Owen Sound Committee - Corporate Services Meeting Transcript — November 6, 2025

00:00:21 Speaker 01: I will call the meeting to order.

00:00:23 Speaker 01: And number two, we have call for additional business.

00:00:26 Speaker 01: Does anyone have any additional business this evening?

00:00:29 Speaker 01: Seeing none.

00:00:30 Speaker 01: Declarations of interest.

00:00:32 Speaker 01: Does anyone have anything to declare?

00:00:33 Speaker 01: You can always declare at a later time.

00:00:36 Speaker 01: At number four, confirmation of minutes.

00:00:38 Speaker 01: These are the minutes of the Corporate Services Committee meeting held on October ninth, twenty twenty-five.

00:00:44 Speaker 01: If I can have someone move those minutes.

00:00:47 Speaker 01: Someone, anyone?

00:00:49 Speaker 01: Neil, great.

00:00:50 Speaker 01: Anything?

00:00:52 Speaker 01: Any questions or comments about those?

00:00:54 Speaker 01: No. I'll call the question.

00:00:55 Speaker 01: All in favour?

00:00:57 Speaker 01: And that carries.

00:00:59 Speaker 01: So, at number five, deputations and presentations.

00:01:02 Speaker 01: This evening, we have Robin Strangway Calder from MNP here regarding the 2024 draft audited financial statements.

00:01:11 Speaker 01: So, we welcome Robin.

00:01:13 Speaker 01: You'll have to push the button.

00:01:18 Speaker 02: Thank you.

00:01:19 Speaker 02: I'd like to thank the committee for inviting me here today.

00:01:22 Speaker 02: My name is Robin Strangway Calder, and I do have Tracy Swift Smith with me.

00:01:24 Speaker 02: The engagement partner on the audit.

00:01:25 Speaker 02: With Smith with me, the engagement partner on the audit.

00:01:29 Speaker 02: This is the first year we are presenting as MNP and not BDO, effective January one st, two thousand and twenty-five.

00:01:36 Speaker 02: Our office, along with twenty BDO rural offices, transitioned to MNP.

00:01:42 Speaker 02: All of the offices located in Grey Bruce region, down to Mount Forest, Orangeville, and back up to Collingwood, all transitioned, including partners, team members, and your entire engagement team.

00:01:56 Speaker 02: MNP is a Canadian firm established in one thousand, nine hundred and fifty-eight, with one hundred and fifty offices from coast to coast.

00:02:02 Speaker 02: MNP's business model is designed to support its clients, team members, and communities with a locally focused approach.

00:02:09 Speaker 02: However, as a national firm, the local team members do have access to national resources for any client needs that may arise.

00:02:17 Speaker 02: You may not have seen me at some of your presentations annually.

00:02:21 Speaker 02: However, I did want to say that I have been on the audit for about thirteen years.

00:02:24 Speaker 02: I've just been kind of in the background, or maybe on the odd mat leave here and there.

00:02:30 Speaker 02: This letter to the committee and the independent auditor's report is from MNP.

00:02:36 Speaker 02: However, will appear very similar to prior years, as it is in accordance with the Canadian auditing standards.

00:02:42 Speaker 02: We would like to thank Kate, Christine, Vicky, Karen, Jeff, and the rest of the finance team for their assistance they provided during the audit.

00:02:49 Speaker 02: So, with that, I'm going to go through the letter first, which I believe is on page fifty-four of seventy-one of your package.

00:02:58 Speaker 02: As your auditor, it is our responsibility to communicate with those charged with governance.

00:03:03 Speaker 02: I will present a short, high-level overview of this communication, followed by the draft financial statements.

00:03:08 Speaker 02: Feel welcome to ask any questions as we go.

00:03:17 Speaker 02: So those are the statements.

00:03:19 Speaker 02: Right now, I'm going through the letter that has the fuzzy picture on the front.

00:03:21 Speaker 02: Yeah, there we go.

