Loading...
HomeMy WebLinkAboutFIN 24-15 Cali 00 Report to Executive Committee PI SOMME Report Number: FIN 24-15 Date: November 9, 2015 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: 2015 Year End Audit Plan Recommendation: 1. That the Audit Plan as submitted by Deloitte LLP, included as Attachment 1 to this report be received for information; and, 2. That the Chief Administrative Officer and the Division Head, Finance &Treasurer be authorized to sign the Auditor's Engagement Letter on behalf of the City. Executive Summary: In accordance with generally accepted auditing standards, the Audit Plan is prepared to communicate the auditor's approach and reporting responsibilities to the Executive Committee, who has oversight responsibility for the financial reporting process.. This plan is submitted prior to the commencement of the year end audit. • Financial Implications: The base audit fee for City and Library is estimated at $70,000. This is approximately a 2% increase over the previous year, which is reasonable as it is the first increase in four years. The City implemented a new property tax system in 2015. This requires additional audit procedures to ensure that the conversion of data is complete and accurate, and to test new interfaces and access controls. This one-time audit fee is estimated to be $7,500. Accounting standard PS3260, Liability for Contaminated Sites, becomes effective with the 2015 reporting year. Additional audit fees are anticipated in the range of$2,500 to $3,500 to ensure compliance with this standard. Sufficient provision is available in the 2015 budget. Discussion: In the Committee's role as the body responsible for oversight of the financial reporting process, the Committee is to review the Audit Plan for the 2015 year end audit. The Audit Plan includes the scope of the audit services to be provided, the auditor's reporting responsibilities and an outline of the audit approach. It is included as Attachment 1 to this report. L h Report FIN 24-15 November 9, 2015 Subject: 2015 Year End Audit Plan Page 2 end audit. The Audit Plan includes the scope of the audit services to be provided, the auditor's reporting responsibilities and an outline of the audit approach. It is included as Attachment 1 to this report. At the Council meeting of June 13, 2011, Resolution 122/11 appointed Deloitte LLP as the City's external auditors for a period of 5 years from and including 2011-2015. However, Deloitte LLP requires an annual Engagement Letter to be executed prior to each audit which summarizes their role as external auditor, management's responsibilities and the estimate of the audit fees. The Engagement Letter is included as Attachment 2 to this report. Attachments: 1. 2015 Audit Service Plan 2. Engagement Letter Prepared By: Approved/Endorsed By: Kristine Senior Stan . , owski Manager, Accounting Services DivisiI -ad, Finance &Treasurer t 1; Paul i Director, Cs por. e Services & City Solicitor Recommended for the consideration of Pickering City Council ad") 2_6 , L©lS Tony Prevedel, P.Eng. Chief Administrative Officer ,g' .-417 %.--4.-;. 41 - ,, , ''',41,- .-iri,"' --' tie4t4*-'.1.., ,N:7•14:t'_4--"Zt-_- - '' = ear. -"..*:'.' jr.- . -.. 4 : , , r •-,--. • 1— � ° 4/ "A ..T,S,..,,yed., irj- 4,....‘„, lt, N� � ..4',t ..21.1•'.4..- - c_ r� CD C•I 0 PM 4111 IA 44 C.1 IEEE „iv 4, --. -. _ „;.,. -.4...., ',V• f...., ,-, . :.:,-. 1,`,..",,c_T.- ,2 t ....--' p.sc- 4, .-.--„,,,• D 1,_ 0_ :5 -0 E ,:.e,,A7-: .''':,„.4%.4 ''''-7 .....,,„ - .- ,,,. r , ...,„,..,.. . -.... .„,, ,-.11.-e r:„-: ,- 0 -~ --- � CI ' - ' -- u- ' I ` ' `� | =,~__- -� _ _-� — �^^-- - ~ `- � _ '_~ ~ ~_ .~ -�`"=^~- _^- -~=~=_ •^ _- ,°�- - .^. 4 n J (0 O a) Z O o N (N Lo a) iii 2 fD o am Z oo� J 01 0 CD d0 ON co":3d ,J> -o 7:17-°. -5° 222 ". sf.- X 33 01nfAHV hui- 3 V M O N j C >+ C N o _0 v c m e o _ U a N O 13 c N a) a) as "O .N a ° c � a to o. a) o a b 13 O to .0 t L a) N — v) N C — > CU N a) E _c >. >` a) M VJ O >, aS a) .0 U w E .0 ii Y c a) a) ° co E to a "° U > a) c V a)Q ) to .0 O d ca U) Co O 3 �� >` as ° _ L C >+>, as w a) T u• `O U >i co- ....:.-__L U'a �.. a) c a, p. >. > C -Co •) = C a) ; CZ o .0 C '- a ° L... V) N O N E C1 Ca O O - C N N CO a) N O V 3 'C. m O as a) m a) m ° U C _p E O .° a c as E ° c as a)-= _ = m as n E N O -.,-,5 @ ° a) "°- ° O CO V ° NQ 2 ,L w c > c U C O O d = a3 CD _c a) _N O C as.L E O .D O t� O O N v1 0 ~ c asa, a, C=Z U o d ° c� o o a a) o N L O C a as U as m > >, CO 3 >. O-o cr..: 3 m C-a U C' >S C U °23 CD Y O x .-a) CI- O C c as U C W as a) - N , 70 15 P a 6 N U m U N U ) as J O m +L- fs° .. as U) C 0"O >.O) O N N C a C "- C C o p O. V p U c M U 7 C 6 7 a) "O Q. L• N t// ) 0 v a m 0 p o_ >• 3 c v1 O a) V 3 ¢ U a a o� c ° o� o o N rn c O N N ° a)a O a Z w C °O C a) c U D C va3 � � c � N a) a co N illa CD m ° o a� d=a ==o ... Q 0 .Z c illa as ~ C N >. w O I t0 CO O) 3 LL 3 j m U a U) O 0 O C C 0 was a as a) Q a Q C c E c m ° U 2U . i N i� CI a .C °°1 (0 E y o. - U o U a)t F-c w E a -o ,� o U 0 0 _° °�' m c EoU MIN N E ° o 0o) CO w Q o a) c ° ` 0. aaEa > . m as _ Oa o o a a)O C Z N C C > C a ca N c ma,a� ..... n 3 n � �� 2 r ° as M.?�j C X 3 O_ a asp as O fa O O" ° ° Y •• c W Q N us c p c 0 c 0 N C p 0 c,2 /-� N C ca CI �O j N 'I" N.. CO Nr CD ..r. •■—. ■ / 1 u) a) a) 0 .g E id Es -a ci -- a CO = m CT a.) g) I . . E,, -4--A . --E " _. , C a) c.) C .0 o as --z• o. o co a) g as ,.... (11) Cj 66 E g z 0- CD .._,.. -4■0 C 0 C 1! 0 C 'a al — D )9- u) a ci Li C : I I -• a, . _..c.. '2 15 U) u, 0 ,_.t.- -01. e.--! Y = V 0 s— N CO .— X X X ' 13 '5 'a 'a ..... .co _.., ._ (..) a .r- in T-- as ,...- - v 0 = = c C C C 0 a) a) a) 0- o. a a 0- a o. szi . . c, = 2- -6 8, 7:6 CNI 0 < < < < < 0 CD @ I- . 1 cr, a) a) C N -- o, Cu Cu m � rn m ` m a) 2 2 m c E Cu `o m as as .., o a) as C -°s a) -a c u) 2 U re W Q U) - H O a Cl) , fl I ° C o c) 0 Co O U) 1 C CND) c ° '- o ' co 1 12 C O O a) o O -C -a O as a) E E I a) c C N z N 3 O i s a) a) >, c at)i 3 L a) > c c X ` a c f m Cu c a) Cu m , _ _ a Q w H W U c� � C �� {5 < CD fl 3 O C 1 w 0)0 CD I ( y �.—'II E c 0 o -a , 0 c U) as a) -o o o m `as CCi N a CO O p U U i ) a 0._ C a � O a) w o a" a) U) O V m co d L Cl) N ,- 0 o , l0 a, g d _ U aI U � UJ L a) a `8 N ai ■ C yL., > 8..0 Ul C , O O a3 73 78 O O N L as O V 2 _ O f .,,. 7 >_ 0 3 o t a v o a a) a) m Ei _ E y 'a a, a Cl) .r fE o , >, 2 N .N. V1 CO C C N - !A c € a) ." 1 -a C O_ a7 a3 O p .N o - 7 i .N„ aS E N —E N j a3 a) ! O a5 m m SD- a3 O a) a) O ? c O d: i t-' L a) U O C N O O O L C 2 ti LO a -0 C as E m w c o rn m 8r 6— C a) C -a a) -a > O_ a) -C1 !�U t) C) CIS 0 «O. C C N U Cu .r a) O N .0 7 m w12) c -IT -c L C_ C '� Y .D tOp C -- .r C "a a) . > me c o v c a o > o L > Y > 0 0 ==' ,-`m o c c o o a m c m o ' Q - o CO N 3Q d N a) U E a) N m t W i = U C -0 O N D M s m O y N ; C O i I 0 id. m p m 4 C i E j C m C o" = 2 C W oo y • U m W O 3 U C m' > T 2 N N 'C CO w C rn,i mO m�C W wC � � E.2 m tm I Er m omo m S oN II = - c T I) m . C Ia. O CE N U N = N m 0 U W m C m CO o p O p-`C 3 m r m ' -0 m L V C U d p m 0 m=. C m N C C C V C m m 3 N(n O • W d¢ m -- • a m W`� C m O C W m C • m =d C La a 0 IhuuIUlllllllU n C L.`' N...m LE o m -C W 6 It ' U O m g m_ ^C E C LL a CD �A > > m N OI m -- ; V > U • • • > .L..- m fn N _ C C • C 01 U 8 a C E•at m N ai .2 m m 0 m m E o N 0 N U N L -2 _ V ■= I C O Y m m 7 1• E `O_ L ` Q n w -5- v w c N c. in d a G 0 O ¢ z - r u) E m m o c O•Q L = m a c ti E m m d c c 0 m = bd L m m m - _ m N LL m 2 )_, C C _ J - -_-- s Ts 7 M W U m m A Y y -O LL m m 'O m ` V E m = o Y L C N y '0 8 E.m m O) L = •- N C LL m m m CC I- 3 'm F- E m 'o eC LL O o C m y = i y L z m E - i C m 13 0C = 1, "O y a C.5- 'O O)C C C p r c m II = 7 N 3 W 0( N 0 - 0 ¢N O d II N N - y = m a 0 2' 0 E m'_ a a - - E m n U d vi i n ¢ U H m _ W E E R C _a" N O T G 2 E Q d U E m m Z ,-7:_,__ =�1 N Wm C C N O _� C ! o m R L.-. is m m MI) - ..- W 3 o H 0 m = C 0 p c L m 3• - 0 CD c U -v - 0 U o m cp C m c V . E c C rn 'v m W e N ^ =8 g c m (y E o U o n, _• a m o 0 .0 co J U W Y N C ) To es W W m m y V• W W W o W m L 0 ti m C x n X U W C■■ y a m to a; m LT_ W W y E o ° U}+ a; o V E = m '0 L EI L E L g: . a N ■ CI 13 C TO O m m of C m E Q c o m iE U _ 2 E > >_ - U O m C m Xm mN K c H ` `� =C m M O T E m C U a m m v G 0 C N 3 1 m m 9 m a X m C W ...v U m y m o ` "a o s E N '2 r 1 m m i _ °• b m E • m — N v E m m 5 r>. m o « a a 'm a m 03 2 a C J m o > W i ..C d> c' c m 0 N 4 C a 1-4 .F. c. > E N LL = .c m m w C o o d m E a•o • a U 3 0 CO CO m T• 0- « o m d ?` E c c E a of E ; 00 a; CO U� I a m m m t m 'C m ! � a v 0 U o m o u E ¢ m� 0 '� :O a d z m C7 °o L. C v o m `• a o v t0 3 CO L x m � o • m o o m W m m e V C m m o m o m• a c y d E •N m` y E U U U E a ``o O m > C N O O. CO W H E • • • W C m 'o 0 V1 �i m it a n 2 U 4 �i E O �i m in o m i C • c 0 To m °� Oo cu 'LC w as a7 L _ "'C DS 0) a) y c as s0 as U c .c c ci arc « E o I o E LL O CD C y LL C at E E-_ y y C C C L.. 0 N N y .U. = 2 v of 0 10 0 a1 n•o w E 0 _ F y m cs U `o 2 o to t E T a ° •3 U N O a) T.- c O 0 0 3 - C o 0 = a) Q ° E m ° °n as n E a EA)V o n L cct d 0 / C O p O J o C -c - C co ! y N d I d F L c °- o ! E m °w' n o c E Q a) 3 f0 73 'C 7 ) '.. a1 =O O N a7 d m a o E A'F �a. a E o `or3 m a1 '_'▪ 0 as 0 ca E � ca o a. 9 a, to ea to O E O U E C O 'Y as O - as w d _Tr C O o y O O C O ,C - C 0 0 ° O a ; U c u) 0 O N m o_ m 3 .- C ui p �, y C o a, N O +•+ * w a5 as 3 as m m 5 y 8..0 m c c° H CD o o m Q W c E as =o % \ -'T., as N o c m E E `m °3 E a) F O in -C 0- _ h - as c - c c m `o w cs C.) D E c• °s E • • • LL c . o E d c E E ayi •ccai ca y C r'2 aL L 1 h' y iti c, - F- c >.., y I -= 01 _ dr)_ c o w O y o ... o 'r= ca as w ` •R C N 2 c °Z` 2 t c w m c m yn as as o ai ° r" V w ri " < w c° I-X dn a Iii 0 11111 9—_ m C c N- _ c n E as 7 O •j w as C d y = = U 0 O a) U O U • y o o C N N a O•O'0., o as 0 c 6 CD 7 0 c o u; ° __ E c o 0 LO' _o m m E = E ° al c m 0 N3C c as w N 7 y as a, O - p al - C T N C E a m C 0 C E > Q m c 3i� °? c n y m E 'FP-- c m S2 w 2 E as .0 0-c •o m 0 E cu N •y N C g 8 as o 'p C c C m 0 d O N C E U a) C a) _ as 0 > y C 'O as O L as L as _ N C C as to m n m m m n 3 y °1 = 3 y E c —y o ° ma c E °> °� aEi nas . o 5 3 m > E as m E 42 c_ n o a0s m L a>�s m y �° m y m o c TE - .- ! flul 1 °O C C as O ' '=V!