HomeMy WebLinkAbout2021-04-07Claiftymn
Audit Committee
Agenda
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Date: April 7, 2021
Time: 2:00 pm
Place: Held Virtually via Microsoft Teams
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1. Call to Order
2. Land Acknowledgement Statement
3. Declarations of Pecuniary Interest
4. Adoption of Minutes of Previous Meeting(s)
4.1. Minutes of meeting held November 16, 2020
5. Presentations
5.1. None
6. Delegations
6.1. None
7. Communications — Receive for Information
7.1. None
8. Items for Direction
8.1. Report IAS-001-21, Cash Handling — Petty Cash and Cash Float
Recommendation: That Report IAS-001-21, Cash Handling — Petty Cash and
Cash Float be approved.
8.2. Report IAS-002-21, Financial Update 4' Quarter 2020
Recommendation: That Report IAS-002-21, Financial Update 4th Quarter 2020
be approved.
Wage 12
8.3. That the following 3 dates be confirmed for the remainder of the 2021 Audit and
Accountability meetings:
• June 29, 2021
• September 10, 2021
• November 30, 2021
9. Other Business
10. Adjournment
Clarftwn
Audit Committee
Minutes
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Date: November 16, 2020
Time: 3:00 PM
Place: Held Virtually via Microsoft Teams
Present: Mayor Foster, Councillor Neal, Councillor Hooper
Staff Present: Andy Allison, Trevor Pinn, Catherine Carr, Heather Lynch
1. Call to Order
Councillor Neal called the meeting to order at 3:04 PM.
2. Declarations of Pecuniary Interest
2.1 None
3. Adoption of Minutes of Previous Meeting(s)
Resolution #AAC-001-20
Moved by Councillor Hooper
Seconded by Mayor Foster
That the minutes from the Audit and Accountability Committee meeting held
September 10, 2020 be approved.
Carried
4.
Presentations
4.1
None
5.
Delegations
5.1.
None
6. Communications — Receive for Information
6.1 None
Audit Committee Minutes — November 16, 2020 Page 12
7. Items for Direction
7.1 Report IAS-001-20, Internal Audit Policy
Resolution #AAC-002-20
Moved by Mayor Foster
Seconded by Councillor Hooper
That Report IAS-001-20, Internal Audit Policy, be approved with the following
amendment added to section 6.3 of the Policy:
Carried
"in accordance with the exceptions provided under 239(2) of the Municipal
Act, 2001, as appropriate."
Recommendation to Council #1
That Report IAS-001-20, Internal Audit Policy, be approved with the
following amendment added to section 6.3 of the Policy:
"in accordance with the exceptions provided under 239(2) of the
Municipal Act, 2001, as appropriate."
7.2 Report IAS-002-20, Audit Services
Resolution #AAC-003-20
Moved by Councillor Hooper
Seconded by Mayor Foster
That Report IAS-002-20, Audit Services, be received.
That the proposal received from BDO Canada LLP., with a total bid price of
$343,948.80 (Net HST Rebate) being the most responsive bidder meeting all
terms, conditions and specifications of Request for Proposal RFP2020-13 be
awarded the contract for the provision of Audit Services for a five year term as
required by the Municipality.
That the total funds required in the amount of $343,948.80 (Net HST Rebate), be
drawn on an annual basis over the five-year term from the account:
Description
Account Number
Amount
Unclassified Admin —Audit and
100-21-211-00000-7154
$343,949
Accounting Fees
Audit Committee Minutes — November 16, 2020 Page 13
That all interested parties listed in Report IAS-002-20 and any delegations be
advised of Council's decision.
Carried
Recommendation to Council #2
That the proposal received from BDO Canada LLP., with a total bid price
of $343,948.80 (Net HST Rebate) be awarded the contract for the
provision of Audit Services for a five year term as required by the
Municipality.
7.3 Report IAS-003-20, 2020 — 2021 Internal Audit Plan
Resolution #AAC-004-20
Moved by Mayor Foster
Seconded by Councillor Hooper
That Report IAS-003-20, 2021 Internal Audit Plan, be received.
That the 2020-2021 Internal Audit Plan, attached to Report IAS-003-20, as
Attachment 1, be approved.
Carried
Recommendation to Council #3
That the 2020-2021 Internal Audit Plan, attached to Report IAS-003-20, as
Attachment 1, be approved.
8. Other Business
8.1 None
9. Adjournment
Resolution #AAC-005-20
Moved by Councillor Hooper
Seconded by Mayor Foster
That the meeting adjourn at 3:41 PM.
Carried
Corporate Policy clffftwn
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POLICY TYPE:
SUBSECTION:
POLICY TITLE:
POLICY #: G14
POLICY APPROVED BY:
EFFECTIVE DATE:
REVISED:
Financial
Internal Audit Policy
Audit and Accountability Committee
November 16, 2020
APPLICABLE TO: All Municipal Operations
1. Purpose
The Internal Audit Policy provides a framework of accountability, including
responsibilities to govern the operation of the internal audit function throughout the
Municipality of Clarington.
2. Application and Scope
2.1 This policy applies to all municipal operations including all municipal boards,
without exception.
Definition
2.2 Internal auditing is an independent, objective assurance and consulting activity
designed to add value and improve the operations of the Municipality_
2.3 Internal auditing includes, but is not limited to, the examination and evaluation of
the adequacy and effectiveness of the organization's governance, corporate risk
management, and internal controls as well as the quality of performance in
carrying out assigned responsibilities to achieve the Municipality's goals and
objectives.
Internal Audit Functions
2.4 Internal Audit staff supports the Audit and Accountability Committee and
management by providing independent and objective internal auditing services.
Internal audit assists the organization in accomplishing its objectives by bringing a
systematic and disciplined approach to evaluating and improving the effectiveness
of corporate risk management.
Policy Number/Name Page 1 of 8
Corporate Policy clffftwn
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2.5 The Internal Audit Manager is responsible for the management and fulfillment of
internal audit services. Other staff may be called upon to assist with an audit
project as needed and with approval of the Director of Financial
Services/Treasurer..
Types of Services
2.6 Internal Audit provides the following services:
• Evaluating risk exposure relating to the achievement of the Municipality's
strategic objectives;
• Evaluating the reliability and integrity of information systems and environment;
• Evaluating the systems established to ensure compliance with those policies,
plans, procedures, laws and regulations, which could have a significant impact
on the organization;
• Evaluating the effectiveness and efficiency with which resources are employed;
• Evaluating operations or programs to ascertain whether results are consistent
with established objectives and goals and whether the operations or programs
are being carried out as planned;
• Evaluating governance processes;
• Performing consulting and advisory services related to governance, corporate
risk management and control as appropriate for the organization;
• Reporting significant risk exposures and control issues, including fraud risks,
governance issues and other matters;
• Evaluating the effectiveness of the Municipality's corporate risk management
processes; and
• Evaluating specific operations at the request of the Audit Committee or
management, as appropriate.
Policy Number/Name Page 2 of 8
Corporate Policy clffftwn
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3. Professionalism and Principles
3.1 In all its activities, Internal Audit will adhere to the Code of Ethics adopted by the
Institute of Internal Auditors (Attachment A) as well as the Municipality's Code of
Ethics policy (as amended from time to time). Engagements are performed with
the care and skill expected of a reasonably prudent and competent internal
auditor with consideration given to
a. The extent of work required to meet objectives;
b. The complexity, materiality, and significance of areas under review;
c. The adequacy and effectiveness of internal controls;
d. The cost of assurance relative to potential benefits; and
e. The probability of significant errors, irregularities, or non-compliance.
Independence and Objectivity
3.2 Internal auditors must be independent of the activities that they audit and the
managers who are directly responsible for those activities. Internal auditors may
provide advice and recommendations but not implement procedures or systems,
prepare records, or engage in any activity that would compromise independence
and objectivity.
Integrity
3.3 The integrity of internal auditors creates trust and provides a basis for relying on
their judgment.
Confidentiality
3.4 Internal auditors will respect the value and ownership of information they receive
and will not disclose information without appropriate authority unless there is a
legal or professional obligation to do so.
Competence
3.5 Internal auditors will apply the knowledge, skills and experience needed in the
performance of internal auditing services.
Policy Number/Name Page 3 of 8
Corporate Policy clffftwn
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Risk Based
3.6 Internal auditors will independently assess all significant business processes,
functions and organizational units within the Municipality's departments to support
the identification and assessment of business risks and mitigation strategies.
Continuous Improvement
3.7 Internal Audit activities will be designed to contribute to the continuous
improvement of processes within the organization.
Supported by the Audit Committee and Management
3.8 The Municipal Audit Committee, Director of Financial Services/Treasurer and the
Chief Administrative Officer (CAO), must work to ensure that internal audit is
sufficiently resourced to enable it to fulfill its mandate.
4. Reporting Relationship
Audit Committee
4.1 The Internal Audit Manager is accountable to the Audit Committee.
4.2 Administratively, Internal Audit Manager reports to the Director of Financial
Services/Treasurer.
4.3 Internal Audit will communicate significant matters to the CAO and the
Department Head group as a means of informing management of important
issues and obtaining feedback on findings.
4.4 Internal Audit will obtain guidance and direction on audit matters from the Audit
Committee.
Relationship with External Auditor
4.5 The Internal Audit Manager will maintain a working relationship with the external
auditor in order to better co-ordinate audit activity and improve communications.
Policy Number/Name Page 4 of 8
Corporate Policy clffftwn
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5. Mandatory Requirements
Audit Committee
5.1 An effective audit committee promotes a strong control and governance
environment. An audit committee also helps an internal audit function to establish
the level of independence and objectivity required to effectively discharge its
responsibilities.
5.2 The Municipality's Audit and Accountability Committee is composed of three
members of Council. Council shall appoint the members to the Committee, one of
which shall be the Council liaison to Financial Services. Where the Mayor is not
appointed to the Committee, he/she shall be an ex-officio member. The CAO,
Director of Financial Services/Treasurer and the Internal Audit Manager are also
ex-officio members of the Committee. The Chair will be the Council liaison to
Financial Services.
Audit Plan
5.3 Internal Audit must prepare an annual audit plan. The audit plan is created using
a risk -based approach that will focus audit resources on providing assurance and
consulting in the areas of highest risk to the Municipality_
5.4 The Internal Audit Manager will provide a draft audit plan to the Director of
Financial Services/Treasurer and the CAO for review. Once reviewed, the Internal
Audit Manager will submit the plan to the Audit Committee for approval.
5.5 If the risks or conditions of the Municipality change significantly during the year,
the plan may be amended to address the needs of the organization. In -year
changes to the audit plan will be made by the Internal Audit Manager and
approved by the Audit Committee.
Policy Number/Name Page 5 of 8
Corporate Policy Ciffftmn
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Access
5.6 Internal Audit must be given direct and ready access to all personnel, books of
accounts, records, reports, files, physical properties, or other documentation that
Internal Audit deems necessary to carry out its audit functions.
