Agenda - Special General Committee - 20070522b, A
SPECIAL GENERAL
COMMITTEE -
AUDR COMMITTEE
AGENDA
N0.07-25
TOESDAT, MAY 22, 2007
7:00 PAN
COUNCIL CHAMBERS
AURORA TOWN MALL
PUBLIC RELEASE
18/05/07
AUlR`ORA
TOWN OF AURORA
SPECIAL GENERAL COMMITTEE MEETING
AUDIT COMMITTEE
AGENDA
NO. 07-25
Tuesday, May 22, 2007
7:00 p.m.
Council Chambers
Mayor Morris in the Chair
I DECLARATIONS OF PECUNIARY INTEREST
ll APPROVAL OFAGENDA
RECOMMENDED:
THAT the agenda as circulated by the Corporate Services Department be
approved.
III DELEGATIONS
(a) Mr. John Gutteridge, Director of Financial Services/Treasurer
Re: 2006 Financial Statements
(b) Mr. Alister Byrne, Grant Thornton, Auditors
Re: 2006 Financial Statements
SPECIAL GENERAL COMMITTEE — AUDIT — MAY 22, 2007 1 AGENDA ITEM #
TOWN OF AURORA
AURORA GENERAL COMMITTEE REPORT No.FS07-021
SUBJECT: Year End Audited Financial Statements
FROM: L. John Gutteridge, Director of Finance / Treasurer
DATE: May 22, 2007
RECOMMENDATIONS
THAT the 2006 Audit report and financial statement for the year 2006 be
received and be published in accordance with Section 295 of the Ontario
Municipal Act.
ty—IN 212911j ` I'
As committed last year we are presenting your 2006 Audited Financial Statements a
month earlier. Unlike last year this presentation represents the entire audit for 2006
including the management letter.
Attached hereto at Attachment #1 is the entire audit package as presented by our auditors
Grant Thornton. The first portion of the audit report outlines issues that related to the audit
and identifies that four entries have not been booked. These items were identified during
the audit process and discussed, it has been agreed not to book these entries as they do
not have a material impact on the statements as presented.
Appendix C on page 17 of the audit report contains the Management Letter, this is the
section of the report that the Auditor's bring forward areas of concern identified in the audit
engagement. The management letter identified 8 items in total and the report identifies the
Auditors observation and their recommendation followed by Management Status Update,
this allows Council to understand the issue and how management has dealt with or
propose to deal with these.
Our auditors will be in attendance to present their report and findings
The financial statements are present as Attachment #2, these statements are the Town's
statements as audited by our Auditors, your Treasurer will do a review of the significant
changes.
These statements represent the first full year for the current Financial Services
Management Team, and we are very pleased to present this report on time and on budget
with most of the management items from 2005 being eliminated. We are very pleased to
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SPECIAL GENERAL COMMITTEE — AUDIT — MAY 22, 2007
May 22 2007 - 2 - Report No. FS07-021
have achieved these results and look forward to improving again next year. We would like
to take this opportunity to thank the Auditors and Financial Service Department Staff for
their dedication to make this happen.
COMMENTS
We did provide Council with a preliminary estimate on our 2006 surplus with Financial
Services Report No. FS07- 011 now that the audit is complete we can report that our 2006
consolidated surplus is $301,717. Council should be aware that this report is a
consolidated report and includes consolidation of the General Operations of the town, the
Library Board, and the Water/Wastewater Sewer Operations. The following is a roll up of
how the surplus was derived:
2006 Operating Surplus/(Deficit) $1,224,205.
Library Board Surplus/(Deficit) $ 0.
Water/Wastewater Department Surplus/(deficit)$( 922,488.)
Town of Aurora Surplus $ 301,717.
The Library Board did in actual fact have a surplus of $47,135.73 but it has been the
practice in the past to move any surplus to the Library Capital Discretionary Reserve fund.
Water/Wastewater Department did have a larger than normal deficit and this was explained
in Financial Services Department Report FS07-014. By removing the consolidation of the
other funds and incorporating the prior years surplus the General Operating fund operated
in a surplus position for the year of $1,224,205.
A detailed breakdown of. the operating surplus is attached hereto as Attachment #3.
OPTIONS
Council has already adopted the following resolution as a result of Financial Service Report
No. FS07-011.
THAT $45,800. of the 2006 operating surplus be transferred to the Accessibility
Committee .Capital Projects (12002), and,
THAT the remainder of the 2006 operating surplus be transferred to the Municipal
Capital Reserve Fund.
Although the surplus we are reporting for the Operating Fund of $1,224,205. is about
$100,000. larger than previously reported we would not have any reason to change the
resolution already adopted.
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SPECIAL GENERAL COMMITTEE — AUDIT — MAY 22, 2007
May 22, 2007 - 3 - Report No. FS07-021
1. Continue as directed.
2. To allocate the surplus to another reserve or spedfic project.
FINANCIAL IMPLICATIONS
As reported previouslywe would have liked to have seen a little lower surplus and we have
taken this into consideration as we developed our 2007 budget.
CONCLUSIONS
All in all we are very pleased with the current results and are looking forward to
continued improvement in the future.
LINK TO STRATEGIC PLAN
Goal D: Ensure transparent, accountable and open governance in concert with informed
and involved citizens
Objective C1: Maintain, respect, preserve and enhance natural environment, natural
heritage and green spaces
Objective D1: Continue the commitment of fiscal responsibility and accountability
Objective 1133: Be accountable and transparent to residents by ensuring open and
accessible information flow and accessible decision -making
Objective D4: Create a respectful environment that fosters team work and open dialogue,
consistent with a Character Community. These Objectives acknowledge the responsibilities
required by governance that contribute to informed and involved citizens.
ATTACHMENTS
Attachment #1 - 2006 Audit Report
Attachment #2 - 2006 Audited Financial Statements
Attachment #3 - Explanation of 2006 budget variances
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SPECIAL GENERAL COMMITTEE — AUDIT — MAY 22, 2007
May 22, 2007 - 4 - Report No. FS07-021
PRE -SUBMISSION REVIEW
Management Team Review — Wednesday, May 16, 2007
Prepared by: L. John Gutteridge, Director of Finance/Treasurer-Ext. #4111
L. John-G tteridge John S. Rogers
Director of Finance/Treasurer Chief Administrative Officer
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
ATTACHMENT #1
Report to the Audit Committee - Communication of Audit Results
The Corporation of the Town of Aurora
For the year ended December 31, 2006
Grant Thornton ar
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Grant Thornton T
Grant Thornton LLP
Chartered Accountants
Management Consultants
May 11, 2007
To the members of the Audit Committee of
The Corporation of the Town of Aurora
We are pleased to report that we have now substantially completed our audit of the consolidated
financial statements of The Corporation of the Town of Aurora for the year ended December 31,
2006, We have attached our draft auditors' report. We will finalize this auditors' report once we
have the opportunity to discuss the results of our audit with you.
The report to the Audit Committee has been prepared in accordance with the assurance
recommendations issued by the Canadian Institute of Chartered Accountants (CICA) entitled
"Communications with Those Having Oversight Responsibility for the Financial Reporting
Process", That standard recommends we communicate with the Audit Committee various matters
including: the overall audit strategy, our responsibility as auditors, any matters arising from the audit,
misstatements, significant accounting policies, and any other matters that may be of interest to the
Audit Committee.
We express our appreciation for the cooperation and assistance received from the management and
staff of The Corporation of the Town of Aurora during the course of our audit.
If you have any particular comments or concerns, please do not hesitate to raise them at our
scheduled meeting.
Yours very truly,
GRANT THORNTON LLP
LLP
Allister Byrne, F.C.A.
Partner
cc: John Rogers, CAO
L. John Gutteridge, Treasurer / Director of Finance
15 Allstate Parkway
Suite zoo
Markham, Ontario
L3R 684
T (416) 366-0100
F (905) 475-8906
E Markham@ GrantTh ornton.ca
W www.GrantThornton.ca
Canadian Member of Grant Thornton International
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Contents
Page
Statusof the audit.....................................................................................................................4
Auditresults..............................................................................................................................5
Reportable matters
3
Technical updates....................................................................................................................5
Appendices
Appendix A — Auditors' Reports..............................................................................................9
Appendix B — Management Representation Letter
12
Appendix C — Management Letter......................................................................................... 17
Appendix D — Accounting and Auditing Developments
25
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
h
Status of the audit
We have substantially completed our audits of the financial statements of The Corporation of the
Town of Aurora and the Aurora Public Library Board (the "Town") for the year ended December
31, 2006 and the results of those audits are included in this report.
As noted in the covering letter, we have attached our draft auditors' reports as Appendix A. The
following items need to be completed before our audit report is signed:
• Receipt of signed management representation letter (draft has been attached as Appendix
B);
• Receipt of the responses to our legal enquiries;
• Approval of the financial statements by the Audit Committee.
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Audit results
Summary of differences
Our audit identified the unadjusted differences noted below.
There were no differences identified in the financial statements of the Aurora Public Library Board.
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Reportable matters
Internal control
Management is responsible for the design and operation of an effective system of internal control
that provides reasonable assurance that the accounting system provides timely, accurate and reliable
financial information, and safeguards the assets of the entity.
Through our role as auditors of your financial statements we possess an understanding of the entity
and its environment, including internal control. However, a financial statement audit is not designed
to provide assurance on internal control. Professional standards do require us to communicate to
the Audit Committee material weaknesses and significant deficiencies in internal control that have
come to our attention in the course of performing the audit.
Our comments and recommendation on these matters have been provided in an internal control
letter.
Significant new accounting policies
There were no. significant new accounting policies noted in the year.
Management's judgements and accounting estimates
Management has the responsibility for applying judgement in preparing the accounting estimates and
disclosures contained within the financial statements. The fact that estimates are used in the
preparation of the financial statements is outlined in Note 1 to the financial statements. The
following are particularly sensitive estimates and disclosures included within the financial statements:
Liability for em loovee benefits:
Actuarial valuations are ordinarily performed every three years, using the projected benefit method.
Due to timing issues, the actuarial valuation scheduled for the December 31, 2006 year end has not
yet been completed, and will be available in 20M for disclosure in the 2007 financial statements.
The 2006 values are based on an extrapolation performed by the actuary.
Controversial, emerging or unique accounting policy issues
There were no new controversial, emerging or unique accounting policies issues noted.
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Cooperation during the audit
We report that we received cooperation from the employees of the Town. To our knowledge, we
were provided access to all necessary records and other documentation and any issues that arose as a
result of our audit were discussed with staff and have been resolved to our satisfaction.
We are also pleased to report that the Town has made significant improvement in the completion
and timeliness of the preparation of the financial statements and the providing of information to us.
Consultations with other accountants
To our knowledge, management did not seek the advice or opinion of other external accountants on
financial reporting or accounting matters.
Fraud and illegal acts
Our inquiries of management did not reveal any fraud or illegal acts.
Independence
As external auditors of the Town, we are required to be independent in accordance with Canadian
professional standards. These standards require that we disclose to the Audit Committee an
relationships that, in our professional judgement, may reasonably be thought to bear on our
independence. Our independence letter dated October 4, 2006 was provided to you as part of our
Audit Plan which confirms that we are independent with respect to the Town within the meaning of
the Rules of Professional Conduct of the Institute of Chartered Accountants of Ontario as of
October 4, 2006,
We reconfirm that we are not presently aware of any relationship or non -audit services that would
impair our independence for purposes of expressing an opinion on the consolidated financial
statements.
