HomeMy WebLinkAboutTR-2-92 THE CORPORATION OF THE TOWN OF NEWCASTLE
REPORT
Meeting: General Purpose and Administration Committee File#
Date: January 6, 1992 Res. 4JEL
Report#: TR-2-92— File#: By-Law#
Subject: VISUAL ARTS CENTRE BOARD - MUNICIPAL GRANT REVIEW
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend the following to Council:
1. THAT Report #TR-2-92 be received;
2 . THAT the balance of the 1990 operating grant in the amount
of $5,961.58 be paid to the Visual Arts Centre Board from
the 1991 account 7007-X-298 (Unclassified Administration -
Contingency) FORTHWITH;
3. THAT any future unexpended operational grants of the Visual
Arts Centre Board be retained by the Town as part of the
General Town Surplus;
4 . THAT future Municipal Grant applications of the Visual Arts
Centre Board be accompanied by financial statements allowing
disclosure of any reserve/reserve fund balances and budgeted
and actual revenues/expenditures;
5. THAT Ms . Margaret Rogers, Administrator for the Visual Arts
Centre Board be advised of Council's decision.
1.0 BACKGROUND
1. 1 The Visual Arts Centre building located on Simpson Avenue,
Bomanville is a Town owned building. The building is leased
from the Town by the Visual Arts Centre Board for one dollar
per year. As the landlord of the building the Town pays the
insurance (public liability and property damage) ,
maintenance and utility costs .
2
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1.2 The Visual Arts Centre Board receives an annual operating
grant from the Town of Newcastle. Throughout the year the
Town advances the Visual Arts Centre Board a portion of the
annual allotment to cover the Board's operating
expenditures . The Town does not advance the entire approved
grant as utility, maintenance, and office supplies invoices
are paid directly by the Town on the Board's behalf.
2.0 COMMENTS ON 1990 GRANT
2 . 1 The approved 1990 grant to the Visual Arts Centre Board was
$30,000. and the actual contributions to the Board in 1990
through a combination of grant advances and expenses paid by
the Town was $24,038 .42 . The balance or $5,961.58 has been
requested by the Board's management.
2 .2 The Board's administrator has advised staff that outstanding
1990 invoices equal to the value of the balance of the 1990
grant have been paid in 1991 from the Board's fundraising
reserve as a result of not receiving the expected 1990 grant
balance. Staff have also been advised that no excess Town
funds have been used to build the Board's fundraising
reserve or any other savings accounts . The Board intends to
replenish their fundraising reserve with the requested
funds .
2 . 3 The Town's auditors have been asked to comment on the
municipal grant for the Visual Arts Centre Board as approved
in _the 19.90budget. It is the auditors opinion that the Town
has no formal obligation to pay the balance of these grant
monies to the Visual Arts Centre Board however, there is
likely a moral obligation to pay this amount as it was j
approved in the 1990 budget.
3.0 CONCLUSION
3 . 1 It is recommended that any future operating grant requests
from the Visual Arts Centre Board be received through the
Municipal Grant Program and accompanied by financial
statements disclosing budgeted and actual expenditures and
revenues . Moreover, the balances of any reserves and reserve
funds should also be disclosed as the Visual Arts Centre
should not be holding reserve funds or investments with j
municipal funds . This will allow Treasury staff to monitor
future grant requests, expenditures, and to determine
whether excess or surplus amounts are a result of Town
grants .
. . . 3
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Respectfully submitted, Recommended for presentation
to t e Committee
Marie A. Marano, H.BSc. ,A.M.C.T. Lawrence Ptrative otseff,
Ad
Ai Chief A i Officer
MAM/jr
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