Planning Report for The Corporation of the Town of Aurora For the year ended December 31, 2020
June 23, 2020
Members of the Audit Committee
The Corporation of the Town of Aurora
Dear Audit Committee Members:
We have been engaged to audit the consolidated financial statements of The Corporation of the Town of Aurora (the
“Town”) for the year ended December 31, 2020.
Canadian generally accepted auditing standards (GAAS) require that we communicate at least annually with you
regarding all relationships between the Town and our Firm that, in our professional judgment, may reasonably be
thought to bear on our independence.
In determining which relationships to report, we have considered the applicable legislation and relevant rules and
related interpretations prescribed by the appropriate provincial institute/order, covering such matters as:
•Holding a financial interest, either directly or indirectly in a client;
•Holding a position, either directly or indirectly, that gives the right or responsibility to exert significant influence
over the financial or accounting policies of a client;
•Personal or business relationships of immediate family, close relatives, partners or retired partners, either
directly or indirectly, with a client;
•Economic dependence on a client; and
•Provision of services in addition to the audit engagement.
We have prepared the following comments to facilitate our discussion with you regarding independence matters
arising since March 18, 2020, the date of our last letter.
We are aware of the following relationships between the Company and us that, in our professional judgment, may
reasonably be thought to have influenced our independence. The following relationships represent matters that
have occurred from March 18, 2020 to June 23, 2020.
•We have provided assistance in the preparation of the consolidated financial statements, including adjusting
journal entries. These services created a self-review threat to our independence since we subsequently
expressed an opinion on whether the consolidated financial statements presented fairly, in all material
respects, the financial position, results of operations and cash flows of the organization in accordance with
(relevant GAAP).
•We, therefore, required that the following safeguards be put in place related to the above:
•Management provided us with a trial balance and draft consolidated financial statements, including
notes, prior to completion of our audit.
•Management created the source data for all the accounting entries.
•Management developed any underlying assumptions required with respect to the accounting treatment
and measurement of the entries.
•Management reviewed advice and comments provided and undertook their own analysis considering theCompany’s circumstances and generally accepted accounting principles.
•Management reviewed and approved all journal entries prepared by us, as well as changes to financial
statement presentation and disclosure.
•Someone other than the preparer reviewed the proposed journal entries and consolidated financial
statements.
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Audit Planning Report for The Corporation of the Town of Aurora For the year ended December 31, 2020
We hereby confirm that we are independent with respect to the Town within the meaning of the Code of
Professional Conduct of the Chartered Professional Accountants of Ontario as of June 23, 2020.
This letter is intended solely for the use of the Audit Committee, the Board of Directors, management and others
within the Town and should not be used for any other purposes.
Yours truly,
Chartered Professional Accountants, Licensed Public Accountants
$WWDFKPHQW
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Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020APPENDIX D: RESPONSIBILITIES It is important for the Audit Committee to understand the responsibilities that rest with the Town and its management, those that rest with the external auditor, and the responsibilities of those charged with governance. BDO’s responsibilities are outlined below and within the annual engagement letter attached as Appendix B to this letter. The oversight and financial reporting responsibilities of management and the Audit Committee are also summarized below.AUDITOR’S ENGAGEMENT OBJECTIVES Year-End Audit WorkOther InformationXWork with management towards the timely issuance of consolidatedfinancial statements, tax returns and consents for offering documents.XProvide timely and constructive management letters. This will includedeficiencies in internal control identified during our audit.XPresent significant findings to the Audit Committee including key auditand accounting issues, any significant deficiencies in internal controland any other significant matters arising from our work.XRead the other information included in the Town’s Annual Report toidentify material inconsistencies, if any, with the audited consolidatedfinancial statements.Year-Round WorkXConsult regarding accounting, income tax and reporting matters asrequested throughout the year.Our overall objective is to express an opinion as to whether the consolidated financial statements present fairly, in all material respects, the financial position, financial performance and cash flows of the Town in accordance with Canadian public sector accounting standards. $WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 90 of 93Page 126 