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Technical updates
Accounting and auditing standards
Recent changes in accounting and auditing standards have been summarized in Appendix D. These
accounting and auditing changes have had no effect on the Town for this year.
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Appendix A - Auditors' Reports
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
m
;Olxa fr �;
Lv:.�rt' p,.i lae
Auditors' Report - Town
To the Members of Council, Inhabitants,
and Ratepayers of
The Corporation of the Town of Aurora
We have audited the consolidated statement of financial position of The Corporation of the Town
of Aurora as at December 31, 2006 and the consolidated statements of financial activities and
changes in financial position for the year then ended. These consolidated financial statements are
the responsibility of the Town's management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we plan and perform an audit to obtain reasonable assurance whether the
consolidated financial statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the consolidated financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall consolidated financial statement presentation,
In our opinion, these consolidated financial statements present fairly, in all material respects, the
financial position of The Corporation of the Town of Aurora as at December 31, 2006 and the
results of its operations and the changes in its financial position for the year then ended in
accordance with Canadian generally accepted accounting principles.
Budget figures are provided for comparative purposes and have not been subject to audit
procedures. Accordingly, we do not express any opinion regarding the budget figures.
Markham, Canada
April 13, 2007
Grant Thornton LLP
Chartered Accountants
Licensed Public accountants
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
r
�R
Auditors' Report - Library
To the Members of
Aurora Public Library Board,
m
We have audited the statement of financial position of the Aurora Public Library Board as at
December 31, 2006 and the statement of financial activities for the year then ended. These financial
statements are the responsibility of the Aurora Public Library Board's management. Our
responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we plan and perform an audit to obtain reasonable assurance whether the
consolidated financial statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position
of the Aurora Public Library Board as at December 31, 2006 and the results of its operations for the
year then ended in accordance with Canadian generally accepted accounting principles.
Budget figures are provided for comparative purposes and have not been subject to audit
procedures. Accordingly, we do not express any opinion regarding the budget figures.
Markham, Canada
April 13, 2007
Grant Thornton LLP
Chartered Accountants
Licensed Public accountants
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
,2
Appendix B — Management Representation Letter
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
13
May 10, 2007
Grant Thornton LLP
200 Allstate Parkway
Suite 200
Markham, ON
UR 5B4
Dear Sir:
We are providing this letter in connection with your audit of the consolidated financial statements of
The Corporation of the Town of Aurora, and Aurora Public Library Board (the "Town") as of
December 31, 2006, and for the year then ended, for the purpose of expressing an opinion as to
whether the consolidated financial statements present fairly, in all material respects, the financial
position, results of operations, and cash flows of the Town in accordance with Canadian generally
accepted accounting principles.
We acknowledge that we are responsible for the fair presentation of the consolidated financial
statements in accordance with Canadian generally accepted accounting principles and for the design
and implementation of internal controls to prevent and detect fraud and error. We have assessed the
risk that the consolidated financial statements may be materially misstated as a result of fraud, and
have determined such risk to be low. Further, we acknowledge that your examination was planned
and conducted in accordance with Canadian generally accepted auditing standards so as to enable
you to express an opinion on the consolidated financial statements. We understand that while your
work includes an examination of the accounting system, internal controls and related data to the
extent you considered necessary in the circumstances, it is not designed to identify, nor can it
necessarily be expected to disclose, fraud, shortages, errors and other irregularities, should any exist,
Certain representations in this letter are described as being limited to matters that are material. An
item is considered material, regardless of its monetary value, if it is probable that its omission from
or misstatement in the consolidated financial statements would influence the decision of a
reasonable person relying on the consolidated financial statements.
We confirm, to the best of our knowledge and belief, as of April 13, 2007, the following
representations made to you during your audit:
Financial statements
1. The consolidated financial statements referred to above present fairly, in all material respects,
the financial position of the entity as at December 31, 2006 and the results of its operations and
its cash flows for the year then ended in accordance with Canadian generally accepted
accounting principles.
Completeness of information
2. We have made available to you all financial records and related data and all minutes of the
meetings of shareholders, directors, and committees of directors. Summaries of actions of
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SPECIAL.GENERAL COMMITTEE - AUDIT - MAY 22, 2007
14
recent meetings for which minutes have not yet been prepared have been provided to you. All
significant board and committee actions are included in the summaries.
3. There are no material transactions that have not been properly recorded in the accounting
records underlying the consolidated financial statements. The adjusting journal entries which
have been proposed by you, are approved by us and will be recorded on the books of the entity.
4. We are unaware of any known or probable instances of non-compliance with the requirements
of regulatory or governmental authorities, including their financial reporting requirements.
5. We are unaware of any violations or possible violations of laws or regulations the effects of
which should be considered for disclosure in the consolidated financial statements or as the
basis of recording a contingent loss.
6. We have identified to you all known related parties and related party transactions, including
sales, purchases, loans, transfers of assets, liabilities and services, leasing arrangements
guarantees, non -monetary transactions and transactions for no consideration.
7. You provided a non -attest service by assisting us with drafting the consolidated financial
statements and related notes. In connection with this non -attest service, we confirm that we
have made all management decisions and performed all management functions, have the
knowledge to evaluate the accuracy and completeness of the consolidated financial statements,
and accept responsibility for such consolidated financial statements.
Fraud and error
8. We have no knowledge of fraud or suspected fraud affecting the entity involving management;
employees who have significant roles in internal control; or others, where the fraud could have a
non -trivial effect on the consolidated financial statements.
9. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's
financial statements communicated by employees, former employees, analysts, regulators or
others.
10. We believe that the effects of the uncorrected financial statement misstatements summarized in
the accompanying schedule are immaterial, both individually and in the aggregate, to the
consolidated financial statements taken as a whole.
Recognition, measurement and disclosure
11. We believe that the significant assumptions used in arriving at the fair values of financial
instruments as measured and disclosed in the consolidated financial statements are reasonable
and appropriate in the circumstances.
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
15
12. We have no plans or intentions that may materially affect the carrying value or classification of
assets and liabilities reflected in the consolidated financial statements.
13. All related party transactions have been appropriately measured and disclosed in the
consolidated financial statements.
14. The nature of all material measurement uncertainties has been appropriately disclosed in the
consolidated financial statements, including all estimates where it is reasonably possible that the
estimate will change in the near term and the effect of the change could be material to the
consolidated financial statements.
15. Any business combination that occurred during the year has been properly accounted for with
appropriate consideration of amounts that should be allocated to goodwill and other intangible
assets.
16. Any goodwill or intangibles on the books of the entity are evaluated annually to determine
whether or not they have been impaired, and an appropriate loss provision is provided in the
accounts where there has been a permanent impairment.
17. We have informed you of all outstanding and possible claims, whether or not they have been
discussed with legal counsel.
18. All liabilities and contingencies, including those associated with guarantees, whether written or
oral, have been disclosed to you and are appropriately reflected in the consolidated financial
statements.
19. All "off -balance sheet" financial instruments have been properly recorded or disclosed in the
consolidated financial statements.
20. No derivative financial instruments were purchased during the year.
21. With respect to environmental matters:
a) at year end, there were no liabilities or contingencies that have not already been disclosed to
you;
b) liabilities or contingencies have been recognized, measured and disclosed, as appropriate, in
the consolidated financial statements; and
c) commitments have been measured and disclosed, as appropriate, in the consolidated
financial statements.
22. The entity has satisfactory title to (or lease interest in) all assets, and there are no liens or
encumbrances on the entity's assets nor has any been pledged as collateral.
23. We have disclosed to you, and the entity has complied with, all aspects of contractual
agreements that could have a material effect on the consolidated financial statements in the
event of non-compliance, including all covenants, conditions or other requirements of all
outstanding debt.
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
16
24. The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) transactions recorded by
the entity are in accordance with the federal and provincial regulations. The CST and HST
liability/ receivable amounts recorded by the entity are considered complete.
25. Employee future benefit costs, assets, and obligations have been determined, accounted for and
disclosed in accordance with the requirements of Section 3461 Employee Future Benefits of the
Canadian Institute of Chartered Accountants Handbook — Accounting.
26, There have been no events subsequent to the balance sheet date up to the date hereof that
would require recognition or disclosure in the consolidated financial statements. Further, there
have been no events subsequent to the date of the comparative financial statements that would
require adjustment of those financial statements and related notes.
Other
27. The entity has obtained all consents and authorizations under law in respect of the personal
information, if any, of employees, customers and other individuals provided to you in the course
of your audit, and you are authorized to use such personal information required for your
workpapers.
Yours very truly,
....................................................
John S. Rogers
Chief Administrative Officer
.........................................................................................
L. John Gutteridge
Director of Finance/ Treasurer
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
,7
Appendix C — Management Letter
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Grant Thornton V
Grant Thornton LLP
Chartered Accountants
Management Consultants
May 11, 2007
Members of the Audit Committee
The Corporation of the Town of Aurora
1 Municipal Drive, Box 1000
Aurora, ON
L4G 6J1
Dear Committee Members:
Internal control findings from the 2006 audit
Receiving observations and findings on your financial reporting processes and controls is one benefit
of the annual audit of The Corporation of the Town of Aurora (the "Town"). Grant Thornton LLP
has fully implemented processes and technology to address the changing standards of conducting a
financial statement audit. This includes an increased emphasis on internal control. The standards of
the public accounting profession require us to report annually to you our findings on weaknesses and
deficiencies in your internal controls. In the attached Appendix, we have identified the items that we
wish to bring to your attention.
Our audit is planned and conducted to enable us to express an audit opinion on the annual financial
statements of the Town. The matters dealt with in this letter came to our attention during the conduct
of our normal examination, and as a result, this letter may not necessarily include all matters that
would be uncovered through a more extensive examination.
It is management's responsibility to weigh the costs of implementing controls against the benefits that
the controls will achieve. The purpose of this letter is to provide you with the information related to
the identified risks so that you can make the necessary decisions.
The matters discussed in the attached Appendix are those that have been noted as of the date of our
Auditors' report, April 13, 2007. We have not updated our procedures regarding these matters
subsequent to that date.
This communication is prepared solely for the information of management and is not intended for
any other purposes; we accept no responsibility to a third party who uses this communication.
15 Allstate Parkway
Suite 200
Markham, Ontario
1311564
T (416)366-0100
F (905)475-8906
E Markham@ GrantThornton.ca
W www.GrantThornton.ca
Canadian Member of Grant Thomtan International
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Grant ThorntonTj
Thank you for the opportunity to contribute to the present and future success of the Town.
Yours very truly,
Allister Byrne, F.C.A.
Partner
cc John S. Rogers, Chief Administrative Officer
L. John Gutteridge, Director of Finance/ Treasurer
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Grant Thornton F
A. Findings Arising From This Year's Audit
Z Remote access authentication
O&senenicn
Remote access to the Town's IT environment still requires only a single level of authentication (i.e. the
LAN password).
Imnliauicn
Remote users are not subject to the multiple levels of physical and logical controls that onsite users are
subjected to in order to gain access to the IT environment. A single level of authentication for remote
access to the Town's network increases the risk that unauthorized users may access the Town's systems,
and modify or delete programs or data.