5.7 This includes information in any media and considers any future form of storage.
Access to all information will be in compliance with the provisions of the Municipal
Freedom of Information and Protection of Privacy Act. (MFIPPA)_
6. Responsibilities
Audit Committee
6.1 Approving the Internal Audit Policy;
6.2 Approving the annual audit plan and any major changes to the plan;
6.3 Regularly meeting in camera with the Internal Audit Manager to discuss any
matters that the Committee or internal audit believes should be discussed
privately in accordance with the exceptions provided under 5.239(2) of the
Municipal Act, 2001 as appropriate;
6.4 Reporting Committee activities, issues and related recommendations to the
council;
6.5 Directing the Internal Audit Manager to perform special reviews, as necessary;
6.6 Providing open communication between internal audit, the external auditors, and
the council;
6.7 Monitoring implementation of management activities in response to internal audit
recommendations; and
6.8 Review the Internal Audit Policy with every term of Council_
Policy Number/Name Page 6 of 8
Corporate Policy clffftwn
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Chief Administrative Officer, Director of Financial Services and Management
6.9 Supporting an effective internal audit function, which includes providing the
Internal Audit Manager with the ability to report directly to the Audit Committee.
6.10 Working to ensure that Internal Audit is sufficiently resourced to enable it to fulfill
its mandate.
Internal Audit Manager
6.11 Establishing plans and procedures to guide internal audit activities;
6.12 Ensuring the principles of integrity, objectivity, confidentiality, and competency are
applied and upheld;
6.13 Developing and, if required, adjusting the internal audit plan, reflective of the
business, risks, operations, programs, systems, and controls;
6.14 Ensuring the execution of the audit plan, including establishing objectives and
scope, assigning appropriate and adequately supervised resources, documenting
work programs and testing results, and communicating engagement results with
applicable conclusions and recommendations to appropriate parties;
6.15 Communicating to CAO and the Audit and Accountability Committee any
significant interim changes to the internal audit plan;
6.16 Reporting to the Committee at least annually on the results of the execution of the
audit plan;
6.17 Reporting to the Committee, including in camera, and informing the Committee of
any significant matters as they arise;
6.18 Following up on engagement findings and corrective actions, and reporting
periodically to the Committee any corrective actions not effectively implemented;
Policy Number/Name Page 7 of 8
Corporate Policy Ciffftmn
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6.19 Maintaining the integrity and quality of the internal audit function including quality
of service, adherence to professional standards, quality assurance and
performance measures, human resource and professional development
strategies, communication strategies and financial management.
6.20 Preparing an annual report on the delivery of the annual risk -based audit plan;
and
6.21 Ensuring that significant audit findings are reported to and addressed by the level
of management where direct accountability resides.
Policy Number/Name Page 8 of 8
Clarington
Staff Report
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Report To: Audit and Accountability Committee
Date of Meeting: April 7, 2021 Report Number: IAS-001-21
Submitted By: Catherine Carr, Manager of Internal Audit
Reviewed By: By-law Number:
File Number: [If applicable, enter File Number] Resolution#:
Report Subject: Cash Handling
Recommendations:
1. That Report IAS-001-21 be received; and
2. That staff be difrected to implement the recommendations set out in section 8 of this
report .
Municipality of Clarington Page 2
Report IAS-001-21
Report Overview
The findings from the internal audit of petty cash and cash float accounts are summarized in
the report. The internal audit was conducted in December 2020. There were several
deficiencies noted and recommendations are included in the report.
It is important to note that typical internal audits do not include the level of detail contained in
this report. Normally, a sample is taken from the data and rigorous testing is applied and the
results are reported at a higher level. Due to the small number of petty cash and cash float
accounts, each fund was reviewed.
1. Background
1.1 An audit workplan was presented to the Audit and Accountability Committee (AAC) on
November 16, 2020. The first audit is a cash handling audit that focused on Cash Floats
and Petty Cash. While these do not include large dollars, cash handling audits are
important to ensure the proper internal controls are in place. Most internal audits select
a sampling of the data and test the controls and processes on the sample. Due to the
small number of petty cash and cash float accounts, all funds were counted and
reviewed. For future internal audits, an appropriate method to select the sample data
will be used.
1.2 It is important to note that petty cash and cash float are not the same, as they serve
different purposes. For this reason, there should be clear separation between the two
funds. They must not be stored together in the same cash drawer.
1.3 The cash float is the constant amount kept in the cash drawer to facilitate making
change. There should be no activity in the cash float general ledger unless there is a
requested increase or decrease to the cash float. Periodic checks after the daily
balancing should confirm the cash float amount. It there is an overage or shortage, it
should be included in the cash receipts with the daily balancing and keep the cash float
at the constant amount. Any shortages or overages would be associated and recorded
with the daily transactions.
1.4 Petty cash is used for minor expenses and replenished on a regular basis. This ensures
that any expenses are recorded in the accounting system in a timely manner. The policy
G12 — Petty Cash, outlines the physical security and the safeguarding of the petty cash
funds. This policy was put in place effective February 27, 2018. A copy of the policy is
attachment 1 in the report. With the expansion of the purchasing card program and the
improvements to the employee expense - reimbursement process, petty cash should be
used for only minor expenses.
1.5 An internal audit was conducted during the first two weeks of December 2020 with the
assistance of Financial Services staff. The Accounting Services Manager has given the
Municipality of Clarington Page 3
Report IAS-001-21
responsibility of overseeing the petty cash and cash float accounts to the Accounting
Clerk I (Accounts Receivable) within the Financial Services Department.
1.6 These accounts were reviewed under the previous department structure. In 2020, there
were several changes to the organizational structure; however, the general ledger
account structure was only changed in 2021. There were some changes made in these
accounts in anticipation of the organizational changes. Included in this report are some
further recommended changes to these accounts.
1.7 A spreadsheet was prepared and included the general ledger account number, account
balance, calculation of the cash count and some general questions. The results are
discussed below as well as summarized in the attached tables, attachments #2 and #3.
2. Petty Cash
2.1 In December 2020, there were 14 petty cash accounts that totaled $2,470. The physical
count of the petty cash which factored in any receipts that had been paid out totaled
$2,524.24. This is an overall variance of $54.24 or 2.20 per cent. The majority of the
petty cash funds were stored in a locked cash box and kept in a secure location. As
well, most petty cash funds were managed by one staff member. Petty cash funds are
summarized in attachment #2.
2.2 Through the audit, the following observations were made:
• Petty cash and cash floats held in the same cash drawer or cash box.
• Petty cash being used as a cash float.
• Ongoing shortages and/or overages not being accounted at time of balancing or
replenishment.
• Petty cash not being replenished in a timely manner. One petty cash had two
receipts from 2019 that had not yet been submitted at time of the audit.
• Petty cash boxes were not locked or secured.
• Petty cash contained extra items that were not identifiable such as gift cards.
3. Cash Float
3.1 In December 2020, there were 20 cash float accounts that totaled $6,411.85. The
physical count of the cash float $6,495.12. This is an overall variance of $86.27 or 1.3
per cent. Eleven of the cash floats matched the general ledger balance. The majority of
the cash floats were stored in a secure location. Cash float funds are summarized in
attachment 3.
Municipality of Clarington
Report IAS-001-21
3.2 Through the internal audit the following observations were made:
• Petty cash and cash floats held in the same cash drawer or cash box.
• Petty cash was used as concurrently used as a cash float at one location.
• Cash floats not verified on a regular basis.
• Cash floats not kept in a secure location.
• Cash float not found. Current staff were not aware of the cash float existing.
Discussed in detail below.
• Error in general ledger account for cash float
4. Subsequent Changes
4.1 Due to the reorganization of departments there have been some changes to the
accounts. Some departments have made some changes already.
4.2 These changes are summarized below.
Page 4
a) With the Building Services division moving to the Planning and Development Services
Department, the Building Services petty cash account was returned to Financial
Services on December 17, 2020. Any need for petty cash will be managed through the
Planning & Development petty cash account. As well the Building Serfvices transitioned
over to the Planning cash float as their transactions recorded in the Planning &
Development Services Department.
b) Public Works includes the former Operations and Engineering Departments. Before the
reorganization, the Engineering Department shared a cash float with Building Services.
With the two locations (Municipal Administration Centre and the Hampton Operations
Centre), it was decided by the department to set up a $75 cash float for transactions at
the Public Works — Infrastructure counter and a $75 petty cash for the same location.
This was completed January 14, 2021.
5. Corrections
5.1 From this review of the petty cash and cash float accounts, the following changes and
corrections have been made.
a) The Financial Services Department cash float held for the purpose of making change
had an incorrect general ledger balance. This was due to an entry error made when the
cash float was increased in February 2020. This was corrected on December 9, 2020.
b) The 55+ Active Adult cash float was over by $93.75 as it included revenues from a pre-
COVID event. The revenue remained in the cash drawer for at least nine months. The
revenue should have been deposited in a timely manner. It was subsequently deposited
in December 2020 and recorded as revenue.
Municipality of Clarington Page 5
Report IAS-001-21
5.2 Further corrections that should be made as soon as possible are as follows.
a) During the audit, Animal Services staff spoke of a cash float of $125 held for trap
rentals. There is no general ledger account set up for the fund. To rent a trap there is a
$40.00 deposit which is returned when the trap is returned. There is a $5/day trap rental
fee. The cash float for trap rentals amount should be added to the animal services cash
float general ledger account.
b) Community Services has a petty cash account of $300. Through the audit it was
discovered that it is being used as a cash float and petty cash combined. This is not
appropriate. There should be two separate accounts with a physical separation between
the money. It is recommended that the funds be divided so that there is a $100 cash
float used for daily transactions and a $200 petty cash for minor expenses.
6. Missing Cash Float
6.1 The Tourism cash float was not located. As per the general ledger account there should
be a $100 cash float. The general ledger account has been reassigned with department
moves and account number changes.
6.2 In 2005, the cash float was initially $50 and increased in June 2005 to $100. Tourism
and Communications account numbers were combined (100-16-161-) up to mid-2016
when the new sub department numbers were created to separate Communications (sub
dept 170) and Tourism Services (sub dept 171). The petty cash float account for
Communications and Tourism was transferred to the Tourism sub -department. As well
in 2016, both Communications and Tourism moved from Corporate Services to the CAO
office. The Corporate Communications Manager (started July 2014) and the Tourism
Coordinator (started February 2016) were not aware of any cash float. As well, a
Financial Services staff member who had worked at the Tourism offices had never seen
a cash float.
6.3 Over the years, Tourism Services have run several events. It is quite possible that the
cash float was returned in the past but not recorded properly. After an event the
revenues would have been deposited in a cash receipt and the cash float may have
been inadvertently included in the revenue figures. At this point, there is no way to tell
what has happened to the cash float. This clearly demonstrates the requirement for
mandatory periodic checks of cash floats by supervisors and management throughout
the year. It is recommended that the cash float of $100 should be written off effective
December 31, 2020.