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020AUDITOR’S RESPONSIBILITIES FOR DETECTING FRAUD We are responsible for planning and performing the audit to obtain reasonable assurance that the consolidated financial statements are free of material misstatements, whether caused by error or fraud, by: XIdentifying and assessing the risks of material misstatement due to fraud;XObtaining sufficient and appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing andimplementing appropriate responses; andXResponding appropriately to fraud or suspected fraud identified during the audit.The likelihood of not detecting a material misstatement resulting from fraud is higher than the likelihood of not detecting a material misstatement resulting from error because fraud may involve collusion as well as sophisticated and carefully organized schemes designed to conceal it.Response to Assessed Fraud Risks XInquire of management, the Audit Committee, and others related toany knowledge of fraud, suspected fraud or alleged fraud;XPerform disaggregated analytical procedures and consider unusual orunexpected relationships identified in the planning of our audit;XIncorporate an element of unpredictability in the selection of thenature, timing and extent of our audit procedures; andXPerform additional required procedures to address the risk ofmanagement’s override of controls including:oTesting internal controls designed to prevent and detect fraud;oTesting the appropriateness of a sample of adjusting journalentries and other adjustments for evidence of the possibility ofmaterial misstatement due to fraud;oReviewing accounting estimates for biases that could result inmaterial misstatements due to fraud, including a retrospectivereview of significant prior years’ estimates; andoEvaluating the business rationale for significant unusualtransactions.Fraud Risk Assessment Procedures XManagement’s assessment of the risk that theconsolidated financial statements may be materiallymisstated due to fraud, including the nature, extent andfrequency of such assessments;XManagement’s process for identifying and responding tothe risks of fraud in the Town, including any specificrisks of fraud that management has identified or thathave been brought to its attention, or classes oftransactions, account balances, or disclosures for whicha risk of fraud is likely to exist;XManagement’s communication, if any, to those chargedwith governance regarding its processes for identifyingand responding to the risks of fraud in the Town; andXManagement’s communication, if any, to employeesregarding its view on business practices and ethicalbehaviour.$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 91 of 93Page 127 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020AUDIT COMMITTEE RESPONSIBILITIES MANAGEMENT RESPONSIBILITIES ENTITYAuditCommitteeBDOManagementXOversee the work of the external auditor engaged for the purpose of issuing anindependent auditor’s report.XFacilitate the resolution of disagreements between management and theexternal auditor regarding financial reporting matters.XPre-approve all non-audit services to be provided to the Town or its subsidiariesby the external auditor.XReview the consolidated financial statements, MD&A and annual and interimearnings press releases before the Town publicly discloses this information.XMaintain adequate accounting records and maintain anappropriate system of internal control for the Town.XSelect and consistently apply appropriate accountingpolicies.XPrepare the annual consolidated financial statements inaccordance with Canadian public sector accountingstandards.XSafeguard the Town’s assets and take reasonable steps forthe prevention and detection of fraud and otherirregularities.XMake available to us, as and when required, all of theTown’s accounting records and related financialinformation.$WWDFKPHQW Audit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 92 of 93Page 128 of 149
Audit Planning Report for The Corporation of the Town of AuroraFor the year ended December 31, 2020APPENDIX E: BDO RESOURCES BDO is a leading provider of professional services to clients of all sizes in virtually all business sectors. Our team delivers a comprehensive range of assurance, accounting, tax, and advisory services, complemented by a deep industry knowledge gained from nearly 100 years of working within local communities. As part of the global BDO network, we are able to provide seamless and consistent cross-border services to clients with global needs. Commitment to knowledge and best practice sharing ensures that expertise is easily shared across our global network and common methodologies and information technology ensures efficient and effective service delivery to our clients. Outlined below is a summary of certain BDO resources which may be of interest to the Audit Committee.Public Sector Accounting Standards (PSAS) Update 2019 https://www.bdo.ca/BDO/media/AAPublications/PSAS_Update_09Sep19.pdf TAX BULLETINS, ALERTS AND NEWSLETTERSBDO Canada’s national tax department issues a number of bulletins, alerts and newsletters relating to corporate federal, personal, commodity, transfer pricing and international tax matters. For additional information on tax matters and links to archived tax publications, please refer to the following link: Tax Library | BDO CanadaPSAS Publications$WWDFKPHQWAudit Committee Meeting AgendaTuesday, June 23, 2020 Item 1Page 93 of 93Page 129 of 149