Rexmmax1Mcn
Generally accepted information security practices for remote access to systems is to have two -factor
authentication. Two -factor authentication is described in ISO 17799 ("Information Technology -
Security Techniques - Code of Practice for Information Security Management").
Mcaicrgmw Repmse
IT performed external and internal penetration testing in 2006 and made changes to security threats
identified by the consultant. Furthermore IT will perform follow up penetration test in 2007 to identity
any security threats once the appropriate security infrastructure is installed.
2 Fire Services Training Gnmt
Obsetigticn
A Fire Services Training grant, received on April 1, 2005, is an unconditional grant to be used for fire
training. To date the funds have not been expended and are recorded as deferred revenue.
Rarrruriavclatiar
The grant should be taken into revenue and put in a Reserve fund.
Mcma�enert Canmert
In 2007, the money will be put into a Reserve fund.
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Grant Thornton 8
B. Status of Findings in Previous Management Letters
Password Con hvis
Obsaiwt n
Applications such as Vadim and Class have weak password features i.e. passwords do not expire, have
no maximum age and are not complex. The Town has been informed by the vendors that there no plans
to enhance the password security features of these applications
I 'aficn
Weak password security increases the risk that unauthorized users can figure out passwords and gain
unauthorized access to the system and its data.
Rmrmr'aas
We recommend that the Town should compensate for the weak password security at the applications
level by enhancing the domain level controls by.
• Increasing the change frequency (from the present 90 days to 30 days)
• Increasing the minimum length from 6 characters to 9 characters
• Increasing password history to 15 passwords remembered
Mahan eat Status Update
In reviewing this we have determined that neither Vadim nor Class has this ability to set expiry date and
to this end we have enhanced the domain level controls. We have increased the change frequency to 60
days, this is not the 30 days as recommended as although this control is easy to administer through the
technology it does create havoc and stress for staff and IT support.
We have increased the minimum length for passwords to 10 characters and the passwords require
utilization of various characters which further enhances the security.
Our password history has been increased to 10 passwords, with the 60 day frequency we believe that 10
would be sufficient.
2. Disastermcoveryprocess
Obsmwim
The Town of Aurora has a Business Continuity Plan but this does not include Disaster Recovery
Procedures for recovery of IT systems.
Lrnaiait
Without a proper tested disaster recovery plan, it will be difficult for the organization to recover from
hardware failures, software failures or data loss. This may result in breakdown of internal control as
reactive measures are instituted to recover systems and catch up with transaction processing.
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SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Grant Thornton V
Rem"natdcdw
Develop and document a disaster recovery plan that is communicated to all recovery team members.
The plan should be tested on a regular basis (annually at a minimum) to ensure that recovery
requirements will be met by plan execution and the results of testing should initiate applicable changes
to the plan. The plan should also be reviewed by management on a regular basis to ensure that
significant business, environment and technology changes are reflected in the plan.
Mcmmimt Status Update
When this was identified to the Department, management proceeded immediately with the process of
developing a Disaster Recovery Process as a priority. Phase 1 has been completed and Phase 2 has been
approved in the 2007 budget.
3. Information securitypoGeies and procedures
Obsmutiai
Formal IT Governance policies and procedures do not exist.
I i¢¢icns
The lack of approved documented policies and procedures increase the risk that IT procedures and
related controls may not be properly understood, executed and evidenced with audit trails and applied
on a consistent basis to the IT operations.
Rairmnevddicn
The following are policies and procedures management should consider creating:
• Acquisition and maintenance of hardware, software, and infrastructure
• Security policy, including access Control —new hires, modifications, terminations
• Change management
• Configuration management
• Datamanagement
• Help desk
• Anti -virus management
• IT document management
• Backup tape procedures
• Information security policy
• End -user conduct policy
McnagayV Status U
This project has been approved in the 2007 Capital Program.
-26-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Grant Thornton V
4 Comml activities are not documented
Obsatiuticn
During our audit we observed that a number of control activities and procedures are undocumented,
including:
• The review of firewall logs, security events, and configuration,
• The periodic review of user profiles and assignments to groups at the operating system, database,
and application level, and
• The results of operating system and database level patch testing.
Impltiauiaxs
The lack of documented or implemented polices, processes, and evidence of execution of IT control
activities, limits the ability of management to ensure:
• The controls procedures were performed on a timely basis, and by the appropriate individuals;
• Exceptions were handled appropriately; and,
• Sufficient evidence of the design and operational effectiveness of IT general controls is available
for certification related to internal control over financial reporting.
Rm mmeid dcn
Management should continue to develop and implement IT general control based policies and
processes.
Yoga V Stcuus Uydwe
Management will evaluate its options to deal with this issue in the near future,
5. Old outstanding amounts payable
Obseu tm & Impli¢ r cn
During the audit, we noted a number a number of deposits and refund of taxes payable which have
remained unpaid, some of them dating back to 1987.
Re wnmdWzcn
We recommend that a policy should be adopted as to the period of time a payable amount should
remain on the books before it is written off.
tYlanamo# adla U ate
We agree with the Auditor that a policy should be developed and will prepare and present this policy to
the Council.
6, Inadequate segregation of duties
Obsa mum
The backbone of any strong system of internal control is the proper segregation of duties among the
various staff. A lack of proper segregation increases the risk of a possible error going undetected. The
-27-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Grant Thornton 8
Town's Finance group operates with a limited number of staff and the proper segregation of duties
among the staff should be addressed. A review and reallocation of certain roles and responsibilities of
staff in the Department will improve the segregation of duties and strengthening the overall system of
internal control within the Town.
Raerrune dcrtian
The Town should review staff duties and responsibilities in the financial services department with a view
to strengthening the internal control aspects of the Town's operations.
Himmrtmt Status Up�C te'
We agree with the Auditor that segregation of duties is a valuable method of Internal Control and we
have implemented some changes to date. As has been indicated in our office with limited staff it is
difficult. We are in the process of a review and reallocation of roles and responsibilities to
accommodate appropriate segregation.
IF=
SPECIAL GENERAL COMMITTEE - AUDIT — MAY 22, 2007
zs
Appendix D - Accounting and Auditing Developments
—29—
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
26
The planning memorandum provided October 4, 2006 included accounting and auditing developments through
that date.
-30-
SPECIAL GENERAL COMM I TTEE aT-MgHTMr=N"2 22, 2007
The Corporation of the Town of Aurora
Consolidated Financial Statements
December 31, 2006
-31-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Contents
Page
Auditors' Report 1
Consolidated Statement of Financial Position 2
Consolidated Statement of Financial Activities 3
Consolidated Statement of Changes in Financial Position 4
Notes to the Consolidated Financial Statements 5 - 12
Schedule of Operating Fund Activities — Schedule 1 13
Schedule of Capital Fund Activities — Schedule 2 14
Schedule of Reserves and Reserve Funds Activities — Schedule 3 15
Grant Thornton
-32-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Grant Thornton
Grant Thornton LLP
Chartered Accountants
Management Consultants
Auditors' Report
To the Members of Council, Inhabitants
and Ratepayers of
The Corporation of the Town of Aurora
We have audited the consolidated statement of financial position of The Corporation of the
Town of Aurora as at December 31, 2006 and the consolidated statements of financial activities
and changes in financial position for the year then ended. These consolidated financial
statements are the responsibility of the Town's management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards.
Those standards require that we plan and perform an audit to obtain reasonable assurance
whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
In our opinion, these consolidated financial statements present fairly, in all material respects, the
financial position of the Town as at December 31, 2006 and the results of its operations and
changes in financial position for the year then ended in accordance with Canadian generally
accepted accounting principles.
Budget figures are provided for comparative purposes and have not been subject to audit
procedures. Accordingly, we do not express any opinion regarding the budget figures.
Markham, Canada
April 13, 2007 Chartered Accountants
Licensed Public Accountants
15 Allstate Parkway
Suite 200
Markham, Ontario
UR 5B4
T (416) 366-0100
F (906)475-8906
E Markham@GrantThornton.ca
W www.GrantThornton.ca
Canadian Member of Grant Thornton Intematlonal
-33-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Consolidated Statement of Financial Position
As at December 31 2006 2005
Assets
Cash and short term investments (Note 2) $ 58,569,096 $ 58,316,323
Taxes receivable 5,831,161 6,689,674
User charges receivable 2,390,428 2,454,609
Accounts receivable 2,054,320 3,528,323
Investment in Borealis Hydro Electric Holdings Inc. (Note 3) 1 1
68,845,006 70,988,930
Liabilities
Accounts payable and accrued liabilities
6,901,022
11,793,745
Deposits and deferred revenue
3,476,604
4,667,537
Deferred revenue - Obligatory reserve funds (Note 4)
6,346,464
1,542,752
Employee future benefits liabilities (Note 5)
588,121
552,022
Long term debt (Note 6)
15,723,531
16,916,000
Net Financial Assets
MUNICIPAL POSITION
Fund Balances
Operating Fund (Page 13)
Capital Fund (Page 14)
Reserves and Reserve Funds (Page 15)
Equity in Borealis
To be recovered from future revenues
Municipal position
Contingencies (Note 11)
Approved by:
33.035J42 35,471,05
$ 35,809,264 $ 35,517,874
$ 301,717 $ 1,290,642
6,527,021 8,420,872
44,704,056 42,721,359
1 1
51,523,795 52,432,874
(15,723,531) (16,915,000)
$ 35,809,264 $ 35,517,874
See accompanying notes to the consolidated financial statements.
2
-34-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Consolidated Statement
of Financial Activities
Budget
Actual
Actual
Year Ended December 31
2006
2006
2005
(Unaudited)
Revenues
Taxation (Note 7)
$ 21,688,075 $
22,084,678
$ 20,152,742
User charges
17,567,308
15,453,337
20,340,754
Grants
1,140,020
1,045,802
296,242
Other (Note 8)
3,822,425
8,142,160
8,381,048
Proceeds from sale of Borealis Hydro
Electric Holdings Inc. (Note 3)
35,239,528
44,217,828
46,725,977
84,410,314
Expenditures
Operating
General government
5,339,224
4,978,281
4,729,065
Protection to persons and property
6,627,141
6,145,523
5,851,939
Transportation services
2,933,769
2,609,604
3,523,561
Environmental services
9,582,767
9,591,956
8,464,553
Leisure and cultural services
11,628,319
11,428,788
8,965,293
Planning and development
1,214,957
1,206,617
1,043,247
37,326,177
36,960,769
32,577,658
Capital
General government
430,000
509,642
279,677
Protection to persons and property
400,000
329,429
-
Transportation services
5,240,783
3,839,910
4,271,460
Environmental services
1,600,000
1,146,241
3,465,559
Leisure and cultural services
1,989,500
4,524,704
21,846,703
Planning and development
150,000
87,792
59,286
9,810,283
10,437,718
29,922,685
Total expenditures (Note 9)
47,136,460
46,398,487
62,500,343
Net revenues (expenditures)
(2,918,632)
327,490
21,909,971
Financing and transfers
Issuance of long term debenture 16,915,000
Principal repayment of long term debt (1,191,470) (1,191,470) -
Changes in employee benefit obligation (36,099) (126,376)
Change in fund balances $ (4,110,102) $ (900,079) $ 38,698,595
See accompanying notes to the consolidated financial statements.
