By April 30th of the year following a fiscal year, each municipality is required to issue two external reports regarding the operations during the year. One of those documents is the Financial Report which consists of the annual audited financial statements and provides municipal financial information as the basis for council's accountability to the ratepayers and inhabitants of the municipality.
The annual financial statements for the United Counties of Leeds and Grenville are prepared in accordance with the generally accepted accounting principles for Ontario municipalities. Generally accepted accounting principles are derived primarily from three sources including the Municipal Financial Reporting Handbook, (a set of reporting guidelines issued by the Ontario Ministry of Municipal Affairs for application by municipalities and their local boards), the standards issued by the Canadian Institute of Chartered Accountants contained in the CICA Handbook, and the standards set by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants.
The Counties' external auditor is responsible for the preparation of the financial statements, and for the integrity and objectivity of the financial information contained in those statements.
The external auditor also prepares the consolidated financial statements which consolidate the Counties' financial information with the financial information of Lanark Leeds and Grenville Health Unit and the St. Lawrence Lodge Board of Management.
Annual Financial Information Return (FIR) & Municipal Performance Measures Program (MPMP) Schedules
Another external report that a municipality is required to issue by April 30th of the year following a fiscal year is the Annual Financial Information Return (FIR) This report is a more comprehensive set of financial statements. It provides municipal financial information in a format consistent with other municipalities for the determination of the municipality´s financial activities and for use in the development of provincial policy with respect to local government. The forms required for the FIR are prescribed and provided by the Ministry of Municipal Affairs.
Over the last several years, Ontario municipalities have experienced a shift toward result oriented information as the pressure and effective demand for programs and services, is always greater than the resources available. Greater emphasis has also been placed on economy, efficiency and effectiveness. In 1997, the Provincial Auditor recommended that municipalities report both financial and service level performance information to their ratepayers for financial stewardship of funds and for the achievement of efficiency and effectiveness of municipal services. The Municipal Performance Measures Program (MPMP) was developed and municipalities are required to report performance measures in nine municipal services areas: water, sewage, roads, solid-waste management, fire, police, transportation, local government, land-use planning and social services. Within these service areas, municipalities are required to collect data on 35 efficiency and effectiveness measures, submit their data to the province and report the results to their taxpayers.
The Financial Information Return and the Municipal Performance Measures Program Schedules for the United Counties of Leeds and Grenville are prepared on the prescribed forms by the Counties´ external auditor from information derived from the Counties´ financial system.
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