7. Observations
a) The Customer Service desk had an envelope with $200 in cash with some hand-written
reference. The envelope was left on the front doorstep of townhall in the spring of 2020.
The Customer Service desk made some initial enquiries without success; however, the
envelope was left in the cash box. This should have been forwarded to Financial
Municipality of Clarington
Report IAS-001-21
Page 6
Services in a timely manner. This cash was recorded as miscellaneous revenue as it
was untraceable.
b) The CAO cash float contained an envelope with an employee's name that was assumed
to be a High Five Reward redemption, as well as an unidentified gift card was in the
cash box. Any gift card left in a cash box should be clearly identified. This audit does not
review the use of gift cards.
c) Some of the petty cash and cash float accounts had some minor variances. Those that
are out one or two cents can be attributed to penny rounding on cash transactions;
however, some of the accounts had a larger variance. It is important the staff
understand that any overages and shortages should be accounted for each time the
petty cash is replenished or when the daily balancing of the cash receipts is done.
When the daily balancing of the day's transactions is completed one of the steps is to
ensure that the fixed cash float remains in the cash drawer. While there is a policy for
petty cash, there is not policy on cash handling.
d) The Legal Services petty cash that included receipts from 2019 that had not been
submitted in 2019. While not significant or material it is important to replenish the petty
cash in a timely manner. As per the Petty Cash policy, the fund should be checked and
replenished at least quarterly. Due to the lack of transactions in 2020, it is
recommended that this petty cash account be eliminated and returned to Financial
Services.
e) It was observed that a common petty cash transaction was the reimbursement of
employee sick notes. These transactions are processed through a Human Resources
general ledger account. With the 2020 change of processing employee expenses
through the payroll system, it was recommended that the sick note reimbursement be
processed by and through payroll. This is now in place. Once the sick note is provided
to the appropriate department, the reimbursement is processed by the payroll
department.
f) In the Fire Services petty cash, an employee was reimbursed for the purchase of cables
for video equipment. The receipt shows the cables delivered to a home address. All
shipment of goods must be delivered to a corporate address. While there may be some
savings from an employee using a personal Amazon Prime account, it is important to
follow best practices for procuring goods.
g) There was a wide range of storing and securing cash drawers and cash boxes. The
large recreation facilities all have a larger safe to secure valuables overnight and locked
drawers during operational hours. There are walk-in vaults in Financial Services and the
former Clerks department. Consideration should be given to the security of cash
drawers and cash boxes. The drawer/box itself should be locked and then this should
be locked up overnight. Future renovations of customer service areas must factor in the
physical security of cash during both open and closed hours.
Municipality of Clarington
Report IAS-001-21
8. Recommendations and Best Practices
a) The Tourism cash float be written off effective December 31, 2021.
Page 7
b) The Community Services petty cash fund be divided into a $200 petty cash fund and a
new general ledger account set up for a $100 cash float. A separate cash box be set up
for the petty cash. Both cash box and cash drawer should always be kept locked and
secure.
c) The general ledger for the Animal Services cash float be corrected to include the trap
rental float. A note should be added to the general ledger account card on what is
included in the balance. The trap rental cash float should be kept clearly separated from
the regular cash float in a secure location.
d) All custodians and their supervisors must read the Petty Cash policy G12. Each
custodian should sign a Petty Cash Custodian agreement. A proposed agreement is
included as attachment 4. The appropriate supervisor should sign the form as well. The
supervisor and custodian should retain a copy of the signed agreement. A copy should
also be kept on file in the Financial Services department.
e) As per the Petty Cash policy, supervisors are required to do a spot check on the petty
cash at least twice per year. It was difficult to ascertain if this is being done as there was
no documentation of the spot check. There should be a log kept with the Department
Head that documents all the verification of the petty cash fund.
f) Financial Services staff conduct an annual check of the petty cash funds. The counts
should be random and does not need to be conducted all at the same time. Employees
must give access to the fund and will observe while the Financial Services staff count
the fund. These counts can be recorded on the same log kept by the department.
g) The Financial Services Accounting Clerk I who is responsible for reconciling petty cash
and cash float accounts sends out quarterly reminders to balance and replenish petty
cash accounts. All cheque requisitions are now filed electronically through SharePoint.
The system does allow for zero -dollar cheque requisitions so an end of year petty cash
replenishment should be completed even if there are no receipts. The Financial
Services Accounting Clerk I should verify the end of year form has been submitted.
h) Similarly, there should be semi-annual checks of the cash floats by the supervisors and
an annual check of the cash floats by Financial Services staff. The counts should be
random and do not need to be conducted all at the same time. Employees must give
access to the fund and will observe while the Financial Services staff count the fund.
There should be a log kept with the Department Head that documents all the verification
of the funds.
Municipality of Clarington Page 8
Report IAS-001-21
i) Department Heads should review the requirement and limits of their petty cash fund
annually. With the increased use of purchasing cards, the petty cash funds may be used
less frequently.
j) A cash handling policy be developed that is applicable to all cash drawers and daily
balancing. A cash handling report would provide procedures to be followed regarding
the following: handling cash receipts, preparing daily balancing cash deposits and daily
reconciliations. This policy would inform staff on the importance for implementing
segregation of duties and of the completeness of cash receipts in all municipal systems
as well as the effective and timely preparation of deposits for bank reconciliation. Some
departments already have some policy or procedures for cash receipts and cash
handling specific to their business and software. They should be reviewed and can
complement a new cash handling policy.
9. Conclusion
9.1 While the petty cash and cash floats do not represent large dollar amounts, it is
imperative to maintain controls to ensure proper use of the funds and security of the
Municipality's assets. Cash funds are particularly vulnerable to errors, misuse and theft.
Overall, staff understand the importance of securing the cash funds. Following through
on the periodic counts of the funds will ensure that issues are accounted for in a timelier
manner. As well, the knowledge that there will be periodic checks provides the
assurance that staff are adhering to the policies and procedures.
Staff Contact: Catherine Carr, Internal Audit Manager 905-623-3379 ext. 2606 or
ccarr@clarington.net.
Attachments:
Attachment 1 — Corporate Policy G12 — Petty Cash
Attachment 2 — Petty cash audit results
Attachment 3 — Cash float audit results
Attachment 4 — Proposed custodian agreement form
Corporate Policy
Attachment 1 to IAS-001-21
ciff;W4017
If this information is required in an alternate format, please contact the
Accessibility Co-ordinator at 905-623-3379 ext. 2131
POLICY TYPE:
POLICY TITLE:
POLICY #:
POLICY APPROVED BY:
EFFECTIVE DATE:
REVISED:
APPLICABLE TO:
1. Purpose:
Financial
Petty Cash
G12
Chief Administrative Officer
February 27, 2018
February 27, 2018
All Employees
To formalize the petty cash policies and procedures relating to the
administration of petty cash funds.
2. Policies:
Departments may establish a petty cash fund to pay for minor expenses.
Wherever possible staff should use their Purchasing Card (PCard) instead of
petty cash.
One employee in the department (such as the Administrative Assistant) will be
the custodian of the fund. The custodian is responsible for the petty cash.
The petty cash fund should be kept in a secured location such as a locked
drawer, cabinet or safe where access is restricted to the custodian and not
easily accessible.
The supervisor should verify the petty cash funds at least twice a year to
ensure that the cash on hand plus the receipts equal the approved petty cash
amount. This process should be documented by signing a simple form noting
the date of verification and any problems
The Department Head and the Manager of Internal Auditor must be notified
immediately in the case of missing and stolen funds.
3. Establishing, Changing or Cancelling a Petty Cash Fund
Establishing
The request for a new petty cash fund requires the authorization of the
Department Head. A cheque requisition form (available on the intranet) must
be completed. The Department Head must authorized the cheque requisition.
The form must include an explanation for the need of the petty cash account.
Finance staff will assign an account number for a new petty cash account
G12 — Petty Cash Page 1 of 3
Corporate Policy
ciff;W4011
If this information is required in an alternate format, please contact the
Accessibility Co-ordinator at 905-623-3379 ext. 2131
(object code 1003). The form should include who will be the custodian of the
petty cash. The custodian must acknowledge that they have read and are
familiar with this policy. A cheque will be issued as "Petty Cash -Custodian's
name." The custodian will then go to the bank to cash the cheque.
Changing
To increase a petty cash fund, the department should complete a cheque
requisition form (available on the intranet) with the amount of the requested
increase. The form should be authorized by the Department Head with an
explanation for the reason for the increase. The account number would be the
same as the existing petty cash account. The custodian of the petty cash
should be confirmed on the form. A cheque will be issued as "Petty Cash -
Custodian's name." The custodian will then go to the bank to cash the cheque.
To decrease a petty cash the custodian should complete a cash receipt/deposit
slip with a description of the decrease of the petty cash. This is NOT posted to
a revenue account. It is posted to the same petty cash account to record the
decrease to the petty cash.
Cancelling
When a petty cash fund is being closed, the petty cash must be balanced and
any expenses will be charged to the appropriate departmental expense
accounts. The remainder of the petty cash funds would be recorded on a cash
receipt and posted to the petty cash account.
If the petty cash that is no longer required and there have been no
disbursements, the custodian would complete a cash receipt for the return of
the petty cash noting that it is no longer required. This is NOT posted to a
revenue account. It is posted to the same petty cash account to record the
return to the petty cash fund.
3. Procedures:
Petty cash should be used for minor departmental expenses. A receipt must
be given to the custodian in order to be reimbursed. The receipt should have
the receipt date, vendor's HST number (if applicable) and a description of what
was purchased. If this is not clear the custodian should record details on the
receipt. The petty cash and cheque requisition forms can be found on the
Municipality's intranet website.
Petty cash cannot be used for the following.
x Alcoholic beverages or tobacco
x Parking fines, road tolls, mileage
x Fuel such as gasoline, propane
G12 — Petty Cash Page 2 of 3
Corporate Policy
ciff;W4011
If this information is required in an alternate format, please contact the
Accessibility Co-ordinator at 905-623-3379 ext. 2131
x Donations
x Hazardous materials / Chemicals
x Advertising
x Telephone/Cell phones
x Professional services
x Seminars, workshops, memberships
x IOUs
The custodian of the fund will replenish the petty cash when the funds become
low. The petty cash must be reconciled at least quarterly. The petty cash
must be reconciled as of December 31 st to account for the end of the fiscal
year. The custodian is responsible for ensuring the cash on hand and receipts
equal the authorized amount of the fund at all times. The custodian will use the
petty cash form and follow the instructions shown on the top of the form. All
receipts must be attached to the petty cash form and approved with the
supervisor signature. Any penny rounding differences are posted to the Cash
Over/Short account.
The custodian will complete a cheque requisition form for the amount needed
to replenish the petty cash fund. The supervisor signature is required as
authorization.
The cheque requisition form, petty cash form and the supporting receipts are to
be sent all together to the Purchasing Department. The Purchasing
Department will then forward the documents to Accounts Payable for
processing. A cheque payable to "Petty Cash -Custodian's name" will be
issued in the weekly cheque run. The custodian will then go to the bank to
cash the cheque to replenish petty cash fund.