3
—35—
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Consolidated Statement of Changes in Financial Position
Year Ended December31 2006 2005
Increase (decrease) in cash and cash equivalents
Operating activities
Net revenue
Less: Increase in employee future
benefits obligation
Uses:
Increase in taxes receivable
Increase in user charges receivable
Increase in accounts receivable
Decrease in accounts payable and accrued liabilities
Decrease in deposits and deferred revenues
Decrease in obligatory reserve funds
Sources:
Decrease in taxes receivable
Decrease in user charges receivable
Decrease in accounts receivable
Increase in obligatory reserve funds
Increase in accounts payable and accrued liabilities
Increase in deposits and deferred revenues
Increase in employee future benefits obligation
Net cash from operations
Financing
Issuance of long term debt
Principal repayment of long term debt
Net increase in cash during the year
Cash and short term investments, beginning of year
Cash and short term investments, end of year
$ 327,490 $ 21,909,971
(126,376)
327,490 21,783,595
(2,233,729)
(934,466)
(1,977,416)
(4,892,723)
(1,190,933)
(5,267,581)
(6,083,656) (10,413,192)
858,513 -
64,181 -
1,474,003 -
4,803,712 -
2,016,991
216,055
126,376
7,200,409 2,357,422
1,444,243 13,727,825
16,915,000
(1,191,470) -
252,773 30,642,825
58,316,323 27,673,498
$ 58,669,096 $ 68,316,323
See accompanying notes to the consolidated financial statements.
4
-36-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2006
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.
1. Summary of significant accounting policies
The consolidated financial statements of the Town are the representation of management and
have been prepared in accordance with Canadian generally accepted accounting principles
for local governments as recommended by the Public Sector Accounting Board ("PSAB") of
The Canadian Institute of Chartered Accountants.
Significant accounting policies adopted by the Town are as follows:
Basis of consolidation
The consolidated financial statements reflect the assets, liabilities, revenues, expenditures
and fund balances of the Town, and except for government business enterprise which are
accounted for by the modified equity basis of accounting, 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.
The Aurora Public Library Board is fully consolidated in these consolidated financial
statements. All inter -organizational and inter -fund transactions and balances are eliminated.
The taxation, other revenues, expenditures, assets and liabilities with respect to the Boards of
Education within the Regional Municipality of York are not reflected in the Town's
consolidated financial statements.
Basis of accounting
Revenues and expenditures are reported on the accrual basis of accounting. The accrual
basis of accounting recognizes revenues as they become available and measurable;
expenditures are recognized as they are incurred and measurable as a result of receipt of
goods or services and the creation of a legal obligation to pay.
Inventories
Expenditures on materials and supplies are reported as an expenditure on the consolidated
statement of financial activities in the year of acquisition.
Non -financial assets
Non -financial assets are recorded in the period the goods or services are acquired.
Capital assets
The historical cost and accumulated amortization of capital assets are not recorded for Town
purposes. Capital assets acquired are reported as an expenditure on the consolidated
statement of financial activities in the year of acquisition.
-37-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2006
1. Summary of significant accounting policies (continued)
Pensions agreements
The Town makes contributions to the Ontario Municipal Employees Retirement Fund
(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.
Employee future benefits
Employee future benefits include health and basic dental coverage that the Town pays on
behalf of its current and retired employees. The Town records these future benefits as they
are earned during the employee's tenure of service. The Town also estimates future benefits
relating to accumulated sick credits and overtime as they are earned.
The present value of the cost of providing employees with future benefit programs is
expensed as employees earn these entitlements through service. The cost of the benefits
earned by employees is actuarially determined using the projected benefit method prorated
on service and management's best estimate of retirement ages of employees and expected
health care and dental costs. Vacation entitlements are accrued for as entitlements are
earned.
Deferred revenue
Deferred revenues represent user charges and fees which have been collected but for which
the related services have yet to be performed. These accounts will be recognized as
revenues 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.
Use of estimates
The preparation of financial statements in conformity with Canadian generally accepted
accounting principles 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 expenditures during the period. Actual results could differ
from these estimates.
Budget figures
The approved operating and capital budgets for 2006 are reflected on the Consolidated
Statement of Financial Activities. The budgets established for the capital fund operations are
on a project -oriented basis, the costs of which may be carried out over one or more years
and, therefore, may not be comparable with the current year actuals.
con
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31. 2006
1. Summary of significant accounting policies (continued)
Reserves and reserve funds
Certain amounts, as approved by the Town Council, are set aside in reserves and reserve
funds for future operating and capital purposes. Transfer to/from reserves and reserve funds
are an adjustment to the respective fund when approved.
Subdivision infrastructure
Subdivision streets, lighting, sidewalks, drainage and other infrastructure are required to be
provided by subdivision developers. Upon completion they are turned over to the municipality.
The municipality is not involved in the construction and does not budget for either the
contributions from the developer or the capital expenditure.
Investment income
Investment income earned on surplus operating funds, capital funds, and reserves and
reserve funds are reported as revenue in the period earned. Investment income earned on
development charges (obligatory reserve funds) is added to the fund balance and forms part
of the deferred revenue balance.
2. Short term investments
Short term investments, recorded at a cost of $47,195,755 (2005 - $43,883,545), have a
market value approximating cost. These investments consist of interest -bearing certificates
that are liquid in nature and are included as part of cash and short-term investments.
3. Investment in Borealis Hydro Electric Holdings Inc.
The Town's investment in Borealis Hydro Electric Holdings Inc. is as follows:
2006 2005
Share capital
Borealis Hydro Electric Holdings Inc. - 1,000 common shares $ 1 $ 1
Retained earnings - -
Long term debt — unsecured promissory note
Total investment $ 1 $ 1
Details of the continuity of the investment are as follows:
Balance, beginning of year
Net income for the year
Proceeds on sale of Hydro investment
Balance, end of year
$ 1 $ 27,112,557
- 8,126,972
(35,239,528)
$ 7 $ 1
FA
-39-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2006
4. Deferred revenue — Obligatory reserve funds
A requirement of PSAB is that obligatory reserve funds be reported as deferred revenue.
This requirement is in place as provincial legislation restricts how these funds may be used
and, under certain circumstances, how these funds may be refunded.
Obligatory reserve funds consist of the following:
2006 2005
Development charges
$ (625,183)
$ (1,093,191)
Park purposes
4,668,703
2,219,246
Building Code Act, 1992
668,663
-
Federal Gas Tax
174,224
4,986,397
1,126, 055
Development charges transferred to capital but
unexpended at the end of the year
1,360,067
416.697
$ 6,346,464
$ 1,542,752
Development charges reserve fund is overspent at the year-end and will be
recovered from
future years' development charges.
5. Employee future benefit obligations
2006
2005
Employee future benefits
$ 425,706
$ 389,607
Accrued sick leave
131,715
131,715
Accrued overtime
30,700
30,700
$ 588,121 $ 552,022
Employee future benefits are health and dental benefits that are provided to early retirees,
future retirees, and employees currently on a long term disability. The Town recognizes these
post -retirement costs as they are earned during the employee's tenure of service. The last
actuarial valuation carried out was December 31, 2003.
Information about the Town's post retirement benefits plan is as follows:
2006 2005
Employee future benefits payable
Employee future benefits, beginning of year
Add: Benefit expense
Interest cost
Less: Expected benefits paid for the period
Employee future benefits, end of year
$ 425,706 $ 389,607
$ 389,607 $ 356,146
22,211 20,954
23,747 21,721
(9,859) (9,214)
$ 425,706 $ 389,607
e
-40-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2006
5. Employee future benefit obligations (continued)
The main assumptions employed for the actuarial valuation prepared at December 31, 2003
are as follows:
Interest (discount) rate
The present value of the post employment benefit liability was determined using a discount
rate of 6.0%.
Health costs
Health costs were assumed to increase at an average increase of 10.0% for 2004 and
decrease thereafter to 5.0% per year.
Dental costs
Dental costs were assumed to increase at a average increase of 5.0% in 2004 and thereafter.
Actuarial evaluations for accounting purposes are performed every three years using the
projected benefit method prorated on services. The most recent actuarial report was
prepared at December 31, 2003. The average remaining service period of the active
employees covered by the benefit plan is thirteen years for 2004. As there have been no
significant changes in staff composition or claims history, nor have there been any major
deviations from the assumptions made for the December 31, 2003 valuation, the 2006 benefit
liability was estimated extrapolating from the amount of full time salaries and wages.
The actuarial valuation for the year ended December 31, 2006 has not yet been completed,
and will be available later in 2007 for disclosure in the 2007 financial statements.
6. Longterm debt
Debenture, bearing interest at rates varying from 3.1 %
to 4.1 %, maturing in September 2015. Principal is
repayable in annual instalments and interest is payable
in half yearly instalments.
Debenture, bearing interest at 4.37%, maturing in
September 2025. Principal and interest is repayable in
half yearly instalments of $160,272.
2006 2005
$ 11,616,000 $ 12,737,500
4.108,531
$ 15,723,631
4,177, 500
$ 16,915,000
The debentures were issued by The Regional Municipality of York, on behalf of the Town, to
fund the construction of the Town's new recreation complex.
P
-41-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December31, 2006
6. Long Term Debt (continued)
Principal repayments for each of the next five years and thereafter are as follows:
2007
$ 1,240,500
2008
1,289,796
2009
1,342,372
2010
1,397,237
2011
1,453,406
Thereafter
9,000 220
$ 15,723,531
7. Net taxation charges 2006 2005
Total taxes levied by the Town $ 77,506,488 $ 73,911,862
Less:
Taxes levied on behalf of the Boards of Education 25,372,955 24,647,231
Taxes levied on behalf of the Region of York 30,047,856 29 111,889
$ 22,084,678 . $ 20,162,742
8. Other revenue
2006
2005
Operating
Penalties and interest on taxes
$ 757,463
$ 669,846
Fines
477,233
508,535
Rents and leases
1,870,746
1,766,567
Interest income
1,227,649
1,846,421
Other
593,587
404,333
4,926,678
5 195,702
Capital
Proceeds from other municipalities
1,064,659
2,369,321
Proceeds from developers
247,000
361,713
Other
265,187
59,527
1,576,846
2,790,561
Reserves and Reserve Funds
Interest income 1,614,461 321,682
Other 24,175 73,103
1,638,636 394,785
$ 8,142,160 $ 8,381,048
10
-42-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2006
9. Classification of expenditures by object
2006
2005
Expenditures by object consist of the following:
Salaries, wages and benefits $
14,626,143
$ 12,780,679
Interest on long term debt
644,970
161,611
Contracted services
16,820,753
16,547,748
Materials and supplies
3,968,903
3,249,231
Capital and other
10,437,718
29,761,074
$
46,398,487
$ 62,500,343
10. Pension agreements
The Town makes contributions to the Ontario Municipal Employees Retirement System
["OMERS"], which is a multi -employer plan, on behalf of all full-time members of its staff.
OMERS is a defined benefit plan which specifies the amount of the retirement benefits to be
received by the employees based on the length of service and rates of pay.
Contributions in 2006 ranged from 6.5% to 10.75% depending on the level of earnings. The
2006 operating expense for OMERS was $705,763 (2005 - $669,761).