- a5 c al N coi n ° as .0 m E as r ' c acs n m o m as o m a a y m w o E m c c 0 as 2 ui 'c)m rn as o N 5 .c E aigi -0 n aci E Z a�i m o as = c m c 5 E ;y c v 0 as o 0 C C L L 01 N N T a3 N 3 C C. C C Y U L CW y n °s C U �° — y > y N as y tll a7 C ° m y as c o •o . D 5 3 0 3 o = rn c y o d s•`o m -C '03 0 ° 5 as 5 ` LO c •o s 0 aa) > 3 L0 w h y 2 R V a, RS ° ° y y U y o N y O c 02 N J1j911flU w ✓ - 0 N'o"6 O O N fa Q su N _c as a) 0 as -0 O 0 N E ca .c O as y ca O o aS` c c rn `s E o, c = -- rn O n n°•o o as - m N w o c 0 0 o as as '� •o c o as a m 0 u' i x y U 2 • ci coy > C £ E E m -6c U a — c m c o : as ▪ ai o as o m o °2 Y ° c m 3 y x 0 > 0 0 L 0 - `.(= L 0 0 — c x 0 ,L y c W coo as •O 0 L m u 3 > c a • �° E`o as y m m c U -0 II •i O.s o n c•° o m m .3 .�r o m c c 3 5 3 m c c a > 0 as >.C 0 o 5 m n-_ y y d N y C m N 7 C o f •o d -0 as y c Y 3 c as rn c_ $ c E c m as m a_`o c 0 ca 3 C E y ° W co co > ,;,-• O m C .- a) fa a)N O m -- (a) .E d E c ca — N as C o O :a c .` ° N C C 'C - :0 O a1 7 d N n E U s. "° fa y �.. .- w 01 C y l6 n:- m m C — •a u)us aa) n 0 3 > N > 0 m N eC c p E as o y E E ° a m 3 3 i Q H• m a 0 W E W 3 a m - U o Q c o_ is as 3 0° ``o . oo >° c ce F- 2 —2 n 2 o a°,ci U. > N fh t0 a7 > — , O m ®H y E 0) -a _ L E to O a O ca > r a a 3 a m C po a) O = in a a c U) > a a E a) ID > a) - > U ) CD Q) 3 a) a ca rn I ,,, ._ 1,6J l a ° C - ll O �E U C C .4 1 0 06 a Q) o O R . � as 6111hual. U. - - „ F,0 E as ° m w ° :c y - as `C ` a) a- ';p lIl%i i0 C N .-z...-i c- c T` a a �) = C a) 0 C .F- l4c a)o O L a ,', ,, CO tQ •a a) a5 O c6 q0� �M - a 1- -0 a i ° ° f06 C F-.a �_ _U 3 ti N o -N.-__w L-. o U )) .0 C N •N- a C -c ->�a a1 L_ C 0 •al C D_ N C C E U a N CO) 0) CO o- _ L a - -a co a > C a 0 as - .p N 4-(o as C as CO 17- O . — � a) L 3 U U a) >NC 4) c W a m > 0 C _° C as v- 0 a 7 C R ca O a _ O = E _ E ° W e c Y a E !a) a � a MO E c T. O ` as a, Q u o L ._ a)+ Q, 0 a) a) ce, 0) i x c m "c o am am a` _ ' m , o a 'a a c) a) Eo -a a c 3 a o a ° CO iGO O r r o W c : a c'? � a) H 'ca "G d o E- 2 >zs:c O o a o ' a 03 .0 -- of 0 D c N y a CD a a) O O) a I c - a a fl E >, 1 > C , Q) 1 I a U o c a a) c m . c C > a»I m II ' ° f!..5 a 0 m 0 I C > > a) la •- te vi a) o w o a) a a� c a C . ..Q) —m E 0 a) — CO ti= C/)-O to to O a) ' ., to Q) E 02 a) coo O N "O 0 as c o III a U a O_to'3 Cr E C as O -a ° ca C. ,r ,.E U L CO di > _ cn CD .0 E ,c c oma _ a N O W 1 N U O 0. 3 a c a ca as 3 - c ._ s c 11 co a0 Q) co -C - - -- - .O w m -° - E E as • co °c'.0 La. `� _ a +• a -O = - O — C -O a -6 3 a C C C a3 E UU) to as O > O a U _ R (13 as o c° E -0 in E . ) o c 0d y m c u 0 o as c cu ca E N ��-' ° ° Cj a, O c m as ° W c ° C m a eL v a E °) ca o a a) 1- o f ' a) a a a) ms t �� 0 o m o V♦ c ` 0 L m va # U . d'a N • a) v 0 L m L c m a E + " C d 8c w O a a E a . C in" U C N 1 O 4- L G) u) U f, m C __c CD +- N a s- u) c ` C a ° E a y , c g o O > C La. co c C c o 0) w ...a 67>d N � O)' A > a) _ o�+ a) o N C a)as a) _I o J < c a o Qrn H - m ¢ E D o a N � ca Ce Q O ca 1.7.- a) m v . ®"E u4 - - C _ i it: O) •` - O +._ to -o _ O C O a) O a? x ' c m ,N ° 3 E O_` a 0 ; O Q C a) a -4.a) - p C- O as N > a) xn a) - V O p __ E a) O as U j O + • _ E$ E U) c =03 t'l O , O C `-:- N ° o o as a) -U) a c.)i . Eo O as _ _ o C CO E E a) C CO C a) E a 0 . � a)O OI N c O 0 W O c C o _ 3 m as uUi E o ° "_ o C . c : aEi m e o ° C 3 is N d m a) LO. o Lo o m o E a . of c c ' T a) C _ ' a a 6)C c C a) 1'n�u o N t a) c = �° -', 'E > _Q C : as 0) a) •" o _> d , m a) o - a) G o -° o a) o E ; a N": m >' c ,c p $ • E v aci a) =' m co m al a) m GE 0 u) o' m in- E u) o a' m m E o 03 L. 2 .� ° m __ 0 kQ1, a) o o c : aa)) U) CO o 7 O) N O m!'„'I p w 0 d > a C °' fir, c) a), a o c .N -° d m ' = o c as 1 O d V as N .w. C f6 a) ca N ,,,,,1I a) a) p n.is c U sa v- 'a) 3 E o > E cz. fl a).a ° • m c ° a o 1-a',I E aa) •5 3 a) o ^a_. o m 0 ° o a) ) ryl, C •°) c o ,o - a) °) w 0 L a) ,- p a o V O O) !A W 'N 'CO -' ) CO - S 0. ()) "Iii' CO V) > as a U p C N” fl'.- a) a) a) m a) ® S�.' •p °- a) a) a) a) ... a) N r 1 OM tL _D < < :ia I- O I-. H a) I- .... =• O as 4- I-- I- I-- m W = ` • • �• • • :` • -• • • - �'" • • • • • • _ 0 .+a) c 2 -o C as a N O 0 as co a) I- a N L a n 3 I'D Awl c to m ca c°) > a US is • ° ea rn m _ a C co w'o rri C -- o --- = C O 4 O as 0 E C O 0 v N Q O O a) ON N oa �- > � d Tom_ of a) U Cl) O c � a co a c °) o CA - Q I a) a= m 13 I t3 °O p d c C o a) a >. N a C Q 3 "' o !...= � TS a C� c a) a a) E o a c .' 3 a c E >,.- c w .0 O °'as C F a C O ) cN C a a) o'o a 0 ) a s ° C d c m ur CO a°i C d C C o m 0 `o i d 'C to d a a) o p m e d w a. d a C ° Jo 131 :a E a) Y ) Y 2.'.5 = 4- _I,_ as Cti Q W . E _ �' b' Q a) p°m c) 2 p 0g Ta u, co m CD CL 3 L c >,n w °aQ o d1 p r O a a) o n c,� a) L Y a) a) acmE t c °- ON 3 in a) `1 E vE ° gE ° m �c E a Hr ° 3m� `o m a3 c o ii a C N y 3 C O O`o v o. 4 ° u) .N E a)U 2 8 m as• N N U n U W p 'p6 O r o u) c O ` �� a p C N " L„ L O O N C fa``` - a _O -0 a) 3 3 •33L 6 -c a) O` 3 a) = O L E o C _ — 3 E °' 'a ° C CU la 3 N O 13 W co v ,_ C N p a3 "° O a3 ai O) V) N Q +p. - O a- n a) Ts N ° a > u) a) U y C L• la Q) la a) y ° O C C to O U Si grip n L c •N 0 C > 3 O a) O c n as ca c� > uJ a) N N :C U C p a) w n O g c cca c n c > ° as m N °° a) ° a) ° w 0 3c coEa ..c.=” .04- Y ° o c ma `o m d C a) C c a) c n v as a C as E oO CD sac m Ca as 0 0 03 �-° c N m .N as c 3 U 0 - >. O N d N O U .V d o m 3 a3 L a) m E 0 C o N 0) C o a0 (a l` ` .a U n = L u) a) ° n a) n`m m c E > m c o) o a) `o as o +� rn E r •0•N as >c 3 w 92 () -°_ c c c °) -° o o o p a 3 2 CD- 2 O N u) a) a) a) a) 0 .9 s v1 O p n N C '8 O O O m p aj p N uJ o = - to U n as c 3 > '= L .5 O N e w a to a O N 2 CD -• a --LE E 2 D Q (a Q (5 in O it L E LL E c it as o H E N ri C tO (0 N- a0 °) O N (h )n CO f` ao - c E p u1 O O O c 3 .o w ur 3 $ aci u) c -a o ° c ui o f u) U U N -O E Ol o a) 3 N O co 'O C (a a) c a ... a) a) c ° a) E (` a) u) c is c a) a) m a) ca 'o ° -c E i) o m ° aci w N E c as a, ° a) m- u) us C N c V > m N as as Ta N a3 C p .,>, w E c a) N ns n ' m as c - c >° c co m w m o c 0 c w e u, (a 0 U -o o) n N C as u) 'a N a) O > °) >` as —03- 3 C E N as C uJ a) a) a) U-c o CL N c as O c a3 a) a) a) C n as a) w N rn o .T O ° CO O U) N C a O• >` E L p N 'O a) 0, O E 'a) as m n V O 3 ` L C - a)• 3 c a) n run N o N as a) C E O -a a) as a) uJ C ... aT n X ma) i L U — U '- o as ) .- C E a) C N L O a) C "' a) 3 w ° O) > - v -O 11 '+. a) ... O ° ._ >i n _ O ) O 3 C -a p -co"O uJ > U O := ai a) 0 m m E as o c n. 3 a) n c iiii o E) -� 3 a) ,=c- 3 C > ° a) a) aoi c a) Q cn u3) o c o -0 3 c c (n m e ca a c m c c Q c ° o f a) 3 a) Y as -a 3 o f ac) a m m ° C7 c m °'° m voi E �° c u, m x (`na c c as N ° E E (°)a o E c c c o E u, c cc co ° m L a) L c ui i o a a) c m co as o as ca)) '° U u) uJ a°i c aa)) p c m m a) "a 13 0)as o E p w `° o o c 73— o C m m o N ° ani m U 13 c aci E a) c ° 3 c n c� a) c u>i < ° E 2 E E m n E °a• w a) L o a) c E c -.o . . ,.. E = L, 3V m �a — m 0 o N ns o c c o •°_ r MS m c c ° m ° °° _c °) a>) :� c °, a) o ' O a) 0) O ° O as 3 0 Q 0) w 3 a) C >., -p 3 O m C 0 m a) - `O a) . a) 3 m L as 0 c a) a ° N c a) a) m E.O .3 E a) n -c as E n - as w O) -,2-0-- 01 C NO E O !n C..° C o y a) .a ) EO C Q L C EO L 'O .a t p a.m• 3 L, >' n a c -`po N a) N a) a) `) as V L as a) a) U a) as •C N u) m° .Y 'c a) a) L E "a ° p C L O_ L -a -° w t «p U) -c a) t -C >L a) s) r.c_ ?� a 0 al o N N a1 as U u) as o U c _a a) a) ` U C H L E > as F- as > N ° O m E2 si o E co as w 'v as as o o o a • • . • • o 1- • II Fa �j,♦ ) GU a) mG U cv CE a w a)15 a9 D aU 0 m c`o ii a o J N O O oV m L U Cl) as a) 0. .� C E m CD >, m E E as p) O) a) C C N O C C ` L c a ) ° a) E as a) O. Cl) a) >` N O ° L-. O U a co) ° 8 a) a) ° 52 E c . L°„ v) C E U) a a) co U C a as a) -° Y a) • N C 7 co « C O) ° as O T ° C_ .5.2 $ aa)) w ns N O O C C Y .S ..=O a) N co O ° O N C ° a a E c l6 L p_ O ° o = •.• U 4_. p C C C U) U) ' 0 a 3 a) U a o a)a a C .a �O O T CO t ° f6 w N a) O > w 'U O L C al N N C 3 C d a) L U .. (i O. U 0 CO N II CO - L o.0) N N ■ in c U T N I a N -N o w a)O 0) ° L C ° a ° L O N Q C c O a 7 N C N ( p N C a Y ` ° w N C co� O C Y2 L p o C ' U 0 d ' L a) a y+ C 01 a 4- C N a3 0 O C • < a) 0 V _,-° N O E p C ° a C C °O C O a)Tr, a3 a) y U a 4) °) O a C.), ` N O- 03 7 I 00 C a) L ° C r.+ X C a) C N f6 T C � 0 as a) U ° C O ic; U N N - N . m ° E w 7 T E m a Y U N . O N 0 N C a) == • CI .f6 m E t`a O >. N a) C '_ « a) U = o) m u°'i C as a C O a.) d o f 3 N N C • 0) N C O1 C o 'Y` N U CD 3 a C O C O UC1 L N C N u) ■ ° a) O o N 'N C O a) > 7 0 V) N N N as c ° ° °0. 30 N o N c i L C O C O C E U o CD a -r U Q) .n U C cu o ° a0 m n a) o as c a) a3 ..? o E a) d 2 as a ° as ° m ° m c ='a p. co T = """ U .L... p p d L N 01`o d Q a) "a -C "O T T C o 3 a) t0 U a) u�°�y, as a) E (06 C 7 E O) °) 0) 2 fU) 0 Y co as > ' z.) N al CO 0 C C C 0 ° 0) « C 2 .0 g d Cl °c) m m c m •3 to °a" °ch a) a) w ° a) a) a) a) c a a N ° -a 1 o o 0 O 0 a 'C N O Q U o C N c 0 ° 2 a) a t Q D D D o d U j 0 1— d as r O "E N om 0 ©F- rcs ci° 'CS- c o 0)a a`) N C 8 as O c• 0 w ° a) E as 0 c •C O) U l4 C CO a O E 0_ ° a3 = O a) U O E cu ca a C O 11'73. O c OC = U O C 0. fQ a) C N as 0) a) U) o .(1) o 2 nv 0 CD .0 .0 T a) U, °' a) ° ..- m a� as `o .0 as C Q 0 ° 0 C C E O L L as c as w C o 0 .c w u) a U ""' E Y O (6 2 C 2 N Ul .0 3 'C a5 � U C N U) N O U) C . o O NU) C ° O '0 L O c C c 3 (1) Y .0 a) 3 0 C 'j 3 Ca (6 a) as C O 0 0 c 0 C E . ° - a 0 a) 2 0 a 0O N R .0 W =p f0 a) L 2 O 65 a Q c 3 o ° " 3 0 ° m a) 3 3 2 - ° .L° c aa)i -a c a as o as c E c `0 •C O U) a) C -0 as W a3 U a) C O a) p .• a) C tt - a U) �O c p 73 10 O LL w �O a) a) uJ .. 0 a)• C m C .O as as L t rn a) ++ >� ca) as w° a) •C C a) 0 a) D o Cl) C O a) a 7 a3 U) ..L-. C E o a ° C as C a) a o aa) C ° a) m N C 'C as :-,z D U as Q U E m N `� °' E m ° m °a m m U O C O .N U' p w O C c p U) ° �N o a-' a) c o a) a ° m E '0 w - ° c 3 ° new rn > 2 o < as E c CO 0 0 c a) c E U U) • • O U @ a) a1 N N. `° C� O 00) E C1 L a) N co - 'n c - a) — U L.. a) C p a) V a 0) U)) U C O L a3 C C TS a) a) U >. N .c c0 as a) C w 0 U N a F- •— U) E E ° ' c n ° E •> ' C u) C L_ 7 D_ U C O rn E >` :E O o d? u) O C U _ • = C N N U > L >. �' .0 tO.I •C c a) a) a a -p O a) 0) U) N 3 c E, •0) O C o ° c >,o o m N C ` a a) p f6 .,L... L O_ N "C (0 •� w C O a) CO u, — ° m a) U 3 a) ° vi E C u1 o ur a a_o U a) a) a) a) E a w °? u, O C C cp •as U as Y X ..., p C a) a3 �0 ° C U rn is 2 c E as E a a o a o ° o C C m a) a) o C m • ° a C v1 N a) o 0 E = U CO a w c 0 a? w o `n a) a o a c N ° c - ° as as a o .o c w w a o) > c as .0 N C C L .L.. Ul C j .gyp• O a N N '� CO a' U) ° U) ,� 0 U) O ° E O .o C 3 E C C 3 o N 0 a) CO U) 0_ fc6 L a) E .— ( a) c0 O- O as N o O V C m 1 Y O 0) p U c a 5 E :a m in ° 5 m u) a) a) o .> E v, ° ° `° 0 aa, �a - E aa)) ° - ,_ CO c y w 0 a) m m a°i o a• a)° c C U N 4' a) �, .