Public proceeding of the Board

Meeting of the Board of Directors on May 31, 2013

Attendance

Board members present

John McCamus (Chair); Aly Alibhai; Nancy Cooper; Michelle Haigh; John Liston; James McNee; Derry Millar; James Yakimovich; Robert W. Ward (CEO/Ex Officio)

Staff

Sue McCaffrey, Stephanie Mealing, Michelle Sguin, Colin Boal, Vince Correia

Guests

The Chair welcomed Gary Peall, Acting Auditor General and John McDowell, Director, Office of the Auditor General. The Vice President and CAO introduced the audit team from Ernst & Young: Martha Tory, Karren Kinnaird and Eleanora Reznik

1. Meeting agenda

The meeting agenda was adopted.

2. Disclosure of conflict of interest

No conflicts of interest were identified.

3. LAOs unaudited financial statements for the year ended March 31, 2012

The Vice President and CAO presented LAOs unaudited financial statements for the fiscal year ended March 31, 2013. They will require Board approval before the Auditor General can release his audit report. The final draft of the financial statements will be presented to the Board in June for approval.

There was a discussion of how the Contingency Reserve Fund should be classified.

The Ernst & Young associate partner who presented the audit results noted that:

  • apart from the need to clarify the description of the Contingency Reserve Fund surplus, the balance of the work has been completed
  • the methodology was acceptable and consistent, and there were no errors or other issues to report
  • LAO staff cooperated fully in the audit process
  • the few outstanding issues included a letter of representation from management and areas of significant estimates, e.g. valuation of receivables, allowance for doubtful accounts, work in progress and bills yet to be rendered.

3.1 Decision

the unaudited LAO Financial Statements for the fiscal year ended March 31, 2013 were adopted, subject to clarification with respect to the accounting of revenue of $6.4 million.

The Board then had an in-camera session with the representatives of the Auditor General and Ernst & Young.

4. Trust fund of LAO employees pension plan financial statements at December 31, 2012

The Vice-President and CAO presented, and the Board subsequently approved, the unaudited trust fund of LAOs employees pension plan financial statements for the year ended December 31, 2012. She noted that:

  • this is a special purpose audit, as required by the Financial Services Commission of Ontario (FSCO)
  • the financial statements verify the market value of the assets in the pension plan
  • the new accounting standards minimally affect these financial statements, but require a name change, to Trust Fund of LAO Employees Pension Plan
  • the value of the net assets has increased over the previous year, largely due to a rebound in the stock market.

Since the audit confirms that the reports from Standard Life are verified, it is not necessary for the auditors to attend future Board meetings.

4.1 Decision

The unaudited trust fund of Legal Aid Employees Pension Plan financial statements for the calendar year ended December 31, 2012 was approved.