11. 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.
12. Central York Fire Services
Effective January 1, 2002, the Town entered into a Joint Venture 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
$5,600,878 (2005 - $5,180,809).
11
-43-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Notes to the Consolidated Financial Statements
December 31, 2006
13. Insurance coverage
The Town is self insured for insurance claims up to $10,000 for any individual claim and for
any number of claims arising out of a single occurrence.
Claim costs during the year amounted to $53,614 (2005 - $58,161).
The Town has made provisions for reserves for self insurance claims under $10,000 to be
used for those claims that exceed the sum provided for in the annual budget. These reserves
are reported on the Consolidated Statement of Financial Activities under reserves set aside
by Council. As at December 31, 2006, these reserves amounted to $261,109 (2005 -
$342,386).
The Town is a member of the Ontario Municipal Insurance Exchange which became a
licensed group for liability insurance coverage on October 1, 1996. Contributions have been
made to the fund for claims in excess of $10,000 and under $50,000,000. These contributions
have been reported as expenditures on the Consolidated Statement of Financial Activities.
14. Comparative figures
Certain comparative figures in these financial statements have been reclassified to conform
with the presentation adopted for the current year.
Schedule 3 comparative figures for 2005 have been restated as a result of a review and
reallocation by motion of Council for some of the Reserves and Reserve Funds of the Town.
12
—44—
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Schedule of Operating
Fund Activities
Schedule 1
Budget
Actual
Actual
Year Ended December31
2006
2006
2005
(Unaudited)
Revenue
Taxation (Note 7)
$ 21,688,075 $
22,084,678
$ 20,162,742
User charges
15,723,878
13,719,928
13,250,339
Grants
976,420
997,802
199,798
Other (Note 8)
3,495,425
4,926,678
5,195,702
41,883,798
41,729,086
38,798,581
Expenditures
General government
6,339,224
4,978,281
4,729,065
Protection to persons and property
6,627,141
6,145,623
5,851,939
Transportation services
2,933,769
2,609,604
3,523,561
Environmental services
9,582,767
9,591,956
8,464,553
Leisure and cultural services
11,628,319
11,428,788
8,965,293
Planning and development
1,214,957
1,206,617
1,043,247
37,326,177
35,960,769
32,577,658
Net revenue
4,567,621
5,768,317
6,220,923
Financing and transfers
Principal payment of long term debt
(1,191,470)
(1,191,470)
Change in employee benefit obligations
(36,099)
(126,376)
Transfer to Reserves and Reserve Funds
(1,424,151)
(4,201,461)
(3,835,735)
Transfer to Capital Fund
(1,942,000)
(1,328,212)
(1,837,970)
(4,557,621)
(6,767,242)
(5,800,081)
Change in Operating Fund
-
(988,925)
420,842
Operating Fund balance, beginning of year
1,290,642
1290,642
869,800
Operating Fund balance, end of year $
1,290,642
$ 301,717
$ 1,290,642
See accompanying notes to the consolidated financial statements,
13
-45-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Schedule of Capital Fund Activities
Schedule 2
Budget
Year Ended December 31 2006
Actual
2006
Actual
2005
(Unaudited)
Revenue
User charges
$ 1,843,430 $
2,186,268
$ 4,089,291
Grants
163,600
48,000
96,444
Other (Note 8)
327,000
1,576,846
2,790,561
2,334,030
3,811,104
6,976,296
Expenditures
General government
430,000
509,642
279,677
Protection to persons and property
400,000
329,429
-
Transportation services
5,240,783
3,839,910
4,271,460
Environmental services
1,600,000
1,146,241
3,465,559
Leisure and cultural services
1,989,500
4,524,704
21,846,703
Planning and development
150,000
87,792
59,286
9,810,283
10,437,718
29,922,685
Net expenditure
(7,476,253)
(6,626,614)
(22,946,389)
Financing and transfers
Issuance of long term debenture
-
16,915,000
Transfer from Operating Fund
1,188,083
1,328,212
1,837,970
Transfer from Reserves
2,422,500
2,081,712
2,559,790
Transfer from Reserve Funds
3,865,670
1,322,839
2,875,954
7,476 253
4,732,763
24,188,714
Change in Capital Fund balance
-
(1,893,861)
1,242,325
Capital Fund balance, beginning of year
8,420,872
8,420,872
7,178,547
Capital Fund balance, end of year
$ 8,420,872 $
6,527,021
$ 8,420,872
See accompanying notes to the consolidated financial statements.
14
-46-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
The Corporation of the Town of Aurora
Schedule of Reserves and Reserve Funds Activities
Schedule 3
Actual Actual
Year Ended December 31 2006 2005
(Note 14)
Revenue
User charges $
6,394,704
$ 1,822,834
Net change in obligatory Reserve Funds
(6,847,553)
1,178,290
Proceeds from sale of Borealis Hydro Electric
Holdings Inc.
35,239,528
Other (Note 8)
1,638,636
394,785
1,186,787
38,635,437
Financing and transfers
Transfer from Operating Fund
4,201,461
3,835,735
Transfer to Capital Fund
(3,404,551)
(5,435,744)
796,910
(1,600,009)
Change in Reserve and Reserve Fund balance
1,982,697
37,035,428
Reserve and Reserve Fund balance, beginning of year
42,721,359
5,685,931
Reserve and Reserve Fund balance, end of year $
44,704,056
$ 42,721,359
Reserves and Reserve Funds are comprised of:
Reserves, set aside by Council for specific purposes
Acquisition of capital assets
$ 1,334,444
$ 1,509,332
Contingencies
2,008,640
1,235,396
Engineering
2,075,563
1,791,006
Discretionary
33,734,398
32,646,312
39,163,045
37,182,046
Reserve funds set aside for specific purposes by
legislation, regulation or agreement
61551,011
5,539,314
$ 44,704,056
$ 42,721,359
See accompanying notes to the consolidated financial statements.
15
-47-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
ATTACHMENT #3
Department . Surplus/
Function and Explanation (Deficit)
Council
Council
Surplus was generate in savings on Councillors Conferences as very few
Councillors used their Conference and Seminar Budget
$ 7,700
Council Programs
Surplus was a result on not allocating all of the Community Grants Funds
$ 4,000
Accessibility Committee
Committee didn't complete as much work as planned this year, we are
recommending that this surplus be moved to the Capital Fund to co -relate
with this now being budgeted as Capital.
$ 120,800
ED Committee
All funds were not s ent for Internal Grants
$ 2,000
Environmental Committee
All funds were not spent for Internal Grants
$ 4,100
Yon a Street Commercial Area
All funds were not spent for Internal Grants
$ 1,600
Administration
CAD Administration
Savings were achieved in Salaries and Wages, Conferences and
Conventions, Consulting and Printing
$ 33,900
Legal Services
Surplus resulted in greater revenues than budgeted, and large savings in
salaries and wages due to the delay in hiring an assistant solicitor, another
large area of savin s was the area of Advocacy.
$ 251,000
Corporate Services Admin
Deficif resulted in shortfall in revenues, and over expenditures in Salaries
and wages, insurance claim deductibles, postage and photocopying.
Postage and Photo Copying can be attributable to the municipal election.
$ 78,100)
Marketing & Communication
Savings in Salaries and Wages as a result of Family leave.
$ 3,900
Web Site Management
Savings in Salaries and Wages due to delay in hiring Web Manager and
from not spending funds in Office Supplies, Office Equipment and we had
money budgeted to contract outside services but it was not used,
$ 41,500
Human Resources
Deficit resulted from spending more money in advertising than budgeted,
this is an unpredictable expense as it is dictated by the number of
recruitments in any one year.
$ 500)
Elections
We budget annually to accumulate enough money to fund the election total
election budget was $135,000. it cost us $139,000.
$ 4,400
Financial Services Budget
Budget had a full time position that was filled for the year with
temporary part time person, this was done to save money as a result of the
benefit calculation error. Salaries and wages were overstated this
year in contributions to OMER, and there were some savings in the Budget
Co-ordinator Position due to timing of hiring position
$ 51,300
Information Technology
Savings in Salaries and Wages as a result of Family leave, there was an
over expenditure in contracts which was netted out to Salaries and Wages
resulting in a savings.
$ 8,g00
Telecommunications
Deficit was a result of underestimating Mobile Phone Costs
$ 19,000)
Municipal Purposes
Deficit resulted from $1,625,700 transfer to reserves, this amount is offset by
the prior years Surplus if we take from this $132,463. penalty on taxes,
$851,661 from Investment Income, $126,407 from operating contingency
we end up with the number in the accounts
$ 707,900
Town Hall
Surplus was a result of Salaries and Wages
$ 7,400
Protection to Persons & Property
Central York Fire Services
$ 16,300
Emergency Preparedness
Small savings from lower telephone costs than budgeted
$ 600
By-law and Licensing
Surplus was from excess revenues from fines and savings in expenditures
$ 37,500
Animal and Pest Control
Deficit resulting from not collecting Dog and Cat revenue projected
$ 10,000
a4,M
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Department Surplus/
Vi inr inn onA Cvnl�n9i:eav �n...r. :a�
Public Works
�• �
0.!v 11410.
Administration
Had surplus in revenues of $11,000 but was over spent in Salaries
and wages
$ 32,000
Works Capital
$ 34.400
Vehicle and Equipment Maint
Underspent in Salaries and Wages, however Vehicle Supplies were over
spent but there were other savings within the budget
$ 81,6D0
Works Building Scanlon Court
Deficit as a result of various accounts being over s ent
$ (3,300)
Road Repair
$ 4100
Hot Mix Patching
Overspent on Hot Mix due to need
$ 14,600
Cold Mix Patching
Overspent on Cold Mix due to need
$ 10,900)
Gravel Road Dust Control
Surplus to compensate for over expenditures in other areas
$ 7,600
Crack Filling
Surplus to compensate for over ex enditures in other areas
$ 8,400
Shoulder Maintenance
Overspent due to need
$ 12,300)
Roadsido/Sweeping Maint
Overspent due to need
$ (13,600
Debris
Surplus to compensate for over expenditures in other areas
$ 3,700
Road Kill Removal
Surplus as there wasn't the need to spend on this issue
$ 5,700
Traffic Administration
$ 1,000
SI na a
Overspent due to need
$ 54,100
Pavement Markings
Overspent due to need
$ 8,100
Guide Rails
Overspent due to need
$ 11,500
Street Closures & Parties
Overspent due to more requests than anticipated
$ 10,OD0
Go CrossingCharges
Overspent due to need
$ 5 100
Sidewalk Summer Maint
Surplus to compensate for over expenditures in other areas
$ 14,600
General Repair
Surplus to compensate for over expenditures in other areas
$ 5,000
Liftin IRemovelRe lace
$ 1,400
Retaining Walls
Surplus to compensate for over expenditures in other areas
$ 21,100
Fences
$ 700
Streetlighting
Surplus as there wasn't the need to spend on this issue
$ 14,100
Traffic Light Maintenance
Surplus as there wasn't the need to spend on this issue
$ 28,840
Traffic Control Device Maint
Surplus as there wasn't the need to spend on this issue
$ 13,100
Banner, Flags and Decorations
Surplus as there wasn't the need to spend on this issue
$ 5,300
Crossing Guards
Surplus partially due to Inability to hire crossing guards
$ 44,900
Summer Road Patrol
$ 9,500)
Storm Sewers
Storm Sewers are funded from Water and Sewer Fund, this is balanced
to zero annually and is reported with Water and Sewer budget
Winter Roads
The surplus or deficit for Winter Maintenance gets transferred into the
Roads Winter Maintenance Reserve Fund this year we transferred
$86,200. into this reserve, the surplus was a result of the warm winter
season
$
Waste Collection Operations
$ 92,600
Yon a Street Garbage
$ 3,200
Litter/Debris/Graffiti
Deficit was a result of more Debris and Graffiti than anticipated at budget
time
$ 5,500
Waste Management Three Stream
Costs for legal services greater than anticipated.