� .2, c as 0 CD C .0 a)-E E a) c c -a .._ a) C L 16 E o E c m - as £ E c (' 16 y a a a ° ° t. o o E a) a ii. w o ' m c c c c w .� m w. 0) c = . 0) p U c CD > Q a) T as c) O E a Q m a`) C O 7 D LO.. 5 DLO. .0 C h 3 .U. Ul - .� U) a) .. 7 L C6 0 as p — t0 ° , o E O c o a) as - v, o m o E o .. a o :� a c C as p • a) w O) u) N - C N O .` O_ > L E c c c C ,o n m ° °- m C a) 0 a 3 > 00 C aci 2 0 as E o C•O —a°) N u) N 3 C > N -f6 10 [c6 a N O 0) N X U) CL C c C c0 Ul m a = m vi c - a m t p .,�° v, as r m vL° a_°i `� m ° .o g•au E ° �' m c E o ° c 3 ° ' c m a �' `m c �_ � 2 m 0 N � 'S „, N a, ` n _a) as E y - E asp w .2w E � m � iOCa)72 2 0 aa, EL2 .- .n c as o `� a $ � 0) o 3 a o 0 a) acs w n E a c u) .a ° c as a) 0 N a a) .0 U > E E E 3 a) -c 0 as a a o RE as L a) E >' , N Y o 2 a .0 0 c C 0) d d a) •C O H 3 a) cC .L.+ as m Y U E >, >, O U) N c _ a) us m w a) 0 7 as as as •2 0 r m a) a) 3 C c - m m u, vs U 0 N as N Y 0 Y n. < t d as p .a a a U CO u, m N ° m U w F- 3 >, U 2 0 -o n EE 2 I-- — o f • o a) — o -CI• a 0 a CO 0 • co E a ? -.w e cts°' c N a -C E Cu us o'V n UO -.E. c - O O` O W as t d 0 >, -> o C U _ a N 7 co C co .a a) c o O as a) m O) OS a) o N N a) E 0 c a) L N C U a X E y O N a co O a) / 0 C Cl. C cco N `) aC a = a) 0. O co a) a) C6 .o• c CO) _ n a) a) o c 0 a E u) O a) m E o a O m ,• a) N O a) N ai U -> a) a)o ui ° a) U a) m a o = c > a N L aS > O as -U N CO •-• 0 O )C a) U a) N !` O W O a C _ a ° ° a) ai `m a 3 N m ui m o C c c m a) 'U) o U O u/ b U as n jo - a ° c c' co a a') E ° .§ O a a °o o .c m o m e c . N N "a O) n 0 N 0 L c uJ c '> a) C m o a a) c is o t o a as ° a) ->o O m 0 . U E U) a c a E c m C o Cu a c > a) o E c '"-°3 U CD ° vi > a C a) ° as c a) w = .0 a) a 2 c o c cs c o c ° aEi = ° E aXi a m _ c o o n o CO m o co m , o a C E 0 c w a) a U E c a) c C C C C w a n a as >, N .0 O a U a) v1 O a, — . c a) 0 CO ._ _0 al 0 C C C a) 0 0 C E a) a) c 0 1a m e .Q t9 a) 3 N 0 3 W a`) `� a c a) as- 3 O p 0 U) U a •-° c m a) O) O -c- a) 0 a) C a) C c `O CO C 0 o) C c a C a 7 n y 0 0 a E c a) C 0 C co 2 C ` a > C a) n a) a) C N E E 3 c oa) O a) 2 as C a) m as w E C n C U D_ c as `0 c a) m E « a 2 a a) o •E n m w n c) E a) c a) a c E . E ° o n - .E m c ° c a ° o f c a o a ° o c a o U •° a0) m c o c a N o o E v, > o uJ m ~ ,� ° a O -5 .c o °) u) o E a) o ° 3 ,�° o a) c 0 U O N a 0 O d > > _c ) C a) • U a C C n o .c._ -,7, j n m 0 N 3 N a O a a) a) L 3 N -c ' 0 o E CD c� cci ` rn „ m m c a a o N C E m c '� > m a c o N c _ ? c O 7 O ca m E m O a c a) as :C a a) a o as N a) n > w m U a) o c N a) d a o °n ' v t E E o) a C - a) U)) C U E C C aa) E o c .0 'a E a3 rn a) o a) E o acs c m m °— t a m > c m c E o [y a) n to U c g' rn c• E c°n 'v n c ° > E ° m n ° E o m a) m .E n c m c c U m O E m ° n E > O - a) o 0 ca N 16 V) a3 C O E O '0 O C ° >>o C 13 5 N `a) N .- O 2 o a) LO V -- c m A 0 a) C ° > N N a) O a a 1 '-' n V) 0 C C O - a) .0 a) 5 .0 C as w ....0 a a) N N N 8 a -a cu En a a) E a) C U) y .c a`- ° 3 1)) .> E C m ._ O N C mx a m c E t a� C> o o L R m a) o C co E Q m m a) a�°i w - m L a n o v L 0 la 3 > .2 -5, a c `a3 °) w m a T o a m C c ° c v, m ▪ 3 m E m >' ° a) a o m t ° 20- co a E 3 0 (1) N - a) .c c U c n O .- n ° w 01 c N U N O m .5 _ a) c ccs a) a) > m a e ',7, m CD O E as ° >- _o c la c°n 0 E m m -- g .0 p_ C L O a) C C CL a a: O a) a) a) N N 'O 6 m +a io m U n a a) N O U O - '> a) a) - (a O a n L L L .0 U a3 N = as >, E U n -.1`o ° Q w' a' L t o a) a) E F- H H o a) cn d Q Q o 0 C •' • • > • • • > U — C < ,— N C•) F- 8—c 7 > ,- N M •a: tO • E - Y N C C u) O a C c 0 U N - 7 O w a 0 C a)) _a) a) c . •N T o_ 0 >� 0 U L N as c C CI) (6 as p a) 0) 0 w t6 N co c c as o y 'a a a 'o a a o 8 c —° 0) 0 0 o E o U c fah 'E R m .us 0 'pa 2 C ° C 0 - U L 4) d a) O C C a) o o- a) 0. • O E O a o 0 0 0 E O o E 0 o N Y as 2 o (°n o CL Y a C.) a W flI c N T p a) a 0 a r c E m c a a) 0) c C a - U an U .2 u) o .0 0 = a) N O .� a ca o !. a) fa O -c- a) -N U) > C 0 as .o 0 c E E a ,a) -> O as 0 a 1a .0 •E o -o C a a) C a) 2) 'C 0 0 U 0 d 2 Ts T o c _c o -c a U a) U 0 a) �— N - N c C E a) c m o E c c°1 a o m o -, a c u) is s c c aa)) c a o a) a) g o E c U E is n c c c rn m p O .L.. _ a5 O O E C a) O L of 05 C E U) U E E U O) C o 0 a < < < u)) O co < < G < Z L I- < ac) 0 o O as cal o U N • • • • • • • • • • • CD a) us 0 c C o p 03 us a) a3 O c a) E > w (6 0 a a o p o L of 0 0 0 O u) w 0 C o o C F- .c a) U 3 c j C Q) .N., U Q) W aI C as p a3 .L 0 C m as a) 0 0 0 C RS Ts m .a o m a) Q 0 0 0 3 o m � E - � � _ t E m m c 0 `m a) 3 o m o ai Ca U m m m m `m C a a) 0 °o C ° U d •C C • m a ° m C .u, -o ° E c o o a, E .� m E c°i �' a as ° ,; ma o • o C O -°a a) U 0 D a a) c o E p C C U m N -O U C 0 0 a as o U '� as 0 c a a) a, 0 ° a o -a a) -0 c E c E w o w m _ `°a aci a�0i v, rn .o E L U 1iilU 0 " r `� o °'m C I— 0 o m C ! o n C0 c ▪ o a) an'a o 0 Q a) a) 2 (U C .c o a) ->_ +0- O a) o m a N E Q a a a C n o O 2 C 0 " v 0 c 2 as 0 _ m as- 0) Ca) C N — as o 0 N 0 U O m a) > -u) O >, (ca N 0 of a) O a) RS U T O N - ) E `o o u, o > m c o o 3 �' E u, C m co .. C > w a as m C a) m - E d o o as -a a) 0 C c o a) 0 m c E m a s o U ° E a ° as -o a) E - o -a a1 o N u) t a5 a) O c_ as a) C C p _N O C .-(6 C C a U 3 a3 C E C U as .0 C as Q N N c E E n m ° - u°) a o = o c o - a. 0 a) ° C °—' ° c E V of a7 C a C .� E U '5 l) -c E N 0 c _ Q) a) RS 0_ .0 C Q > a) p — .> O as C L 3 ° _ R a n c m T E o c >, U ° c 3 3 Q 0 -° o =a N U . it o C E o C a) m a) C .—L -4.-:.w 0 `0 0 CD a,.0 C rn f0 ° as a°i as c a) w o o 0) o `m o o Y a) c o as 3 C o C j m .0 OS C 0 C Ca a c C '� as - -p C w uQ) < m >, -0 0 ? C o E R O o a a) a m E Q c c E as (a a) a) o O a E 3 E aci C7 c) as a) > U X a o) 0 —co a) .0 a) 0 0 a a) 0 L > 0 O. O 0 0 0 3 a5 C C 0 O) a U Ca as _0 C us c as f, m m o a a a) C N C as �C al 3 0 - C 0 U m as a !� a) a c a Q E C a as E o a c o m t c H +.,- c C u) 3 m -a c w > c c m —>' E a a�i (' m ai m e —° as o ,n c o c L a) Ih a) E as L U a' '� a) ?' N 2 0 -- p a) p- 'a o as a) m N a) C 0 r n 3 aai m _ C C as o a c to a) L Ca cv U) U = o a) 0 O C C CO 'as a) 0 3 X 3 0 o c '3 U C 0 0 0 a) o rn m °� c N 0 0 O o 0 0 -c 0 rn 3 s o a (7 3 >'0 E aai m m �aa)• o, 0 3 c E 2 O. c m E o c eC o a) 2 a o H w a) a) a) ° -c a) ac) 3 I U o = a m c v o m o °o OS w to . C `a x a CO 3 C o E C o c c U C U j a5 L 0 a) o C L > a) 0 .t0-. N - a3 a ai l6 of -E. U .P..•••- EL)CO -o 0 C • E' (a a) 0 0 0 0 3 as m o " 0) �` > c o cn �' C t - a) 0 a) a) o o b- 0 c 0 0 o >, u) U a E .0 0 as O 0 C c m m C Eu) O O E . U p p 0 0 C 0 un 0 3 > C 0 o as (6 8'`o a) O °) O 7 as 0 a) to O a) ° ac) 0. -- 00 O o rn as a U C a) E Q = *,4 = _c o a CO n v a E `m a) n o °) cai c o a) m C W. N °) C as E _ �� L Ik0 Z L -C c N 0 a ° 0 d a) c• c a3 c - a) C 3 E c ((U 0 C C EO p•m ci H a) Q i— o as F- Q °1 uJ 3 c ate) I-- c E 8 -aa 5 c0 N 0 m o b U o = N 0 j is w -5 O .0 m `° 3 0 3 v, c °��' co o a a) Q `° aa) �. ° co .0 >, 03 m ° cc; Z ° > CL o ac) N o E v, o m CD ° C a �' o I- N 3 c m o a) a c co a) o o a cc' • a) m o a) a p_ c E C O a� c a - as co Y c o - C C w E c a) z ` ° c as U as 0 E a) a) O- °) ° o) E V a E .. L S O E N C as E c U C L (U6 C c E 03 '� fC6 f6 RS a3 N 0 0 O O C E a) N E L L U U 0 m p_ ° L- N C C CO ..OT- d C - Q C N ... ° N a '— +L-' N L w v1 a) 3 C a) a) 0 _3 C >, 5 J 'o to E O a) 7 N .c m ° a) c c a) c E E u) C a) T > O c a) 3 o a) O p m w a 3 > o w c E ,co 1 O d C O a) - a t N to a) a) w c6 �o o u) E a) a) a s ° CS) £ a m E 2 a) 2 a) O T CD C co C as C = L.- O o a O) C 7 .0. a a) N L d ° a O 0. s a) C 7 a) "a O coo L-- 7 U as O of 2 a) N L N 0 N 2 Ul 0) O N a) 0 a) a) = C1 2 V1 C L N N C .L.. ° cu a) E 3 0 ° N a) as C (a . �O p O N L C° y 0 TS _ (t•ITS C p E c a3 E U - c C _° .)o. off) RS O C (>6 O L 7 .O a) N L 7 c N d E O O C C 7 O) N as V) ,U .t L Q .0 a 0 CU N ( C m N C C co sa a) a) :C a) = N C .0 c F. O. (a a a) C U aE _- u . a o a N LU . a) C c L .c L O C C N CO C C E w - a) al 0 a) = as a) O a) co )o O O — a) C ai c C o E N a t/1 c 0 • a) u>i r)II) E °a i c m ° V C m E m N m U n a) a a E O a) _ C m c O a az' a) 0 C c a a .5' N co O d 0 C C C T Q d ED E. = a = • a- -as co 3 m a N w E o E a ) O U a) E L ° a) a a) C O O N L a) -'--• ''- O T as _ C L °0- f S c E C c O) O Y LV c O a) N a . w" co a) - O C -O C U - a) 0 CL CD CO 0 m-o W (e € .0 '11 U) - ` C ID E o Q = C N c a a a)O N N c N p O O O 3 co m O) C v o m c 0 n ° E a) m o m a a o ° 3 C 63 i a)N L'' 0 C N a a o - a °o a U U 7 0 d c a a C p c d N E " O > j as N u E m c ° c o p V o a a) 73 =a) m ° � C m E as 3 c N 0 0 E 0 ° '-' o ° ° n o d « a c L v T O a) 4D = r d C w p N 0 d ° U m m C a Q ? = U C a a R o 3 v � s ) c E c c . C c a .a ao u)"" a) i G a) _ E L6 E a . t I- ° D > v c• y o e, w s O o C o a w u p m c > ) c c g 03 CS) a ° T > E N C 0 a ° o 0. N Lo N' C a -7 .-00 CD a) O a) a CO _ L CD .0--- L V O _ a = n .- a N c oa) a) , m N (a c O ° 7 N as F y Lc, _ O R u p 7>. ` .> N C) C c c L O u) C E 9 d a 4- 2 5 a 3 a U m co C E o E o c N o U a) o > C ` 0 =0 w LN C E a)a) ,a3 -12c a , U O a) >. Z a) U Q p " N ° a N La N• L "N w. E 'B .° Y, a) y„L O a m D• ' 2 ° a) °0 C N a U N = O c a) C C 0 O) .. as C U) p m C r C )n o i o O T a) > a) o ° m vi > o a) E o V E a "E tri cp y c o a a a ° "o.C = c ai m c o 0 0 a a) c .. co -- n .0 > N m C C a) E N > N ° Q G a) U E C N .c a)c a o W ° " Y U _.� J•° a N a) ° c o m L = > 3 C a i )n m '— a) .°O ) _co m d p m a) a) 2 0 0 E E o m g y C Up o a)c °)0 t co a) 0 a) D I— o (t) LL O =o a • • c 0 i. .E U Q ii 0 O ° U H a a- e F. C O - as C = a) C E cn 2-' a) U ° � a) +-' u) — a) _. „_co O L E E as f6 a) as N o C a C a) O > CO j L LT Q1 __ U)TS o v n N C (a • C U a ° C O ° w c N C a) C O a) . > n ?. 3 ° o a) 3 v, U -a a) o f Ls= a) N C E cri y - rn O C .0 T ° C c E n S o o m - a)L • as mu) m 0 0 C) = O O I`6 O O U C 2 a) C a) n n � � cn E a 0 E o aoi c U c` o a) U Y CS N 0 a) a) a) O 0 U)• a) = a a) _ a) = 3 ao mo a ca C ° � ,.. uJ a a) C Ni as a) L p C a) N L C C n-01 .@ O L c "> u) °) as a N E a) C U u) - a) E as N U U Q rn o o c C a3 . O as CD C a) >S 3 - = O a) a)-V C N C 3 p U 7 CL CL C .D a) O C N U a) w = a) E C a) U) E O c as E >° o axi o ' C o as `� E C o E '- a m ID a as _ O C C L u1 0 ° N a 3 O U Y 0 p U •U N >. = p as CD C a n ° > C E o a ' ° U N c >. L O > O a3 a3 E as m u) •m m as aa, °`n $ a > s E E m U rn ° o °n ° n ° o m ° co' °) c -C c o a) . .. X) o C m w E w a) c c > E 3 O U ° L 3 c� C rn x a C U O ° L 7 °' O U a) O a 7 c a) ° 3 O as C O 12 C a C 6 C Ex n0 v1 a0 � ZS c _ ca o m C U) C a) n U O • C) U) C >. 