HomeMy WebLinkAboutTR-079-00
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
REPORT
Date:
December 11, 2000
File #: 1-9/ [,
Res.#(:jf1- lfq'f-o 0
BY-LaW#~~
Capital Fund Accounting System and PSAB ReqUirements~d
File#:
Meeting:
General Purpose and Administration Committee
Report #:
Subject:
TR-79-00
Recommendations:
It is respectfully recommended the General Purpose and Administration Committee
recommend to Council the following:
1.0 THAT Report TR-79-00 be received;
2.0 THAT the Municipality establish a Capital Fund Accounting System;
3.0 THAT interest earned in the Capital Fund be transferred periodically into the
Municipal Capital Works Reserve Fund;
4.0 THAT, excluding Development Charges related projects, any Capital Fund financing
shortfalls below Purchasing By-Law requirements be Funded from the Municipal
Capital Works Reserve Fund;
5.0 THAT, excluding Development Charges related projects, any Capital Fund
surpluses be transferred to the Municipal Capital Works Reserve Fund;
6.0 THAT in preparation for complying with the Public Sector Accounting Board
requirements, the following, in addition to any future Reserves determined to be
more appropriately reflected as Reserve Funds: Computer Equipment Reserve be
changed to the Computer Equipment Reserve Fund; the Animal Control Equipment
Reserve and the Animal Control Building Reserve be combined and changed to the
Animal Control Reserve Fund; the Fire Equipment Reserve and the Fire Fighters
Co-Training Reserve be combined and changed to the Fire Equipment Reserve
Fund; and that the Public Works Equipment Reserve be changed to the Public
Works Equipment Reserve Fund; and
7.0 THAT the attached By-Laws be approved.
825
TR-79-00
Capital Fund Accounting System and PSAB Requirements
Page 2 of 3
Background:
1.0 In a letter to Municipal Treasurers and Auditors dated April 12, 2000 from the
Ministry of Municipal Affairs and Housing, the Municipality was notified of the
following: "It has been decided that the accounting recommendations and
disclosure requirements, as prescribed by the Public Sector Accounting Board
(PSAB) of the Canadian Institute of Chartered Accountants, be adopted for use
by Ontario municipalities".
2.0 As a result, the format of the Municipality's financial statements will change for
2000 and 1999 comparative information will be restated. In preparation for the
restatement and revisions to the financial statements, staff are recommending
that several project specific Reserves be transferred into speCific newly created
Reserve Funds. By-Laws to establish the Reserve Funds are attached.
Capital Fund Accounting System:
3.0 It has been recommended in the annual management letter from the
Municipality's auditors, Deloitte & Touche, that the Municipality adopt a formal
Capital Fund Accounting System. The recommendation was as follows:
"Due to the increasing number and complexity of capital projects undertaken by
the Municipality, we suggest that the Municipality consider establishing a formal
Capital Fund Ledger to further improve your financial information.
Such a ledger would allow for easier monitoring of capital projects, help to
eliminate the need to transfer unexpended capital financing to Reserve/Reserve
Funds at the end of each year, and provide for more informative reporting of
unencumbered Reserves and Reserve Fund balances."
4.0 Currently, unexpended capital financing is recorded through commitments to the
Reserve and Reserve Funds, which is included in the Budget and Trial Balances.
Staff recommended in Report TR-61-00, entitled 1999 Audit Report and
Management Letter, that it would be more cost effective to establish new Capital
Fund accounting procedures in conjunction with the financial software
replacement planned for 2001.
4.1 Due to the requirements of PSAB to be implemented for the 2000 reporting year,
it is necessary to establish the capital Fund ledger system for the purposes of
financial reporting.
4.2 Staff are proposing that the Capital Fund be structured such that once the Capital
Budget is approved each year, capital financing be transferred into the Capital
Fund. Interest earned in the capital Fund during the year will be transferred into
the Municipal Capital Works Reserve Fund. This will help to offset any minor
cost overruns that would then be financed from the Municipal Capital Works
Reserve Fund. As per existing policy, all Purchasing By-Law requirements would
be adhered to for any tender results above budget approvals.
826
TR-79-00
Capital Fund Accounting System and PSAB Requirements
Page 3 of 3
4.3 It is also recommended that any Capital Budget surplus from actual costs coming
in below budget would be transferred to the Municipal Capital Works Reserve
Fund.
4.4 The only exception to the above would be for any Development Charge related
projects. Due to particular legislative requirements, financing would only be
transferred into the capital Fund for Development Charge related projects as
actual expenditures occur so that all overruns, savings, or interest is allocated
appropriately to the Development Charges Reserve Funds.
Conclusion:
5.0 The above recommendations will allow for the establishment of the Capital Fund
Accounting System in compliance with PSAB. This will, in effect, transfer the
committed balances in the Reserve Funds into the Capital Fund without
impacting the available balances in the Reserve Funds.
Respectfully submitted,
tl~
Marie Marano, HBSc., AMCT, CMO.,
Treasurer.
Reviewed by,
o
Franklin Wu,
Chief Administrative Officer.
MM/NTlhjl
827
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW #2000-
Being a By-Law to establish a Reserve Fund
For Fire Equipment and
To Repeal By-Law 93-208
WHEREAS the Council of the Corporation of the Municipality ofClarington considers it
desirable to establish a Reserve Fund for Fire Equipment.
