Loading...
HomeMy WebLinkAboutTR-20-83 N5 � CORPORATION OF THE TOWN OF NEWCASTLE 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO L1C3A6 TELEPHONE 623-3379 REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION MEETING HELD ON APRIL 18, 1983. TR-83-20 SUBJECT: TRANSFER OF RECORDKEEPING TO VARIOUS BOARDS. RECOMMENDATION: It is respectfully recommended: 1 . That this report be received; and 2. That the recordkeeping and associated banking functions for the general operations of The Bowmanville Museum Board, Clarke Museum Board, Bowmanville Business Improvement Area and The Newcastle Business Improvement Area be transfered to The Treasurer of the individual board at a mutally agreed upon date on or before June 1 , 1983; and 3. That a meeting be convened with the Town of Newcastle Library Board to discuss the assessing of a charge to cover the processing of the library's bi-weekly payroll and the associated administration costs related to that payroll activity. BACKGROUND & COMMENT: General Comments In reviewing the role of the Treasury department as it related to the various boards of the Town, Staff feel that the department should be acting more as a source of financial information and advice rather than as a processing and bookkeeping service. All of the appointed boards of the Town are charged with the responsibility for their financial activities on a day to day basis. Confusion arises when the processing and bookkeeping for the day to day activities are handled by a body separate from the board, namely the Treasury Department. On a regular basis no staff member in the Treasury devotes any time to the analysis of these various board records which are maintained through the Town's computer system. 1 . ._/2 ,� - 2 - TR-83-20 April 18, 1983. Transfer of Recordkeepinq to Various Boards This has resulted in some misunderstandings at the board level as to who has responsibility for the review and control of the various accounts. This review and control process lies entirely with the board. Since the boards receive a hard copy of their transactions only on a monthly basis, they are not as up to date on their financial position as they would be if they controlled their own recordkeeping and banking. In addition, the operating budgets of the boards do not involve such large dollar transactions that they could not be easily handled by the board directly through the operation of chequeing and non-chequeing bank accounts. A set of cash books (receipts and disbursements) would serve the purposes of the boards better and put them on the same footing as other boards in the Town. During the course of any fiscal year, the Treasury Department receives requests from these various boards for immediate payment of accounts, status reports etc. , i which on a short turn around, we can not produce. If the boards operated separate bank accounts and maintained a set of cash books, they would have ready access to their funds as required and up to date information on their receipts, and expenditures year to date. It would impose a form of fiscal restraint on the boards because they would not be able to spend beyond their cash resources. The boards can, at this time, spend beyond their cash resources because their source of funding is the Town' s general bank. No separate bank accounts are maintained for the boards. The next two months are a particularly opportune time to make this change in bookkeeping responsibility as the Town has received job creation monies to provide for an accounting position within the Treasury Department. This person would be able to give individual attention to the various boards and assist in the transfer of the recordkeeping function to individual boards, as required. In addition, he could explain bank reconciliation procedures, budget procedures, cash bookkeeping procedures, etc. to the individual treasurers. He would also be able to continue the program, which the Town began in 1982, of reviewing all the local boards' financial records on a semi- annual basis. . . ./3 TR-83-20 April 18, 1983. Transfer of Recordkeeping to Various Boards With this change in the responsibility for recordkeeping, these boards would be subject to the same semi.