Auditor's Report and Financial Statements

of the Toronto Atmospheric Fund for the

year ended December 31, 1998

The Audit Committee recommends that:

(1)the City Auditor consider the following issues with respect to the Toronto Atmospheric Fund, and report thereon to the Audit Committee:

(a)the issuance of grants;

(b)consulting fees;

(c)legal costs;

and any other identified concerns, including whether the Toronto Atmospheric Fund can be considered an agency, board or commission for these purposes;

(2)the City Solicitor report to the Audit Committee on the legal status of the Toronto Atmospheric Fund and its relationship to the City, particularly with respect to the Fund's $24 million in assets and the City's obligations and abilities to make decisions respecting the fund.

The Audit Committee submits the following report (March 30, 1999) from the Committee Secretary, Toronto Atmospheric Fund:

Recommendation:

That City Council receive the Auditor's Report (March 11, 1998) and the Financial Statements of the Toronto Atmospheric Fund for the year ended December 31, 1998.

Background

Sections 7 and 8 of Bill Pr45 (December, 1992), An Act to incorporate the Toronto Atmospheric Fund and the Toronto Atmospheric Fund Foundation, read as follows:

"7.(1)The board of directors shall ensure that the books and records of the Fund are audited each fiscal year.

(2)The audit shall include an examination of all assets held by the Fund or by the treasurer of the City on its behalf.

(3)The auditor is entitled to inspect all records, books, documents, transactions, vouchers, minutes and accounts of the Fund at any time.

(4)The auditor shall provide a report to the City and to the Fund as soon as possible after completing the audit. The report must describe in detail the purposes for which income has been used and expenses incurred.

(5)The fiscal year of the Fund ends on the 31st day of December.

8.(1)The board of directors of the Fund shall make an annual financial report for each fiscal year of the Fund to the City in such form and containing such information as the City requires.

(2)The board of directors shall provide the annual report to the City within three months after the end of each fiscal year of the Fund.

(3)The board of directors shall send a copy of each annual report to the treasurer of the City and to the auditor of the Fund.

(4)The City may require the board of directors to provide additional financial reports to the City for such other periods and within such other times as the City requires."

In addition, By-law No. 1 of the Fund requires, inter alia, that an Annual Meeting be held each year for the purpose of "hearing and receiving the annual financial report and statements and audit report as required by the Toronto Atmospheric Fund Act, 1992."

Comment

In compliance with all of the above, the Toronto Atmospheric Fund, at its Annual Meeting held on March 23, 1999, approved the attached Financial Statements for the year ended December 31, 1998, and tabled a copy of same, together with the Auditor's Report (March 11, 1999), with the City Clerk on March 23, 1999.

(A copy of the Financial Statements of Toronto Atmospheric Fund for the year ended December 31, 1998, referred to in the foregoing report has been forwarded to Members of Council under separate cover).