00:03:22 Speaker 02: Thank you.

00:03:24 Speaker 02: With the engagement status, the financial statements are in draft form at this point until they are approved by the Corporate Services Committee, and management signs the representation letter.

00:03:33 Speaker 02: Then we need to complete subsequent event procedures up to that audit report date.

00:03:39 Speaker 02: I can confirm that we, MNP, are independent and therefore can issue an independent audit opinion.

00:03:44 Speaker 02: Our independent auditor's report will provide an unmodified opinion, and we'll look at that in more detail when we switch over to the financial statements.

00:03:53 Speaker 02: On the next page, I'll highlight that final materiality for two thousand and twenty-four was two million dollars.

00:04:00 Speaker 02: We do have a required fraud discussion under Canadian auditing standards.

00:04:05 Speaker 02: No incidents of fraud or suspected fraud came to our attention in the course of the audit.

00:04:10 Speaker 02: Should anyone become aware of any incidents of fraud, please reach out to us directly.

00:04:17 Speaker 02: Significant deficiencies in internal control.

00:04:20 Speaker 02: Again, a requirement to communicate.

00:04:22 Speaker 02: There were no significant deficiencies in internal control that came to our attention during the audit.

00:04:31 Speaker 02: Moving on, I'm just going to highlight that unfinanced capital at the end of the year was eleven point three million, and it is in the note disclosures.

00:04:45 Speaker 02: And then on the last page of the letter, we do state that we identified some unadjusted differences in relation to the December thirty-one, two thousand and twenty-four year-end that were not material.

00:04:57 Speaker 02: The unadjusted differences are attached in the representation letter.

00:05:01 Speaker 02: Should the board or should the committee agree, we are not proposing any further adjustments at this time.

00:05:06 Speaker 02: Does anyone have any questions about the letter before I move on to the statements?

00:05:13 Speaker 02: Brock, go ahead.

00:05:15 Speaker 03: Just on the police services revenue and user fee estimate, it notes here that there's a material amount deferred revenue related to NG 911 dispatch revenue.

00:05:30 Speaker 03: I'm just curious what that is.

00:05:40 Speaker 02: Thank you.

00:05:41 Speaker 02: So deferred revenue is when funds are collected in advance, so cash is received by the city.

00:05:50 Speaker 02: Go ahead.

00:05:53 Speaker 03: I understand that part.

00:05:54 Speaker 03: I'm asking about the specific revenue and why it's being deferred.

00:06:05 Speaker 02: Okay.

00:06:06 Speaker 02: So the police services is undertaking the Next Generation 911 communication system.

00:06:11 Speaker 02: Next Generation 911 communication centre, and they're doing that in partnership with other municipalities that have contracts with police services.

00:06:20 Speaker 02: The other municipalities received provincial funding to go towards implementing this required next generation communication system, and so for the other municipalities to use their funding from the province to go towards this programmememe,

00:06:38 Speaker 02: the money had to be cash flow to the city first, and then as the programmememe is implemented and expenditures are incurred, the revenue will be recognized.

00:06:48 Speaker 02: So for two thousand and twenty-four, there was funds received.

00:06:52 Speaker 02: Most of the expenditures, I believe, have been spent related to getting it up and running.

00:06:57 Speaker 02: In two thousand and twenty-five, which is why we're highlighting that to date there hasn't been very much recognized in revenue for two thousand and twenty-four.

00:07:05 Speaker 02: Going forward, there will be significant amounts and probably material amounts in 2025 and 2026 getting recognized, and so since it's a new revenue model,

00:07:16 Speaker 02: we recommend that there's a new recognition policy that has clear processes for the finance team to follow and implement.

00:07:24 Speaker 02: That's.

00:07:26 Speaker 02: Does that answer your question?

00:07:32 Speaker 03: I guess it does.

00:07:33 Speaker 03: So, but like moving forward, I'm trying to understand what... word, I'm trying to understand what that money would be used for.