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Aurora Cultural Centre2017-2019 Actuals
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GRANTS - TOWN OF AURORATown of Aurora - Base Operating 405,600 405,600 - 415,700 415,700 - 415,700 415,700 - Town of Aurora - Project 50,000 50,000 - Town of Aurora - Library Square -
Total GRANTS - TOWN OF AURORA 405,600 405,600 - 415,700 415,700 - 465,700 465,700 -
GRANTS - OTHERFederal Grants 7,000 47,721 40,721 40,000 27,414 (12,586) 50,000 46,231 (3,769) OAC 3,500 5,000 1,500 5,000 - (5,000) 10,000 10,000 -
Ont Trillium Fnd 21,900 21,900 - - - - - -
Total GRANTS - OTHER 32,400 74,621 42,221 45,000 27,414 (17,586) 60,000 56,231 (3,769) PROGRAMSFacility Rentals 50,000 52,250 2,250 53,500 58,260 4,760 50,000 34,485 (15,515)
Ticket Sales-perform/exhi, etc.33,800 37,904 4,104 45,180 32,729 (12,451) 48,500 42,273 (6,227)
Ticket Sales-Classical Program 10,600 9,762 (838) 12,000 9,800 (2,200) 10,745 11,627 882 Registration Fees-programs, etc 88,845 104,536 15,691 98,855 109,357 10,502 106,000 104,183 (1,817) Merchandise-hospitality, coffee 4,250 5,035 785 5,000 3,340 (1,660) 5,000 2,731 (2,269)
Gallery Revenue - - - - 165 165 3,000 4,169 1,169
Merchandise - gift shop+23,125 7,715 (15,410) - - - - - - Interest 2,100 1,936 (164) 2,100 2,999 899 2,100 6,360 4,260 Merchandise- fine art sale 11,000 5,768 (5,232) 12,000 9,086 (2,914) 9,000 9,076 76 Total PROGRAMS 223,720 224,906 1,186 228,635 225,736 (2,899) 234,345 214,904 (19,441)
FUNDRAISINGPrivate ContributionsIndividual Donations 1,000 9,039 8,039 15,000 25,762 10,762 97,000 63,950 (33,050) Friends*8,000 3,812 (4,188) - - - - - -
Classical Fund Donation 5,000 3,750 (1,250) 5,000 10,115 5,115 10,000 9,685 (315) Amortization of deferred contributions****2,372 2,372 - 2,372 3,858 1,486 2,372 7,423 5,051 Sponsorships (corporate and individual)36,500 13,500 (23,000) 20,000 19,500 (500) 24,500 26,000 1,500 Corporate Donations 2,500 3,575 1,075 2,000 27,360 25,360 35,000 26,500 (8,500)
Foundations - - 2,000 - (2,000) - - -
Total Private Contributions 55,372 36,048 (19,324) 46,372 86,595 40,223 168,872 133,558 (35,314) Total FUNDRAISING 55,372 36,048 (19,324) 46,372 86,595 40,223 168,872 133,558 (35,314)
Total Income 717,092 741,175 24,083 735,707 755,445 19,738 928,917 870,393 (58,524)
ExpenseSALARIES AND BENEFITS
Total Administration Salaries & Fees 198,464 156,131 (42,333) 186,844 181,161 (5,683) 208,103 81,210 (126,893) p Total Program Salaries & Fees 260,338 312,954 52,616 319,443 317,697 (1,746) 421,143 479,675 58,532 Total SALARIES AND BENEFITS 458,802 469,085 10,283 506,287 498,858 (7,429) 629,246 560,885 (68,361) PROGRAMS
Artistic Salaries & Fees
p Instructors 20,500 29,631 9,131 28,386 31,045 2,659 33,265 31,285 (1,980) p Gallery Artists 150 - (150) 3,000 3,000 - 17,567 13,650 (3,917) p Performers 30,000 27,039 (2,961) 27,070 27,317 247 46,420 44,207 (2,213) p Lecturers**- 1,150 1,150 - - - - - -
p Classical 11,000 12,896 1,896 11,800 11,070 (730) 18,645 17,193 (1,452) p SOCAN fees 1,200 1,534 334 1,325 830 (495) 1,500 850 (650) Production fees 8,500 8,581 81 4,855 6,408 1,553 7,896 6,828 (1,068) Total Artistic Salaries & Fees 71,350 80,831 9,481 76,436 79,670 3,234 125,293 114,013 (11,280) Artistic Expenses
p Commissions (Art Sales)6,820 2,888 (3,932) 7,200 4,442 (2,758) 5,400 5,394 (6)
2017 2018 2019
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2017 2018 2019
p Commissions (Gift Shop)+14,000 4,688 (9,312) - - - - - -
p Gift Shop Expenses+3,000 48 (2,952) - - - - - - p Installation-Wall Signage 500 1,100 600 330 621 291 2,365 3,639 1,274 p Accommodation - - - 500 880 380 7,922 3,319 (4,603) p Artist Hospitality***- - - 3,755 1,445 (2,310) 9,356 2,082 (7,274)
Venue Rental - - - - - - - - - Total Artistic Expenses 24,320 8,724 (15,596) 11,785 7,388 (4,397) 25,043 14,434 (10,609) Marketing ExpensespAdvertisement 12,000 20,420 8,420 18,182 12,009 (6,173) 15,102 15,374 272 p Promo Materials: Design/Print 13,000 16,800 3,800 12,144 20,725 8,581 30,000 21,080 (8,920)
p Mailing & Distribution 10,000 5,830 (4,170) 6,000 6,884 884 6,085 6,023 (62) p Outreach - 136 136 - - - - - - p Website 2,000 287 (1,713) 1,500 4,330 2,830 5,000 10,358 5,358 P Signage 3,000 3,901 901 3,000 1,687 (1,313) 2,000 624 (1,376)
P Other Marketing - - - 5,000 1,331 (3,669) 5,000 2,515 (2,485) Total Marketing Expenses 40,000 47,374 7,374 45,826 46,966 1,140 63,187 55,974 (7,213) Program ExpensespProgram Supplies 7,000 11,694 4,694 11,340 11,314 (26) 13,592 12,401 (1,191)
p Publications 200 - (200) 200 21 (179) 200 - (200) p Memberships**600 350 (250) 2,000 1,143 (857) 2,500 837 (1,663) p Piano-tuning, moving, etc.4,720 2,744 (1,976) 3,050 2,567 (483) 3,420 1,419 (2,001) p Hospitality & Bar Supplies***7,750 8,198 448 3,760 4,065 305 3,800 4,023 223
p Special Program Expenses (Canada 150)5,000 3,562 (1,438) - - - - - - P Insurance & Permits 1,000 1,098 98 2,700 1,200 (1,500) 2,700 1,200 (1,500) Volunteer Program - - - - - - Total Program Expenses 26,270 27,646 1,376 23,050 20,310 (2,740) 26,212 19,880 (6,332)
Total PROGRAMS 161,940 164,575 2,635 157,097 154,334 (2,763) 239,735 204,301 (35,434) FUNDRAISINGSoftware - 1,780 1,780 2,211 1,566 (645) 2,300 795 (1,505) Promotions 1,500 - (1,500) 1,500 238 (1,262) 500 200 (300)
Event & Other - - 1,500 1,089 (411) 1,200 1,310 110
Total Fundraising Expenses 1,500 1,780 280 5,211 2,893 (2,318) 4,000 2,305 (1,695) Total FUNDRAISING 1,500 1,780 280 5,211 2,893 (2,318) 4,000 2,305 (1,695) Total TRILLIUM 21,900 22,422 522 INSURANCE