G12 — Petty Cash Page 3 of 3
Attachment 2 to IAS-001-21
Cash
Account Number
AccountPetty
Times
Replenished in
.
Comments
Location
Balance
Count
2020
of Replenishment
Mayor
100-10-100-00000-1003
$ 125.00
$ 155.02
3
$ 122.21
Council
100-10-105-00000-1003
$ 200.00
$ 198.76
2
$ 66.25
An unknown gift card in the cash box and another
Administration
100-13-130-00000-1003
$ 250.00
$ 236.56
1
$ 68.95
envelope assumed to be a High Five Redemption gift
card.
Legal
100-14-130-00000-1003
$ 300.00
$ 307.15
1
$ 65.00
Contained receipts for 2019 not submitted for 2019
year end. Submitted in December 2020.
Corporate Services
100-16-130-00000-1003
$ 200.00
$ 200.70
1
$ 77.95
Clerks
100-19-130-00000-1003
$ 125.00
$ 130.08
1
$ 127.40
Animal Services
100-19-190-00000-1003
$ 50.00
$ 64.40
2
$ 65.59
MLE
100-19-191-00000-1003
$ 100.00
$ 99.98
3
$ 80.45
Difference due to penny rounding.
Finance
100-21-130-00000-1003
$ 200.00
$ 199.99
1
$ 99.09
Difference due to penny rounding.
Fire Station #1
100-28-130-00000-1003
$ 200.00
$ 199.51
2
$ 102.18
Engineering
100-32-130-00000-1003
$ 120.00
$ 120.25
3
$ 72.87
Building Inspection
100-32-321-00000-1003
$ 100.00
$ 100.00
1
$ 77.95
Petty cash and Building Inspection/Engineering cash
float were combined in the same cash box.
Community Services
100-42-130-00000-1003
$ 300.00
$ 306.64
2
$ 68.36
Petty cash is also used as a cash float.
Planning
100-50-130-00000-1003
$ 200.00
$ 205.20
1
$ 85.39
Attachment 3 to IAS-001-21
FloatCash
.-Changes
Account
Audit
Balance
Count
Envelope with $200 cash left at front doors in the spring and
Customer Service Desk
100-13-170-00000-1002
$ 100.00
$ 100.00
N/A
left in Customer Service cash box for over 6 months.
Enquiries made initially but envelope left in cash box for 6+
Tourism
100-13-171-10155-1002
$ 100.00
cash float
found
N/A
Float not found. Through inquiries it appears this cash float
not -
does not exist
has not existed for several years.
Clerks
100-19-130-00000-1002
$ 300.00
$ 300.00
N/A
This amount is divided between two cash drawers.
Animal Services
100-19-190-00000-1002
$ 170.00
$ 254.65
N/A
Includeds a Trap Rental float of $125 that was not recorded
in the general ledger account.
Municipal Law Enforcement
100-19-191-00000-1002
$ 200.00
$ 200.00
N/A
Finance- Tax Counter
100-21-130-00000-1002
$ 600.00
$ 600.00
N/A
This amount is divided between four cash drawers.
Increased from $750 to
Error in previous journal entry. GL account should be
Finance- Accounting Services Float
100-21-210-00000-1002
$ 966.85
$ 1,000.30
$1,000 in February 2020.
$1,000. The purpose of this fund is to make change for
other departments.
Fire Station #1
100-28-130-00000-1002
$ 100.00
$ 101.75
N/A
Emergency Bunker
100-28-286-00000-1002
$ 500.00
$ 500.00
N/A
This Cash Float was shared by Engineering and Building
Engineering- Building Inspection
100-32-321-00000-1002
$ 100.00
$ 89.42
Returned 17-DEC-20
Inspection. Cash Float and Building Inspection Petty Cash
were combined.
Operations
100-36-130-00000-1002
$ 150.00
$ 154.85
N/A
Diane Hamre Recreation Complex
100-42-421-10128-1002
$ 700.00
$ 700.00
N/A
All drawers balance to what they say there should be in
Courtice Community Complex
100-42-421-10129-1002
$ 675.00
$ 650.00
N/A
there. They verify the total cash in the drawer to the cards
in the drawers outlining the amount that should be there.
South Courtice Arena- Admin
100-42-421-10130-1002
$ 400.00
$ 400.00
N/A
Darlington Sports Centre - Skating
100-42-421-10131-1002
$ 100.00
$ 100.00
Returned 14-DEC-20
Not verified by audit but verified by Finance Clerk when
returned.
Rickard Recreation Complex
100-42-421-10132-1002
$ 500.00
$ 500.00
N/A
Alan Strike Centre
100-42-421-10133-1002
$ 500.00
$ 500.00
Returned 13-JAN-20.
Outdoor Pool & Skate Park
100-42-424-00000-1002
$ 150.00
$ 150.40
Reissued 22-JUL-20 and
returned 14-DEC-20.
Revenue from an event pre-COVID was left in the cash
55+ Active Adult (CCC)
100-42-428-00000-1002
$ 50.00
$ 143.75
N/A
float. This was corrected in December and included in a
deposit to 100-42-428-10624-6524 55+ ACTIVE Adults -
coffee Kiosk Sales.
Planning
100-50-130-00000-1002
$ 50.00
$ 50.00
N/A
Attachment 4 to IAS-001-21
Uadiwmn
Petty Cash Custodian Agreement
Department
Custodian
Amount
GL Account
As Custodian, I understand that I am responsible for the security and maintenance of
this petty cash fund according to the Petty Cash Policy G12. This includes the following.
1. The petty cash fund will be locked in a secure place at all times.
2. All disbursements from the fund must have proper back-up and supporting
vouchers/receipts.
3. All disbursements will be appropriate and comply with Clarington policies.
4. At all times the total of the receipts plus cash must equal the fund balance.
5. To replenish the fund, a cheque requisition form will be completed and include all
supporting receipts, account coding and proper signatures.
6. Any overages or shortages must be reported promptly at each time fund is
replenished.
7. The reimbursement will be in the form of a cheque payable to the Custodian's
name — Petty Cash. Petty Cash replenishment cheques are issued during the
normal cheque run.
8. The Custodian may not delegate responsibility for the fund.
9. If the Petty Cash is no longer required it will be returned to Finance promptly.
10.1 have read the Petty Cash Policy G12.
I agree to accept responsibility for the petty cash fund according to the above
conditions.
Custodian Signature
Date
Supervisor Signature
Page 2
Clarington
Staff Report
If this information is required in an alternate accessible format, please contact the Accessibility
Coordinator at 905-623-3379 ext. 2131.
Report To: Audit and Accountability Committee
Date of Meeting: April 7, 2021 Report Number: IAS-002-21
Submitted By: Trevor Pinn, Director of Financial Services/Treasurer
Reviewed By: Andrew C. Allison, CAO
By-law Number:
File Number: [If applicable, enter File Number] Resolution#:
Report Subject: Financial Update as at December 31, 2020
Recommendation:
1. That Report IAS-002 -21 be received for information.
Municipality of Clarington Page 2
Report IAS-002-21
Report Overview
The COVID-19 pandemic has had a lasting impact on the Municipality of Clarington. It has
changed the way in which we provide services (a strong movement towards online services),
work, and live. The Municipality's most significant financial impact has been the reduction of
services in Community Services. This continued to affect revenues in the fourth quarter even
as programs and facilities began to open back up prior to the second wave closures late in
December 2020.
The attached report provides information on the variances by service area with anecdotal
commentary where appropriate.
1. Background
Quarterly Reporting
1.1 The Budget Policy outlines a requirement for the Treasurer to report to Council on a
quarterly basis each year starting with the second quarter. This report fulfills that
reporting requirement.
1.2 To improve the usefulness of the information, and consistency of format with the annual
budget, the quarterly report is attached to this report as Attachment 1. Each department
is broken down by sub -department with the expenses grouped together like the
requirements for financial reporting and the annual budget.
1.3 Where there are key variances, these have been identified and are expanded upon for
Committee's, and the public's, information.
1.4 This report is solely for operating expenses. Finance will be reporting separately on the
capital budget. The capital budget will be reported on semi-annually, once in the fall
which captures the "construction season" to September 30, and once in the spring
which summarizes the prior year's activities. It is expected that the 2020 Report will be
available at the June committee meeting.
2. Impact of COVID-19
2.1 Where appropriate, the impact of COVID-19 has been identified and discussed in
Attachment 1.
3. Concurrence
Not Applicable.
Municipality of Clarington Page 3
Report IAS-002-21
4. Conclusion
It is respectfully recommended that the report be received for information.
Staff Contact: Trevor Pinn, Director of Financial Services/Treasurer, 905-623-3379 ext. 2602,
tpinn@clarington.net
Attachments:
Attachment 1 — Financial Update for the Period Ending December 31, 2020
Interested Parties:
There are no interested parties to be notified of Council's decision.
Financial Update as of December
/Y
Financial Update for the period ending December 31,
2020 (unaudited)
This report is to provide Council with an update on the Municipality of Clarington's financial activity through the fourth
quarter of 2020 and to compare it with the same period in 2019. This report will provide a financial overview of budget
variances as of December 31, 2020 and essential non -financial functions of the Municipality such as service level
achievements or deficits that have been realized within the reported quarter, a review of COVID-19 impacts and
department initiatives.
COVID-19 Implications
The Municipality continues to experience the financial impacts of COVID-19. Affects on our revenues and expenses are
highlighted below for each department.
Taxes Receivable/Collected
Taxes Receivable as of December 31, 2020, provides the status of the taxes billed and collected by the Municipality
during the fourth quarter. A total of $9,288,141 remains unpaid which is on trend for this same quarter in previous years.
This unpaid value is 4.77 per cent of the taxes levied in 2020. In December 2019 there were taxes receivable of
$9,383,327 which resulted in 5.01 per cent of taxes levied in 2019. The net balance is $95,186, or 1.02 per cent less than
the previous year and the ratio is only 0.24 per cent lower. The following table outlines the taxes receivable ratio for 2020
and the three previous years:
Page 12
Taxes Receivable
2017 20181•
$ 8,427,275 $ 8,665,231
2020
$ 9,383,327 $ 9,288,141
Taxes Levied
172,913,203 179,993,948
187,277,840 194,744,258
Taxes Receivable Ratio
4.87% 4.81 %
5.01 % 4.77%
Grants
A grant was received for virtual fitness classes from Durham Community Foundations through the Federal Government.
The $3,500 grant is intended to enhance virtual fitness classes currently offered to our older adult residences. This
second grant, applied for through Community Foundations Grant, has been used to purchase fitness equipment to loan
out during our virtual classes. TheraBand's, small pilates/bender balls and 2, 3 and 5 lb hand weights were purchased in
December of 2020. Over 100 people have registered for our virtual classes, thanks to the Community Foundations Grant
initially received in September 2020. Unfortunately, no revenue has been generated by these classes at this time but as
the pandemic continues this grant has provided the opportunity to plan for continued virtual fitness classes.