$ 9,800)
Recycling Operations
$ (164,000
Leisure Services
Administration
Surplus a result of Salaries and wages
$ 1,500
Facilities Administration
Deficit as a result of Salaries and Wages over expenditures
$ 12,700)
CarpenterShop
$ 1,300
Community Centre Administration
This budget had a shortfall in revenues of $132,000 but to offset
revenue deficit, large surplus in Heating Fuel $39,400. and heating fuel of
$9,800.Saved Salaries and wages of $56,000 and Building Repairs and
maintenance was over spent by $11,300
$ 8,600)
Leisure Complex Administration
Surplus a result of excess revenues of $23,300.
$ 30,800
Leisure Complex Operations
Deficit in Revenues of 23,000. and property taxes of $55,000
for the Bubble
$ (93,200
mom
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Department Surplus/
Function and E I t` D f 't
3Cif ana Bon a ICI
22 Church St.
Deficit a result of not receiving any of the revenue that was budgeted and over
expenditures of in operating materials and Building repairs and maintenance
$ 8,300)
52 Victoria Avenue
Savings as a result of more revenue collected than was anticipated as well as
underspencling in all accounts
$ 25 000
56 Victoria Avenue
Surplus as a result of operating expenditures not being needed
$ 17,000
Victoria Hall
Surplus in revenues of $2,000 and surplus in Building Repairs and Maint
of 2,000. as well as surpluses in all other expense areas.
$ 5,700
Surplus a result of excess revenue from Rent payment from tenant $21,100
Jack Woods
also surplus in various expense areas of $10,300, biggest portion comes
from under expenditures in Utilities 2,000, Heating Fuel 3,000 and Building
repairs and maintenance of 5,300
$ 31,500
McMahan Tennis
Deficit in operating expenses 2,000 in utilities and balance in other expense
lines
$ 3,7D0
Factory Theatre
Deficit in Equipment service contracts and building repair and maintenance
$ 2,400)
Industrial Parkway
Rental deferred revenue not picked up at budget time
$ 36,100
Large deficit in projected revenues as a result of pool being delayed in
New Recreation Complex Admin
opening revenue deficit of 158,400, Saved money in Salaries and wages
again due to pool not being open as scheduled
$ (61,300)
New Rec Complex Operations
Deficit due to error in estimating revenue for year 423,40D, deficit in utilities
110,000 and heat 54,700 as our estimates were made with no history, the
utility deficit was also a result of Gas company not billing since opening
$ (506,400
New Seniors Centre
Main reason for deficit is in revenue, we projected Rental Income of
20,000 only took in 5,500
$ 15,100
Leslie St. Property
Revenue exceed budget
$ 1,900
Parks Administration
Landscape fees were under budget by 14,200, and salaries and wages
were over spent by 20,500
$ 21,400
We received 18800 in other revenue that wasn't budgeted for, 23,200
Parks Operations
in grass cutting fees and 4,000 in permit fee that were not budgeted for, Ball
diamond/Soccer User were under budget by 11,000. On the expenditure side
Salaries were unders ent by 68,400
$ 108,700
Parks Vehicles
Vehicle and Equipment repairs were greater than budgeted
$ 21,500
Revenues were up due to increased participation by 71,500, however
Community Programs Admin
expenses were also up in Salaries and Wages 20,400 and contracts
were over budget by 118,800
$ 58,100
Leisure Complex Fitness Centre
Revenues were under budget by 138,300, but only saved 37,038 in
expenditures
$ 101,300
Surplus here because we anticipated new Recreation Complex would
Leisure Complex Aquatics
be completed before it was and this would have impacted revenues at
the Leisure Complex as a result revenue was in surplus by 144,600. There
were also savings on Salaries and Wages and other expenses of
52,800
$ 202,000
Youth Initiatives
Savings in this budget was a result of not renting equipment anticipated
$ 14,900
Revenue was under budget resulting from fewer cost recovery programs
Seniors Programs
being scheduled 22,600, this reduction in scheduling cost recovery
programs resulted in savings or 33,000 in contract outings, also saved money
in Contracts and Equipment Rentals 6,700 and Salaries and Wages 3,000
$ 21,200
Deficit in Canada Day as revenue did not meet expectation short 10,000
Canada Day Celebrations
and Contracts and equipment rentals were over spend by 12,100 however
9,000 was saved from promotion
$ 13,300)
Santa Claus Parade
$ 1,500
Street Sale
Nothing was spent on the Street Sales this year
$ 5,600
Artie Adventure
$ 1,400
Library Facilities
I Deficit was a result of 2,200 shortfall in revenues
$ (6,000
-50-
SPECIAL GENERAL COMMITTEE - AUDIT - MAY 22, 2007
Depart►nent Surplus/
Function and Explanation IDefiritt
Planning and Development
Development Planning
Surplus was a result in the increase in fees after the budget was approved
$ 84,700
Community Planning
Deficit as a result of fewer Committee of Adjustment applications for the
year.
$ 11,5g0
Policy Planning
Savings as a result of under expenditure in Consulting Fees
$ 22,900
Economic Development
Surplus was as a result of not having a director for most of the year
$ 55,100
Taxation
Surplus because Supplementary taxes were not budgeted for
$ 398,000
-51-
ADDITIONAL ITEMS TABLED FOR
COUNCIL MEETING
Tuesday, May 22, 2007
➢ Delegation request from Ms. Susan Walmer
Re: Dr. G. W. Williams
➢ (13) -York Region District School Board
Dr. G.W. Williams Secondary School - Feasibility Study
Delegation (a)
Panizza, Bob
From:
Susan Walmer. .
Sent:
Tuesday, May 22, 2007 1:54 PM
To:
Panizza, Bob
Subject: Delegation to Council regarding the Dr G W Williams issue
Bob,
I request delegation status to the Town Council in regards to the Dr G W Williams agenda items.
Thank you,
Susan Walmer
5/22/2007
ADDED ITEM -13
YORK REGION DISTRIT SCHOOL BOARD
DR. GW WILLIAMS SECONDARY SCHOOL
FEASIBILITY STUDY
[to be amended to reflect public comments and the June 4 delegations to the Board]
INTRODUCTION:
The Ministry has identified 22 schools as being potentially Prohibtive`to
identified two additional schools in this category bringing the total"to 24
ReCAPP (lifecycle and replacement cost data), program
within the family of schools, residential development
identified 10 schools from this list for further investigation
these 10 schools have either been completed or are asp
each feasibility study is to address the viability of,, $1
ability to re -build on the existing site or an alternatsite,
cost.
In early 2007, the Town of Aurora circulated an amendnt
expand the Region's Urban Area bound to permit urban
of the Town. Upon approval of this 0 1
growth will be in northeast Aurora. The Bc5aril It
this area in the late 1990's. A 15.77 acre site
Bayview Avenue (Bayview Northeast site) was
use by the Board. The Bq.?4xdpes not own this;
Based on the Town
feasibility assessmd
site.
Staff is
Cugini
GW W
early 20OTj�jjthe Board
Bayview Northeast site.
The process use(W or
communication strategy
communities, posting pf'r
the opportunity for the
delegations to the Board.
s clribulation of
3WWlliams SS
ling compie
from the pe
-t on school
Repair. The Board
schools. Based on
projections, capacity
:nditures, the Board
y studies for each of
onw The purpose of
spei tive of physical
and O inunity, and
the York Region Official Plan to
iansion in the northeast quadrant
iaf the focus of new residential
iammnisecondary school site in
of Wellington Street and east of
he"developer for possible future
to the Region's Official Plan, the
to include the Bayview Northeast
to four architectural firms, and the firm of Makrimichalos
d. MCA determined that it was possible to replace the Dr.
4=,od rent Dunning Avenue site, while the existing building
q��birculated the amendment to expand their urban area in
at MCA also prepare a site fit and assessment of the
altf-'of the feasibility studies includes a school and community
his strategy includes meetings with staff and members of our school
eeting notices and presentation materials on the Board's website, and
community to speak to trustees both informally and formally as
Meetings for the Dr. GW Williams SS took place on March 27 and April 23, with school staff
meetings in the afternoon and school community meetings in the evening. In addition to the
current school families, notices were also sent out to elementary feeder school parents. An
information report on the status of the project and issue identification was presented to trustees
at the May 7 Board Standing Committee meeting. Delegations are scheduled for the June 4
Board Standing Committee meeting. A decision on the replacement of Dr. GW Williams SS is
scheduled for the July 3 Board Meeting.
Dr. GW WflOams Secondary School— Feasibility Study — May 2007 Page 2 of 8
RATIONALE FOR THE PROJECT:
Renewal versus Replacement
Dr G W Williams SS was originally constructed in 1953, and has been added onto several
times since. The building is facing substantial renewal costs due in part to its design and
layout. The most recent addition constructed in the 1990's added a new library and
cafeteria to the school, but did not substantially renovate the original building.
Much of the existing school is more than 50 years old; a numberof the building systems at
Dr G W Williams SS have reached or surpassed their life expeTany For example, recent
problems associated with the steam pipe system are indicative that the system is at the
end of its life cycle.
When the Ministry of Education conducted the building asessmenof the school in 2003,
it identified a total of $22.5 million in renewal costsfio(1e bwldmg syge_ms over a 10-year
period. With a total renewal requirement that.. seeded 6500 of the vaiAe of the building,
the Ministry determined that the building srdeemed._to be prohibits"2 te2pair, and
therefore potentially eligible for replacemenTrtlg. r
In considering renewing the school building, the
required at Dr G W Williams SS. Tie renovation of
Williams SS, for example, would QIIre:that the
portion of the school year - the time
associated with the steam pipe system, is
months to complete. Other buildg
incrementally in the y�s_umrner months ou
complete the renovatroi �-Jt would still
substantial on-gginng renewal
Not considered by
to provide.alr circu
of these requiretn1
an
lb�rd examined the scope of work
��, .
e�e�sting heating system at Dr G W
hool tie abandoned for a significant
to ren-d.8'clesignated substances
ly long-P!han the available summer
-t- '° be renovated or replaced
YQar period. If the Board were to
aging facility which would require
'nt is the cost to upgrade building systems
t air conditioning into the school building. All
modern secondary schools operated by the
lr addition to the butld(ng sysw costs identified to date, the Board has reviewed the
requited costs of program renewal within the building. A review of secondary science labs
in 2003-tfe#ermined thate estimated cost was approximately $3.4 million to renovate the
schools ems ting scient labs. The ongoing review of technological education estimates
that at least $21i- illiorl=tn renovations is required to modernize the shop areas to allow the
current technolo- Wf education curriculum to be properly delivered.