Insurance 7,550 8,669 1,119 8,800 8,331 (469) 9,450 8,068 (1,382) WSIB Insurance 3,650 3,187 (463) 4,000 3,403 (597) 4,000 2,861 (1,139) Total INSURANCE 11,200 11,856 656 12,800 11,734 (1,066) 13,450 10,929 (2,521) OFFICE & FACILITIES
Administration Expenses Bank Charges 2,250 1,899 (351) 1,800 1,553 (247) 1,800 2,221 421 Credit Card Charges 4,750 6,048 1,298 6,000 5,844 (156) 6,000 9,411 3,411
Equipment Lease 2,600 2,640 40 2,700 2,306 (394) 2,700 2,377 (323)
Equipment Maintenance 500 311 (189) 500 296 (204) 500 - (500) Internet 1,750 2,808 1,058 1,750 2,235 485 762 2,853 2,091 Memberships, Dues, etc.**1,200 2,027 827 900 1,622 722 1,700 2,726 1,026 Office Supplies 6,250 2,189 (4,061) 4,000 2,983 (1,017) 3,000 2,475 (525)
Photocopying/Printing 4,500 3,420 (1,080) 4,000 3,949 (51) 4,000 4,249 249 Postage 600 361 (239) 600 297 (303) 600 187 (413) Recruitment of Staff, Board, Vulnerable Sector Checks - 15,056 15,056 300 449 149 500 2,083 1,583 Professional development - 81 81 3,500 1,294 (2,206) 3,500 1,526 (1,974)
Subscription & Reference 350 - (350) 350 105 (245) 350 - (350)
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Variance to
Budget
Approved
Budget
Audited
Actual
Variance
to Budget
Approved
Budget
Audited
Actual
Variance to
Budget
2017 2018 2019
Telephone 3,950 5,647 1,697 6,200 7,449 1,249 7,300 7,326 26
Cell/Blackberry 1,200 795 (405) 900 900 - 900 900 - Travel 500 930 430 500 373 (127) 500 854 354 Meals, Entertainment, Flowers 600 1,202 602 1,500 1,463 (37) 1,500 1,461 (39) IT & Software expenses 500 634 134 500 964 464 9,100 1,860 (7,240)
Total Administration Expenses 31,500 46,048 14,548 36,000 34,082 (1,918) 44,712 42,509 (2,203)
Facility ExpensespFacility Equipment 250 - (250) 300 758 458 800 - (800) Cleaning Supplies - 135 135 140 165 25 200 125 (75) Total Facility Expenses 250 135 (115) 440 923 483 1,000 125 (875)
Total OFFICE & FACILITIES 31,750 46,183 14,433 36,440 35,005 (1,435) 45,712 42,634 (3,078) PROFESSIONAL FEESAccounting 10,000 11,047 1,047 5,000 7,726 2,726 7,500 17,839 10,339
Audit 12,000 10,044 (1,956) 8,500 12,044 3,544 10,000 7,662 (2,338)
Consultant (strategic plan etc)- 592 592 - - - - 7,773 7,773 Legal Costs 8,000 627 (7,373) 2,000 - (2,000) 2,000 - (2,000) Total PROFESSIONAL FEES 30,000 22,310 (7,690) 15,500 19,770 4,270 19,500 33,274 13,774 Total Expense 717,092 738,211 21,119 733,335 722,594 (10,741) 951,643 854,328 (97,315)
Operating Surplus (Deficit)- 2,964 2,964 2,372 32,851 30,479 22,726- 16,065 38,791
DEPRECIATION EXPENSEpLess: Depreciation 5,571- 10,459- (4,888) 5,286- 6,772- (1,486) 8,258- 10,338- (2,080)
Net Surplus (Deficit)5,571- 7,495- (1,924) 2,914- 26,079 28,993 30,984- 5,727 36,711
+Gift shop closed in 2017
*Friends program transferred to Individual giving in 2017
**reclassified in 2018 after financial review***Artist hospitality broken out of bar supplies****Amount received in previous fiscal years (deffered) and recognized against expenses in the current year
Page 132 of 149
Page 4 of 6
Aurora Cultural Centre
2020 Original and Revised Budget
2020 2020 2020Original
Budget
(business as
usual)
Revised (with
Library
Square
impact)
Revised (with
Library Square &
COVID impact to
July 31, 2020)2020 Budget Revision Notes
IncomeGRANTS - TOWN OF AURORATown of Aurora - Base Operating 482,661 482,661 482,661 Town of Aurora - Project 50,000 50,000 50,000
Town of Aurora - Library Square 80,810 55,243
Additional need from Town of Aurora based on Library Square impact, COVID impact of cancelled classes and events
Total GRANTS - TOWN OF AURORA 532,661 613,471 587,904
GRANTS - OTHER
Federal Program Grants 41,000 50,829 47,615 part of Horizons project deferred to 2021 due to COVID
Federal Wage Subsidy - - 139,337 Federal Wage Subsidy
OAC - 10,000 10,000
Ont Trillium Fnd 30,000 30,000 30,000 Total GRANTS - OTHER 71,000 90,829 226,952 PROGRAMSFacility Rentals 35,000 6,800 3,350 rentals final Jan-Feb (LS and COVID impact)
Ticket Sales-perform/exhi, etc.52,000 47,000 19,500 cancellations due to COVIDTicket Sales-Classical Program 10,000 10,000 5,832 cancellations due to COVID
Registration Fees-programs, etc 108,272 102,270 35,834 cancellations due to COVID, if can run Fall Programs
Merchandise-hospitality, coffee 5,000 3,000 822 cancellations due to COVID
Gallery Revenue 4,000 4,000 512 LS impact - lost two shows, now online only due to COVID
Interest 3,000 6,000 6,000 based on 2019 final
Merchandise- fine art sale 9,000 5,000 - LS impact - lost two shows
Total PROGRAMS 226,272 184,070 71,850
FUNDRAISINGPrivate Contributions
Individual Donations 95,460 77,430 40,000
cancellations due to COVID, directed gifts may be deferred to 2021 if
programming cannot happenClassical Fund Donation 12,000 12,000 5,000 cancellations due to COVID
Sponsorships (corporate and individual) 36,000 26,000 7,500 summer music series pushed to 2021, cancelled performances due to COVID
Corporate Donations 26,000 26,000 22,000 confirmed
Foundations 15,500 - - after must research, cannot achieve this
Total Private Contributions 184,960 141,430 74,500
Total FUNDRAISING 184,960 141,430 74,500
Total Income 1,014,893 1,029,800 961,206
Expense
SALARIES AND BENEFITS
Total Administration Salaries & Fees 220,488 219,684 219,154
p Total Program Salaries & Fees 426,075 410,301 390,520
savings from PT furlough, plus additional cost of technical production team for
live streaming
Total SALARIES AND BENEFITS 646,563 629,985 609,674 PROGRAMSArtistic Salaries & FeespInstructors 33,322 30,000 20,300 cancellations due to COVID