In August 2020, the Province of Ontario announced funding for the Safe Restart Program. The Municipality was allocated
approximately $2.1 million through phase 1 of this program. The funds were received in the fourth quarter of 2020.
Funding under this program provides support for expenses and revenue pressures associated with the COVID-19
pandemic.
Development Charges Collected
Residential and non-residential development charges collected as of December 31, 2020, were $14,526,733.
Page 13
Residential municipal development charges collected were $13,526,322 compared to $2,840,164 in 2019 for the same
time period. In the 2015 Development Charges Background Study, it was forecasted that the Municipality would be
collecting approximately 823 units in total for 2020. Development charges have been collected for 902 units as at
December 31, 2020.
The development charges are significantly higher compared to 2019 due to the increased volume of permits issued in
2020. There have been a few large permits issued for townhouses, stacked townhouses and single detached dwellings.
Staff have noted that this increase in permits issued has remained on the up turn in 2021.
MUNICIPAL DEVELOPMENT CHARGES
January to December 2020
Residential
2020
Municipal Development
Charges Paid
Number of
Units
•
Municipal Development
Charges Paid
Number of
Units
Single/Semi-
Detached
New construction
$ 840,946.00
378
$ 1,160,745.00
66
Additions
-
-
-
-
Townhouse
5,686,946.00
409
1,128,284.00
84
Apartment
998,430.00
115
551,135.00
65
Total Residential:
13,526,322.00
902
2,840,164.00
215
Change in DC paid from prior year:
Change in DC units from prior year:
376.3%
319.5%
Page 14
Non -Residential
2020
Municipal Development Charges
Paid
2019
Municipal Development Charges
Paid
Commercial
New construction
$ 423,085.23
$ 503,830.84
Additions
-
-
Industrial
-
-
New construction
577,326.23
30,133.35
Additions
-
-
Agricultural
-
-
Government
-
-
Institutional
-
-
Total non-residential:
1,000,411.46
533,964.19
Change in DC paid from prior year: 87.4%
Municipal Development Charge Incentives
In the 2015 Development Charges By-law 2015-035, there are several incentives to encourage development in
Clarington. These incentives mainly relate to multi -residential, commercial and industrial development. Since July 2015,
there has been a total of $1,555,277 in development charge incentives given to 15 properties. The split is approximately
37% and 63% respectively between residential and non-residential properties. Note that discretionary incentives are
required to be covered by the Municipality's tax base. There are no new incentives in 2020, as of December 31, 2020.
Page 15
Incentive • -
of Total
Mid -Rise
$0
$413,822
$0
$0
$0
$0
$413,822
Residential
Revitalization,
0
0
157,840
0
0
0
157,840
Mixed Use
Residential
0
413,822
157,840
0
0
0
571,662
37%
Medical
110,671
0
0
0
0
0
110,671
Exemption
Revitalization,
3,636
938
974
0
0
0
5,548
Small Business
Existing Industrial
0
22,983
0
0
0
0
22,983
Development
Conversion
Residential to
0
15,985
0
0
0
0
15,985
Commercial
New Industrial
0
0
102,718
652,823
0
0
755,541
Development
Revitalization,
0
0
72,886
0
0
0
72,886
Mixed Use
Non -Residential
114,307
39,906
176,578
652,823
-
-
983,614
63%
$114,307
$453,728
$334,418
$652,823
$ 0
$0
$1,555,277
100%
Investments
The Manager of Internal Audit provides a quarterly compliance memo to the CAO and the Treasurer. Below are the
highlights of this memo for the period ending December 31, 2020.
Page 16
Investments by Institution
The compliance calculations include the reserve fund bank account as it's not used for ongoing operations and is
considered available for investing. The general fund TD bank account is used for the ongoing operations and are consider
as "required immediately" and therefore are not eligible for investing, it is not included in the compliance calculations.
The Municipality's policy has the following restrictions, among others, to ensure that credit risk is mitigated through
avoiding a concentration of investments with any given institution:
ONE portfolios are restricted to 15% per type (ONE HISA account is excluded as it is a cash account)
Financial institution (including bonds, GICs) is restricted to 20% per institution
Total Funds
% of Total
• -
• -
TD Bank - Savings
$26,490,185
22.00%
0%
100%
ONE - HISA
23,436,972
19.50%
0%
100%
ONE - Equity
2,588,679
2.20%
0%
15%
ONE - Bond
4,316,986
3.60%
0%
15%
RBC
11,389,813
9.50%
0%
20%
National Bank
8,805,845
7.30%
0%
20%
BNS
16,236,823
13.50%
0%
20%
BMO
12,959,520
10.80%
0%
20%
Page 17
HSBC
4,360,864
3.60%
0%
20%
TD Bank
4,841,449
4.00%
0%
20%
City of Toronto
4,778,046
4.00%
0%
20%
$120,205,182 100.00%
The Municipality was compliant with all restrictions on investment with individual institutions.
Investments by Term
Total Funds
% of Total
• -
• -
90 Days
58,044,595
48.30%
20%
100%
90 Days to 1 Year
9,812,283
8.20%
56.50%
30%
100%
1 to 5 Years
27,814,182
23.10%
0%
85%
5 to 10 Years
19,692,673
16.40%
0%
50%
10 to 20 Years
4,841,449
4.00%
0%
30%
$120,205,182 100.00%
The Municipality was compliant with the stated term length restrictions. There is a significantly high component that is less
than 90 days, this is due to the One Fund HISA and TD Reserve Bank investments which are immediately accessible and
thereby highly liquid. The investments in the 10 to 20 year terms are all bank bonds which are considered to have good
liquidity. There are uses for these long-term investments, but the specifics have not been clearly identified.
Investments by Type
Total Funds
% of Total
• -
•
HISA
$50,943,531
42.40%
0%
100%
Federal Debt
-
0.00%
0%
100%
Provincial Debt
-
0.00%
0%
80%
Municipal Debt
4,778,046
4.00%
0%
35%
Financial Institutions
57,577,940
47.90%
0%
60%
Corporate Debt (non -financial)
-
0.00%
0%
10%
ONE Investment Pools
6,905,665
5.70%
0%
25%
$120,205,182 100.00%
As of December 31, 2020, the Municipality is compliant with the restrictions for the investment types as defined in the
Municipal Investment Policy. It should be noted that investments with financial institutions does not include cash accounts;
however, it does include GICs, bank bonds, TD Reserve bank and ONE Fund HISA.
Page 19
Staffing Updates
For the period ending December 31, 2020 there were 706 staff (including those on a leave — not COVID related). Prior to
COVID-19, there were 809 employees which includes Mayor and Council (7), temporary staff, volunteer firefighters and
employees on leave (this does not include Library or Museum). There were three retirements during the fourth quarter.
Page 110
Municipal Operating Revenues and Expenses
Overview - Financial Results
This financial update report to Council has been redesigned to focus on (unaudited) overall budget variances for the
period ending December 31, 2020. The reporting has expanded to show budget to actual variances by sub -department.
The department summaries indicate the status of the Municipality's operating accounts compared to the approved budget
as of December 31, 2020.
Each department is responsible for its budget. To assist with the management of the budget, monthly trial balances are
sent by Financial Services to each department for regular review. It is important to note that the figures presented in this
report do not represent final year-end figures. Necessary year-end accruals and adjustments will continue to be
processed to finalize the 2020 year. The Accounting Services division is preparing the Municipal Financial Statements in
accordance with the Canadian generally accepted accounting principles (GAAP) for the external audit of the 2020 fiscal
year. The audit will be completed at the end of June 2021. The figures in this report do not include all consolidated
municipal service board activities nor noncash activities such as capital asset amortization and unfunded post -
employment.
Due to timing differences, variations from quarter -to -quarter as well as year-to-year exist and therefore, this statement
cannot be used in isolation, nor can it be easily extrapolated to predict the whole year's activities. The figures in this report
cannot be used to estimate or assume the Municipal surplus/deficit for the year ending December 31, 2020.
The Summary of Operating Revenues and Expenditures compares the Municipality's budget to actual transactions as of
December 31, 2020, reflecting financial activity through the fourth quarter of 2020 and comparing it with the same period
in 2019. The tables below reflect the Municipality's operating budget only and exclude the year to date financial activities
of the library, museum and BIA's.
Page 111
19
2020
2020
2020•.
YTD
YTD
Final
Unexpended
BudgetDescription
Unassigned
($100,645)
($40,550)
$0
Non -Departmental Accounts
(74,302,451)
(73,941,124)
(75,881,769)
2.6%
Mayor & Council
1,019,593
737,951
817,063
9.7%
Administrator's Office
2,094,914
2,222,412
2,296,338
3.2%
Legal Admin
364,650
342,510
503,791
32.0%
Corp Services
4,140,596
5,192,148
5,179,396
(0.2%)
Legislative Services
2,581,700
2,180,023
2,926,353
25.5%
Finance & Unclassified Admin
8,522,761
4,582,701
3,987,193
(14.9%)
Emergency Services - Fire
13,976,212
12,840,399
13,210,861
2.8%
Engineering Services
18,637,451
3,579,108
6,910,720
48.2%
Public Works
24,391,426
20,184,675
21,153,493
4.6%
Community Services
11,984,883
8,439,995
10,153,263
16.9%
Planning Services
3,513,512
3,276,994
4,033,995
18.8%
Levies
0
0
0
BIA Taxation
0
0
0
Libraries/Museums
3,876,841
3,883,364
3,755,775
(3.4%)
Culture
214,976
216,965
219,366
1.1 %
External Agencies
673,531
734,162
734,162
Total Municipality of Clarington
$22,166,387
($5,568,267)
$0
Page 112
Revenue and FxpensP Categories
Revenues and expenses are categorized based on their
purpose and similarities.
Revenues
Estimated taxation, supplementary taxation, and
payments -in -lieu of taxation received. These funds may
be collected on behalf of the Region of Durham, the
Province of Ontario or a school board and are remitted to
the specific agency.
'rovincial Grants and Subsidies
Grants received from the Province of Ontario for specific
functions such as the Ontario Community Infrastructure
Fund or specific grant projects.
-ederal Grants and Subsidies
Grants received from the Government of Canada for
specific functions such as the Federal Gas Tax Fund or
specific grant projects.
User Fees
Fees for services including, but not limited to, facility
rentals, cemetery fees, application for planning and
building permits, recreational programming.
Licensing and Lease Revenue
Licensing fees such as taxi licensing and lease revenues
for the long-term lease of municipal facilities and
property.
Investment Income
All investment income earned by the Municipality through
its investment holdings, bank account balances and
investment in Elexicon.
Contributions from Reserves
Contributions from reserves and reserve funds for
specific purposes, as identified within the budget. This is
an internal source of funding and may be originally
sourced from taxation, grants or user fees.
Other Revenues
Any revenue that is not otherwise categorized.
