The Audit Committee requested the Deputy City Manager and Chief Financial Officer to report to the Audit Committee on how much has been spent on the SAP financial system since amalgamation.

Cam Weldon, Deputy City Manager and Chief Financial Officer, Giuliana Carbone, Treasurer and Mike St. Amant, Director, Accounting Services, made a presentation to the Audit Committee on the City of Toronto 2009 Audited Consolidated Financial Statements, and filed a copy of their presentation material.

The purpose of this report is to present the City of Toronto's Consolidated Financial Statements

for the year ended December 31, 2009 to Council for approval and provide highlights of the

City’s 2009 financial performance and financial condition as of December 31, 2009.

This report to the Audit Committee summarizes the issues of audit significance discussed with

management and provides the communications required by our professional standards.

The audit was designed to express an opinion on the December 31, 2009 consolidated financial

statements of the City. In planning the audit, we held discussions with management,

considered current and emerging business risks, performed an assessment of risks that could

materially affect the financial statements, and aligned our audit procedures accordingly. We

received the full support and assistance of the organization's personnel in conducting our audit.