0 U) L U) C �' N H N CC) Q a n a O 0 E a a °) - _0 -c as Jo as °- as m i E C o O N L 'C 6 ° O N .U). n a) .0 3 N. W to L U) ° CD C O 13 O C CO O a3 a) U) a3 N n3 as a� •� a) ° a) 3 1E2°2- a) co U a� a U ..--, , a u) uj a) N 7 a a U as j a) c °O a U U� as a) U C a L n o a) n aS N 3 y :� - - O as p as U O O C n _ u) 3 C .0 O ° N C O L L 'O U) o C ° o '- = c oY '� m e nc ' o nE o N E 'C °, a C .°— as c a 3 ° p0 —° O Q a 'a3 c) L c? °) uJ O c a 0i O 9 C .N .N aa) > o W o c°n ° w c°) E ns as ' C (1) v C) E E m m a) a) O C ° O c) ° ° O C - f6 O) a) O E c c as 7 U = as >. _ m O a) C N 'a L c > as >+ C p N °) L L a) O 01 is CO C 01 °) ° V L N C 7 " °' a) n = d Ui =a) N C E C > O .-. _ n.-• a a tea) a) . O U N U (C6 O- U O L a,- - c C EO a as n as N O as T co L N CO n 3 CD 0 o N H a) a U - is U ` a) O C p 0 ns 0) s ° s 4? U) a) c o c I° o) ° a ma o . .--co a) co . a o u) c Nom ° € as a) . C) O a) a A--2. a)a) ca O co 6 7 _ C U L ° a) °).05 a) > O co O. JO CA o .> o m 0 > .o 3 Q .—N •u°>, o a g m •3 N CD a) a) 63 N O N .`p. o p -00 .-• C U 00 _ C d a) _ L C U d a a3 O C' N N_ a) 3 C u, as a) L N U > C co L ca (p N a O us - a) m as ° °� 3 E E a a`ni aa) m m o �i n co 3 as x a = o o a) ? m rn n ° _ ° O as w a) a a) >. N 3 y U) a a) a) `O O n C O C -° L O ' a) ca �° as as O c c a) ° as a a) a L U 03 - a) O) a3 ° 3 a m a � O ° w " w 1-. 0 2 E Q 4= to as a < 0 rn m 0 C C C) c -p >' a) C L C 'ea L o E as C c•as 0 a) U a) E .0 as m C E as V _c 0 U Cl) a N a N -O Y >•, C Cl) C a ".=U C as 03 N E .Lo. 0 w c 0 ` .LO-• as c6 a) E O c >" as "08 3 A a3 L a) ' N a) cm LI 7 N a) C as a c as LA T 3 cu rn N us ° 3 v, 2 n ow m ' w O rn c ,,„ = m —° m - c Z -°'a E o 7 p C ` y -C C w U p .- ° a) CO 0 > as m O O u) •p) a) = ° .N 3 cn `° U) E L N O a) .0 m -cm c _ a) E �a c a o d U a) U ._ > a) °- ca 'cn as c m w - 1° a) - a) �' N O yam,, ° 7 p N ° C is - U > n c a L L E U) N a •C ea C p N a) a y o c to m c°a al E a) .0 '� 3 3 a E rn c c CA n as C c0 m 4 3 d ° N .0 U - C V C -p o U 03 E m U 7 cn a — c uJ `° U) ° W E H O -s. O °- a) ca .:P- as L d co Hi N L c iii - a) a)07 c c_°_ QJ C I) d J o) > as fs rn a) L W 0 0 v "O rn L 00 p O c O W U - a) r CO)° ui 0 a°) a) 0 n c ca g. H ° a? - Q H G E n ®I • I 1 N lil C/) C/) ' Q C O N N O. '4: N 0 a _ci U • co O)/1\ V- ,-ty n O CD CD C) CD CD CD CD . • < N < < E O O O O O O O O O O +_iV) N O O N _ O ' O . N CO CO N N• CV CD CD CO CO CO CD C) N N N N N N CO CO U) U) U) CO CO w` Q Q Q Q Q Q < < < < < < < [VI/] C U U U - U U U 0 0 0 0 0 0 0 1 ■— o CT o t a) c as L (//��'`J a a o) Cn N , C CO C C6 co fo O .p.. C 76 c a o a) 0) c O E m _c a) c 0 c o m C a p o o co m c. CO m c aci O U d _ C N L_co 1 _ C O O) -12 ' O L N CL cc \/ - L C O f6 . c a E. w. U U c -a c ai E m C N U a) U 7 p) O O O Q C6 U C N U • C N U O to C E w 0 C • c E E CL € O. C ` a) C a) c o c ;D c °) o a U o• ; o °a c CL E e, .(7, CD CL U) a • N Co fa co- as CL„) E . a) 13 C C CO L... O C L X N •U ..N.. C C N C CD L - U N U CD "6 CO 4= O 1 -0 a O N a n m E m CO E cn 3 m o . c c °2 rn s o N O U CO to CO a) C c a) C1 O) C c 3 CO a E m I - O >. N O O O L• CA O a C > m Y w CL c • Q� Ci c m a) a) T5 w Co d a) O - « a ` I to O _N a) �N�' C O p L C E CQQn ;F C O N Cl O E U U CO C c m Q m X 01 p m p N U U a a) o F a O c , U' o a co c c 0 a ■ --_ - a▪) C6 3 w c -C O "a O 0 U ch Ca •C m N ca C o c ) c oa ( c CO C a n 0) c c .CO a c 0 CV D:.` p O C.CO O Y ' C 'p a) m C U N m c _ _ -V_ • a) m Y X _:.,7. • `) U V C a) o O O �, 8 O •_� N y m .L.. N ` a) 0) 3 Ca N 7 E -O O U p p 'C L + 3` L. a • U N C = :O m a) a U c L-• o _O) a) wa W 3 o m m o C • CO c - C B E__ m - c a) . .°- a) Cl) n E n a) -g m B o o � �� ^ y_ o a Z c 'c c a) c c m > `. E m 3 m m CO L "=CIS �.L _� m E rn is rn m e a g ` c ._ m 2 w - E � ' Om � w 3 0 H CO Z .u) Z m D) m rn m m m a) a L o a O a.� .- O Q ca v in u. to Q v in O O m o cu a m o _ Q« N co )- v 6 cD cc; rn ° $m • CU co as Q N O O u.) O 1. N N LO in N Q Q Q Q U U U U N C a) E i as U) as •V C • as as C_ '6 it C a) a) c 0 • Q o a U a o 3 as as a) o m U) o -a U a) 7 L C l' O u) o a) 0 -c C C o -- N V1 N a = .a m a) C ' c a.= — o _c 0 C Q m = N C Cu >` E a) C a) E as O O ._ a) .— m a) L7) 7 . a3 .7) N co)C a) E co 0 0 LS O U N U V) a) 8—.c O CO 55 N 3 t C C Q C 73 0 -p co N N I U w U C co N 6 n cn= a3 c as a) N E a:a U a)N a) a 1,-;a3 W• O C O C "U O U c as CO'p Q C t6 W g m v Z h- v a. mU K£ .4--- w U � ca A f• r r C c ao J m N V Oz ©1-- N 0 ` 0) 0) N- N- N- _ ._ C CD 0 N N m O ON p >' >, C '_ 5) _- c c - _ 0 m a N o •- o O r' O m U N 2) .O •a •a O) w Q a a Q C O as O a) 0, c III O , C F a- s . m O O O 2 •'C E p - ....as W C C c O a) a) 0 O O E o o N- F- O O > N o) O) O) o n c CD 0 C O a3 C C .cc .E N N C a c _ p N .N C C .-- C a) N "v N E c N N - - N .-C ... E 0 NN C O 2] 2) n n 2] CO ,- N as W a) > o (` (`o Q Q rA _ a > N O 01 o a O O a) a) O . O ,— p 01 a5 a) > U w C� 0 0 C : N a) a3 U C .-, N N (6 a R a 0 m a o .0 o a)N 2 CO ..... C C 0 n p = = E a3 W l. CZ/T� E O O E ,o O Q Ul N O \Vl p O p) 07 O U c6 > Q Q O a) c`� a) O' a) O- C C N a (o N a= a= O) O N �+ • (o en = = T C = a) CU /•� a .a - 8, .tea as r r O[ 7 co O O O 2� 2] t6 O O w �Il O O o n n N. C a a Cu = n c _� c 0 o > Q Q > 0 oo °o ns o as a HI N O N O >, .0. >' .0.,a) U) a, ( l a) _ m C C a3 aS 0`J J L f6 L f6 O co O L as N a L N N C C [^ CO W F- w F- W I.� n ii n F- w Q F- .o 2s = 0 0 i O m N c O m m O U m O ■- C ii, N L L L a) a) m M (6 ... O O O C O O O n a) C C a a) U (6 a) O C C w '_... O E (6 Q) C C L O O p N O as = 1 cr U a) O Q. U C c O = ` I6 co N (� CL 0 as (1.)ife N n y N U V (6 0 U �) (6 = N la a O m (a C p C C p a O a C as _ m m O O O O = m C = O m L as o O O o m m m m f° 0 0 (7) c 1 O a U = a (o -2 a a) -a a o a) n. O a O a0' "— E co ° a as C as n c E >• _ = a .0 L .,, a _U L _O U = '(� C O N _ = w CO O O O Q) N ..... U X .0. U 00 N UCI CO .0. o cn o a (1) as m m as a '�• n m ■■ as D LO„ a cn d O w c6 a) O C .0 U m CO i a a) .� m C)° O ° t O ° 3 o O 0. 0 a) O U m m O) . L n ; -c) _ a a) N "a 0) m L m o L Q) C c E _ a (a = Ui -o as =a as c C E c 0 c C o O U O as a m C m -,..,° w CO o o as m 0 is n °) m O a C O O L co U r m .: 00) 0 ,> O C U CO as 0 a o. - U a a (n m 2. 0 a) m ai a . o - 0) m c CO 0 rn `m o a) = O a Y O U m O _ > N _ _ c O cn , •`-' a) as 7 O O p a) o N (6 a) O u) L m N 0 O) C LL m E n m m - c a v p a v m m as N C U m C m U m _ L N O O 61 m Q C as a �, _ as a _c O _c a) C L O to .N O m 0 a) 0 C O m O a) (o m O a) U '� a) (1) a) I "a 2] O C C m "O (` O C a O O C a 11 L C 20 E as = m as C .> a) 0 N cC O U a -- O m C N as N ca O a C m 0 a) as C N L a) c a) U m Es -_ (o E m 4c c c c a W as =� c ._ a = o o c o c rn ca c N c p m M rn Q. .O- n o '°- m .O- am) m t •o- _ > .°- c .4 _ 2 ° c °- a) C •L 0 = n U a U L 'p U m N N U m O 7 uj U U O 5555 X V C1) aoi CO U) U) 3 [A co p0 a) cn o i 0 in 0 u) p 00 CO m > L m a5 m :-p C C m a -6 N CO a m CO m U Q 0 L m O L C L Cl) N .0 C C L L 7 L a (a L C L co u) ■■ 0 Q F- .o 2] F- F- a) m a F- 0 as 3 F- _a F- = F- = F- a N 0 ` m a) O c U Cl) O m m cn m m m U co U ¢ Cl)m a) = do O C O m 0 0 --- O O O u3 Vr N v C .O ON a N CC) L M N M U') E O m C) 6) /� a M a N M CO M O CO m M U) (Cl C m (�.i■� V) N VS c6 U) V} CD CO Cr) C!1 .0 co (o .0 c o d n d O d a d O d o CI o c (° c a _ _ v 0 c U _ as c (° a. o o o o o` _� o ? as o c p c m a) U '= U U O C U C U N C U O V O m Z o0 a) +r a) C a) a) a a) O N O N N as a) _ Q) _ °U .c H U) a) CC) 0 U) CO C) U) O U) D .-. W it U) iL a 0 d orE m a a m V 0 N O N dY0 m O N? !ICJ c 5 m c CL J T. -1, O p O OL ©r ATTACHMENT# 4 TO REPORT#f J frJS Deloitte. Deloitte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6610 www.deloitte.ca October 22,2015 Private and confidential Mr.Tony Prevedel Chief Administrative Officer The Corporation of the City of Pickering 1 The Esplanade Pickering ON L1V 6K7 Mr. Stan Karwowski Division Head,Finance and Treasurer The Corporation of the City of Pickering 1 The Esplanade Pickering ON L1V 6K7 Dear Mr.Prevedel and Mr.Karwowski: Deloitte LLP("Deloitte"or"we"or"us")is pleased to serve as your auditors for the year ending December 31,2015. Ms.Jesty will be responsible for the services that we perform for the Corporation of the City of Pickering(the"City"). She will,as considered necessary,call upon other individuals with specialized knowledge,either in this office or elsewhere in our firm to assist in the performance of our services. In addition to the financial statement audit we are engaged to provide under this engagement letter,we would also be pleased to assist the City on issues as they arise throughout the year. Hence,we hope that you will call Ms.Jesty whenever you believe Deloitte can be of assistance. We will perform this engagement subject to the terms and conditions set forth herein and in the accompanying appendices. The objective and scope of the audit You have requested that we audit the financial statements of the City(the"Financial Statements"),which comprise the statement of financial position as at December 31,2015,and the statement of operations, changes in net financial assets and cash flow for the year then ended,and a summary of significant accounting policies and other explanatory information.In addition,we will perform a financial statement audit of the City of Pickering Public Library Board and of the City of Pickering Trust Funds. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter.Our audit will be conducted with the objective of our expressing an opinion on the Financial Statements. il The Corporation of the City of Pickering October 22,2015 Page 2 Appendix A provides further information about the objective and scope of the audit. The responsibilities of the auditor We will conduct our audit in accordance with Canadian generally accepted auditing standards("Canadian GAAS"). