Item - 2013.AU12.4

The Audit Committee recommends that:

1.         City Council receive for information, the 2012 audited financial statements of Arenas, attached as Appendices to the report (June 18, 2013) from the Auditor General.

The Audit Committee requested the Auditor General to:

1.         Request officials from the William H. Bolton Arena to provide a written response to the issues raised in the Management Letter.

2.         Report to the October 31, 2013 meeting of the Audit Committee on this matter.

The purpose of this report is to provide the Audit Committee and City Council with the 2012 audited financial statements of Arenas.

Audited 2012 financial statements have been completed for the eight City Arenas.  The external auditors, Grant Thornton LLP, advise that a management letter will be issued which identifies basic control deficiencies that would generally apply to all of the Arenas.  This management letter has not been finalized yet.

A separate management letter has also been issued which identifies control deficiencies at William H. Bolton Arena.  A response from management has not yet been received.  We will follow up on this response once it has been received.

The financial statements for the Forest Hill Memorial Arena, Leaside Memorial Community Gardens Arena, McCormick Playground Arena, Moss Park Arena and Ted Reeve Community Arena were not available at the time of preparation of this report but are expected to be available for the July 4, 2013 meeting of Audit Committee.