That a separate, independent audit of the plan be conducted, and that the audited statements be submitted annually to the Board for acceptance.

Discussion:

KPMG has finalized its audit of the Contributory Pension Plan Fund for Employees of Transit Windsor for the year ending December 31, 2019. The Transit Windsor Pension Review Committee has reviewed the audit report and approved the audited statements as submitted at their annual meeting held on June 18, 2020.

The Independent Auditors’ Report (attached) states “In our opinion, the accompanying financial statements of Transit Windsor Fund as at December 31, 2019 and December 31, 2018 and for the years then ended are prepared, in all material respects, in accordance with the basis of accounting described in note 1 (Summary of significant accounting policies).

The Pension Plan ended the financial year with a strong position over the same period in 2018. The fund now stands with the market value of assets of $34,774,000 in comparison to $32,956,000 at December 31, 2018.

The Audited Financial Statements now require the approval of the Transit Windsor Board of Directors.

Risk Analysis:

Federal legislation requires that, if a plan does conduct an audit, the audited statements must be filed with OSFI by June 30th. In order to meet the required deadline, the Executive Director of Transit Windsor has filed the financial statements before the deadline with the understanding that an amendment can be made if there are any concerns or changes required by the Transit Windsor Board of Directors. Accordingly, the audited financial statements have been filed by the required deadline.

Financial Matters:

The auditing fee of $4,200 plus HST was funded from the frozen Transit Windsor Pension plan.

The pension plan is fully funded on a going concern basis, but would have a deficit if it were to be wound up at this time. Federal pension regulations require this notional wind-up deficit to be funded. The City of Windsor has complied with these additional funding requirements through special contributions over the past several years as well as by way of provision of a Letter of Credit. Full details relative to the actuarial status of the fund will be forthcoming in a separate report.

Consultations:

Rachel Chesterfield, Financial Planning Administrator, Transit Windsor

Transit Windsor Pension Review Committee