Page 113
Expenses
Salaries and Benefits
Compensation for all employees such as salaries, wages,
benefits, overtime, allowances and statutory benefits.
Materiai:
Includes items such as office supplies, salt and sand,
gravel, insurance costs, phone costs and other general
expenses.
Rent and Financial Costs
Bank charges, debit and credit card charges, cost of
rental equipment and facility rentals for the Municipality.
Purchase/Contracted Services
Items that are outsourced, such as professional services,
winter clearing and IT software as a service.
Debt Repayment
Interest on debt repayments to external parties
Grants and Transfer Payments
Grants provided to community groups, external boards
and agencies and levies from other organizations.
Contributions to Reserves and Reserve Funds
Contributions from the general fund for the Municipality's
reserves and reserve fund
Page 114
Mayor and Council
100 Mayor
Expenditures
Salaries, Wages & Benefits
318,931
249,454
250,702
0.5%
Materials & Supplies
43,647
25,510
61,867
58.8%
105 Council
Expenditures
Salaries, Wages & Benefits
604,398
416,401
433,124
3.9%
Materials & Supplies
3,864
1,951
9,070
78.5%
106 Ward Council
Expenditures
Materials & Supplies
25,819
24,756
38,300
35.4%
107 Regional Council
Expenditures
Materials & Supplies
22,934
19,879
24,000
17.2%
Total Mayor & Council
$1,019,593
$737,951
$817,063
9.7%
Highlights
There were no items of interest to highlight for the period ending December 31, 2020 for the Mayor and Council
departments.
Page 115
Administration
000 Unassigned
Expenditures
Materials & Supplies
366,869
360,600
366,600
1.6%
130 Admin
Expenditures
Salaries, Wages & Benefits
583,019
603,660
594,903
(1.5%)
Materials & Supplies
43,707
32,546
59,700
45.5%
Contracted Services
119,889
114,677
90,000
(27.4%)
Transfers from RES / RF / CAP Fund
16,400
170 Communication
Revenue
User Charges
(46,715)
(15,816)
(45,000)
64.9%
Expenditures
Salaries, Wages & Benefits
601,875
601,074
645,631
6.9%
Materials & Supplies
103,673
118,261
124,400
4.9%
Contracted Services
88,600
64,799
102,725
36.9%
171 Tourism
Revenue
User Charges
(22,080)
Expenditures
Salaries, Wages & Benefits
232,843
250,876
244,544
(2.6%)
Materials & Supplies
65,072
90,034
80,750
(11.5%)
Contracted Services
21,887
9,421
32,085
70.6%
250 Contributions
Page 116
Highlights
Administration
There was an overall reduction in expenses as office work adapted to COVID-19 restriction. Many of the office expense
accounts are lower than is typical for this quarter (i.e. Printing,Office Supplies, Postage & Courier, etc.) with employees
working from home.
Page 117
Tourism
Advertising and Branding expenses will be offset by the grant from Tourism Industry Association of Ontario (TIAO)
through FedDev Ontario we received in 2020.
The Tourism Office was closed to the public due to COVID-19 at the end of the first quarter. The tourism staff moved out
of the building in October to let the Durham Region vaccination clinic operate out of there for the remainder of the year.
Tourism cleaning costs are due to COVID-19.
Page 118
Legal Services
Highlights
There were no items of interest to highlight for the period ending December 31, 2020 for Legal Services.
Page 119
Corporate Services
130 Admin
Revenue
User Charges
(385,522)
(10,488)
(12,000)
12.6%
Expenditures
Materials & Supplies
216,758
187,417
224,850
16.6%
Transfers from RES / RF / CAP Fund
570
160 HR/Payroll
Expenditures
Salaries, Wages & Benefits
1,529,437
1,504,920
1,542,249
2.4%
Materials & Supplies
6,828
4,546
6,600
31.1 %
Contracted Services
102,348
56,331
81,500
30.9%
Rents/Financial Expenses
113,061
93,788
130,000
27.9%
Transfers from RES / RF / CAP Fund
15,000
162 IT
Expenditures
Salaries, Wages & Benefits
1,375,049
1,414,967
1,417,707
0.2%
Materials & Supplies
6,481
3,779
5,000
24.4%
Contracted Services
13,521
3,397
15,000
77.4%
Transfers from RES / RF / CAP Fund
116,206
670,500
670,500
Reclass: CF (NON-TCA) to GF
464,133
616,250
437,500
(40.9%)
163 Purchasing
Expenditures
Salaries, Wages & Benefits
627,852
629,871
632,025
0.3%
Materials & Supplies
4,525
2,094
4,890
57.2%
Page 120
Highlights
Administration
At the end of the 4t" quarter, the Corporate Services Department was disbanded with the retirement of its Director. The
sub -departments were distributed per the prescribed method in the Organizational Structure Review. The accounts will
reflect these changes in the 1st quarter of 2021.
Information Technology (IT)
Deferred expense entries have not yet been processed, which explains the overage of 40.9 per cent in the table above.
Page 121
Legislative Services (Clerk's Department)
000 Unassigned
Revenue
User Charges
(200)
100.0%
090 PSAB
Expenditures
Amortization Expense
28,461
130 Admin
Revenue
User Charges
(110,267)
(90,463)
(118,800)
23.9%
Expenditures
Salaries, Wages & Benefits
1,094,665
982,950
1,163,744
15.5%
Materials & Supplies
93,585
51,875
93,910
44.8%
Contracted Services
12,510
21,210
10,800
(96.4%)
Transfers from RES / RF / CAP Fund
33,415
19,114
19,500
2.0%
160 HR/Payroll
Expenditures
Salaries, Wages & Benefits
(7,651)
Materials & Supplies
5
190 Animal Services
Revenue
User Charges
(105,192)
(106,242)
(87,800)
(21.0%)
Expenditures
Salaries, Wages & Benefits
410,844
393,176
433,420
9.3%
Materials & Supplies
60,023
55,428
65,825
15.8%
Page 122
Contracted Services
Transfers from RES / RF / CAP Fund
191 Municipal Law Enforcement
Revenue
User Charges
Fines/Penalties on Interest
Expenditures
Salaries, Wages & Benefits
Materials & Supplies
Contracted Services
Transfers from RES / RF / CAP Fund
192 Parking Enforcement
Revenue
User Charges
Fines/Penalties on Interest
Expenditures
Salaries, Wages & Benefits
Materials & Supplies
Contracted Services
Rents/Financial Expenses
Transfers from RES / RF / CAP Fund
193 Election
Revenue
User Charges
Expenditures
Salaries, Wages & Benefits
60,118
16,640
(40,870)
(32,481)
644,792
17,961
53,554
476
(148,085)
(448,535)
387,721
36,695
8,544
11,912
601,152
529
271
78,526
12,840
(13,020)
(17,853)
745,921
13,927
20,666
(87,891)
(294,004)
416,084
12,980
8,518
10,390
381,895
(1,970)
55,000
7,000
(28,000)
(25,000)
845,402
33,700
54,100
(80,000)
(250,000)
409,462
24,840
10,000
10,000
330,000
(42.8%)
(83.4%)
53.5%
28.6%
11.8%
58.7%
61.8%
(9.9%)
(17.6%)
(1.6%)
47.7%
14.8%
(3.9%)
(15.7%)
Page 123
Description
YTD
YTD
Final
Unexpended
•.-
'
Materials & Supplies
1,735
Contracted Services
3,943
63,410
69,000
8.1 %
Rents/Financial Expenses
1,755
Transfers from RES / RF / CAP Fund
125,000
125,000
125,000
194 Legislative Services
Expenditures
Salaries, Wages & Benefits
14,848
Materials & Supplies
1,003
230 Grants
Revenue
Grants
(27,605)
(22,665)
(22,000)
(3.0%)
250 Contributions
Revenue
Transfer between Funds
(47,525)
(453,627)
326 Cemetery
Revenue
User Charges
(192,660)
(185,455)
(258,100)
28.1 %
Expenditures
Materials & Supplies
128
825
1,800
54.2%
388 Fleet
Expenditures
Materials & Supplies
28,491
30,273
33,750
10.3%
Total Legislative Services
$2,581,700
$2,180,023
$2,926,353
25.5%
Page 124
Highlights
Council Services (Administration)
The Records Management Summer Student position was extended to work part time until mid October, which will
increase the actuals in the Wages Temporary Part -Time account. There will be budget capacity for this addition.
The Professional Fees account is over budget due to the high (and unanticipated) costs of investigations (i.e. Integrity
Commissioner).
Animal Services
The commission fee is an expense paid for online pet licensing. The expense is based on how many licenses are being
renewed or pets being purchased which cannot be predict. There has been an increase yearly in this expense and the
budget has been increased for 2021.
Parking Enforcement
Parking Fines and Meter revenue is slightly above budget at the end of the 4th quarter. The transfer of these funds to the
Parking Lot RF can be seen in the Transfers from RES / RF / CAP Fund.
Cemetery
Cemetery revenue for Bondhead Cemetery has exceeded the budget expectations by 150% at the end of the year.
Page 125
Financial Services and Unclassified Administration
000 Unassigned
Revenue
Fines/Penalties on Interest
(20,735)
(35,556)
(13,000)
(173.5%)
090 PSAB
Expenditures
Amortization Expense
819,261
130 Admin
Revenue
User Charges
(214,087)
(204,015)
(178,000)
(14.6%)
Fines/Penalties on Interest
(1,417,469)
(1,269,120)
(1,250,000)
(1.5%)
140 Internal Audit
Expenditures
Salaries, Wages & Benefits
34
155,093
151,831
(2.1 %)
Materials & Supplies
300
100.0%
162 IT
Expenditures
Salaries, Wages & Benefits
(13,904)
Reclass: CF (NON-TCA) to GF
36,477
210 Finance Admin
Expenditures
Salaries, Wages & Benefits
2,319,656
2,348,484
2,411,937
2.6%
Materials & Supplies
92,592
78,929
106,400
25.8%
Contracted Services
101,573
106,032
49,000
(116.4%)
Transfers from RES / RF / CAP Fund
2,296
Page 126
Highlights
Unassigned
Accounts receivable fines and penalties on interest are higher than budgeted and higher than the same period in 2019.
Finance Admin
The legal fees account continues to be over budget due to the increased involvement of external solicitor regarding non-
residential assessment appeals such as Loblaws, Walmart, Shoppers Home Depot and Canadian Tire. These appeals
have been ongoing for several years and are being completed in 2020. The Municipality has been able to recognize
Page 127
savings in lost revenue higher than the legal costs, this benefits the Municipality in the past as well as going forward with
protecting its commercial assessment base.
Unclassified Admin
The Transfers from Reserve and Reserve Fund account looks to be over budget by a significant value but that includes
the 2019 Operating Surplus entry which is not assumed at the time of the budget creation. The 2019 surplus transfer is
about 54% less than the 2018 transfer, this decrease was primarily driven by a decrease in the equity share of net income
— from Veridian Corporation of $1.2 million stemming from one-time costs related to the merger of Veridian and Whitby
Hydro, lower building permit revenue in 2019 of $1 million due to decreased developer activities, and higher sand and salt
costs of $0.7 million. These were partly offset by lower transfers to reserve funds of $0.9 million related to Building
Inspection, lower operating costs of $0.2 million associated with the closing of concessions stands at community facilities
and various other operating savings in 2019 totaling $0.3 million.