AND WHEREAS Chapter MAS, Section 163(1) of the Municipal Act R.S.O. 1990,
provides that, "Every municipality as defined in the MWlicipal Affairs Act and every
board, commission, body or local authority established or exercising any power or
authority with respect to municipal affairs under any general or special Act in an
unorganized township or in unsurveyed territory may in each year provide in the
estimates for the establislunent or maintenance of a reserve fund for any purpose for
which it has authority to spend funds, but if the approval of the council is required by law
for a capital expenditure or the issue of debentures of or on behalf of a local board, the
approval of the council of a provision in the estimates of the local board for a reserve
fund shall be obtained".
NOW THEREFORE, Be It Enacted and It Is Enacted, as a By-Law of the Corporation of
the Municipality of Clarington as follows:
1. THAT the Treasurer be authorized to establish a reserve fund entitled
"Reserve Fund - Fire Equipment";
2. THAT the balance in the Fire Department Equipment Reserve and the
balance in the Firefighters Co-training Reserve be deposited into this
reserve fund, and
3. THAT the Council may, by resolution passed by a majority of members
present, direct the use of the funds for municipal purposes.
By-Law read a first and second time this 18th day of December 2000.
By-Law read a third and finally passed this ISth day of December 2000.
Mayor
Clerk
828
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW #2000-
Being a By-Law to establish a Reserve Fund
For Public Works Equipment
To Repeal By-Law 83-46
WHEREAS the Council of the Corporation of the Municipality ofClarington considers it
desirable to establish a Reserve Fund for Public Works Equipment.
AND WHEREAS Chapter MAS, Section 163(1) of the Municipal Act R.S.O. 1990,
provides that, "Every municipality as defined in the Municipal Affairs Act and every
board, commission, body or local authority established or exercising any power or
authority with respect to municipal affairs under any general or special Act in an
unorganized township or in unsurveyed territory may in each year provide in the
estimates for the establishment or maintenance of a reserve fund for any purpose for
which it has authority to spend funds, but if the approval of the council is required by law
for a capital expenditure or the issue of debentures of or on behalf of a local board, the
approval of the council of a provision in the estimates of the local board for a reserve
fund shall be obtained".
"OW THEREFORE, Be It Enacted and It Is Enacted, as a By-Law of the Corporation of
the Municipality of Clarington as follows:
1. THAT the Treasurer be authorized to establish a reserve fund entitled
"Reserve Fund - Public \Vorks Equipment";
2. THAT the balance in the Public Works Equipment Reserve be deposited
into this reserve fund, and
3. THAT the Council may, by resolution passed by a majority of members
present, direct the use of the funds for municipal purposes.
By-Law read a first and second time this 18th day of December 2000.
By-Law read a third and finally passed this 18th day of December 2000.
Mayor
Clerk
829
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW #2000-
Being a By-Law to establish a Reserve Fund
For Animal Control and
To Repeal By-Law 89-156
\VHEREAS the Council of the Corporation of the Municipality ofClarington considers it
desirable to establish a Reserve Fund for Animal Control.
AND WHEREAS Chapter MAS, Section 163(1) of the Municipal Act R.S.O. 1990,
provides that, "Every municipality as defined in the Municipal Affairs Act and every
board, commission, body or local authority established or exercising any power or
authority with respect to municipal affairs under any general or special Act in an
unorganized township or in unsurveyed territory may in each year provide in the
estimates for the establishment or maintenance of a reserve fimd for any purpose for
which it has authority to spend funds, but if the approval of the council is required by law
for a capital expenditure or the issue of debentures of or on behalf of a local board, the
approval of the council of a provision in the estimates of the local board for a reserve
fund shall be obtained".
NOW THEREFORE, Be It Enacted and It Is Enacted, as a By-Law of the Corporation of
the Municipality of Clarington as follows:
1. THAT the Treasurer be authorized to establish a reserve fund entitled
"Reserve Fund - Animal Control";
2. THAT the balance in the Animal Control Equipment Reserve and the
balance in the Animal Control Building Reserve be deposited into this
reserve fund. and
3. THAT the Council may, by resolution passed by a majority of members
present, direct the use of the funds for municipal purposes.
By-Law read a first and second time this 18th day of December 2000.
By-Law read a third and finally passed this 18'h day of December 2000.
Mayor
Clerk
830
THE CORPORATION OF THE MUNICIPALITY OF CLARlNGTON
BY-LAW #2000-
Being a By-Law to establish a Reserve Fund
For Computer Equipment
To Repeal By-Law 88-4
WHEREAS the Council of the Corporation of the Municipality ofClarington considers it
desirable to establish a Reserve Fund for Computer Equipment.
AND WHEREAS Chapter MA5, Section 163(1) of the Municipal Act R.S.O. 1990,
provides that, "Every municipality as defined in the Municipal Affairs Act and every
board, commission, body or local authority established or exercising any power or
authority with respect to municipal affairs under any general or special Act in an
unorganized tovmship or in unsurveyed territory may in each year provide in the
estimates for the establishment or maintenance of a reserve fund for any purpose for
which it has authority to spend funds, but if the approval of the council is required by law
for a capital expenditure or the issue of debentures of or on behalf of a local board, the
approval of the council ofa provision in the estimates of the local board for a reserve
fund shall be obtained".
NOW THEREFORE, Be It Enacted and It Is Enacted, as a By-Law of the Corporation of
the Municipality of Clarington as follows:
1. THAT the Treasurer be authorized to establish a reserve fund entitled
"Reserve Fund - Computer Equipment";
2. THAT the balance in the Computer Equipment Reserve be deposited into
this reserve fWld, and
3. THAT the COWlcil may, by resolution passed by a majority ofmemhers
present, direct the use of the funds for municipal purposes.
By. Law read a first and second time this 18th day of December 2000.
By-Law read a third and tinally passed this 18th day of December 2000.
Mayor
Clerk
831