00:07:43 Speaker 03: Thank you.

00:07:45 Speaker 02: So there's capital outlays that have to happen.

00:07:48 Speaker 02: So it'll be so there will be a portion that's for capital, and then I believe there are some contracts out there for four and five-year services with these communities.

00:07:58 Speaker 02: So as per the agreement, there's quoted amounts per year.

00:08:04 Speaker 02: The actual may differ from the quote, but each year for the next four or five years, depending how long that contract is, once Next Generation 911 Communications goes live,

00:08:14 Speaker 02: there will be an annual amount that is recognized into revenue from each of those partner municipalities.

00:08:24 Speaker 02: Oh, to cover the expenses, yeah, and for the fee-for-service.

00:08:34 Speaker 04: I'd looked into this balance.

00:08:36 Speaker 04: So I believe the balance at the end of 2024 was around one-and-a-half million dollars in deferred revenue.

00:08:58 Speaker 02: I think it's closer to two-and-a-half million at the end of 2024, which... yeah, sorry, hard.

00:09:11 Speaker 04: I looked at the end of 2025, or as of today, there's four-point-five million dollars in that deferred revenue account.

00:09:18 Speaker 04: So I think the question to verify is that you have—you're comfortable that the rate at which that money is coming into income reflects the nature of the contracts.

00:09:38 Speaker 02: Yes, for 2024, it does.

00:09:40 Speaker 02: For 2024, it was still the minimal implementation costs and some training costs for the other municipalities.

00:09:50 Speaker 02: But since the system hasn't gone fully live yet, there's still not that much going through.

00:09:56 Speaker 02: So this year, we were able to very... to verify that the money going, like being recognized in 2024, is covering expenses, so it's accurate.

00:10:07 Speaker 02: It's just going to get larger, and since the contracts we saw were quoted amounts that we're provided, not actual,

00:10:16 Speaker 02: I think there needs to be some more supporting documentation for actual to make sure that going forward, as the amounts get larger, there is just more clear documentation.

00:10:33 Speaker 02: So, like right now, it's a lot of this expense happened.

00:10:37 Speaker 02: It's coming into revenue.

00:10:39 Speaker 02: Going forward, there's going to be more fees-for-service that aren't tied to a direct expense, and it's that fee-for-service that is that new revenue model that I think needs to have the more clear revenue recognition.

00:10:53 Speaker 03: Does... does...

00:10:55 Speaker 03: Yeah, I—I think that's a hundred percent where I was hoping to go with that,

00:11:02 Speaker 03: and I would just hope that maybe the Chair would raise this conversation when she's giving these minutes at the next Council meeting.

00:11:15 Speaker 02: Any other questions about the letter before I move on to the statements?

00:11:23 Speaker 02: Okay.

00:11:25 Speaker 02: So, if we want to move on to, I think I believe it's page 18 of 71.

00:11:30 Speaker 02: I'm going to move on to the independent auditor's report.

00:11:36 Speaker 02: Management is responsible for preparing the financial statements.

00:11:40 Speaker 02: The auditor's responsibility is to give an opinion on the financial statements prepared by management.

00:11:45 Speaker 02: As stated in the letter, I can confirm that MNP is independent and can issue an independent audit report.

00:11:52 Speaker 02: It is an audit, which is the highest level of assurance that a public accountant can provide.

00:11:57 Speaker 02: In the second paragraph, we have our opinion, which is that the financial statements present fairly, in all material respects, the consolidated financial position of the City as at December 31, 2024.

00:12:09 Speaker 02: Therefore, it is a clean audit opinion.

00:12:12 Speaker 02: We had no issues or concerns that came to our attention.

00:12:16 Speaker 02: There is a new paragraph for this year.

00:12:18 Speaker 02: It's the Other Matter paragraph, and it will only be here for 2024.

00:12:22 Speaker 02: And it's mandatory because the 2023 financial statements were issued by BDO, and for 2024, the audit opinion is issued by MNP.

