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From YouTube: Audit Committee – May 28, 2015
Description
Audit Committee meeting – May 28, 2015 – Audio Stream
Agenda and background materials can be found at http://www.ottawa.ca/agendas.
A
B
B
B
A
A
So
first
I
want
to
provided
an
overview
of
the
overall
results
of
the
financial
statements.
Some
of
the
key
themes
that
have
come
out
from
those
financial
results,
the
first
one
is
the
liquidity-
has
been
maintained.
That's
really
important
measure
to
look
at
this
one,
that
the
credit
rating
agencies
look
at
and
based
on
2014
results,
both
Moody's
and
Standard.
&Amp;
Poor's
maintained
our
credit
rating
of
triple-a
and
double-a
plus
stable,
and
so
we
have
managed
to
maintain
liquidity
throughout
2014
and
and
through
2014.
A
The
employee
future
liabilities
have
increased
and
I
will
go
through
a
little
bit
of
detail
on
that
later,
but
it
was
primarily
due
to
changes
in
actuarial
estimates
and
also
legislative
changes.
The
net
long-term
debt
was
reduced
again,
primarily
because
we
did
not
any
issue
debt
in
2014,
but
we
did
continue
to
play
down
principle
on
previous
debt.
The
tangible
capital
assets
are
growing,
that's
primarily
due
to
the
light
rail
project
and
other
projects
such
as
Lansdowne
and
then
you'll
see
later
on.
A
Now
I'll
go
through
the
consolidated
financial
statements
and
before
I
do
that
I
just
wanted
to
list
some
of
the
individual
statements
that
make
up
what
we
call
the
set
of
financial
statements.
So,
first
of
all,
there's
a
statement
of
financial
position
and
that
shows
the
actual
overall
accumulated
surplus
overall
equity.
At
a
point
in
time,
which
is
on
December,
31st
2014
includes
all
our
financial
assets
non
financial
assets,
liabilities,
it
shows
the
net
debt
and
then
accumulated
surplus.
A
The
statement
of
operations
and
accumulated
surplus
shows
for
the
entire
year
of
2014
revenues
and
expenses
and
then
shows
the
overall
annual
surplus
for
that
year.
The
statement
of
net
debt
shows
changes
in
that
debt
from
operations
and
tangible
capital
asset
transactions
and
a
statement
of
cash
flows
shows
the
change
in
cash
balances
from
uses
and
yet
source
the
sources
and
uses
of
funds.
I
will
focus
on
the
first
two
statements
throughout
this
presentation
before
I
get
into
the
details.
A
I
just
wanted
to
highlight
two
key
terms
that
are
different
from
what
you
typically
hear
from
a
budget
perspective
in
when
you
report
the
financial
results
from
an
accounting
perspective.
There's
a
term
called
net
debt
and
that's
different
than
what
we
usually
call
debt.
It
represents
the
financial
assets,
less
the
total
liabilities
and
really
what
it
does
provides
a
measure,
the
future
revenues
that
are
required
to
pay
for
past
transaction
and
events.
So
the
term
net
debt
is
shown
on
a
statement
of
financial
position.
A
A
The
budget
is
calculated
on
a
cash
basis,
so
there's
slight
differences
between
what
we
report
in
terms
of
our
surplus
from
the
financial
perspective,
what
we
report
as
a
surplus
or
deficit
from
a
budgeting
perspective,
the
accumulated
surplus
is,
as
it
looks,
it's
accumulated
surplus
and
deficits
from
previous
years
and
included
in
that
is
our
funds
held
reserves
anyway.
The
revenues
for
that
are
for
restricted
purposes
and
equity
and
our
tangible
capital
assets.
A
So
first
I'll
start
with
the
statement
of
financial
position.
An
overall
summary
financial
assets
are
at
2.4
billion
dollars
stayed
stable
compared
to
previous
year.
The
liabilities
are
at
3.8
billion
dollars,
and
so,
if
you
deduct
the
liabilities
from
the
financial
assets,
you
get
a
net
debt
of
1.4
billion
dollars.
That's
an
increase
of
176
million
dollars
from
the
previous
year,
the
non-financial
assets,
which
primarily
is
tangible
capital
assets
increased
by
531
million
dollars
to
thirteen
point
two
billion.