-annual financial review and annual audit as all other boards within the Town. Museum Boards With regard to the two museum boards, staff feel they should be charged with the same fiscal responsibility as are all other local boards which are appointed by Council . In fact, the boards have requested this financial independence in the past. For the major capital projects or studies, the board would still require the Town's approval and assistance in the calling of tenders or proposals. Since the museums major source of funding are the Town and the provincial government, a schedule of payments of grant monies must be developed to ensure the boards have sufficient funds in hand to operate the facilities. Business Improvement Areas The Newcastle Business Improvement Area and the Bowmanville Business Improvement Area have recordkeeping and banking handled through the Treasury Department. The Orono Business Improvement Area is paid its levy and handles its own financial records and banking. Staff do not see any reason to continue the relationship with the two Business Improvement Areas as they can easily handle their own budgets. It would certainly simplify the administration of their funds and give them a more ready access to their funds. The Main Street Revitalization capital programs which are to take place in 1983 and 1984, would be handled through the Town Offices because of the magnitude of these projects. In addition, the funding and related expenditures for these projects may not be matched perfectly as to timing, and therefore the Town may be required to provide short term financing over the course of the projects. Library As of July 1982, the 'kibrary took over the responsibility for its recordkeeping and banking, with the exception of payroll matters. It takes approximately four hours of Treasury Department Staff time per pay period to input the Library payroll and prepare the necessary payroll journal entries and billings. Throughout the . . ./4 TR-83-20 April 18, 1983. Transfer of Recordkeeping to Various Boards Library - cont'd. . . year, the Treasury Department Staff are engaged in payroll amendments, benefit analysis, W.C.B. calculations and claims, T4 preparation etc. for the library. (see schedule attached) Staff feel their service to the library should be recognized by levying a charge, in that this service takes time away from our prime responsibilities,being those of the municipal corporation, not the local boards. In addition, Committe might consider a variation in the timing of the payment of the library board levy. Staff propose the following schedule: January 15 35% of the prior year's levy. April 1 30% of current year's levy. August 1 balance of current year' s levy. With this change in the payment schedule, the Town would anticipate that the library would pay its accounts with the Town promptly and on time. Also, it might give the library an opportunity to make some investment income with the short term cash excesses. In conclusion, staff hope that these recommended amendments to the recordkeeping and banking for the various boards will have a positive effect,on their ability to manage their budgets. Committee will realize that as individual entities their recordkeeping is fairly simple and straight-foward. For that very reason that these boards are separate entities, they cause accounting problems and needless headaches when included within the day to day recordkeeping of the Town. With the accounting position provided through the job creation program, the timing for such a change in recordkeeping could not be more opportune. Respectfully submitted, C� . Kathry A. Campbell , C.A. , B.Comm. , �3 Treasurer KAC/slg Att: 1 Approximate Costs to Process Library Payroll on an Annual Basis Bi-Weekly Reports Cost per Year Journal Entreis - (acc.# 1100 series) 13 hours $115. Time Sheets 13 hours 100. Payroll Register Analysis 13 hours 100. OMERS 13 hours 115. Dental 52 hours 400. Employee Adjustments, New. Employees & 39 hours 340. Terminations Monthly Reports Dominion Bureau of Statistics 36 hours 365. Monthly Billing 36 hours 365. Yearly Reports T4's 2 hours 20. OMERS Annual Report 1 .5 hours 15. W.C.B. 1 hour 10. $1 ,945. Plus benefit costs and Administration time & materials 350. $2,295. The above figures are all approximates. ,dw u�»ii ocr M„ A( CORPORATION OF THE TOWN OF NEWCASTLE 7)'A 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO L1C3A6 TELEPHONE 623-3379 April 7th, 1983. Dear Sir/Madam: Re: Transfer of Recordkeepino to Various Boards. Further to the above matter, attached please find a copy of Treasury Report #TR-83-20, which will be forwarded to the G.P.A. Committee Meeting to be held April 18th, 1983. I am forwarding the same to you for your information prior to the meeting. Trusting the foregoing is satisfactory, I remain. Yours truly, k _ Ls._- Kate Campbell , C.A. , B.Com. , Treasurer KAC/sf Encl . p.c. Mayor G.B. Rickard Council VD.N. Smith, Administrator LIST OF BOARDS Bowmanville Museum Board Newcastle Village Business Improvement Ellen Logan, Secretary Area 3 Lorraine Crt. Tom Schmahl , Secretary-Treasurer Bowmanville, Ontario 49 King Street East L1C 3L5 Newcastle, Ontario LOA 1HO Clarke Museum & Archives Marlene Risebrough, Secretary Town of Newcastle Public Library Board R.R.# 2 Barbara Schon, Secretary-Treasurer & Leskard, Ontario Chief Librarian LOB IMO 62 Temperance Street Bowmanville, Ontario L1C 3A8 Bowmanville Business Improvement Area Jack Landers, Secretary-Treasurer P.O. Box 365 Bowmanville, Ontario L1C 3L1