00:12:31 Speaker 02: It does not impact the audit opinion itself, and it will not be there next year.

00:12:38 Speaker 02: The remainder of the audit report is standard wording outlining the responsibilities of the Committee, management, and auditors.

00:12:45 Speaker 02: And with that, let's move on to the Statement of Financial Position.

00:12:55 Speaker 02: Or balance sheet is at a point in time, December 31st, 2024.

00:13:03 Speaker 02: Financial assets totaled $52.4 million, with almost $39 million dollars in cash and investments.

00:13:09 Speaker 02: The cash increased by about $3 million, and is as a result of a bit of a timing: accounts payable being higher, and prepaid insurance expense being lower,

00:13:21 Speaker 02: which meant there was more cash on hand at year-end.

00:13:26 Speaker 02: Total liabilities were $64.8 million, including long-term debt of $30.5 million.

00:13:34 Speaker 02: You'll see that the accounts payable is higher, related to holdbacks for tangible capital assets, as there was more capital projects going on in 2024 compared to 2023.

00:13:49 Speaker 02: The net debt position was $12.4 million, a decrease of $7.2 million.

00:13:55 Speaker 02: Net debt means you have financial—you have financed capital requirements with external borrowings.

00:14:00 Speaker 02: There was no new debt in 2024, and $2 million dollars debt was paid off.

00:14:09 Speaker 02: Moving on to the Statement of Operations, the statement of operations are the transactions for the year.

00:14:16 Speaker 02: They are consolidated financial statements, so they include revenue and expenses of the Owen Sound Library and River District.

00:14:24 Speaker 02: Total revenues for 2024 were $78.2 million, and include all external revenues for both operating and capital.

00:14:34 Speaker 02: Grants was up about $9 million dollars because of capital grants received from the province for Next Generation 911 that were for expenses incurred: OSIF for roads and ISIF for the water treatment plant.

00:14:50 Speaker 02: The total expenses for the year were $57... sorry, were $62.4 million.

00:14:55 Speaker 02: The budget column does not include amortization.

00:14:58 Speaker 02: So, if amortization was removed from the actual expenses, actual expenses would be $54 million dollars.

00:15:05 Speaker 02: Revenue less expenses is the annual surplus and comes to $15.7 million dollars.

00:15:12 Speaker 02: It is important to note that this annual surplus of $15.7 million dollars presented on the statement is not the operating surplus that affects the tax rates.

00:15:21 Speaker 02: The annual surplus on this statement focuses on the long term and should always be positive to be able to make payments for debt as well as finance capital purchases.

00:15:34 Speaker 02: The 2024 operating surplus was $420,407 dollars and was transferred to the Tax Stabilization Reserve.

00:15:39 Speaker 02: This amount is highlighted in notes 8 and 10 of the financial statements.

00:15:45 Speaker 02: On the next statement, it's the changes in net debt, and it starts with that annual surplus amount of $15.7 million dollars, and then it takes off the acquisition of tangible capital assets,

00:15:58 Speaker 02: which were $18.6 for the year, adjusts for amortization, and shows that there was a decrease in net debt of $7.2 million, coming down to net debt at the end of the year of $12.4 million.

00:16:14 Speaker 02: That's a very high-level overview of the financial statements.

00:16:18 Speaker 02: These are historic numbers and balances from 2024.

00:16:23 Speaker 02: Does anyone have any questions?

00:16:30 Speaker 02: Scott, go ahead.

00:16:32 Speaker 05: I'll ask a couple questions.

00:16:34 Speaker 05: Thanks, Robin.

00:16:35 Speaker 05: Some of the highlighted pieces I've got.

00:16:39 Speaker 05: I think you spoke to it: increase in assets is offset by the increase in liabilities, and you use timing and prepaid insurance to largely account for that.

00:16:48 Speaker 05: One is trade and other receivables.