So
you
have
an
accumulated
surplus
of
eleven
point.
A
Eight
billion
dollars
for
year
ended
December,
31st
2014
and
that's
when
I
talked
about
the
increase
from
the
previous
year.
It
shows
our
annual
surplus
that
we
reported
this
year,
the
increase
from
last
year
and
accumulated
surplus
at
355
million
dollars,
and
that's
that
represents
the
annual
surplus
for
the
year.
A
Now
go
into
a
little
bit
of
detail
in
each
item
on
the
statement:
financial
position,
the
financial
assets.
First
of
all,
there's
cash,
the
investments
and
those
are
our
cash
balances
and
investment.
In
short
term
investments
that
are
easily
convertible
to
cash
in
2014
they,
the
1.5
billion
dollars,
accounts
receivable,
stayed
relatively
stable
from
the
previous
year
and
the
last
item
is
the
investment
in
government
business
enterprises
and
that's
represents
our
investment
in
hydro.
A
A
A
So
it's
an
estimation
from
last
invoice
to
end
of
year
of
works
done
included
in
there
to
is
accrued
payroll,
for
example,
so
for
pay,
and
at
five
days
before
the
end
of
the
year
we
accrue
five
days
of
payroll
deferred
revenue
primarily
represents
development
charges.
So
when
we
collect
development
charges,
we
don't
recognize
them
as
revenue
until
they're
actually
used,
and
so
they
collect
in
the
deferred
revenue
as
a
liability
and
then
the
next
two
I'll
talk
about
in
the
next
two
slides
in
a
little
bit
more
detail.
A
So
if
we
already
have,
for
example,
WSI
V
claims
who
estimate
what
the
future
payments
will
be
for
those
WSIB
claims
will
be,
and
estimates
are
developed
by
third
party
external
actuaries
that
actually
calculate
the
amount
that
they
think
is
our
liability
going
forward
in
the
post,
retirement
and
post
employment
benefits.
There
was
a
change
in
the
actuarial
assumption
that
increased
the
overall
liability
by
25
million
dollars
for
WSIB
it
increased
by
24
million
dollars,
and
that
was
primarily
a
legislative
change.
A
They've
added
new
diseases
that
are
claimable
work-related
and
in
terms
of
legacy
pensions
that
increased
by
24
million
dollars,
and
that
is
the
of
the
MP
for
the
CLS
f.
It
is
the
for
CLS
F.
That
was
an
actuarial
loss
from
last
year
that
we
had
to
recognize
this
year,
and
this
year
we
actually
had
a
gain
that
we
would
recognize
next
year,
so
any
loss
incurred
from
a
pension
needs
to
be
recognized
in
the
following
air.
A
A
In
terms
of
the
debt
number
of
a
net
long
term,
debt
decreased
to
share
from
1.65
billion
dollars
last
year
to
one
point:
five:
six
billion
dollars
this
year.
Debt
is
only
used
to
finance
capital
assets,
so
that's
important
to
notice
it
note:
it's
not
used
for
operations
and
the
one
point:
five
six
billion
dollars
is
aligned
with
the
long
range
financial
plans
that
were
approved
by
council,
the
debt
level
compared
to
and
you'll
see
later
that
our
total
assets
over
seventeen.
A
A
Again,
no
debt
was
issued
in
2014
and
there's
two
thresholds
that
we
measure
ourselves
against
a
well
is
several
but
there's
two
key
ones.
One
is
the
attack
supported
debt
servicing
costs
as
a
percentage
of
owned
source
revenue
needs
to
stay
within
7.5%,
and
currently
it's
just
over
five
percent.
So
it's
well
below
the
seven
point,
five
percent
and
then
lose
the
provincial
limit,
which
is
a
total
of
all
debt
divided
by
our
own
source.
Revenue
needs
to
stay
within
twenty
five
percent
and
that
number
is
actually
just
over
seven
percent.
A
In
terms
of
total,
tangible
capital
assets,
we
have
seventeen
point
five
billion
dollars
as
a
total
cost
and
in
the
net
book
value
of
those
assets
is
thirteen
point
two
billion
dollars.
