Audit risks

Significant financial reporting risks

Valuation of property taxes and outstanding property tax appeals

Why is it significant?

The Corporation's municipal tax base includes manufacturing and industrial properties with significant outstanding balances coupled with environmental sensitivities. In recent years, the City was required to pay settlements resulting from property tax appeals on significant properties

Our audit approach

• ― Review Administration's evaluation of properties with significant outstanding tax balances including any environmentally sensitive properties and assess the reasonableness of the valuation allowance;
• ― Obtain an understanding of outstanding property tax appeals through review of Council reports and inquires with Administration and ensure that such appeals are recognized in the consolidated financial statements in accordance with Corporation's significant accounting policies;
• ― Review subsequent appeal settlements to ensure the Corporation's accounting at year-end is appropriate.