00:16:50 Speaker 05: So really, the variance between the two might actually kind of be highlighted, and the trade and other receivables significantly increased this year.

00:17:00 Speaker 05: Could you comment a little bit on that?

00:17:06 Speaker 02: Yes, there was $3.7 million in grants receivable at the end of the year, relating to ICIP for the water treatment plant capital asset project, as well as more NG 911 funding.

00:17:29 Speaker 05: Okay, thanks.

00:17:30 Speaker 05: And so, largely those two projects: the water treatment plant and NG 911.

00:17:34 Speaker 05: Okay, good in the balance sheet.

00:17:36 Speaker 05: Over to operations.

00:17:45 Speaker 05: We collected a little bit more tax revenue than we needed.

00:17:48 Speaker 05: Just where did that allocation go then?

00:17:53 Speaker 05: I guess I mean we're in November of 2025.

00:17:56 Speaker 05: Gotta get my dates right here for '24.

00:17:59 Speaker 05: Where's that?

00:18:01 Speaker 05: What about $200,000?

00:18:06 Speaker 05: Indifference.

00:18:09 Speaker 04: Through you, Madam Chair.

00:18:11 Speaker 04: In the report that Christine has brought forward, there's a link to the year-end update report, and I probably should have done a better job refreshing my mind of what's in that report.

00:18:19 Speaker 04: But that taxation line would include not just tax revenue, but also tax write-offs.

00:18:25 Speaker 04: So we budget for write-offs.

00:18:27 Speaker 04: Typically, we haven't been having the write-offs that we budget for because we're not in a reassessment year.

00:18:34 Speaker 04: Also, supplemental taxation—if it's slightly higher than budget—it would show up in this line as well.

00:18:39 Speaker 04: So I would encourage you to go back to that report to look specifically at what type of tax revenue was over.

00:18:46 Speaker 04: But as just like the amount we budget, the amount we levy versus the amount we budget, it would not be as significant as the full variance there.

00:18:55 Speaker 06: Okay.

00:18:55 Speaker 06: Thanks.

00:18:56 Speaker 06: And into the expense columns: protection services, transport services, transportation services—significantly higher than budgeted amounts.

00:19:07 Speaker 06: Health services, probably.

00:19:09 Speaker 06: If you could elabourate on that a little bit, because we don't pay to the health unit per se.

00:19:14 Speaker 06: So, what might that actually be speaking to?

00:19:21 Speaker 06: And recreational cultural services.

00:19:23 Speaker 06: The variances are significant in those.

00:19:25 Speaker 06: So, if you could just speak to the difference between budget and actuals.

00:19:26 Speaker 06: Through you, Madam Chair, the biggest difference would be the amortization figure that Robin mentioned.

00:19:37 Speaker 04: So certainly, transportation and protective services would have large amortization expenses associated with them.

00:19:45 Speaker 04: Transportation services, for sure—all of our roads are being amortized, the bridges, all those sorts of things.

00:19:50 Speaker 04: Health services is actually cemetrey; it's allocated to health services in PSAB financial statements, so that would be what is there.

00:20:00 Speaker 04: And then community or sorry, recreation and cultural services again.

00:20:03 Speaker 04: So, as Robin noted, once you remove amortization, our actual expenses are actually $54 million and are in fact $3 million below what was budget.

00:20:14 Speaker 04: And there would still be some more PSAB entries in there that would account for some of that difference.

00:20:27 Speaker 02: I was just going to say I don't have anything to add, other than I was going to say that with the health services, the cemetreies under that, and it's as per the financial information return.

00:20:35 Speaker 02: It's just how the ministry wants it reported.

00:20:38 Speaker 06: So, next question: If I go to the statement of cash flows, prepaid expenses $1.1 million—$1.2 million—is this the insurance item?

00:20:51 Speaker 06: Okay, just if you could verify that.

00:20:56 Speaker 02: Yes, my understanding is the insurance carriers were changed in the year, and the new insurance bills after year-end, as opposed to before year-end.

