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MEMORANDUM
10: Members of Council
FROM: Garnet B. Rickard,Mayor
DATE: February 4th, 1981
SUBJECT: Ministry of Intergovernmental Affairs
Terms of Reference
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In response to Resolution #{C-80-1094, passed by Council on
August 11th, 1980, The Ministry of Intergovernmental Affairs
have prepared Terms of Reference for the Town of Newcastle
Council and Ministry of Intergovernmental Affairs.
These Terns of Reference were presented to members of Council
at an informal gathering on February 3rd, 1981.
I vould recommend to Council that they adopt the proposed
Terms of Reference, a copy of which is attached so that the
Ministry may proceed with their review and report.
Garnet B. Rickard
Mayor
TERMS OF REFERENCE
TOWN OF NEWCASTLE
AND
MINISTRY OF INTERGOVERNMENTAL AFFAIRS
(1) The Ministry agrees to review and report on the following general
areas of the Town of Newcastle's financial system, which have
been identified as being of concern:
.Current budgets,
to include - the procedures used in the preparation of
the current budget
- the need for standardized current budget
working papers
- the current budget review and approval
procedures
- the use of the current budget process for
setting priorities
- the methods of changing the budget
during the year
- the use of current budget comparisons for
control purposes
- the use of the current budget in the
management decision making process
.Capital budgets,
to include - the procedures used in the preparation of
the capital budget
- the need for standardized capital budget
working papers
- the capital budget review and approval
procedures
- the use of the capital budget process to
set priorities
- the use of the capital budget in long term
planning
I
- the relationship of the capital budget to
the current budget
Financial Reports,
to include - the format and timeliness of financial
reports to department heads
- the format and timeliness of financial
reports to elected officials
- the use of financial reports in the
municipal financial management process
- the procedures used to assure compliance
with the budgeted results
- the duties and responsibilities of
departmental accounting staff
- the cash and reserve fund management
procedures
- the procedures used to approve payment
of accounts
- other special purpose reports prepared for
council and department heads involving
financial considerations
.Personnel,
to include - the preparation of a current organization
chart
- the procedures for establishing staffing
levels
- the establishing of the duties and
responsibilities of municipal officers
- the need for written job specifications for
municipal staff
- the procedures for establishing salary and
wage levels
- the procedures for appointing new staff
.Purchasing,
to include - the procedures for assigning purchase
approval authorities
- the controls for purchasing major items,
or approving expenditures that exceed
budgeted amounts
- the use of purchase orders
the controls over the purchasing of small
maintenance items
- the procedures for recording outstanding
commitments
.Audit,
to include - the timeliness of the audited financial
statements
- the methods of responding to the auditors,
suggestions for improvements
- the need for an audit committee
The review will include the roles of elected and appointed
officials of the town.
(2) The Council of the Town of Newcastle agrees:
- To allow ministry staff reasonable access
to all records
- To assure co-operation of the Town staff
in the conduct of the review
- That changes to this agreement will only
be made with the mutual approval of both
the parties
January,1981
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