There
was
an
increase
of
seven
hundred
seventy
five
million
dollars
in
total
assets
throughout
2014,
and
that
was
primarily
from
LRT
lands
down
roads
and
water
infrastructure.
A
A
Once
going
to
a
little
bit
more
detail
on
the
light
rail
because
it
did
have
an
impact
on
our
overall
capital
assets
overall,
the
assets
under
construction
for
light
rail,
if
for
2014,
was
306
million
dollars,
add
that
to
the
previous
payments
to
date,
adds
up
to
a
total
of
935
million
dollars.
We
receive
government
grants
of
228
in
2014
for
a
total
of
661,
so
that
represents
about
71%.
A
This
is
just
a
summary
of
the
accumulated
surplus
and,
as
mentioned
earlier,
it
includes
things
like
and
it's
the
price
of
the
the
biggest
chunk
of
the
accumulated
surplus
as
a
tangible
capital
assets
at
eleven
point
two
billion
dollars.
We
also
have
reserve
and
reserve
funds,
and
you
can
notice
that
from
2013
to
2014
it
increased
by
about
sixty
million
dollars.
We
also
show
our
equity
in
hydro
in
this
number
and
then
when
we
deduct
any
future
liabilities.
A
A
This
surplus
is
different
than
the
one
we
would
have
reported
in
April
in
terms
of
budgeted
surplus
and
deficit
in
April
we
would
have
reported
$100,000
surplus
from
tot
supported
and
18
point
8
million
deficit
from
weight
supported,
and
this
annual
surplus
includes
things
like
amortization
expense.
It
also
includes
revenues
that
would
not
have
been
included
in
the
budget
like
contributed
capital.
So
there's
this
is
on
a
accounting
or
accrual
basis,
and
the
budgeted
surplus
is
actually
reported
on
a
cash
basis.
So
that's
the
difference
between
the
two.
A
Going
into
further
detail
in
the
statement
of
operations,
there's
the
revenue
side
so
overall,
the
revenues
have
declined
primarily
in
the
government
transfers
and
development
charges.
But
that's
just
in
terms
of
the
way
that
revenue
was
recognized,
taxes
overall
of
increase,
and
that
represents
the
increase
in
property
tax
and
assessments
and
fees
and
user
charges
have
also
increased
from
the
previous
year
government
transfers.
The
reason
that's
a
slightly
lower
in
2014
is
in
2013.
A
We
recognize
gas
tax
that
used
to
be
deferred
and
due
to
an
accounting
change,
we
had
to
recognize
all
that
previously
deferred
revenue
in
that
current
in
that
year
in
2013,
so
it
bumped
up
the
revenue
number
in
2013
and
then
to
the
development
charges.
Development
charges
aren't
recognized
when
they're
collected
they
recognize
when
they're
used.
So
in
2013
there
was
at
one
time
projects
where
development
charges
were
applied
and
one
of
the
biggest
one
was
Lansdowne.
A
In
terms
of
the
overall
expenses,
the
biggest
line
share
of
the
expenses
are
salaries,
benefits,
contracts
and
materials,
1.6
billion
of
salaries
and
benefits,
and
almost
800
million
of
contracts
and
materials
for
total
expenses
of
3.2
billion
dollars.
You'll
notice
that
the
interest
charges
have
stayed
fairly
stable
and
they
represent
about
3%
of
the
total
expenses.
A
So
that's
just
my
presentation.
There
are
three
cue
points.
I
wanted
to
leave
you
with
the
fact
that
we've
maintained
liquidity
throughout
2014,
which
is
one
of
those
factors
that
credit
rageous
credit
region
rating
agencies.
Look
at
and
find
is
very
important.
The
debt
levels
are
in
line
with
the
LR
philippi
and
the
accumulated
surplus
increased
from
the
previous
year.
I'd
also
like
to
thank
the
accounting
team.
That's
behind
me.
A
B
C
D
A
short
question:
if
I
may-
and
are
we
anticipating
that
one
of
the
increases
is
in
the
accrued
employee
benefits
and
part
of
it
is
actuarial
which
which
is
adjusted
and
another
twenty
four
million
was
legislative.
We
are
we
seeing
any
other
legislative
changes
that
will
have
an
impact
in
the
future
on
our
on
our
liability
in
terms
of
post
employment
benefits.