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management,as well as evaluating the overall presentation of the financial statements. Because of the inherent limitations of an audit,together with the inherent limitations of internal control, there is an unavoidable risk that some material misstatements may not be detected,even though the audit is properly planned and performed in accordance with Canadian GAAS. In making our risk assessments,we consider internal control relevant to the entity's preparation and fair presentation of the Financial Statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.However,we will communicate to you in writing concerning any significant deficiencies in internal control relevant to the audit of the Financial Statements that we have identified during the audit. The audit of the Financial Statements by Deloitte does not relieve management or the Executive Committee of their respective responsibilities. Appendix A provides more information about Deloitte's responsibilities in respect of the audit. The responsibilities of management and identification of reporting framework Our audit will be conducted on the basis that management,under the oversight of the Executive Committee,acknowledge and understand that they have responsibility: • For preparation a aration and fair presentation of the Financial Statements in accordance with Canadian P P P public sector accounting standards("PSAS"); • For such internal control as management determines is necessary to enable the preparation of Financial Statements that are free from material misstatement,whether due to fraud or error;and • To provide us with: o Access to all information of which management is aware that is relevant to the preparation of the Financial Statements such as records,documentation and other matters; o Additional information that we may request from management for the purpose of the audit; and o Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence. As part of our audit process,we will request from management written confirmation concerning representations made to us in connection with the audit. The Corporation of the City of Pickering October 22,2015 Page 3 We look forward to full cooperation from your staff during our audit. Management's responsibilities in connection with this engagement are further described in Appendix B. Executive Committee' responsibilities and auditor communications As auditors of the City,we report directly to the Executive Committee as it is directly responsible for the oversight of our work. We acknowledge that the Executive Committee is also responsible for recommending our appointment and compensation. The Executive Committee is also responsible for reviewing and approving the City's hiring policies regarding current and former partners and employees of Deloitte LLP and Deloitte Touche Tohmatsu Limited,including related member firms and affiliates. In accordance with Canadian GAAS,we are required to communicate with the Executive Committee about various matters in connection with our audit. The Executive Committee'responsibilities and our communications with the Executive Committee are described in Appendix C. Subscription services Deloitte makes available to clients and non-clients,various educational,informational and other tools in the form of,among other things,newsletters,webcasts,podcasts,websites,database subscriptions, checklists,research reports,surveys and similar or related tools and services("Subscriptions"). Inclusion of Deloitte reports in documents and public oral statements or references to Deloitte in other documents and on electronic sites If the City intends to publish or otherwise reproduce in any document our report on the City's Financial Statements,or otherwise make reference to Deloitte in a document that contains other information in addition to the audited Financial Statements(e.g.,in a periodic filing with a regulator),thereby associating Deloitte with such document,the City agrees that its management will provide Deloitte with a draft of the document to read and obtain our written consent for the inclusion or incorporation by reference of our report,or the reference to Deloitte,in such document before the document is printed and distributed. No other form of document is to be considered to signify our consent. The inclusion or incorporation by reference of our report in any such document would constitute the re-issuance of our report. Management agrees to provide adequate notice of the preparation of any such public documents. The City also agrees that it will notify us and obtain our written approval prior to including our report or financial statements with which we are associated on an electronic site. Further,it is agreed that in any electronic distribution,for example on the City's website,management is solely responsible for the accurate and complete reproduction of our report and the subject matter on which we reported. This engagement letter,and our agreement to perform the services described in this engagement letter, does not constitute our consent to the use of our report in,or our agreement to be associated with any such documents published or reproduced by or on behalf of the City. Any request by the City to re-issue our report,to consent to its inclusion or incorporation by reference in an offering or other document,or to agree to its inclusion on an electronic site,will be considered based on the facts and circumstances existing at the time of such request. The estimated fees outlined herein do not include any services that would need to be performed in connection with any such required services or modifications needed to our report for summarized financial statements. Fees for such services(and their scope)would be subject to our mutual agreement at such time and would be described in a separate engagement letter. The Corporation of the City of Pickering October 22,2015 Page 4 Reporting In accordance with Canadian GAAS,we expect to issue a report at the completion of our audit in the form shown in Appendix D. The form and content of our report may need to be amended in the light of our audit findings. Our ability to express an opinion and the wording of our opinion will,of course,be dependent on the facts and circumstances at the date of our report. If,for any reason,we are unable to complete the audit or are unable to form or have not formed an opinion,we may decline to express an opinion or decline to issue a report as a result of this engagement. If we are unable to complete our audit or if our auditor's report requires modification,the reasons therefor will be discussed with the Executive Committee and the City's management. Fees We estimate that our base fees for this audit will be as follows,plus applicable taxes(such as Harmonized Sales Tax): The Corporation of the City of Pickering(including Trust Funds)base fee $64,250 Pickering Public Library Board $5,750 Additional audit procedures related to the implementation of new accounting standards The City is adopting the following new accounting standard effective for the financial statements for the year ending December 31,2015: PS 3260,Liability for Contaminated Sites. Additional procedures will need to be performed to assess compliance with the new accounting standard, to obtain assurance over the quantification of any transition adjustments and to assess the appropriateness of the revised financial statement disclosures. These changes may result in additional audit work and therefore additional one-time fees. We expect fees for this additional work to be in the range of$2,500- $3,500. • Additional audit procedures due to implementation of new property tax system TXM We are required to test the conversion of data related to this new system as well as the controls related to the conversion. The new system also resulted in new interfaces with the general ledger and new access controls. Additional one-time fees related to this implementation of the new system are expected to be $7,500. Appendix E provides an estimated timetable for the services included in this engagement letter and the responsibilities of both Deloitte and the City's management with respect to the successful completion of the engagement. Deloitte will monitor all work and assess fees(time and expenses)as they are incurred throughout the engagement. If circumstances arise,such as those described in Appendix F,and as a result the fees for any of the services outlined are likely to be greater than indicated due to the need for additional work,we will contact you to discuss the reason and seek your approval for this additional work. The Corporation of the City of Pickering October 22,2015 Page 5 Other matters This engagement letter,including the appendices A through G attached hereto and made a part hereof, constitutes the entire agreement between the parties with respect to this engagement and supersedes all other prior and contemporaneous agreements or understandings between the parties,whether written or oral,relating to this engagement. This engagement letter will continue in force for subsequent audits unless amended by the mutual consent of ourselves and the City. Please sign and return the attached copy of this letter to indicate your acknowledgement of,and agreement with,the arrangements for our audit of the Financial Statements including our respective responsibilities. Yours truly, aziaLm. LLJ Chartered Professional Accountants Licensed Public Accountants Enclosure The services and terms set forth in and incorporated into this contract are accepted and agreed to by The Corporation of the City of Pickering: Signature Signature Title Title Date Date • Appendix A The objective and scope of a financial statement audit and the responsibilities of the auditor The Corporation of the City of Pickering December 31,2015 The objective and scope of a financial statement audit We will plan and perform the audit to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement,whether due to fraud or error. The Financial Statements subject to audit are those of the City,prepared by management,with oversight from the Executive Committee. The audit will enable us to express an opinion on whether the Financial Statements are prepared,in all material respects,in accordance with PSAS. The audit also includes evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates made by management,as well as evaluating the overall presentation of the Financial Statements. Our report on the Financial Statements and communications required by Canadian GAAS will be in accordance with our findings. It is important to recognize that there are inherent limitations of an audit,where most of the audit evidence obtained is of a persuasive,rather than a conclusive nature. These limitations arise from the nature of financial reporting,the nature of audit procedures and the need for the audit to be conducted within a reasonable period of time and at a reasonable cost. Financial reporting involves judgment by management in applying the requirements of PSAS to the facts and circumstances of the City. Many financial statement items will involve a degree of uncertainty,and there may be a range of acceptable interpretations or judgments that may be made. The audit procedures we perform will be selected based on our judgment,including the assessment of the