The combination of the Ministry of Education assessment of renewal costs, the air
circulation requirements, and the program renewal requirements make it less expensive to
replace Dr. GW Williams SS rather than renovate the school
2. Future Secondary School Requirements for the Town of Aurora
Board staff has determined that secondary school pupil place requirements to serve
Aurora over the long-term can continue to be satisfied with two high schools. (Appendix
1) This conclusion is based on our assessment of the impact of new growth balanced by
decline in existing, older neighbourhoods.
Dr. GW Williams Secondary School — Feasibility Study — May 2007 Page 3 of 8
3.
4.
Decline at Existing Feeder Schools
It is estimated that by 2026, enrolment from existing elementary schools west of Industrial
Parkway will have declined. This kind of decline is a phenomenon experienced across the
Region in established low density communities. The typical life cycle of schools generally
follows a "bell" shaped curve, whereby enrolment is low in the early years of a community,
peaks at between five to seven years, and then enrolment begins to decline as families
mature and children graduate from school. The timing and exact shape of the curve will
vary from school to school. There are also exceptions to this curve; for example, some
medium density communities will have higher turnover rates and -maintain their enrolment
levels. There are also communities with enrolment growth resdttrtg,from more than one
family per household. The bell shaped curve, with the kin exceptions noted above,
has been the experience of YRDSB for the last 25 yeasI,Ighview Public School is
provided as an example. (Appendix 2)
The impact of the baby boom generation (tt
early 1960's) and to a lesser degree the baby
and the mid 1990's) have been major fact,
and baby boom echo age cohorts grow old r,
trend in school enrolment is already evident
communities. Highview Public School and I
examples. (Appendix 3)
(born
in etolment results
-j=
ark!=grades in Auro
)r:`ive Public School
1940's and the
the early 1980's
tieiaby boom
�tffie downward
rays older school
are provided as
Some parents have made an argume t fhat<Aurora is a family."'oriented community with
existing housing stock that is attractive to fiaieil s .and thatwa result, school enrolment
will not decline, or at least not to the degree estinibtetl_byB'oard staff. While it is certainly
reasonable that some- r_egeneration in eaast ng schooH�communities will occur, it is not
expected to be sufficie t to -,maintain peak.or higher,Ad yields. Regeneration will in all
likelihood resultwli-;the long=term sustainabiTty of schools at low enrolment levels.
The
to
To add6mmodate new
in 2003 and will open
schools will.be built ii
approved
the' P lation in Aurora will increase from about 49,000
This growth will be a combination of low and medium
ntly'located in northeast Aurora and, to a much lesser
r6r transit corridors such as Yonge Street. (Appendix 4)
northeast Aurora, the Board has built Northern Lights PS
PS in 2007. An additional one to two new elementary
,t Aurora over the next decade as new development is
Some communitTmembers have spoken about the impact of intensification along major
corridors, sucWs Yonge Street, as a factor which must be considered in determining
future secondary school requirements. The Region of York has a 40% intensification goal
which will be averaged across the Region; some communities better suited to higher
density development because of transit access and other amenities will exceed the 40%
goal while other communities will provide something less than the 40%. Assuming the
intensification target for Aurora is 20% to 30%, there will be an estimated 2,800 high
density units constructed between 2006 and 2031. (Region of York) Typically, the student
yield from high density development is much less than from low density housing.
Depending on timing and location, student yield from these kinds of units will assist in
maintaining a long-term sustainable enrolment at Dr. GW Williams SS and Aurora HS, but
Dr. GW Williams Secondary School —Feasibility Study —May 2007 Page 4 of 8
it is unlikely that there will be sufficient numbers to create much impact on enrolment in
the central part of Aurora. Based on the Region's projected 2,800 units, the secondary
school student yield could range from 50 to 150 students at full build out.
Because of the amount of growth projected for Aurora, concern has been raised about the
number of secondary schools required to accommodate future school enrolment.
Comparisons were made with the Town of Newmarket, which has four secondary schools
serving a current population of 75,000. Newmarket currently serves 1000 secondary
school students from the Town of East Gwillimbury as well as its own population. The
number of secondary schools varies across the Region from one secondary school to
48,000 persons in Vaughan to one secondary school to 20,00Q.persons in King, with a
regional average of one secondary school to 32,000 persons. w
If, due to unforeseen factors, there are more secondary's .6ol students than currently
projected, the additional students can be accommodaWatl in a�:nl7mber of ways: building
an addition at one or both of the schools; adtustin 'the bourtdary between the two
schools; providing the opportunity for transfers tQi„F ' T st condary sGf ools; adjusting the
school day (multiple lunch periods, and/or ex, ed school day), antl edirecting French
Immersion students from Oak Ridges to a Richmond Hill•Jocation.
It should be noted that the Board anticipated haVmg,thr e'%econdary schools in Aurora
when the Bayview Northeast site was designated fat&'60ture use as a secondary school in
the late 1990's. A number of key e_yents and decisioW�h_ave occurred making it no longer
1.
necessary to have three secondary= -schools in Aurora:
• The Province's Oak Ridges Moraine-tionseFv i-1 Act which has restricted the pace and
total amount of growth in Aurora;`
• Redirection Redirection=W Dr. GW W!11tA s SS f6por schools in Oak Ridges to King
City SS and RjohR— Agn SS, which has resulted in a phasing out of students from
the Oak Ridgehbmmunitynd a loss of AD students at Dr. GW Williams SS by 2009;
• Elimination of the 0year which has resulted in fewer students at the secondary panel
and more -mailable pup l laceea sbottlr0 ondary schools;
• The-` York Ca366lic D strip. School Board's new secondary school proposal for
Wellington/IndusYrial.Parkway;uGihhiiph will attract about 200 students who may otherwise
hive attended Dr Cz�N Williams'SS.
REPLACEMENT OPTIONS 1$
The following elements will be taken into consideration by the Board in making its decision with
respect to the location for the replacement of Dr. GW Williams SS.
Site Options
The Board has examined two options for the replacement of Dr. GW Williams:
replacement on the existing Dunning Avenue site or replacement on a site in northeast
Aurora.
a) Dunning Avenue Site:
Dr. GW Williams SS is located at 39 Dunning Avenue, a short distance east of Yonge
Street. The property is an 18 acre parcel acquired by the Board in two stages: in
1950 the school board of the time purchased the front (north) acreage. In 1966, an
Dr. GW Williams Secondary School - Feasibility Study - May 2007 Page 5 of 8
2.
additional four acres at the back (south) end of the site was expropriated. The existing
outdoor field areas include a 400 metre cinder track, a major field, two large practice
/game fields and a small practice area.
The replacement schedule provides for construction to commence in July 2008 with
the new school ready for occupancy by September, 2010. The demolition of the
existing school will start the summer of 2010 and be complete by December of that
year. The new parking lot and fields will be complete by spring, 2011.
Building a new school on the Dunning property requires
continue to use the existing facility during construction. '
located on what is now the cinder track, immediately adjap
Because of the limited frontage, careful coordination wh bi
and the site contractor to ensure continued safe ad—W,
periods of construction and demolition. Noise, d ands,
will most directly affect the existing cafeteria -ands ym; thi
school is located on the other side of the buiA4r�west) frc
During construction, the south practice field only will remain
that students and staff
he new building will be
i�io the existing school.
required by board staff
> the school during the
Cation from construction
cademic wing of the
For a short period of time, primarily duri, ;TNinter months, no fields
school use. (See Appendices 5 A-D) = =
b) Bayview Northeast Site:
uction area.
school use.
available for
The Bayview Northeast site ls'[Mte_d north of Well jgton Street and east of Bayview
Avenue. It is not owned by the dard,y t%gthas been se#`a_side by the developer Minto
Homes (Toronto Inc.) as a publicsecondrtyP. drool site =Site size is 15.77acres with
street access taken from Conovery 2.087 acres of the total site
area will be lost due -to -,grades, effeetuelyhleavi site of 13.683 usable acres. This
site size is within an aedeptable rangfor new set ondary schools across the Region.
The Board'j=,Ahree mos#rirecently built or under construction secondary schools:
.
Stephen L�Vvi_� SS, Bur Qak SS ,and Sto`ttffa!ille DHS, have school sites that are 13.95
acres, 14.5 acres and 19 9 acres, respectluely.
Thy c'onstTuetion scheiule for the Bayview Northeast site has construction beginning
July 2008 vith tjte new"'school ready for occupancy September 2010 including full use
of fields. Studren#"s would rernain at the Dunning location until the new school was
Feady for occupancy_ (See Appendix 6)
School sitesaY&JdeallIlocated central to the students served. Increasing the opportunity
for students to walk'to school helps reduce congestion around the school site, reduce
�5n automobile emiss in the environment, and improve physical well-being of students.
Currently, Dr. GW Williams SS core enrolment lives in the Highview, Regency Acres and
Wells Street PS communities. Over the next two decades, that core will shift to the new
growth area located in the northeast portion of the Town. (Appendix 7)
As shown in Appendices 8 and 9, the Dunning Avenue site is geographically more central
to the current boundary than the Bayview Northeast site. Today, approximately 268
students or 20% of the student population are within a 2 kilometer distance of the Dunning
site. Today, approximately 211 students or 17% of the student population are within 2 km
of the Bayview Northeast site.
Dr. GW Williams Secondary School— Feasibility Study— May 2007 Page 6 of 8
As new growth occurs in northeast Aurora over the next two decades, the number of
students within 2 km of the Bayview Northeast site could climb to approximately 840
students or 60 % of the total enrolment of 1,400 students.
Although Highview PS and Regency PS will represent a smaller percentage of the total
enrolment of Dr. GW Williams SS over the next two decades, these students will have a
significant distance to travel if Dr. GW Williams SS is relocated to the Bayview Northeast
site. (Appendix 9)
Current board policy does not provide school bus transportation-, urban areas served by
public transit; there are currently school buses traveling to Dr,,G� / illams SS from areas
served outside the public transit zones. Students from noftf5east Aurora can reach the
Dunning Avenue. location by using York Region TransitSMO--b has two peak -hour buses
to meet the current demand from this area. In the siAMWeVtr onion of the attendance
boundary, there is some pay -per -use bussing (recguire a mon hly fee to use a school
bus). This service is confirmed on a year-to-year bad _
York RegionTransit has indicated that mor buses v
Williams SS students in either location, as thdWm-bar,
bus special' service which takes students on theltfaost
community. Coordination is done with school
departures coincide with school sty and finish times.'
enter school property as part of pic7s"-=_ -and drop off if
designed appropriately. `-i
3. Safety and Security
put in use {tv_ sgrve Dr. GW
ease. YRT opeFa s a "school
Noute to the school from their
ensure that bus arrivals and
has stated that their buses will
gp loop and stacking area are
Secondary schools are f34ftly located clt3se to larger"roads on the edges of communities
because of the.frnount of peak traffic gerr_erated and opportunity for student access by
public transit- Those larger roads have: v yider rights -of -way than local roads to
accommodate greaterwolufnes of traffic. Thay are key locations for public transit and, in
general perform a connecting4UftTQ
__p7mtxdtween communities. Ideally, direct school
accessris-takerom a 16616Lor minor cbilector road which is close to and connects with
the -,,,major artP r";oad. S&gnalization is typically placed at the intersection of the two
Both Ahe Bayview North ast site and the Dunning site have the characteristics described
above hhe, Dunning pfterty is located on a minor collector road (Dunning Avenue)
where acce5s.to the sliool is provided. Dunning Avenue connects to Yonge Street a
short distancet'away "The Bayview Northeast site will take its access from Conover
Avenue which, iha local street connecting to Borealis Avenue and then to Bayview
Avenue which is a short distance away. In both the Dunning and the Bayview Northeast
location, school access is not taken directly from the major road, and both locations have
signalized intersections at Yonge Street and Bayview Avenue respectively.