IT Services
At the end of the 4t" quarter, the Corporate Services Department was disbanded with the retirement of its Director. The
sub -department IT Services was realigned under Financial Services as per the Organizational Structure Review. The
budget for these accounts will reflect these changes in 2021.
Page 128
Emergency Services
090 PSAB
Expenditures
Amortization Expense
984,765
130 Admin
Revenue
User Charges
(240,751)
(406,449)
(105,000)
(287.1 %)
Expenditures
Salaries, Wages & Benefits
927,665
1,000,870
940,149
(6.5%)
Materials & Supplies
188,937
170,882
239,650
28.7%
External Transfers to Others
10,000
6,250
10,000
37.5%
Transfers from RES / RF / CAP Fund
841,189
674,257
553,925
(21.7%)
280 Fire Prevention
Revenue
User Charges
(47,793)
(12,159)
(45,000)
73.0%
Expenditures
Salaries, Wages & Benefits
677,210
725,858
735,643
1.3%
Materials & Supplies
37,240
15,738
46,500
66.2%
Contracted Services
92,700
100.0%
281 Fire Suppression
Expenditures
Salaries, Wages & Benefits
8,183,352
8,293,207
8,443,560
1.8%
Materials & Supplies
56,116
61,557
92,500
33.5%
Contracted Services
69,073
71,565
70,000
(2.2%)
282 Fire Training/Technical Support
Page 129
19
2020
2020
2020•.
YTD
YTD
Final
Unexpended
BudgetDescription
Expenditures
Salaries, Wages & Benefits
379,914
397,479
350,680
(13.3%)
Materials & Supplies
5,816
3,628
6,500
44.2%
283 Fire Communication
Expenditures
Contracted Services
610,416
650,140
587,000
(10.8%)
284 Fire Mechanical
Expenditures
Materials & Supplies
116,459
75,678
120,000
36.9%
285 All Stations - P/T Admin
Expenditures
Salaries, Wages & Benefits
984,013
895,613
867,380
(3.3%)
Materials & Supplies
33,566
49,011
45,700
(7.2%)
Contracted Services
4,918
9,070
6,500
(39.5%)
286 Municipal Emergency Measures
Revenue
User Charges
(10,000)
(10,000)
100.0%
Expenditures
Materials & Supplies
27,251
21,339
26,950
20.8%
Contracted Services
287 Mechanical Technical Support
Expenditures
Salaries, Wages & Benefits
136,856
136,865
135,524
(1.0%)
Total Emergency Services - Fire
$13,976,212
$12,840,399
$13,210,861
2.8%
Page 130
Highlights
Administration
User charges include an invoice to OPG for the 2020 annual payment as per the Memorandum of Understanding with the
Municipality of Clarington and OPG.
Transfers to the Reserve and Reserve Fund category look to be over budget however this is where the transfers of the
Emergency Call revenue are transferred to the Reserve Fund. In previous years, this revenue was an unbudgeted item.
Fire Suppression
Equipment Maintenance is slightly over budget at the end of the 4t" quarter due a few factors. Mainly the cost of re -
calibration gas. There was an increase in both cost and the usage in calibrating instruments. Other equipment was
identified as needing immediate replacement. In discussions with the Treasurer it was agreed that the funds received from
OPG are eligible to cover some of the costs for this equipment.
Fire Communications
There were some unanticipated increases in expenses through the Radio Equipment Rental account. There will be a
partial refund for these expenses which will reduces the impact on the overage.
All Stations - P/T Admin
Cleaning Supplies and Janitorial Controls are over budget at the end of 2020 due to the increased cleaning measures
required to mitigate the risks associated with COVID-19.
Page 131
Engineering Services
000 Unassigned
Revenue
User Charges
(211)
(300)
(500)
40.0%
090 PSAB
Expenditures
Amortization Expense
12,733,145
130 Admin
Revenue
User Charges
(342,150)
(227,922)
(50,500)
(351.3%)
Expenditures
Salaries, Wages & Benefits
2,280,240
2,257,713
2,513,421
10.2%
Materials & Supplies
47,037
35,632
53,950
34.0%
Contracted Services
105,151
184,992
150,250
(23.1%)
Debt Services (Principle and Interest paid)
541,802
474,045
544,417
12.9%
Transfers from RES / RF / CAP Fund
3,705,897
3,519,550
3,415,536
(3.0%)
250 Contributions
Revenue
Transfer between Funds
(130,950)
(1,637,845)
321 Building Inspections
Revenue
User Charges
(2,194,711)
(2,496,222)
(1,554,032)
(60.6%)
Fines/Penalties on Interest
(500)
100.0%
Expenditures
Salaries, Wages & Benefits
1,285,583
1,253,042
1,329,648
5.8%
Page 132
Materials & Supplies
Contracted Services
324 Street Lighting
Expenditures
Transfers from RES / RF / CAP Fund
325 Parks
Expenditures
Materials & Supplies
Contracted Services
Transfers from RES / RF / CAP Fund
327 Parking Lots
Expenditures
Debt Services (Principle and Interest paid)
330 Roads & Structures
Expenditures
Contracted Services
334 Safe Roads
Expenditures
Materials & Supplies
Contracted Services
380 Road Maintenance
Expenditures
Contracted Services
388 Fleet
Expenditures
Materials & Supplies
88,800
134,059
100,000
4,682
8,650
443
150,793
24,226
12,054
32,375
48,116
2,420
66,888
11,924
100,000
151
636
1,100
(14,990)
9,040
3,683
33,960
4,031
102,930
199,000
100,000
500
10,000
21,000
13,500
50,000
6,500
5,600
35.0%
94.0%
69.8%
93.6%
57.0%
72.7%
32.1 %
100.0%
28.0%
Page 133
Highlights
Administration
Funds were received from the Region of Durham for a "Durham Farm 911 Funding" project as well as revenue from Port
Granby for Project Management and Roads & Infrastructure salaries causing the Miscellaneous Revenue account to be
over budget.
In addition to their annual maintenance and new development fees, Bell and Rogers were issued a one-time fee for
Municipal Consent. The 2020 work is more extensive than would normally be undertaken, creating an overage in the
Engineering Permits Revenue account.
Contracted Services have Studies rolled up into this category but there is no budget in 2020. This makes it look like the
category is over budget, when it is not.
Consulting expenses are low for the year. Subdivision lighting review is being done in-house this year with fewer
complicated subdivision, reducing the need for external consultants. This account will likely be under budget this year.
Page 134
Building Inspections
As a result of COVID-19, there was an increase in building and pool permits revenue as people were spending more on
improving their homes/yards.
The Building Division also saw a reduction in expenses with the restriction from COVID-19. Many of the office expense
accounts are lower than is typical for this quarter (i.e. Printing, Professional Fees, etc.)
Page 135
Public Works
000 Unassigned
Revenue
User Charges
(208,461)
(32,322)
(208,800)
84.5%
Expenditures
Salaries, Wages & Benefits
1,984
690
3,000
77.0%
Materials & Supplies
188,568
104,338
107,400
2.9%
Contracted Services
3,752
9,394
3,000
(213.1 %)
090 PSAB
Expenditures
Amortization Expense
3,414,071
130 Admin
Revenue
User Charges
(350,611)
(81,116)
(125,000)
35.1 %
Expenditures
Salaries, Wages & Benefits
2,388,737
2,166,163
2,361,020
8.3%
Materials & Supplies
70,552
77,683
74,700
(4.0%)
Contracted Services
19,388
52,561
11,000
(377.8%)
Transfers from RES / RF / CAP Fund
3,151,651
2,753,100
2,746,100
(0.3%)
250 Contributions
Revenue
Transfer between Funds
(324,427)
(13,017)
324 Street Lighting
Revenue
User Charges
(4,533)
(1,802)
(15,000)
88.0%
Page 136
Expenditures
Materials & Supplies
749,920
673,244
1,050,000
35.9%
Contracted Services
275,180
187,264
330,000
43.3%
Debt Services (Principle and Interest paid)
224,128
(22,281)
325 Parks
Expenditures
Salaries, Wages & Benefits
932,762
1,263,541
1,151,057
(9.8%)
Materials & Supplies
549,617
551,287
515,750
(6.9%)
Contracted Services
704,042
1,289,392
1,205,760
(6.9%)
Rents/Financial Expenses
28,984
82,269
30,000
(174.2%)
Transfers from RES / RF / CAP Fund
100,000
225,000
225,000
326 Cemetery
Revenue
User Charges
(155,386)
(143,558)
(143,000)
(0.4%)
Expenditures
Salaries, Wages & Benefits
178,352
190,226
225,854
15.8%
Materials & Supplies
140,331
160,917
95,700
(68.1 %)
Transfers from RES / RF / CAP Fund
50,000
5,000
5,000
350 Waste Collection
Revenue
User Charges
(29,855)
(6,183)
(22,500)
72.5%
Expenditures
Materials & Supplies
27,888
12,370
22,500
45.0%
351 Recycling Collection
Revenue
User Charges
(2,782)
(443)
(1,500)
70.5%
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Expenditures
Materials & Supplies
2,348
845
1,500
43.7%
370 Building & Property Service
Expenditures
Salaries, Wages & Benefits
945,560
878,285
992,159
11.5%
Materials & Supplies
593,999
486,843
549,265
11.4%
Contracted Services
224,009
112,063
139,825
19.9%
Debt Services (Principle and Interest paid)
107,968
101,019
107,799
6.3%
Transfers from RES / RF / CAP Fund
954,250
1,325,000
1,250,000
(6.0%)
380 Road Maintenance
Revenue
User Charges
(22,882)
(26,678)
(19,500)
(36.8%)
Expenditures
Salaries, Wages & Benefits
749,999
592,189
597,700
0.9%
Materials & Supplies
1,085,655
994,983
846,275
(17.6%)
Contracted Services
899,968
429,770
785,700
45.3%
381 Hardtop Maintenance
Expenditures
Salaries, Wages & Benefits
326,833
409,559
429,000
4.5%
Materials & Supplies
402,199
633,204
456,100
(38.8%)
Contracted Services
95,279
132,034
160,000
17.5%
382 Isetop Maintenance
Expenditures
Salaries, Wages & Benefits
54,507
44,625
72,500
38.4%
Materials & Supplies
271,566
285,639
342,000
16.5%
383 Winter Control
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Revenue
User Charges
(81,592)
(9,506)
(90,000)
89.4%
Expenditures
Salaries, Wages & Benefits
1,153,462
892,407
963,250
7.4%
Materials & Supplies
2,912,295
1,990,662
2,010,000
1.0%
384 Safety Devices
Expenditures
Salaries, Wages & Benefits
203,275
210,037
188,000
(11.7%)
Materials & Supplies
342,848
298,895
349,400
14.5%
Contracted Services
242
74,937
50,000
(49.9%)
386 Storm Water Management
Expenditures
Salaries, Wages & Benefits
7,244
11,925
20,000
40.4%
Materials & Supplies
2,856
3,147
8,000
60.7%
Contracted Services
94,957
92,000
(3.2%)
387 Regional Roads
Expenditures
Salaries, Wages & Benefits
10,353
8,537
9,000
5.1 %
Materials & Supplies
50,861
40,053
33,500
(19.6%)
388 Fleet
Revenue
User Charges
(1,501,809)
Expenditures
Salaries, Wages & Benefits
618,587
655,425
766,037
14.4%
Materials & Supplies
100,494
1,220,788
92,000
(1,226.9%)
Transfers from RES / RF / CAP Fund
134,500
185,000
185,000
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Highlights
Unassigned
Unfortunately, the revenues are still low for sports field rentals due to COVID-19 restrictions.