00:21:05 Speaker 02: So, for 2023, the full year's insurance was paid before the end of 2023 for 2024.

00:21:14 Speaker 02: Whereas for 2024, it was paid in the very first of January 2025.

00:21:18 Speaker 02: So, it really is just a timing.

00:21:29 Speaker 02: So I was complete with my level of overview for the financial statements.

00:21:35 Speaker 02: If there's no other questions, that's what I had for this evening.

00:21:40 Speaker 02: I do have one question.

00:21:42 Speaker 02: I'm just not sure if it's for you, Robin.

00:21:44 Speaker 07: The $30 increase in the taxes receivable.

00:21:49 Speaker 07: That seems like a concerning number, and I'm just wondering if there's any—I don't know—strategies to kind of collect that.

00:21:57 Speaker 07: As you mentioned, it's not an assessment year, so it's kind of concerning to see that.

00:22:01 Speaker 07: And just wondering what your thoughts are on that, Kate or Christine.

00:22:03 Speaker 07: I'd acknowledge that that is a concerning number.

00:22:12 Speaker 04: It does reflect an ability to pay on the tax base.

00:22:16 Speaker 04: We've typically maintained taxes receivable around five or six percent, and I believe that's climbed up as far as ten to twelve percent.

00:22:25 Speaker 04: I will say that we've made significant strides on that balance most recently,

00:22:31 Speaker 04: and that's as a result of some very large balances associated with some large properties that were in receivership and are now being sold.

00:22:39 Speaker 04: So as those are sold, we collect the taxes on those properties.

00:22:43 Speaker 04: But I won't suggest that that number doesn't continue to remain elevated at the end of 2025, and it'll be March before I bring that balance back, and we have a year-end number.

00:22:56 Speaker 04: But it is certainly a number worth paying attention to.

00:23:03 Speaker 04: Okay.

00:23:03 Speaker 04: Does anyone else have anything on the financial statements?

00:23:07 Speaker 06: Scott, go ahead.

00:23:09 Speaker 06: I do.

00:23:09 Speaker 06: I still have three items.

00:23:11 Speaker 06: Thanks that I flipped through, and no, you did an excellent job because you highlighted one of them, and on one of the schedules—one of the notes, twenty-one—is credit risks,

00:23:21 Speaker 06: and I did have it noted here.

00:23:24 Speaker 06: What is underway to collect this $2.1 million?

00:23:27 Speaker 06: Largely, that's the one-to-two years and three-to-ten years.

00:23:31 Speaker 06: Three-to-ten years is $410,000 of uncollected revenue, and $1.7 million in one-to-two years.

00:23:40 Speaker 06: So, probably beyond Rob—and to answer that, but if I could ask that question to staff.

00:23:45 Speaker 06: The other question I do have: We put a new door in the library adult learning centre this summer, and it looks fantastic.

00:23:53 Speaker 06: There's an entry in the accumulated surplus.

00:23:57 Speaker 06: We hardly ever see information about the library adult learning centre, but every now and then it populates,

00:24:03 Speaker 06: and the audited financial statements is one of these occasions where all of a sudden this line item populates.

00:24:12 Speaker 06: If there's a surplus there, did we utilise that for the new door, and if so, if not, why not, or what's that intended for?

00:24:23 Speaker 06: And I think my last question was again, this is on note fifteen, the government transfers.

00:24:32 Speaker 06: I had highlighted why is the budget so low.

00:24:37 Speaker 06: Under the province of Ontario, we had budgeted $1.9 million; actuals were $3.5 million.

00:24:41 Speaker 06: That answers five million.

00:24:42 Speaker 06: That answer is probably given in that the $1.9 million is largely the water treatment plant grant, and the variance then is about $1.6 million.

00:24:53 Speaker 06: Is that the NG 911 that I was hearing about?