A
There's
them
that
I've
seen
to
date,
but
one
of
the
things
in
terms
of
trends
on
average
we've
increased
about
fifteen
percent,
but
the
provinces
increased
17%.
So
there's
the
changes,
I'm,
sorry
there,
it's
a
it,
has
been
steadily
increasing
year
over
year.
Most
of
the
changes
have
been
due
to
the
changes
in
the
interest
rates
this
year
going
down,
but
in
terms
of
legislative
changes.
I'll
Kathy
Frederick
is
here
that
could
maybe
answer
that
question.
D
D
D
D
D
A
C
That
maybe
relate
to
what
this
was
said.
It
would
be
good
to
get
them
at
the
same
time.
They
start
I'm
shot.
Eight,
you
talk
about
the
net.
Dad
has
gone
up
right
a
bit,
but
the
major
arm.
You
talk
about
the
because
in
the
debt
we're
paying
is
7
point
1,
/,
6
percent
within
our
seven
and
a
half,
but
they
also
mentioned
something
about
a
five
percent
and
I
wasn't
quite
sure
how
the
to
relate
so.
A
The
5%
were
plates
refers
to
the
7.5
percent
limit
that
we've
set
as
part
of
the
fiscal
framework
and
that's
just
on
the
tax
supported
debt.
So
just
when
we
just
look
at
tax
supported
debt
and
the
cost
of
that
debt,
and
it
should
not,
as
a
percentage
of
this
revenues
related
to
talk,
should
not
exceed
7.5
percent.
The
25
percent
looks
at
total.
C
A
C
Are
we
putting
enough
in
each
if
they're
increasing,
so
that
we
don't
end
up
when
you're
having
a
huge
cost,
because
we've
got
in
the
reserve
would
not
be
enough
to
cover
it
and
I'm
just
wondering
if
anybody
has
looked
at
that
over
the
timeframe
of
when
those
obligations
will
come,
likely
comes
you
and
with
everybody
to
have
in
five
or
ten
years
or
whenever
our
use
problem,
because
we
haven't
put
enough
into
that,
this
I
think
you
said
you
put
69
million
or
something
in
this
year.
Is
that
enough
to
keep
that
flow?
So.
A
A
mr.
Joey
what
we
do
is:
every
year
we
budget
the
annual
amount
that
is
included
in
our
budget,
so
what
our
annual
costs
are
already
accounted
for
yearly
and
then
what
we're
doing
in
terms
of
the
reserves
is
just
funding
for
potential
future
fluctuations.
But
every
year
we
budget
amount
of
what
is
required
that
year,
right.
C
E
I'm
miss
jasmine
is
finance
and
yeah.
We
have
looked
at
that
way
of
grad
forecast
going
forward
with
respect
to,
but
we
think
the
use
is
just
going
to
be
and
how
much,
because
this
is
all
determines
how
much
that
sixty
nine
million,
how
we
can
invest
it,
because
we
have
to
know
if
we
are
in
a
very
short
time
or
if
it's.
E
E
We
just
said
every
year
in
the
budget
to
make
certain
that
those
sufficient
funds
to
deal
with
the
expenses
in
year.
The
big
amount
that
we
have
set
aside
is
actually
for
the
long-term
disability
program,
a
number
of
programs.
We
don't
have
money
set
aside,
and
that
was
a
decision
that
council
made,
for
example,
WSIB
costs
we
fund
those
in
years.
So
if
there's
a
big
increase
in
WSI,
because
that
will
be
in
your
budget
in
the
next
year,
so
some
things
are
covered
from
that
reserve.
C
E
C
C
Wsib,
their
risk
is
openly
just
so
to
add
it
with
that
question.
I
think
that
mr.
chair,
some,
we
do
have
to
keep
an
eye
out
for
that.
It's
not
gonna
hit,
as
probably
for
two
or
three
years,
but
in
five
or
ten
years
it
could
become
a
huge
issue
and
has
for
something
asperities.
They
didn't
have
any
reserves
nice.
Mr.
Powell
has
been
around
for
a
long
time,
I've,
never
given
whether
30
years
ago.
So
it's
not
a
new
problem.
Thank.