risks of material misstatement of the Financial Statements,whether due to fraud or error. Because of the nature of fraud,including attempts at concealment and forgery,an audit designed and executed in accordance with Canadian GAAS may not detect a material fraud. The performance of the audit within a reasonable period of time and at a reasonable cost requires us to plan the audit so that it will be performed in an effective manner,with audit effort directed to areas most expected to contain risks of material misstatement,whether due to fraud or error,and using selective testing and other means of examining populations for misstatements and drawing conclusions thereon. Internal control over financial reporting An independent audit conducted by Deloitte in accordance with Canadian GAAS is not a substitute for the maintenance of internal control necessary for the preparation of financial statements by management. Management's acknowledgment of its responsibility for the maintenance of internal control necessary for the preparation of financial statements does not imply that Deloitte will find that the internal control maintained by management has achieved its purpose or will be free of deficiencies. We obtain an understanding of internal control relevant to the audit however,not all controls are relevant to every audit. We evaluate the design of controls relevant to the audit and determine whether they have been implemented. We are not,however,required to determine whether relevant controls are operating effectively. Although it is not required by generally accepted auditing standards,we may decide that for a particular engagement,it makes sense to rely on the effective operation of some controls in determining the substantive procedures we will perform. In this case,we would go beyond evaluating the design of relevant controls and determining whether they have been implemented,to also test whether the controls on which we intend to rely are operating effectively. Accordingly,while generally accepted auditing standards require us to report to the Executive Committee any significant deficiencies that have come to our attention,we may not be aware of all significant deficiencies in internal control that do,in fact,exist. Appendix B Management's responsibilities The Corporation of the City of Pickering December 31, 2015 Financial statements and the effectiveness of internal control over financial reporting The City's internal control,including its accounting books and records or accounting systems,will reflect the needs of management,the complexity of its businesses,the nature of its risks and relevant laws or regulation. Management must determine what internal control is required,including how it is designed, implemented and maintained to achieve the City's objectives. Internal control,no matter how effective, can provide the City with only reasonable assurance about achieving its financial reporting objectives due to the inherent limitations of internal control. The preparation and overall accuracy of the Financial Statements and their fair presentation in accordance with PSAS together with all required disclosures concerning internal control over financial reporting, is the responsibility of the City's management. Among other things,management has the responsibility for: 1. Establishing and maintaining effective internal control over financial reporting necessary to enable the preparation of financial statements that are free from material misstatement,whether due to fraud or error,and informing Deloitte of deficiencies identified in the design or operation of internal control over financial reporting; 2. Informing Deloitte of any changes in the City's internal control over financial reporting that occurred during the year that have materially affected,or are reasonably likely to materially affect,the City's internal control over financial reporting; 3. Identifying and ensuring that the City complies with the laws and regulations applicable to its activities and informing us of any known material violations of such laws or regulations; 4. Adjusting the Financial Statements to correct material misstatements; 5. Safeguarding assets; 6. Providing to us all information of which management is aware that is relevant to the preparation of the Financial Statements including,but not limited to,all financial records and related data including information on the recognition,measurement and disclosure of specific items,and copies of all minutes of meetings of directors and committees of directors; 7. Providing additional information that we may request from management for the purpose of the audit; 8. Providing us with unrestricted access to persons within the City from whom we determine it necessary to obtain evidence;and 9. Informing Deloitte of facts that may affect the Financial Statements,of which management may become aware during the period from the date of the auditor's report to the date the Financial Statements are issued. Representation letter We will make specific inquiries of the City's management about the representations embodied in the Financial Statements and internal control over financial reporting. As part of our audit procedures,we will request that management provide us with a representation letter acknowledging management's responsibility for the preparation of the Financial Statements in accordance with PSAS and that the Financial Statements are fairly presented in accordance therewith. We will ask management to affirm their belief that the effects of any uncorrected financial statement misstatements aggregated by us during the current audit engagement and pertaining to all the periods presented are immaterial,both individually and in the aggregate,to the Financial Statements taken as a whole and that management has provided us with all relevant information and access as agreed in this engagement letter and has recorded and reflected all transactions in the Financial Statements. The Corporation of the City of Pickering December 31,2015 Appendix B Page B-2 We will require certain written representations from management in accordance with Canadian GAAS and will request additional representations to support other audit evidence relevant to the Financial Statements or one or more specific assertions therein. Those written representations are to be provided in the form of a representation letter addressed to Deloitte,as near as practicable to,but not after,the date of the auditor's report on the Financial Statements. Such representations will be for all financial statements and periods referred to in the audit report. The responses to inquiries and related written representations of management required by Canadian GAAS are part of the evidential matter that we will rely on as auditors in forming our opinion on the City's Financial Statements. Independence matters For purposes of the following two paragraphs,"Deloitte"shall mean Deloitte LLP and Deloitte Touche Tohmatsu Limited,including related member firms and affiliates. Independence matters as a result of restrictions on providing certain services In connection with our engagement,Deloitte,management,and the Executive Committee will assume certain roles and responsibilities in an effort to assist Deloitte in maintaining independence and ensuring compliance with Canadian independence rules. Deloitte will communicate to its partners and employees that the City is an attest client.Management of the City will ensure that the City,together with its subsidiaries and other entities(including variable interest entities)that comprise the City for purposes of the Financial Statements,has policies and procedures in place for the purpose of ensuring that neither the City nor any such subsidiary or other entity will act to engage Deloitte or accept from Deloitte any service that under Canadian independence rules or other applicable rules would impair Deloitte's independence. All potential services are to be discussed with Ms.Jesty. Independence matters relating to hiring Deloitte must assess threats to independence created when a former Deloitte partner or member of the engagement team is employed by management. In order to assist Deloitte in maintaining independence, management should notify Ms.Jesty where substantive employment conversations have been had with a former or current Deloitte partner or engagement team member. Fraud and error Management is responsible for: 1. Designing and implementing programs and controls to prevent and detect fraud and error; 2. Informing us about all known or suspected fraud affecting the City involving(a)management, (b)employees who have significant roles in internal control,and(c)others where the fraud could have a material effect on the Financial Statements; 3. Informing us of its knowledge of any allegations of fraud or suspected fraud affecting the City received in communications from employees,former employees,or others; 4. Informing us of any information it might have regarding any concerns or allegations of potential errors in the selection of accounting policies or the recording of transactions affecting the City that have been communicated to it by employees, former employees, or others,whether written or oral; 5. Informing us of its assessment of the risk that the Financial Statements may be materially misstated as a result of fraud;and The Corporation of the City of Pickering December 31,2015 Appendix B Page B-3 6. Communicating its belief that the effects of any uncorrected financial statement misstatements aggregated during the audit are immaterial,both individually and in the aggregate,to the Financial Statements taken as a whole. Related Parties The City agrees that it will provide us with the identity of the City's related parties,including changes from the previous period,the nature of relationships between the City and these related parties and whether the City entered into any transactions with these related parties during the period and if so,the type of purpose of transactions. • Appendix C Executive Committee responsibilities and auditor communications The Corporation of the City of Pickering December 31, 2015 Executive Committee responsibilities The Executive Committee is responsible for the oversight of the financial reporting process,including management's preparation of the Financial Statements and monitoring of the City's internal control related to financial reporting and oversight of our work. Communications with the Executive Committee