Page 133 of 149
Page 5 of 6
Aurora Cultural Centre
2020 Original and Revised Budget
2020 2020 2020Original
Budget
(business as
usual)
Revised (with
Library
Square
impact)
Revised (with
Library Square &
COVID impact to
July 31, 2020)2020 Budget Revision Notes
p Gallery Artists 13,500 12,250 12,250 loss of a show
p Performers 89,565 75,195 60,579 no summer music series, cancellations due to COVID
p Classical 18,967 17,702 8,900 cancellations due to COVID
p SOCAN fees 1,500 1,500 1,000 cancellations due to COVID
Production Fees 9,588 15,525 23,574 Includes production costs offside and livestreaming costsTotal Artistic Salaries & Fees 166,442 152,172 126,603 Artistic Expenses
p Commissions (Art Sales) 5,400 3,000 - LS impact
p Installation-Wall Signage 2,500 2,500 2,500
p Accommodation 18,984 6,700 8,825 Annual needs missed on budget, will reduce if programming cancelled
p Artist Hospitality 6,346 3,000 1,526
Venue Rental 25,981 19,180 LS impact and cancellations due to COVID
Total Artistic Expenses 33,230 41,181 32,031 Marketing Expenses
p Advertisement 16,000 16,000 15,000 cancellations due to COVID, keeping marketing dollars for move communication and if there is fall programming, will need additional resources to be successful
p Promo Materials: Design/Print 25,000 25,752 20,000
cancellations due to COVID, keeping marketing dollars for move communication and if there is fall programming, will need additional resources to be successful
p Mailing & Distribution 10,000 6,200 6,200
p Outreach -
p Website 2,500 6,500 15,000 rebranding of website, COVID related online costs
P Signage 2,000 1,000 1,000 P Other Marketing - 11,724 9,124 Cost of additional marketing for Library Square
Total Marketing Expenses 55,500 67,176 66,324 Program ExpensespProgram Supplies 13,809 13,809 9,000 cancellations due to COVIDpPublications 200 - -
p Memberships 2,600 1,000 1,000
p Piano-tuning, moving, etc. 2,060 3,500 2,500
p Hospitality & Bar Supplies 3,800 4,000 1,500 cancellations due to COVID
P Insurance & Permits 2,700 1,500 1,500
Volunteer Program - 5,122 3,695 Part of Horizons project deferred to 2021 due to COVID
Total Program Expenses 25,169 28,931 19,195 Total PROGRAMS 280,341 289,460 244,153 FUNDRAISINGSoftware 2,300 2,385 2,266 Promotions 500 1,500 1,500 Event & Other 1,200 1,500 1,500 Total Fundraising Expenses 4,000 5,385 5,266 Total FUNDRAISING 4,000 5,385 5,266
Total TRILLIUM
INSURANCE
Insurance 9,639 8,230 8,229
Page 134 of 149
Page 6 of 6
Aurora Cultural Centre
2020 Original and Revised Budget
2020 2020 2020Original
Budget
(business as
usual)
Revised (with
Library
Square
impact)
Revised (with
Library Square &
COVID impact to
July 31, 2020)2020 Budget Revision Notes
WSIB Insurance 4,000 3,200 3,200 Total INSURANCE 13,639 11,430 11,429 OFFICE & FACILITIESAdministration Expenses Bank Charges 1,800 2,300 2,300 based on 2019 finalCredit Card Charges 6,000 12,000 10,000 includes e-commerce processing costs
Equipment Lease 2,700 1,125 1,880 cancelled Sept due to move for LS project
Equipment Maintenance 500 - -
Internet Town 1,524 1,686 cancelled July due to move for LS projectMemberships, Dues, etc. 1,700 2,800 2,800 based on 2019 final
Office Supplies 3,000 3,000 3,000 Photocopying/Printing 4,000 4,500 4,500 based on 2019 final
Postage 600 600 600 Recruitment of Staff, Board, Vulnerable Sector Checks 500 2,000 2,000 increased cost of vulnerable sector checks
Professional development 3,500 3,500 3,500 Subscription & Reference 350 - - based on 2019 final
Telephone 7,300 9,791 9,791 includes phone moving costs for LS projectCell/Blackberry 900 900 900
Travel 500 2,000 2,000
Meals, Entertainment, Flowers 1,500 1,500 1,500
IT & Software expenses 2,500 2,000 2,000
Total Administration Expenses 37,350 49,540 48,457
Facility Expenses
p Facility Equipment 800 800 800
Cleaning Supplies 200 200 200
Total Facility Expenses 1,000 1,000 1,000 Total OFFICE & FACILITIES 38,350 50,540 49,457 PROFESSIONAL FEESAccounting 10,000 18,000 18,000 Audit 10,000 10,000 10,000 Consultant (strategic plan etc) 10,000 10,000 10,000
Legal Costs 2,000 5,000 5,000 legal advice on agreement/insurance, etc
Total PROFESSIONAL FEES 32,000 43,000 43,000 Total Expense 1,014,893 1,029,800 962,979
Operating Surplus (Deficit)- - 1,773-
Page 135 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE
O/A AURORA CULTURAL CENTRE
FINANCIAL STATEMENTS
DECEMBER 31, 2019
CONTENTS PAGE
Independent auditor's report 1 - 2
Statement of operations and changes in net assets 3
Statement of financial position 4
Statement of cash flows 5
Notes to financial statements 6 - 11
Page 136 of 149
Page 1
INDEPENDENT AUDITOR'S REPORT
To the Directors of Church Street School Cultural Centre
o/a Aurora Cultural Centre
Report on the Audit of the Financial Statements
Opinion:
We have audited the accompanying financial statements of Church Street School Cultural Centre, o/a
Aurora Cultural Centre, which comprises the statement of financial position as at December 31, 2019 and
the statements of operations and changes in net assets and cash flows for the year then ended, and a
summary of significant accounting policies and other explanatory information.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the
Organization as at December 31, 2019, and its financial performance and its cash flows for the year then
ended in accordance with Canadian Accounting Standards for Not-For-Profit organizations.