Concern has been expressed at the public meetings about student safety when crossing
major streets to reach the school. Particular concern was raised with respect to Bayview
Avenue; however, Yonge Street is also a major road. Because of the location of our
secondary schools at or near major roadways, it is inevitable that students will cross a
major street at some point during the school day. Given this reality, mechanisms to
reduce speeds, create clear site lines for drivers and pedestrians, and provide safe
crossing locations on key access roads are essential.
Dr. GW Williams Secondary School - Feasibility Study - May 2007 Page 7 of 8
4.
5.
In addition to the trip to school, secondary school students routinely cross major roadways
to access food outlets and other services in the vicinity of their school. The location of
commercial uses near secondary school sites varies across the Region. The locational
attributes best suited to secondary schools are often the same for commercial uses, e.g.,
major roadways, at the edge of a community. At the Bayview Northeast site, a plaza is
located on the opposite side of Bayview Avenue from the school site. At the Dunning
location, commercial uses are concentrated along Yonge Street on both sides of the
street. Proper signalization and sidewalk location at both school locations provide the
opportunity for safe crossing to reach these destinations by students.
Program
a) Outdoor Field Area:
The Board's outdoor physical education c
requires a major field and a practice field.
Bayview Northeast site: one option provide
sprint track; the second option provides
The future outdoor field area ai the DuriMM
practice fields, a major field and a 400
education classes outside at the same time,
curriculum delivery.
Parents and physical education st
field area at the Bayview WIT,
extracurricular sports teams. Th(
broader range of sports teams — a
secondary schooi9 �
aulj% at secondary schools typically
oisld options've�e_ prepared for the
two practice fields, major field and a
)ractige field, a matorfeLtf,,and a track.
will b'.e;:esigned to accommodate two
tpe.track Assuming Rhree physical
h ies meet program requirements for
ed co0�m about the reduction in
its potential negative impact on
a,.Afthe Dunning site supports a
d`area is always advantageous at
Presently;=%X-Wota elem$htary schools yse-the Dunning site for track meets. An
alternate locatiotwould-be required to modate these meets if the Dunning site
D'r, GW Williams has 152 s)udents in its Co -Op program. Concerns were expressed
a6out:,distance from=existing placements if the school should move to the northeast.
x:,
Access -,to public traPsit, or the ability to walk to and from placements, decreases the
amount-of,time students spend travelling during the school day. The Dunning site is
closer todfie,Yonge'Street transit line and the majority of current co-op placements in
comparison=laE fie Bayview Northeast site.
At the information meetings, some residents expressed concern about relocating the
school from Its current location because of the potential impact on local businesses,
community expectations, and possible redevelopment of the current site.
Relocating the school will have an impact on some local businesses in the vicinity of the
school. For some businesses that do not wish large numbers of students in or outside
their premises, it may be positive change; for others, who depend on student purchases, it
will be a negative change.
Dr. GW Williams Secondary School— Feasibility Study— May 2007 Page 8 of 8
A school has existed at the Dunning location since the early 1950's. There is a strong
attachment to the building itself as well as its location for many people who live in the
area.
With regards to the future disposition of the Dunning site, the only decision before the
Board is whether or not this location continues as school use. There are no plans to
redevelop the property. If a decision is made to relocate the school, every opportunity
would be provided to the Town to ensure that the property remains in public ownership.
6. Other Concerns / Issues
Some additional issues raised by the public and staff ii
with the Town of Aurora at the Dunning location; the
the site options; proximity of the Town's library to the c
if the school moves to the northeast; proximity to othe
as Shepherd's Bush Conservation Area, the bowirn-g
difficult to evaluate the significance of some of these
may have a negative impact on students; h ftyer, thi
at the Bayview Northeast site.
Cost
The cost to build the new second",- co
the design of the school may vary somewh
that the overall costs will be compara-tg if D
Avenue or the Bayview Northeast site
The demolition of the cuere Dr. GW Wllua
materials an estimated $2 5 . illion is not k
that if the Bayview igrtheas§usite was select
demolition and hazardous mlterlal., removal
however, would not 6e_:the case t1ae== DL
:ludej- opportunity for partnership
;hd0firFe frame for responding to
l�rent lar<a#ion; loss of green space
local rec(Obillon opportunities such
1116y and te'Hh courts. It is very
concerns. Soir -.of these issues
•e,mav be some offcrettiM benefits
will be appir st ately $25 million. Although
based on the-gMaide of sites, it is estimated
Villiams is replaced on the Dunning
ns SS facility and the removal of hazardous
:Ing factored into the relative cost analysis in
slw nd the Dunning Avenue site was sold, the
osts would be factored Into the price. This
ming Avenue site was sold to a party that
cost to acqure tiie Bayvie-P�l 4'firtheast site, approximately $5.1 million, is not being
red into the relatty cost anq ysis in that the cost is recoverable by the Board through
The premimii=to build anew school on the Dunning Avenue site while the current Dr. GW
Williams SSs;=tiil,ope'tion will only be known when the project is tendered. A premium
will be imposed=sluEi'fo the complexity and constraints of building a new school while the
current school isih operation, and the additional construction time frame to complete the
project (3 years -versus 2 years). It is estimated that the premium will be between 5 — 10
%, or $1.25 million to $2.5 million based on a $25 million project.
If the Board were to build on the Bayview Northeast site and sell the Dunning Avenue site,
the Board could realize and estimated $10 — $11 million, less the demolition and
hazardous materials removal costs. The estimated $10 — $11 million is based on highest
and best use mixed density residential development for the 18 acres, valued at
approximately $600,000 per acre. Re -zoning would be required, and market conditions
would dictate the actual price.
Appendix 1: Projected Students in Town of Aurora
3000
Aurora Secondary Schools
Projected Students 2007 - 2026
2500
2000
d
O
O
Z
1000
500
— — — — — — — — — — — —
— —
0
r— CU CA O N CO U') C0 r` Co 0 O
O O O r c- I r I r I 1 1 N
r N Ch Vt LO C0
N N N N N N
O O O O O O O O O O O O O O
N N N N N N N N N N N N N N
O O O O O O
N N N N N N
Year
— Aurora HS Dr Williams SS
Capacity
Appendix 2: Bell Shaped Curve
Highview PS
Historical I Projected Students 1988 - 2016
s00
700
600 -- ----- — - - _ _ _-------- --- ---
d
400
0
p 300 - - -
Z
200
100 - - - - - - - - - - -
0
07 O N V (D CO (D N m W O N_ V CD
OJ O D) O O O CD O O CD O
O O O m O O O O O O O O O O O
r N N N N N N N N N
Year
Historical FTE Projected FfE tCapacity
Appendix 3: Highview PS and Devins Drive PS 2006 Enrolment
Hi hview PS
Devins Drive PS
J K
32
32
SK
42
28
Grade 1
54
40
Grade 2
47
44
Grade 3
71
33
Grade 4
67
48
Grade 5
82
39
Grade 6
68
61
Grade 7
95
59
Grade 8
82
66
Appendix 4: Aurora Planning Areas and Secondary Attendance Boundaries
Legend
W.C.W. WIM.SSB.ftq
A.. HS Secondary Boundary
(M units) = projected units
Source: 'Planning Justification for Urban Designation of the 2C Lands', Hemson Consulting Ltd, June 2006 for the Town of Aurora
"The full development potential of parts of the Town may not be realized
Appendix 5A: Phase 1, Dunning Avenue Site
EXISTING
SCHOOL
CONSTRUCTION LINE
( CHAIN LINK FENCE)
EXISTING
SCHOOL
D U N N IN G
A V E NU E S I T E
SITE PLAN A
PHASE -JULY 2008
TO JUNE 2010
23 -04 - 2007
1 :500
Dr. G. W. W ILL I AM S
SECONDARY SCHOOL
Y OR K REG I ON
D IS T R I C T S C H O O L
B O A R D
M/VCRIMXCNM1LOS CUM.,
Appendix 5B: Phase 2, Dunning Avenue Site
EXISTING EXISTING
NEW SCHOOL SCHOOL
rc
0
r
23 -04 - 2007
1 :500
SITE PLAN A
PHASE -JULY 2010
TO DECEMBER 2010
U N N IN G A V E NU E S I T E
Dr. G. W. W I LLIAMS
SECONDARY SCHOOL
Y O R K R E G I O N
DISTRICT SCHO O L
B O A R D
MAKRIMICHALOS - CUGINI
A R C H I T E C T S
Appendix 5C: Phase 3, Dunning Avenue Site
0
z
23 -04 - 2007
1 :500
SITE PLAN A
PHASE 3-JANUARY 2011
TO APRIL 2011
DUNNING AVENUE SITE
Dr. G. W. W I LLIAM S
S E C O N D A R Y S C H O O L
Y 0 R K R E G I O N
D I S T R I C T S C H O O L
B O A R D
MAKRIMICHALOS- CUGINI
A R C H I T E C T S
Appendix 5D: Phase 4, Dunning Avenue Site
DUNNING AVENUE
C
2
23 -04 - 2007
1 :500
SITE PLAN A
PHASE -COMPLETION
MAY 2011
D U N N I N G A V E N U E S I T E
Dr. G. W. W I LLIAMS
SECONDARY SCHOOL
Y O R K R E G I O N
D I S T R I C T S C H O O L
B O A R D
MAKRIMICHALOS- CUGINI
A R C H I T E C T S
Appendix 6: Bayview Northeast SS Site
23 -04 - 2007
1 :500
SITE PLAN C
COMPLETION
SEPTEMBER2010
BAYVI E W NORTH
EAST S I T E
Dr. G. W. W IL LIAMS
SECONDARY SCHOOL
Y OR K REG I ON
D IS T R I C T S C H O O L
B O A R D
MAKRIMICHALOS CUGINI
ARCHITECTS
2000
1800
1600
y 1400
C
c
1200
3
1000
C 800
C
Z 600
400
200
0
Appendix 7: Dr. G.W. Williams SS 2007-2026
Dr G W Williams SS
Projected Students by Area
1-- W O O r_ N_ MV Ln Co I� CC) O O 1 NCI) CT If) CD
O O O _ r r 1 1 1N N N N N N N
O O O O O O O O O O O O O O O O O O O O
N N N N N N N N N CV N N N N N N N N N N
Year
■ West M East El Rural M Other
Appendix 8: Dr. G.W. Williams SS 1km Increment Walking Distances
_ A1�¢rE �e�aeE b�-_-0ez�s-Yee`.�ehr�teGiak 3x�n�"sr cte�aazs
Sty •^—'..iisyr�:n_ amp xeG aasYx4�t�� �� rzG�kia�°•xSF:rea5�.Fsie9r