A recently concluded review by Ontario Securities Commision staff of quarterly reporting by public companies found many instances of non-compliance with basic requirements.

OSC staff reviewed the interim reports of 150 randomly selected issuers for the first quarter of fiscal 2001. Based on the review, staff raised concerns with 77 of these issuers, with the following results: 17 companies re-filed their interim financial statements due to non-compliance.

Some of these issuers had failed to include such basic components as an interim balance sheet or notes to the interim financial statements. Another 40 companies committed to improve disclosure in future filings. A common deficiency among this group was insufficient or poor quality information in the interim management’s discussion and analysis.

John Hughes, manager of Continuous Disclosure at the OSC, called the results of the review “a concern.” He said: “The results suggest a failure by management to maintain a current knowledge of requirements. They also raise questions about how boards of directors and audit committees carry out their responsibility to monitor and challenge management on financial reporting matters.”

Hughes also noted though that awareness of the requirements appears to be increasing.