Canadian GAAS require that we communicate with the Executive Committee about a number of matters that are relevant to the financial reporting process. Planned scope and timing of the audit Our audit plan will be separately communicated to you at a later date,providing an overview of the planned scope and timing of the audit. Significant findings from the audit We will communicate our views about significant qualitative aspects of the City's accounting practices, including accounting policies,accounting estimates and financial statement disclosures. Should the need arise,we will communicate to the Executive Committee why we would consider a significant accounting practice that may be acceptable under PSAS,not to be the most appropriate to the particular circumstances of the City. We will communicate,in writing,any significant deficiencies in internal control that we identify on the basis of the audit work performed. The purpose of our audit is to express an opinion on the Financial Statements. While the audit will include consideration of internal control relevant to the preparation of the Financial Statements in order to design audit procedures appropriate in the circumstances,it was not performed to express an opinion on the effectiveness of internal control. In addition,we will communicate: • Any significant matters arising from the audit in connection with the City's related parties; • any events or conditions identified that may cast doubt on the City's ability to continue as a going concern; • any significant difficulties encountered during the audit; • any significant matters arising from the audit that were discussed or subject to correspondence with management; • written representations we are requesting; • any material uncorrected inconsistencies or misstatements in fact we identify from reading the financial and non-financial information that are included in a document containing audited financial statements and our auditor's report;and • any other matters that in our professional judgment are significant to the oversight of the financial reporting process. The Corporation of the City of Pickering December 31,2015 Appendix C Page C-2 Independence communications In accordance with professional standards,we will disclose to the Executive Committee,in writing,all relationships between Deloitte and the City and its related entities,that in our professional judgment may reasonably be thought to bear on our independence and confirm to the Executive Committee in such letter whether,in our professional judgment,we are independent of the City within the meaning of the rules of professional conduct/code of ethics of our profession. For purposes of this paragraph,"Deloitte"shall mean Deloitte LLP and Deloitte Touche Tohmatsu Limited,including related member firms and affiliates. Fraud,error and illegal acts If items of the following nature come to our attention,and in our judgment need to be reported to those charged with governance,we will report them directly to the Executive Committee: .1. Any fraud that involves management; 2. Any fraud involving employees who have significant roles in internal control; 3. Any fraud of which we become aware that has resulted or could result in a material misstatement of the Financial Statements; 4. Any other matters related to fraud,which in our judgment,are relevant to the responsibilities of the Executive Committee; 5. Instances of identified or suspected non-compliance with laws and regulations,other than when the matters are clearly inconsequential; 6. Individual uncorrected misstatements identified by us during the audit that were determined by management to be immaterial,both individually and in the aggregate,to the Financial Statements taken as a whole; 7. Uncorrected misstatements related to prior periods in the relevant classes of transactions,account balances or disclosures and the financial statements taken as a whole; 8. Questions regarding the honesty and integrity of management; 9. Matters that may cause future financial statements to be materially misstated; and 10. Significant misstatements resulting from error that were corrected by management. We will also be making inquiries of the Executive Committee of any actual,suspected or alleged fraud affecting the City and whether the City is in compliance with laws and regulations that may have a material effect on the Financial Statements. We will inform the appropriate level of management of the City and determine that the Executive Committee is adequately informed with respect to illegal acts that have been detected or have otherwise come to our attention in the course of our audit,unless the illegal acts are clearly inconsequential. The matters communicated will be those that we identify during the course of our audit. Our audit would not identify all matters that may be of interest to management or the Executive Committee in discharging its responsibilities. Communication with the appropriate level of authority in the City's management and with those charged with governance will be determined by the type and significance of the matter to be communicated. We will also make inquiries of the Executive Committee as to whether any subsequent events have occurred that may affect the Financial Statements,including matters discussed at meetings of the Executive Committee after December 31,2015. Appendix D Expected form of audit report The Corporation of the City of Pickering December 31, 2015 We will provide you with our report on the Financial Statements,which is expected to be in the following form. However,the final form will reflect the results of our audit. Independent Auditor's Report To the Members of Council,Inhabitants and Ratepayers of the Corporation of the City of Pickering We have audited the accompanying consolidated financial statements of the Corporation of the City of Pickering,which comprise the consolidated statement of financial position as at December 31,2015,and the consolidated statements of operations,change in net financial assets,and cash flows for the year then ended,and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Canadian public sector accounting standards,and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements.The procedures selected depend on the auditor's judgment, including the assessment of risks of material misstatement of the consolidated financial statements, whether due to fraud or error.In making those risk assessments,the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management,as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. The Corporation of the City of Pickering December 31, 2015 Appendix D Page D-2 Opinion In our opinion,the consolidated financial statements present fairly,in all material respects,the financial position of the Corporation of the City of Pickering as at December 31,2014 and the results of its operations,change in its net financial assets and its cash flows for the year then ended in accordance with Canadian public sector accounting standards. Chartered Professional Accountants, Licensed Public Accountants [Date] Appendix E Coordination of the audit The Corporation of the City of Pickering December 31, 2015 Deloitte and the City will develop and maintain an up-to-date workplan that will govern the specific involvement,activities,work products and schedules of all individuals involved in this engagement, including those in the employ of Deloitte,the City and third parties,and regardless of whether the individuals have been assigned to the engagement by Deloitte,the City or a third party. Deloitte's responsibilities We will plan the performance of our audit in accordance with the estimated timetable outlined below. We anticipate that we will commence this interim audit during the week of November 23,2015 and our year-end audit for the 2 weeks beginning March 21,2015.We will advise management of any changes to the timetable. We will communicate to management on a timely basis concerning the status of the engagement. Should we anticipate any changes to our proposed fees,the scope of the engagement,the nature of our report or other planned deliverables,we will contact and advise management of the nature of these changes. Management's responsibilities Management will provide all documentation,as requested by Deloitte,in an accurate and timely fashion. Appendix F Circumstances affecting timing and fee estimate The Corporation of the City of Pickering December 31,2015 The fees quoted for the audit are based on certain assumptions. Circumstances may arise during the engagement that may significantly affect the targeted completion dates and our fee estimate. As a result, additional fees may be necessary. Such circumstances include,but are not limited to,the following: Audit facilitation 1. Changes to the timing of the engagement at the City's request. Changes to the timing of the engagement usually require reassignment of personnel used by Deloitte in the performance of services hereunder. However,because it is often difficult to reassign individuals to other engagements,Deloitte may incur significant unanticipated costs. 2. All audit schedules are not(a)provided by the City on the date requested,(b)completed in a format acceptable to Deloitte,(c)mathematically correct,or(d)in agreement with the appropriate City records(e.g.,general ledger accounts). Deloitte will provide the City with a separate listing of required schedules,information requests,and the dates such items are needed. 3. Significant delays in responding to our requests for information such as reconciling variances or providing requested supporting documentation(e.g.,invoices,contracts,and other documents). 4. Deterioration in the quality of the City's accounting records during the current year engagement in comparison with the prior-year engagement. 5. A completed trial balance,referenced to the supporting analyses,schedules and Financial Statements, is not provided timely by the City. 6. Draft Financial Statements with appropriate supporting documentation are not prepared accurately and timely by the City's personnel. 7. Electronic files in an appropriate format and containing the information requested are not provided by the City on the date requested for our use in performing file interrogation. Deloitte will provide the City with a separate listing of the required files and the dates the files are needed. 