B
C
A
So
it
was
changes
in
actuarial
assumptions,
and
so
we
that
pension,
the
both
of
those
pensions,
are
closed.
The
OSI
transport
pension
still
has
active
employees,
but
the
CE
OS
F,
which
is
the
City
of
Ottawa
superannuation
fund,
has
no
more
active
employees.
It's
just
retirees
for
that
one.
There
was
an
actuarial
loss
based
on
actuarial
calculation,
and
we
recognized
that
loss
this
year
from
last
year.
This
year
it
was
actually
a
14
million
dollar
gain,
so
that
game
we
will
recognize
next
year.
A
The
toll
that
long-term,
the
net
long-term
debt,
which
is
different
than
the
net
debt
net
debt,
is
financial
assets,
less
all
liabilities.
The
debt
is
what
we've
issued
in
terms
of
debt
and
also
includes
mortgages
and
capital
leases.
So
when
we
talk
about
the
debt,
it's
what
we've
issued
in
terms
of
debt,
where
we
talk
about
net
debt,
it's
our
financial
assets,
less
all
our
liabilities
and
what
it
represents
is
what
needs
to
be
covered
by
future
revenues.
A
B
A
F
F
Alright,
so
if
we
just
maybe
move
over
to
page
two
of
the
slide
deck,
we'll
just
give
you
a
high-level
of
the
services
we
perform,
so
we
are
engaged
to
express
an
opinion
on
the
financial
statements,
as
at
end
for
the
year
ended
December,
31st
2014.
In
addition,
we
do
some
audit
work
on
other
financial
information
for
related
entities
within
the
city
of
ottawa.
F
We
will
issue
written
communication
and
management
letter
with
respect
to
observations
and
recommendations
on
processes
if
we
deem
it's
necessary-
and
we
also
issue
a
letter
attesting
to
our
independence,
which
are
actually
find
in
their
more
fulsome
audit
results
document.
If
we
look
at
the
status
update
column,
the
items
in
that
status
have
become
are
quite
common.
At
this
point
in
the
audit
we
don't
actually
sign
off
on
our
audit
opinion
until
the
date
when
Council
approves
the
financial
statements,
so
we
do
have
to
conduct
our
procedures
up
to
that
date.
F
So
we
do
look
at
entity
level
controls
which
are
those
controls
at
a
high
level
within
the
organization
cascaded
through
the
organization
things
like
the
code
of
conduct,
the
fraud
and
waste
hotline,
the
tone
at
the
top-
and
we
did
conclude
that
the
entity
level
controls
within
the
city
were
effective
for
purposes
of
our
audit.
We
also
in
a
more
detailed
level
from
a
strategy
perspective.
We
determine
whether
we're
gonna
be
able
to
rely
on
controllers
within
the
city,
and
then
we
do
some
detailed,
substantive
testing.
F
So,
as
we
expected
in
our
plan,
we
did
rely
on
controls
over
the
Accounts
Payable,
the
expenditures
and
the
payroll
process.
We
also
did
I
teach
a
neural
control
work
on
the
S
ap
system,
which
looks
at
system
changes,
access
to
the
system
etc,
and
we
were
able
to
rely
on
that
system.
In
addition,
this
year
added
to
our
strategy,
we
looked
at
the
IT
general
controls
over
the
mark
PA
system,
and
we
are
also
able
to
rely
on
that
system,
and
then
we
also
did
some
detailed
substantive
testing
of
specific
transactions
within
the
city.
F
Issue
issue
an
opinion
that
the
financial
statements
are
fairly
presented
in
all
material
respects
in
accordance
with
public
sector
accounting
standards.
Materiality
is
the
magnitude
at
which,
in
the
statement
or
an
omission
within
the
statements
could
be
reasonably
considered
to
affect
the
economic
decision
of
a
user.
So
the
beginning
of
the
audio
we
presented
in
our
audit
plan
that
materiality
will
be
set
at
1.5
percent
of
expenditures
at
that
point
in
time
is
approximately
forty
three
million
dollars,
but
expenditures
were
higher
in
the
final
financial
statement
so
a
materiality.
F
We
kept
it
at
1.5
percent,
which
was
forty
seven
point,
seven
million
we
do
testing
at
thresholds.