00:24:57 Speaker 06: What would explain that difference from budget to actual in the operating grants or transfers in that part?

00:25:07 Speaker 06: Those are, I think, my last three.

00:25:08 Speaker 06: Through you, Madam Chair, I can likely answer it.

00:25:12 Speaker 06: Do you mind going to Note Twenty-One, Christina, so I can see the balance there?

00:25:25 Speaker 04: So you're commenting here just to be clear on your question.

00:25:31 Speaker 05: The most delinquent are the two columns on the right.

00:25:40 Speaker 04: That is correct.

00:25:41 Speaker 04: Like those would be the longest-standing balances, so those are likely the ones that I was just referring to.

00:25:49 Speaker 04: But certainly, our focused attention is on those three years in arrears and greater.

00:25:56 Speaker 04: Those are the properties that we typically register and start moving forward with through the tax sale process.

00:26:02 Speaker 04: But I would reinforce that it is our goal always to collect these balances and not get to the point where we're actually doing a tax sale.

00:26:11 Speaker 04: So our hope is that we can either collect some of that and bring them closer to current, or that the property sells and we recover our balance through that process.

00:26:22 Speaker 04: I will say, with regard to the risk component, although it's not an insignificant balance and it's worth attention, there is not a risk of collection.

00:26:32 Speaker 04: When we review our balances of taxes owing, we look at them in relation to CVA, and anything that's even approaching twenty percent of total CVA would be something that would be flagged for following up.

00:26:47 Speaker 04: So there's nothing in that balance that I'm concerned about regarding whether we wouldn't be able to collect upon disposition of the property.

00:26:55 Speaker 04: Your next question relates to the accumulated surplus of the Adult Learning Centre.

00:27:01 Speaker 04: So we are required to consolidate one hundred percent of the results of the Library and the Adult Learning Centre as well as the River District.

00:27:12 Speaker 04: So those consolidations would include all of their PSAB surpluses as well.

00:27:16 Speaker 04: So just like we're showing a surplus of $260 million, they're showing a surplus of you mentioned just over $100 thousand dollars, but that's not necessarily what they have in reserves.

00:27:28 Speaker 04: So just to be clear there, and then finally the government transfers.

00:27:32 Speaker 04: I'll admit I suspect it relates to grant funding on capital projects where we have timing differences between when, depending on what the funding agreement says,

00:27:44 Speaker 04: if we have earned the grant revenue but haven't necessarily collected it yet, we have to set it up as receivable.

00:27:51 Speaker 04: But we budget on a cash flow basis, so we budget for when we're actually going to receive it.

00:27:56 Speaker 04: So the auditors have required that we accrue it, but it isn't necessarily something that we've received in cash, and when we budget, we budget on a cash flow basis.

00:28:06 Speaker 04: So it would, theoretically, if it doesn't keep happening, we'll see that reversed next year.

00:28:18 Speaker 02: You go ahead.

00:28:19 Speaker 02: Yeah, I do believe in the government transfers.

00:28:25 Speaker 02: Note Fifteen under Operating Profits of Ontario, the $3.5 million compared to the $1.9 million budget.

00:28:33 Speaker 02: I do believe that is where the NG-9-11 funds are going in.

00:28:47 Speaker 02: Yep.

00:28:48 Speaker 02: Okay.

00:28:53 Speaker 02: Do anyone have anything further?

00:28:57 Speaker 02: No questions.

00:28:58 Speaker 02: Nothing.

00:28:58 Speaker 02: Okay.

00:29:00 Speaker 01: Well, thank you for your presentation.

00:29:02 Speaker 01: So that brings us to number six.

00:29:06 Speaker 01: We have no public members here tonight for the public forum.

00:29:11 Speaker 01: At number seven, we have correspondence received for which direction is required.

00:29:16 Speaker 01: We have none.

00:29:17 Speaker 01: And number eight is reports of City staff, which we have the report from the Deputy Treasurer regarding the 2024 draft audited financial statements.