8. The engagement team,while performing work on the City's premises,is not provided with access to the Internet for purposes of conducting the engagement. Significant issues or changes 1. Significant deficiencies are identified in the City's internal control that result in the expansion of our audit procedures. 2. A significant level of proposed audit adjustments is identified during our audit. 3. A significant number of drafts of the Financial Statements are submitted for our review or we identify a significant level of deficiencies in the draft Financial Statements. 4. Significant new issues or changes arise as follows: a. New accounting issues. b. Changes in accounting policies or practices from those used in prior years. c. Events or transactions not contemplated in our budgets. d. Changes in the City's financial reporting process or IT systems. e. Changes in the City's accounting personnel,their responsibilities,or their availability. f. Changes in auditing standards. g. Change in the City's use of specialists or the specialists and/or their work product does not 5. The procedures necessary to adopt CPA Canada Public Sector Accounting Handbook, Section PS 3260,and Liability for Contaminated Sites,have not been completed by the City's personnel. 6. Changes in audit scope caused by events that are beyond our control. __.-. .. - _. . . .. . Appendix G General business terms The Corporation of the City of Pickering December 31,2015 The following general business terms(the"Terms")apply to the engagement except as otherwise provided in the specific engagement letter agreement(the"engagement letter")between Deloitte LLP ("Deloitte")and The Corporation of the City of Pickering(the"City")to which these Terms are attached. 1. Timely performance-Deloitte will not be liable for failures or delays in performance that arise from causes beyond Deloitte's control,including the untimely performance by the City of its obligations as set out in the engagement letter. 2. Right to terminate services-If the City terminates the engagement or requests that Deloitte resign from the engagement prior to its completion,the City will pay for time and expenses incurred by Deloitte up to the termination or resignation date together with reasonable time and expenses incurred to bring the services to a close in a prompt and orderly manner. Deloitte will not be responsible for any loss,cost or expense resulting from such termination or resignation. Should the City not fulfill its obligations set out herein or in the engagement letter,and in the absence of rectification by the City within thirty(30)days of notification in writing by Deloitte,upon written notification Deloitte may terminate its services immediately and will not be responsible for any loss,cost or expense resulting from such early termination. 3. Fees and taxes-Any fee estimates take into account the agreed-upon level of preparation and assistance from City personnel. Deloitte undertakes to advise management of the City on a timely basis should this preparation and assistance not be provided or should any other circumstances arise which cause actual time to exceed that estimate. The City is responsible for the payment of any applicable federal,provincial or other goods and services or sales taxes,or any other taxes or duties, in connection with the services provided by Deloitte. 4. Expenses-In addition to professional fees,the City will reimburse Deloitte for its reasonable out-of- pocket expenses including travel,meals and hotels incurred in connection with this engagement. 5. Billing-Invoices will be rendered periodically as agreed in advance. All invoices shall be due and payable when rendered. Interest shall be calculated at a simple daily rate of 0.0493%(equivalent to 18%per annum). Interest shall be charged and payable at this rate on any part of an invoice which remains unpaid from thirty(30)days after the invoice date to the date on which the outstanding invoice is paid. To the extent that as part of the services to be performed by Deloitte as described in the engagement letter,Deloitte personnel are required to perform the services in the United States of America("U.S. Business"),the City and Deloitte agree to assign performance of the U.S.Business to Deloitte Canada LLP,an affiliate of Deloitte. All services performed by Deloitte Canada LLP shall be performed under the direction of Deloitte which shall remain responsible to the City for such services. Deloitte Canada LLP shall invoice the City with respect to the U.S.Business and Deloitte will invoice for services performed in Canada("Canadian Business"). Payment for U.S.Business and/or Canadian Business can be settled with one payment to Deloitte. 6. Governing law-The engagement will be governed by the laws of the Province where Deloitte's principal office performing the engagement is located and all disputes related to the engagement shall be subject to the exclusive jurisdiction of the courts of such Province. The Corporation of the City of Pickering December 31,2015 Appendix G Page G-2 7. Working papers-All working papers,files and other internal materials created or produced by Deloitte related to the engagement are the property of Deloitte. In the event that Deloitte is requested by the City or required by subpoena or other legal or regulatory process to produce its files related to this engagement in proceedings to which Deloitte is not a party,the City will reimburse Deloitte for its professional time and expenses,including legal fees,incurred in dealing with such matters. 8. Privacy-Deloitte and the City acknowledge and agree that,during the course of this engagement, Deloitte may collect personal information about identifiable individuals("Personal Information"), either from the City or from third parties. Deloitte's services are provided on the basis that the City has obtained any required consents for collection,use and disclosure to us of Personal Information required under applicable privacy legislation. The City and Deloitte agree that Deloitte will collect, use and disclose Personal Information on behalf of the City solely for purposes related to completing this engagement,related engagements,or providing services to the City and Deloitte shall not collect, use and disclose such Personal Information for Deloitte's own behalf or for its own purposes. 9. Third parties-Deloitte's engagement is not planned or conducted in contemplation of or for the purpose of reliance by any third party(other than the City and any party to whom Deloitte's audit report is addressed)or with respect to any specific transaction. Therefore,items of possible interest to a third party will not be addressed and matters may exist that would be assessed differently by a third party,possibly in connection with a specific transaction. 10. Confidentiality-To the extent that,in connection with this engagement,Deloitte comes into possession of Personal Information or any proprietary or confidential information of the City (collectively,"Confidential Information"),Deloitte will not disclose such information to any third party without the City's consent,except: (a) as may be required or permitted by legal authority,the rules of professional conduct/code of ethics; (b) to Deloitte Entities(as such term is defined below),component auditors and permitted subcontractors;or (c) to the extent that such information shall have otherwise become publicly available. Except as instructed otherwise in writing,each party may assume that the other approves of properly addressed fax, e-mail(including e-mail exchanged via internet media)and voice mail communication of both sensitive and non-sensitive information and other communications concerning this engagement,as well as other means of communication used or accepted by the other. 11. Assignment-Except as provided below in paragraph 12,no party may assign,transfer,or delegate any of its rights or obligations relating to this engagement without the prior written consent of the other parties. 12. Subcontracting-Deloitte may use the services of any of its affiliates or any member firm of Deloitte Touche Tohmatsu Limited(`DTTL")and its respective subsidiaries and affiliates,including those operating outside Canada("Deloitte Entities"),component auditors or,with the consent of the City,of any other party.Deloitte remains responsible to the City for services performed by Deloitte Entities under this engagement.Each member firm of DTTL is a separate and independent legal entity operating under the names"Deloitte","Deloitte&Touche","Deloitte Touche Tohmatsu"or other related names;and services are provided by member firms or their subsidiaries or affiliates and not by DTTL. 13. Survival of terms-The agreements and undertakings of the City contained in the engagement letter, together with the appendices to the engagement letter including these Terms,will survive the completion or termination of this engagement. The Corporation of the City of Pickering December 31,2015 Appendix G Page G-3 14. Proportionate liability-The City and Deloitte acknowledge where the audit is conducted pursuant to a statute governing the City that contains proportionate liability provisions that apply to an auditor, such as the Canada Business Corporations Act,the terms of the statute shall apply to this engagement. In the event that the City and Deloitte are not subject to such statutory provisions regarding proportionate liability,the City agrees that in any action,claim,loss or damage arising out of the engagement,Deloitte's liability will be several and not joint and several and the City may only claim payment from Deloitte of Deloitte's proportionate share of the total liability based on the degree of fault of Deloitte as finally determined by a court of competent jurisdiction. 15. Client misrepresentation-Deloitte shall not be liable to the City,and the City releases Deloitte,for all liabilities,claims,damages, costs, charges and expenses incurred or suffered by the City related to or in any way associated with the engagement that arise from or are based on any deliberate misstatement or omission in any material information or representation provided by or approved by any member of management of the City,officer of the City or member of the Executive Committee of the City. 16. Qualifications-Notwithstanding anything herein to the contrary,Deloitte may use the name of the City,refer to this engagement and the performance of the services in marketing,publicity materials and other material,as an indication of its experience,and in internal data systems.