Basis for Opinion:
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Financial Statements section of our report. We are independent of the Organization in accordance
with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we
have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged With Governance for the Financial Statements:
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with Canadian Accounting Standards for Not-For-Profit organizations, and for such internal
control as management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Organization's ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going-concern basis of accounting unless management either intends to liquidate the Organization or to
cease operations (or has no realistic alternative but to do so).
Those charged with governance are responsible for overseeing the Organization's financial reporting
process.
.../2
Page 137 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 2
O/A AURORA CULTURAL CENTRE
INDEPENDENT AUDITOR'S REPORT (continued)
Auditor's Responsibilities for the Audit of the Financial Statements:
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement (whether due to fraud or error) and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an
audit conducted in accordance with Canadian generally accepted auditing standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.As part of an audit in accordance with
Canadian generally accepted auditing standards, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements (whether due to
fraud or error), design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override
of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Organization's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going-concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Organization's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the Organization
to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements (including the
disclosures), and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
CHARTERED PROFESSIONAL ACCOUNTANTS
AUTHORIZED TO PRACTISE PUBLIC ACCOUNTING BY THE
CHARTERED PROFESSIONAL ACCOUNTANTS OF ONTARIO
Aurora, Ontario
June 2, 2020
Page 138 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 3
O/A AURORA CULTURAL CENTRE
STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS
DECEMBER 31, 2019
2019 2018
$$
REVENUES
Grant - Town of Aurora operating 415,700 415,700
Grant - Town of Aurora special funding 50,000 -
Grants - other 56,231 27,414
Programs 214,903 225,736
Fundraising, donations and sponsorships 133,558 86,595
870,392 755,445
EXPENDITURES
Administrative salaries and benefits 81,210 68,204
Programs 197,474 147,926
Programming salaries and wages 486,503 437,062
Office expenses 42,634 35,005
Professional fees 33,274 19,770
Fundraising 2,306 2,893
Insurance 10,929 11,734
Amortization 10,338 6,772
864,668 729,366
EXCESS OF REVENUES OVER EXPENDITURES 5,724 26,079
NET ASSETS - Beginning of year 293,727 267,648
NET ASSETS - End of year 299,451 293,727
Page 139 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 4
O/A AURORA CULTURAL CENTRE
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2019
Note Reference 2019 2018
$$
ASSETS
CURRENT ASSETS
Cash 200,312 137,556
Restricted cash 3 241,541 238,991
Amounts receivable 8,966 22,416
Prepaid expenses 7,351 5,693
458,170 404,656
Capital assets 4 17,500 15,358
475,670 420,014
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts payable and accruals 36,192 28,577
Revenues received in advance 37,064 41,824
Deferred grants 5 59,500 5,000
Deferred contributions 6 28,607 41,087
161,363 116,488
Deferred contributions 6 14,856 9,799
176,219 126,287
NET ASSETS
Unrestricted 55,266 49,177
Internally restricted 7 241,541 238,991
Invested in capital assets 2,644 5,559
299,451 293,727
475,670 420,014
The accompanying notes are an integral part of these financial statements.
Approved on behalf of the Board: ___________________ ___________________
Director Director
Page 140 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 5
O/A AURORA CULTURAL CENTRE
STATEMENT OF CASH FLOWS
DECEMBER 31, 2019
2019 2018
$$
OPERATING ACTIVITIES
Excess of revenues over expenditures 5,724 26,079
Expenditures/revenues not requiring/(providing) cash:
Amortization 10,338 6,772
Amortization of deferred contributions (7,423)(3,858)
Deferred grants recognized as revenue (58,500)(5,000)
(49,861)23,993
Non-cash working capital items:
Amounts receivable 13,450 (19,866)
Prepaid expenses (1,658)(821)
Accounts payable and accruals 7,615 506
Revenues received in advance (4,760)12,905
Deferred grants 113,000 10,000
77,786 26,717
FINANCING ACTIVITIES
Restricted cash (2,550)(25,450)
Deferred contributions -50,000
(2,550)24,550
INVESTING ACTIVITIES
Acquisition of capital assets (12,480)(8,913)
INCREASE IN CASH 62,756 42,354
CASH - Beginning of year 137,556 95,202
CASH - End of year 200,312 137,556
Page 141 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 6
O/A AURORA CULTURAL CENTRE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
1. NATURE OF ORGANIZATION
The Organization has been established in the Town of Aurora to deliver a diverse range of inspiring
artistic, music and heritage programs, and to promote Aurora as a dynamic community that values the
creative contributions of its citizens. The Organization also works to showcase local, emerging and
established talent for the community to enjoy.