Much
below
this
level
will
be
testing
rather
call
key
item
transactions
which
are
can
be
as
low
as
5%
of
materiality
down
to
about
2.5
million,
and
we
also
do
random
testing
so
that
any
transaction
ain't
got
picked
up
in
the
population.
We
then
assess
the
unadjusted
differences,
which
I'll
talk
about
in
a
minute
within
the
financial
statements,
and
we
assess
whether,
from
both
a
quantitative
and
a
qualitative
perspective.
F
As
our
strategy,
we
also
indicated
that
we
would
use
specialists
and
we
did
do
that
in
particular
around
employee
future
benefits.
We
do
have
internal
actuaries,
who
review
the
work
of
the
city's
actuaries
to
make
sure
the
assumptions
are
reasonable
and
that
the
liabilities
as
recorded
are
appropriately
presented.
F
So
I
move
on
to
the
areas
where
we
put
particular
audit
emphasis
for
the
city's
financial
statements.
We
do
a
particular
emphasis
on
revenue
recognition
we
perform
walkthroughs
of
the
pros
says
we
look
at
the
various
streams
of
revenues
that
would
include
both
the
tax,
the
property
taxes,
the
user
fees,
the
government
transfers.
So
all
of
those
streams-
and
we
do
a
detailed
testing
against
agreements
and
specific
property
tax
information
and
we
based
on
the
procedures
performed,
we
didn't
identify
any
significant
differences
in
this
area.
F
We
put
a
fair
amount
of
focus
on
tangible
capital
assets
as
well.
It's
a
fairly
large
balance
within
the
financial
statements,
and
it
was
only
in
2009
that
the
city
started
to
record
tangible
capital
assets
on
their
financial
statements
based
on
the
the
public
sector
accounting
standards.
So
we
look
at
the
editions
and
the
disposals
and
the
amortization.
F
Project,
particularly
about
agreement
last
year
and
again
this
year,
we've
concluded
that
the
city's
treatment
of
those
costs
appears
reasonable.
In
our
work
on
tangible
capital
assets,
we
did
identify
some
o'clock
uncorrected
differences,
which
we
will
discuss
in
a
minute
other
areas
about
it.
Emphasis
include
the
valuation
of
investments
and
financial
instruments.
Here
we
do
confirm
that
the
assessments
exist
and
we
look
at
the
valuation
and
they
actually
do
independent
testing
of
the
valuation
of
those
investments
included
in
the
financial
statements.
We
focus
on
the
measurement
from
Klobuchar
benefits.
F
As
I
mentioned,
we
have
our
internal
actuary,
who
reviews
the
work
of
the
city's
actuary.
We
look
at
the
completeness
of
contingent
liabilities
that
accrues
related
to
those
figures.
The
city
is
a
party
to
a
number
of
legal
proceedings
and
we
have
both
in-house
and
external
legal
counsel
who
provide
confirmation
by
the
status
of
those
claims
and
then
from
there
we
can
determine
that
they
accrue
and
we
look
as
well
at
the
disclosure
of
commitments
based
on
those
procedures.
We
did
identify
one
difference
related
to
employ
future
benefits
which
again
I'll,
discuss.
F
F
Employee
future
benefits
for
a
number
of
years.
We've
had
this
difference
on
our
summary
about
differences,
in
particular
for
the
superannuation
fund,
the
members
of
that
plan,
the
City
Council
has
agreed
to
index
the
payments
for
that
plan,
and
we
have
recorded
on
our
summary
of
differences,
the
value
of
that
in
taxation.
Well,
there
is
no
legal
liability
for
the
city
to
continue
to
provide
that
indexation
under
the
standards.
There
is
something
called
a
constructive
obligation
and
we
feel
that
this
liability
should
be
recorded.
F
As
well
and
in
particular,
assets
that
a
financial
position
at
the
end
of
last
year,
but
should
have
been
disposed
of
so
in
the
current
year,
the
city
disposed
of
those
assets
in
order
to
accurately
reflect
its
tangible
capital
asset
balance
with
respect
to
those
amounts.
But
as
a
result,
in
order
to
write
it
off,
it
had
to
go
through
the
statement
of
operations
in
the
current
year
and
resulted
in
an
understatement
of
the
surplus
of
48
million.