Contracted Services include "Work for Others" which are recoverable expenses.
Administration
There are some miscellaneous expenses that have gone over budget at the end of the year. The overage is attributed to
COVID-19 related expenses and one-time expenses.
Contracted Services include "Work for Others" which are recoverable expenses.
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Safety Devices
The special event budget has not been used due to the cancellation of events to reduce the risks of COVID-19.
The railway work under Contracted Services, still requires some year end entries and then this perceived overage will be
corrected.
Parks
Fleet allocation for Parks increased as staff had to be assigned to individual vehicles due to COVID-19, where normally
there would be crews assigned to ride together.
The Parks Rental account is for the rental and cleaning of portable toilets in Parks and due to COVID-19 there was
increase in cleaning costs.
Contracted service expense overages relate to emergency tree and stump removal.
With limited use of the sports fields due to COVID-19, aggregate material was not ordered to repair fields and turf.
Cemetery
Fleet allocation for Cemeteries increased as staff had to be assigned to individual vehicles due to COVID-19, where
normally there would be crews assigned to ride together.
Road Maintenance
New entrance curb cuts are a service provided in conjunction with our access permit process for cutting curbs for access
and is mostly development driven and changes year to year. Fees are recovered from applicants for this service.
There were catchbasin and stormsewers that required immediate and unscheduled emergency repairs resulting in higher
than budgeted expenses.
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Hardtop Maintenance
In 2020, there have been substantial spring break up (potholing) and additional work was required throughout the balance
of the year to repair damaged areas. This work was required to meet Provincial legislation outlined in the Municipal Act -
Provincial Standards.
Stormwater Managements (SWM)
Multiple unscheduled beaver relocations caused budget overages in 2020. Beaver dams can have a larger negative affect
on the flow of water through our SWM systems. Dams are removed by staff after the vendor has completed the relocation
of the beaver.
Waste and Recycling Collection
No sales were made at the Hampton Operations/Public Works Centre during the COVID-19 shut down resulting in lower
sales than would generally be seen in the year. The expense for the waste and recycling supplies are lower as well
resulting from no additional inventory being purchased.
Regional Roads
These are the expenses for winter maintenance on Regional Roads. These expenses are recoverable from the Region.
Fleet
The Fleet Miscellaneous Operating Supply account is rolled up into the materials and supplies category making it look like
it is over budget however this account's expenses are offset by fleet revenues.
Page 142
Community Services
090 PSAB
Expenditures
Amortization Expense
2,085,447
130 Admin
Revenue
User Charges
(78,426)
(14,358)
(63,500)
77.4%
Expenditures
Salaries, Wages & Benefits
871,860
757,276
958,743
21.0%
Materials & Supplies
60,756
29,343
69,070
57.5%
Contracted Services
38,706
1,399
Transfers from RES / RF / CAP Fund
686,028
809,943
816,700
0.8%
250 Contributions
Revenue
Transfer between Funds
(1,616,352)
420 Recreation Services Admin
Revenue
User Charges
(2,893)
(210)
(1,230)
82.9%
Expenditures
Salaries, Wages & Benefits
887,736
815,946
1,020,506
20.0%
Materials & Supplies
22,852
13,505
26,942
49.9%
421 Facilities
Revenue
User Charges
(2,259,033)
(1,267,112)
(2,357,646)
46.3%
Expenditures
Page 143
Salaries, Wages & Benefits
3,511,596
3,131,891
3,604,093
13.1 %
Materials & Supplies
2,703,452
2,259,194
2,641,186
14.5%
Contracted Services
159,294
129,402
157,434
17.8%
Debt Services (Principle and Interest paid)
2,111,799
1,906,828
1,957,836
2.6%
423 Concessions
Revenue
User Charges
(43,206)
(7,704)
(66,140)
88.4%
424 Aquatic Programs
Revenue
User Charges
(1,171,739)
(354,374)
(1,172,741)
69.8%
Expenditures
Salaries, Wages & Benefits
850,225
435,623
912,481
52.3%
Materials & Supplies
58,323
13,783
61,830
77.7%
425 Fitness Programs
Revenue
User Charges
(515,987)
(197,416)
(532,295)
62.9%
Expenditures
Salaries, Wages & Benefits
350,309
184,350
364,173
49.4%
Materials & Supplies
17,716
7,731
28,850
73.2%
Rents/Financial Expenses
1,700
500
2,000
75.0%
426 Recreation Programs
Revenue
User Charges
(550,463)
(99,986)
(566,015)
82.3%
Expenditures
Salaries, Wages & Benefits
456,664
177,842
501,408
64.5%
Materials & Supplies
70,855
7,302
68,830
89.4%
Page 144
Contracted Services
50,121
13,838
47,300
70.7%
Rents/Financial Expenses
1,046
173
2,800
93.8%
427 Community Development
Revenue
User Charges
(153,316)
(133,820)
(191,903)
30.3%
Expenditures
Salaries, Wages & Benefits
4,752
502
8,448
94.1 %
Materials & Supplies
172,825
137,508
197,675
30.4%
Contracted Services
27,627
20,868
34,700
39.9%
428 55+ Active Adults
Revenue
User Charges
(127,296)
(52,189)
(162,231)
67.8%
Expenditures
Salaries, Wages & Benefits
113,979
59,889
142,812
58.1 %
Materials & Supplies
26,630
10,484
25,400
58.7%
Contracted Services
16,073
3,665
16,550
77.9%
Rents/Financial Expenses
560
3,000
100.0%
429 Customer Service
Revenue
User Charges
(16,268)
(22,439)
(15,675)
(43.2%)
Expenditures
Salaries, Wages & Benefits
944,276
721,084
926,556
22.2%
Materials & Supplies
138,745
70,542
132,736
46.9%
440 Libraries
Expenditures
Materials & Supplies
178
Page 145
450 Client Services
Expenditures
Salaries, Wages & Benefits
359,012
408,681
444,740
8.1 %
Materials & Supplies
9,246
2,364
12,840
81.6%
451 Tourism
Expenditures
Salaries, Wages & Benefits
(2,429)
473 Community Grant Program
Expenditures
External Transfers to Others
60,000
56,350
60,000
6.1 %
480 Municipal Sponsorships
Expenditures
External Transfers to Others
33,300
20,400
35,000
41.7%
Total Community Services
$11,984,883
$8,439,995
$10,153,263
16.9%
Highlights
Several wage accounts are lower than the projected 2020 budget due to vacant positions (Full Time: Manager of
Facilities, Aquatic Programmer, Facility Supervisor for 6 months), cancelled programs and services (Part Time Recreation
wages) and the closure of facility front desks as the result of COVID-19 shutdowns (Part Time Customer Service wages).
The corresponding expenses for utilities and operating costs have also seen a decrease reflective of the facility closures.
Significant savings are recognized in repair and maintenance for buildings vehicles and equipment, office supplies, travel
and program supplies. Mechanical systems adjustments were made to reduce energy consumption.
There are still year end entries to be made at this time, some of which relate to COVID relief funding provided to the
Municipality by the Province.
Page 146
Facilities
This year has been hard on facility rental revenue and as a result there has been a $1.1 million decrease to the 2020
budgeted amount. These revenues are primarily from ice and indoor field rentals.
Aquatic Programs
Aquatic Program revenues have also seen a downturn this year due to COVID-19. The impact on the revenues is a
$810,000 decrease in swimming lessons and public swimming revenue.
Recreation and Fitness
Fitness memberships, March Break and Summer Camp revenues were all affected by the reduction in services with
COVID-19 mitigations. These revenues are ending the year with a $801,000 decrease in budgeted revenues.
Page 147
Planning Services
000 Unassigned
Expenditures
Salaries, Wages & Benefits 420,215 287,264
Materials & Supplies 142,026 64,853
Transfers from RES / RF / CAP Fund 696,728 635,684
090 PSAB
Expenditures
Amortization Expense
130 Admin
Revenue
User Charges
Expenditures
Salaries, Wages & Benefits
Materials & Supplies
Contracted Services
Transfers from RES / RF / CAP Fund
250 Contributions
Revenue
Transfer between Funds
321 Building Inspection
Expenditures
Salaries, Wages & Benefits
i:: M.
(652,118) 1 (498,816)
2,972,072
2,988,156
99,000
50,055
161,570
(12)
426,592
12,500
(465,089) 1 (123,695)
(17,347)
438,591 34.5%
238,750 72.8%
634,717 (0.2%)
(862,300) I 42.2%
3,145,792 5.0%
114,750 56.4%
186,000 100.0%
12,500
1•
2020
2020
2020•,
Description
YTD
YTD
Final
Unexpended
Actuals
Actuals
Budget
Contracted Services
10,465
385 Environmental
Revenue
User Charges
(1,170)
(585)
Expenditures
Contracted Services
123,695
100.0%
430 Smallboards
Expenditures
Materials & Supplies
1,465
1,500
100.0%
502 Development Review
Revenue
User Charges
(1,671,983)
(1,078,005)
Expenditures
Materials & Supplies
34,091
43,639
Contracted Services
1,347,250
902,838
Total Planning Services
$3,513,512
$3,276,994
$4,033,995
18.8%
Highlights
There were no items of interest to highlight for the period ending December 31,2020 for Planning Services.
Page 149
Looking forward to the 11t Quarter of 2021
2021 COVID-19 Mitigation
2021 has brought with it more COVID-19 mitigation efforts from the Province. These measures have corresponding
affects on our revenues and services. The 1st quarter reporting will identify the COVID-19 risk mitigation efforts and the
corresponding implications to the corporation's financial statements.
New DC's and Incentives
The 2020/2021 DC Background Study and bylaw went to Council January 18th, 2021. The report outlines the changes to
the DC's and approves the new bylaw.
Continuous Improvement/Key Performance Indicators
As this report is constantly evolving and improving, we hope the subsequent quarterly reports will include upcoming
continuous improvements within the Municipality and focus on key performance financial indicators that will be used to
benchmark existing service levels.
Page 150