The Organization was incorporated, without share capital, in the province of Ontario on April 22, 2009,
and qualifies as a charitable organization under the Income Tax Act and is exempt from income tax.
2. SIGNIFICANT ACCOUNTING POLICIES
a) Basis of presentation:
These financial statements have been prepared using Canadian Accounting Standards for Not-for-Profit
Organizations.
b) Revenue recognition:
The Organization follows the deferral method of accounting for revenues. Unrestricted revenues are
recognized when received or receivable, if the amount to be received can be reasonably estimated and
collection is reasonably assured.
Externally restricted contributions are recognized as revenue in the year in which the related expenditures
are incurred.
Ticket, program and facility revenues are recognized as revenues when the event has occurred and
collection is reasonably assured.
c) Contributed services:
A substantial number of volunteers have made significant contributions of their time to the Organization's
operations. While these services benefit the Organization considerably, these contributed services are not
recognized in the financial statements.
d) Allocation of program expenditures:
The Organization classifies expenses on the Statement of Operations and Changes in Net Assets by
function. Administration salaried and benefits are allocated to programs based on estimated time spent on
the programs.
e) Cash:
Cash is defined as cash on hand and cash on deposit, net of cheques issued and outstanding at the
reporting date.
Page 142 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 7
O/A AURORA CULTURAL CENTRE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
f) Amortization:
Capital assets are recorded at cost and are being amortized on the straight-line basis as follows:
Computers and equipment 3 years
Music instruments 10 years
Special project equipment 3 years
Leasehold improvements term of the lease
In the year of acquisition or disposal, amortization is recorded at 50% of the annual rate, with the
exception of leasehold improvements.
g) Management's estimates:
The preparation of financial statements in conformity with Canadian Accounting Standards for Not-for-
Profit Organizations requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenditures during the reporting period. Significant
items subject to such estimates and assumptions include the estimated useful life of capital assets and
the time allocation of administrative salaries and benefits related to program activities. Actual results
could differ from those estimates.
h) Financial instruments:
The fair values of cash, restricted cash, amounts receivable, accounts payable and accruals, revenues
received in advance, deferred grants, and deferred contributions are approximately equal to their carrying
values. It is management's opinion that the Organization is not exposed to significant interest risks
arising from the financial instruments.
3. RESTRICTED CASH
Restricted cash consists of the following:
2019 2018
$$
Internally restricted:
Classical Music Series Fund 69,267 71,991
Contingency Fund 152,274 147,000
Special Project Fund 20,000 20,000
241,541 238,991
See Note 7 for description of the internally restricted funds.
Page 143 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 8
O/A AURORA CULTURAL CENTRE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
4. CAPITAL ASSETS
2019 2018
Original Accumulated Original Accumulated
Cost Amortization Cost Amortization
$$$$
Computers and equipment 28,923 28,458 28,923 27,528
Music instruments 43,570 41,391 43,570 37,034
Special project equipment 21,393 6,537 8,913 1,486
93,886 76,386 81,406 66,048
Net Book Value 17,500 15,358
5. DEFERRED GRANTS
Deferred grants consists of the following:
2019 2018
$$
Balance - beginning of year 5,000 -
Funds received - Ontario Trillium Foundation 27,000 -
Funds received - Canada Arts Presentation 11,000 10,000
Funds received - Kaleidoscope in Schools 75,000 -
Recognized as revenue (58,500)(5,000)
59,500 5,000
The Ontario Trillium Foundation funds are restricted in that the expenditures incurred must be used to
meet certain expected results and performance indicators as outlined by the agreement. Funds received
from the Ontario Trillium Foundation are recognized as revenues when the related expenditures are
incurred. The funding period is September 17, 2019 - September 16, 2020.
The Canada Arts Presentation funds are restricted in that the expenditures incurred must be used to cover
costs for artists to host educator workshops as outlined by the agreement. Funds received from the
Canada Arts Presentation are recognized as revenues when the related expenditures are incurred. The
funding period for this revenue is April 1, 2019 to March 31, 2020.
The Kaleidoscope in Schools funds are restricted in that the expenditures incurred must be used to fund
the Kaleidoscope in Schools program. Funds received are recognized as revenues when the related
expenditures are incurred.
Page 144 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 9
O/A AURORA CULTURAL CENTRE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
6. DEFERRED CONTRIBUTIONS
The Organization's deferred contributions consists of the following:
2019 2018
$$
Balance - beginning of year 50,886 4,744
Funds received - special project -50,000
Amortization of deferred contributions (7,423)(3,858)
43,463 50,886
Less: current portion 28,607 41,087
14,856 9,799
The deferred contributions consist of restricted donations relating to the purchase of certain capital assets
and future program expenditures. The donations relating to the purchase of capital assets are recognized
as revenue at the rate of amortization of the capital assets acquired and the program expenditures
donation is recognized as revenue in the designated operating period.
7. INTERNALLY RESTRICTED
The Organization's internally restricted net assets consists of the following:
2019 2018
$$
Classical Music Series Fund 69,267 71,991
Contingency Fund 152,274 147,000
Special Project Fund 20,000 20,000
241,541 238,991
The Board of Directors approved to internally restrict $5,274 (2018 - $22,000) from the unrestricted net
assets to the Contingency Fund. In addition the Board of Directors approved a transfer of $2,725 from the
Classical Music Series Fund to the unrestricted fund (2018 - $3,450 from the unrestricted fund to the
Classical Music Series Fund).
