Vaughan Sets The Record Straight On C.D. Howe Report

April 30, 2012 12:00 a.m.
The City of Vaughan's management of municipal finances has received a very positive review from a leading Canadian accounting firm. A review conducted by Ernst & Young LLP on the behalf of the City refutes a number of conclusions published in a 2011 report by C.D. Howe Institute entitled “Holding Canada’s Cities to Account: An Assessment of Municipal Fiscal Management.”

Although Vaughan received an overall “B” grade for its 2011 budgets, the City was also singled out for “chronic overspending” over a ten-year period. The Ernst & Young review of the report’s findings concludes that the methodology used by C.D. Howe resulted in some erroneous and misleading conclusions. Contrary to the C.D. Howe report, Ernst & Young’s findings indicate that the City underspent its budgets between 2001 and 2010.

“This independent review by Ernst & Young is a reflection of the City’s unwavering commitment to effective and transparent financial practices,” said Mayor Maurizio Bevilacqua. “Vaughan Council is completely confident that our taxpayers can rely on the City’s audited financial statements. Our record is outstanding, and Vaughan continues to be one of Canada’s best-managed and prosperous municipalities.”

The City has been the recipient of the Distinguished Budget Presentation Award for three years running from the international Government Finance Officers Association.

“The results of the third party review by Ernst & Young of the C.D. Howe report confirms that the City has not been overspending as portrayed in the C.D. Howe report,” said City Manager Clayton Harris. “In fact, the City has invested unbudgeted revenues and underspent operational budgets in the City’s reserves, resulting in discretionary reserve balances increasing from $86.8 million in 2001 to $211.8 million in 2010.”

The Ernst & Young review included the following highlights:
 
• The C.D. Howe report states that Vaughan overspent by 46.4 per cent in the 2001-2010 period, when in fact the City underspent by 6 per cent.
• Vaughan underspent by 6 per cent in 2001-2010, whereas the C.D. Howe report states that Vaughan has the largest overshoot of 31 per cent for its operating budget.
• The report states that Vaughan was the worst offender in Canada for overspending its capital budget in 2001-2008 period by 31 per cent, when the City actually underspent in this area by 3 per cent (2001-2010). 
• The C.D. Howe report singles Vaughan out for “chronic overspending,” when in fact the City has added $186 million to its reserves in the period 2001-2010.
 


 
 

 

​
All News