00:29:27 Speaker 01: So are we actually getting a presentation?

00:29:29 Speaker 01: So, we'll go to Christine.

00:29:33 Speaker 01: Thank you, Madam Chair.

00:29:34 Speaker 08: You're getting a short and sweet presentation because MNP did my hard work for me.

00:29:38 Speaker 08: So, following the presentation from MNP, this report is brought forward to formally present the statements for committee endorsement and ultimately for council approval, which is required under the Municipal Act.

00:29:49 Speaker 08: So, just for a quick summary that they've highlighted, MNP has issued a clean, unqualified audit opinion for the 2024 fiscal year.

00:29:55 Speaker 08: For the 2024 fiscal year, there were no significant deficiencies in any internal controls, no identified or suspected fraud, and no noncompliance with any laws or regulations that we were aware of.

00:30:07 Speaker 08: This year was a fairly smooth transition from BDO to MNP.

00:30:13 Speaker 08: So I thank Robin and her team and Tracy for their support with that.

00:30:17 Speaker 08: And then just to echo Kate's comments prior, so with these statements, with the levels of amortization and accretion and all of those fun non-cash expenses, it makes them fairly complicated.

00:30:31 Speaker 08: So I would just encourage you once again, like he mentioned, to go back to the report from March 2025 that discussed the 2024 year-end position.

00:30:40 Speaker 08: And this MNP has confirmed essentially that this match is what that was,

00:30:46 Speaker 08: other than a roughly $80 thousand additional transfer to the Tax Stabilization Reserve that just was from an adjustment due to an inventory adjustment.

00:30:57 Speaker 08: So I would just recommend that you look back there to see the actual tax budget impact of that.

00:31:03 Speaker 08: And I'm happy to answer any questions if anyone has anything specific that was not asked through MNP's presentation.

00:31:11 Speaker 09: Anyone have anything further questions for Christine?

00:31:15 Speaker 09: Go ahead, Neil.

00:31:17 Speaker 10: It's not a question at all.

00:31:18 Speaker 10: I just want to make note.

00:31:19 Speaker 10: I used to work with Tracy Smith at BDO, and Tracy's going to have a change in her life coming up real soon.

00:31:25 Speaker 10: She's retiring from MNP, and not some of you won't know this, but Tracy was recognized across the province as an authority amongst BDO employees in municipal auditing.

00:31:37 Speaker 10: So we've had very good service here, I would think.

00:31:41 Speaker 10: So good luck, Tracy.

00:31:42 Speaker 10: Thanks.

00:31:44 Speaker 01: Well, that's excellent.

00:31:45 Speaker 01: So good luck to you in your retirement, as well.

00:31:49 Speaker 01: We'll say best wishes to Christine because we found out today that Christine is also going to be leaving us.

00:31:55 Speaker 01: Unfortunately, so we wish you well in your next endeavor.

00:32:00 Speaker 01: If there's nothing further, there is a recommendation in the report that City Council approved the 2024 audited financial statements.

00:32:08 Speaker 01: Does someone want to move that recommendation?

00:32:11 Speaker 01: So Neil has moved the recommendation, and if there's nothing further, I will call the question.

00:32:16 Speaker 01: All in favour?

00:32:18 Speaker 01: And that carries, and that gets us through the reports portion this evening.

00:32:26 Speaker 01: At number nine, we have no matters postponed.

00:32:28 Speaker 01: Number ten, motions for which notice was previously given, we have none.

00:32:33 Speaker 01: At number eleven, correspondence provided for information, we have none.

00:32:37 Speaker 01: And number twelve, additional business, we have none.

00:32:41 Speaker 01: Is anyone have any notices of motions this evening?

00:32:45 Speaker 01: Seeing none.

00:32:47 Speaker 01: At number fourteen, I call the meeting adjourned.

00:32:49 Speaker 01: It is six o'clock three.

00:32:50 Speaker 01: Thanks, everyone.