The purpose of the Classical Music Series Fund is to support future classical music programming as
specified by the donor, unless otherwise approved by the Board of Directors.
The purpose of the Contingency Fund is to provide the Organization with sufficient working capital should
the Organization experience a significant decline in future funding, or to facilitate an orderly wind up of the
Organization's operations in the event that the Organization could not continue with its day to day
operations. Disbursements made out of this fund must be approved by the Board of Directors.
The purpose of the Special Project Reserve Fund is to provide the Organization with sufficient funds for
various projects as determined from time to time by the Board of Directors.
Page 145 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 10
O/A AURORA CULTURAL CENTRE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
8. CREDIT FACILITY
The Organization has a credit card that bears interest at 19.50% per annum. The authorized limit is
$10,000 and available credit at year end is $5,906 (2018 - $7,084).
9. PROGRAM EXPENDITURES
The Organization's Provision of Cultural Service Agreement ("the Agreement") with the Town of Aurora
(see Note 11) contains certain clauses regarding Key Performance Indicators ("KPI"). In order to provide
information in respect of program expenditures, management has identified all expenditures related to
programming which amount to $694,315 (2018 - $591,761). Included in this amount are administrative
salaries and benefits of $153,298 (2018 - $137,752) which have been allocated to program expenditures
based on the estimated amount of time spent as determined by management.
10. GRANT REVENUE
Included in total revenue are the following grants:
2019 2018
$$
Municipal grants 465,700 415,700
Federal grants 46,231 -
Provincial grants 10,000 27,414
521,931 443,114
11. ECONOMIC DEPENDENCE
The Organization's revenues, substantially derived from a grant of $465,700 (2018 - $415,700), is received
from the Town of Aurora. A Provision of Cultural Services Agreement with the Town of Aurora dated
January 1, 2013 stipulates that the Organization should make an annual request for grant funding to
Council in accordance with the Town's current budget guidelines and requirements and shall be subject to
Council approval. This agreement is effective until December 31, 2027.
In addition, the annual facility rent payable under the lease with the Town of Aurora is $1 per annum.
This agreement is in effect until December 31, 2027.
The Town of Aurora may at any time terminate these agreements while providing the Organization with six
months notice.
The Organization is dependent on this grant and lease for its continued existence and ability to carry out
its normal activities.
Page 146 of 149
CHURCH STREET SCHOOL CULTURAL CENTRE Page 11
O/A AURORA CULTURAL CENTRE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
12. FINANCIAL RISKS AND CONCENTRATION OF RISK
The financial risks and concentration of risks are as follows. There has been no change to the nature of any
of the risk exposures from 2018.
Credit risk:
Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in a
financial loss.
The Organization maintains its cash and deposits with a single federally regulated Canadian financial
institution.
13. SUBSEQUENT EVENT
In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, resulting
in the federal, provincial, local governments and private entities mandating various restrictions, including
but not limited to travel restrictions, restrictions on public gatherings, closure of non-essential businesses,
and stay at home advisories. These advisories and closures have extended to cultural programs and
events that this Organization provides to its members and the public at large. In recognition of this
international health emergency, the Organization closed its venue and cancelled programs as of March 13,
2020. Where possible staff have moved to remote offices and the delivery of cultural services virtually.
Future programs and events requiring physical proximity have been postponed indefinitely.
As the pandemic is complex and rapidly evolving, the Organization will continue to monitor developments
and recommendations at the national, provincial and local level in order to evaluate the possible extension
to the postponement. The full extent and duration of the impact of COVID-19 on the Organization's
statement of operations, financial position and cash flows is currently unknown and depends on future
developments that are uncertain and unpredictable, including the duration and severity of the pandemic.
14. COMPARATIVE FIGURES
Certain of the comparative figures have been reclassified in order to conform with the basis of
presentation adopted in the current year.
Page 147 of 149
As of September 15, 2020
Finance Advisory Committee: Updated Work Plan Outline
(All meetings currently scheduled for Wednesdays 5:45 p.m.)
January 21, 2020
ONE Joint Investment Board Participation – Investment Policy Statement
Detailed Budget Review: Community Services (45 minutes)
Receipt of Planning & Development Services budget materials (review at next meeting)
o Identification of specific areas of focus for Planning & Development, if any
February 11, 2020 (Cancelled)
March 10, 2020
Discussion of NEW 2021‐2022 Budget Process
Major Project Update
Receipt of Planning & Development Services budget materials (review at next meeting)
o Identification of specific areas of focus for PDS, if any
April 14, 2020 (Cancelled)
May 12, 2020 (Cancelled)
June 9, 2020 (Cancelled)
September 15, 2020
Detailed Budget Review: Planning & Development Services (45 minutes)
Major Project Update
2019 Year End Financial Performance Report
2019 Financial Statements
Receipt of Aurora Cultural Centre (ACC) budget materials (review at next meeting)
o Identification of specific areas of focus for the ACC, if any
Receipt of updated 2020 FAC Work plan
October 13, 2020:
Detailed Budget Review: Aurora Cultural Centre (45 minutes)
2021/22 Draft Budget Introduction
Summary of FAC accomplishments in 2019
Receipt of Operational Services budget materials (review at next meeting)
o Identification of specific areas of focus for Operational Services, if any
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As of September 15, 2020
November 10, 2020
Detailed Budget Review: Operational Services (45 minutes)
Internal audit plan – Update
Major Project Update
Receipt of Department of Finance budget materials (review at next meeting)
o Identification of specific areas of focus for Finance, if any
December 8, 2020
Detailed Budget Review: Department of Finance (45 minutes)
Major Project Update
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