Again
we
looked
at
that
from
the
materiality
perspective
to
determine
if
we
were
comfortable
with
it.
F
F
D
F
Yeah
I
mean
I
would
say
that
in
general
we
have
very
good
support
from
management
and
the
financial
statements.
We
believe
a
reasonably
stated.
The
areas
where
we
feel
some
focus
need
to
replace
our
enemy
accounting
for
the
tangible
capital
assets,
in
particular,
that
maybe
some
processes
need
to
be
in
place
to
appropriately
account
for
additions
and
disposals
and
amortization
at
the
correct
period.
And
that's
where
we
found
most
of
the
differences
in
the
financial
statements.
So
in.
F
D
D
F
However,
you've
been
doing
it
for
so
many
years
that
it
would
be
very
difficult
to
take
it
away
and
that
maybe
the
city
has
actually
lost
discretion
to
pull
that
indexation
away
from
the
members
that
are
currently
receiving
it,
and
in
our
judgment
we
felt
that
that
represented
a
constructive
obligation
that
should
be
recorded
as
a
liability,
but
as
that
is
some
judgment
that
I
believe
the
city
has
recorded
it.
At
this
point,
thank.
F
C
Seek
this
is
partly
because
this
is
relatively
new
way
of
doing
financial
statements
for
municipalities
with
a
capital
asset.
So
is
this
partly
a
learning
curve
of
the
dijah?
How
you
handle
details,
yeah
I,
would
say
that
it
is
so
I
was
reading.
What
you're
explaining
was
really
more
a
process
within
the
administration
of
how
you
deal
with
these
to
move
from
building
an
asset
or
destroying
or
whatever
you
do
with
it
into
the
financial
department.
Yes,
it's
actually
more
I.
Think
mr.
Kirkpatrick's.
C
E
C
B
You
gotcha
Wilkinson
anybody
else.
Okay,
so
we've
got
reports
were
seized.
Okay,
thank
you
very
much.
Thank
you
for
your
presentations.
So
item
number
two
is
the
sinking
fund,
financial
statements
and
I?
Don't
believe
we
were
getting
a
presentation
or
no
okay
could
I
have
any
questions
or
I
have
one?
B
Does
anybody
else
have
one,
no,
not
sure
who
can
answer
this,
but
on
page
two
of
the
report
it
shows
that
the
balance
is
seven.
Seventy
four
point:
five:
nine
million
pies
cost
basis
with
America
value
of
80
point
four
three
million,
and
it
says
the
actuarial
requirements
are
seventy
1.98
million,
which
is
the
minimum
amount
required.
Can
you
give
us
some
context
on
that?
Is
that
good
that
we're
that
close
to
the
minimum
is
a
fantastic
table
where
that
much
over
the
minimum
I
just
want
to
get
some
context
to
those
numbers.
E
To
say
what
you
should
have
in
it,
based
on
the
fact,
because
these
are
sinking
funds,
you
don't
pay.
These
principle
amounts
out
every
year
you
pay
them
off
in
balloon
payments,
usually
at
the
10-year
or
20-year
30-year
mark.
So
you
have
to
be
putting
money
aside
every
year
for
it,
but
of
course
Iran's
interest,
and
so
we
do
an
assessment
or
the
actuaries
do
an
assessment
actually
I.
E
Don't
think
we
use
that
choice
for
this,
but
we
do
an
assessment
of
where
we're
at
at
this
point
in
time
where
we
think
we
should
be
at-
and
in
this
case,
so
the
minimum
value
was
set
at
the
seventy
one
point:
nine
eight,
but
on
a
cash
basis,
we're
at
70
surveyor
ahead.
So
that's
why
we're
actually
recommending
the
reduction
in
the
contribution
of
two
point.
Six
I
think
it's
2.6
million.
E
E
B
We're
good
notice
emotions
for
consideration
at
subsequent
meetings,
good
employees
we're
on
a
roll
other
business.
We
would
like
to
build
a
motion
to
adjourn
Vice
Chair
click
it
and
our
activating
will
be
how
solar
cells
next
meeting
May
28th.
So
that's
not
quite
accurate,
its
June
June
12th
and
sorry
June
15.
The
Auditor
General
like
to
say
anything
about
that
meeting.