Presentation: Audit Findings Report to the Mayor and Council

Town of View Royal

Presentation to the Mayor and Council

For the year ended December 31, 2019

Presented by: Cory Vanderhorst, CPA, CA Date: May 19, 2020

Draft audit report

• Unqualified Opinion
• Excerpt from Opinion paragraph:
  • “In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Town as at December 31, 2019, and the results of its operations and cash flows for the year then ended in accordance with Canadian public sector accounting standards.”

Audit status

• We will sign the report after:
  • Mayor and Council approval
  • All legal enquiries completed
• Anticipate delivering audit report May 20, 2020

Audit findings report

Auditor responsibilities:

• Examining controls in place to ensure accurate reporting of financial results
• Sampling transactions throughout the year to form an audit opinion
• Auditors do NOT look at every transaction to form the audit opinion

Audit findings report

Materiality

• Materiality used in the audit was $680,000
• Calculated as 4% of annual revenue
• What does this mean for the audit?
  • Examined all items $680,000 and larger
  • Below $680,000 we sampled transactions
  • If any differences discovered, MNP could not provide a clean audit opinion if they, individually and in the aggregate, were over $680,000

Audit findings report

Engagement status

• There were no limitations placed on the performance of our audit
• No significant unadjusted amounts
• We did not find:
  • Irregularities materially impacting the statements
  • Evidence of conflicts of interest, unusual related party transactions, or illegal or questionable payments

Audit findings report

Engagement status (cont’d)

• Other comments:
  • No internal auditor at the Town, therefore no reliance on internal audit
  • Required to review annual report when available and ensure financial statements are accurately reproduced

Audit findings report

We would like to formally acknowledge the excellent cooperation and assistance from management and staff at the Town Hall.

Auditor Independence

We confirm that MNP LLP is independent with respect to the Town of View Royal within the meaning of the Rules of Professional Conduct of CPA British Columbia as of May 19, 2020.

Conclusion

Thank you

We would like to take this opportunity to answer any questions you have regarding the matters presented

Presenter: Cory Vanderhorst, CPA, CA