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HomeMy WebLinkAboutFND-017-15 A y q (I-IV, m_! , r, Finance Department Report If this information is required in an alternate accessible format, please contact the Municipal Clerk at 905-623-3379 ext. 2102. Report To: General Government Committee Date of Meeting: November 9th 2015 Report Number: FND-017-15 Resolution: GG File Number: By-law Number: Report Subject: Response to Council Request Regarding Clarington Museum Recommendations: It is respectfully recommended that the General Government Committee recommend to Council the following: 1. That Report FND-017-15 be received for information. Municipality of Clarington Report FND-017-15 Page 2 Report Overview This report is a response to the request of Council to provide details based on the Museum Board minutes included in the November 2, 2015 Council agenda pertaining to an update on the Museum finances, namely the transfer of $35,000 from Reserves to Operating. 1 .0 Background 1.1 At the Council meeting of November 2, 2015, the following resolution was passed. "That Item 10.1.3 being the minutes of the Clarington Museums Board dated October 14, 2015, be referred to staff for a report to the General Government Committee on the reason for the immediate need for a $35,000 transfer from the reserve funds into the general operating accounts to manage payments required since the last Board meeting." 1.2 As Council is aware, per By-law 2012-093, the Clarington Museum and Archives is a Municipal Service Board and their responsibilities include financial oversight. In August 2014, the Municipality and the Clarington Museum and Archives entered into a Memorandum of Understanding (MOU) that the Municipality of Clarington would process the financial records for the museum on a temporary basis to assist as a result of transitional issues. 1.3 This MOU was to be a temporary measure in order to assist the museum during a transition period with their financial reporting and provide a method for the Museum to maintain their financial reporting and autonomy. All records are being maintained on a stand-alone basis in the museum's systems so that the record keeping process could be transferred back to the Museum Board. Approvals for all financial activity continued as per customary practice and in accordance with the Museum's policies. The Municipality is simply processing transactions similar to an outsourcing model. Decision making and oversight remains the role of the Museum Board and Administrator. 1.4 As this is a Museum Board decision, attached is a copy of the Museum Finance Committee minutes and background documentation regarding the transfer of the $35,000 from their own reserve account. Any further questions should be directed to the Clarington Museum Board, as per the role of the Board established by By-law. Municipality of Clarington Report FND-017-15 Page 3 1.5 The Director of Finance/Treasurer was invited some time ago to attend the November 11, 2015 meeting of the Clarington Museum Board to address the transitioning of record keeping, as the duration has extended beyond the original intent as a temporary measure. 2.0 Concurrence - Not applicable 3.0 Conclusion It is recommended that Council receive this report for information. Strategic Plan Application — Not applicable Submitted by:y ,,, Reviewed by. '�..,�..- Nancy T lor, B, A, CPA, CA Franklin Wu, Director 'f Fina ce/Treasurer Chief Administrative Officer NT/CC/hjl Staff Contact: Nancy Taylor, Director of Finance/Treasurer, 905-623-3379 ext. 2602 or ntaylor clarington.net Attachments: Attachment 1 — Clarington Museum Finance Committee Minutes dated October 9, 2015 Interested parties: Clarington Museum Board Attachment 1 FN D-017-15 Finance Committee Present: Michael Adams, Staff; Olinda Casimiro, Chair; Katharine Warren; Councillor Willie Woo Regrets: Steven Cooke Date: Friday, 9 October Purpose of the meeting: 1. To set draft Terms of Reference for the Finance Committee 2. To discuss the transfer of$35,000 from reserve to operating NOTES: Please see attached draft Terms of Reference for the Finance Committee for board approval. The Finance Committee is requesting the Board to continue discussions regarding the $35,000 transfer until Municipality has completed updating financials, provide the tools necessary to monitor cashflow and assist in developing a workplan for bookkeeping requirements. Michael was asked to prepare draft 2016 Budget for review at the next Finance Committee Meeting. 2016 Budget will be presented for Board approval at the November 11 Board meeting. We are grateful to Councillor Woo for arranging three municipal staff to join us at the next Board meeting (October 14) and give short presentations to the Board. Please note, Michael has certainly developed positive relationships with Municipal staff and will continue to be the key liaison on behalf of the Museum. DRAFT 1 October 10, 2015 PREPARED BY O. Casimiro REVIEWED BY M. Adams FINANCE COMMITTEE TERMS OF REFERENCE The primary responsibility of the Finance Committee is to ensure the financial reporting, accounting systems, management plans and budgets, internal controls and investments of the Clarington Museums &Archives are vested in Administration and overseen by the Board of Directors. 1. Purpose The purpose of the Finance Committee is to advise the Board in fulfilling its obligations and oversight responsibilities relating to financial planning and property affairs of the Clarington Museums &Archives. 2. Composition and Quorum The Finance Committee is composed of four Directors, including the Board Chair, appointed to serve at the January meeting of the Board.The Executive Director will serve on the Finance Committee; however, the Executive Director may not make motions or vote. A majority of members of the Committee shall constitute a quorum. 3. Duties and Responsibilities Subject to the powers and duties of the Board, the Finance Committee will perform the following duties: 1. To review and provide recommendations to the Board regarding annual operating and capital budgets developed by the Executive Director. Once approved by the Board, the Executive Director submits annual operating and capital budget to the Finance Department at the Municipality on the 15' day of November each year prior to the ensuing financial year; in addition, review the Museum Budget held by the Municipality separate from the annual operating budget and advise the Board. 2. To review quarterly budget-to-actual reports provided by Executive Director. 3. To review and make recommendations to the Board regarding the approval authorized signing officers in respect of all banking and make recommendations to the Board in respect of banking services. 4. To review the investment management activities and makes recommendations to the Board on investment held by the Clarington Museums &Archives. I I 5. To review compliance with applicable tax requirements. 6. To review that the Museums are operated within approved budget limits by monitoring receipts, expenditures, cash on hand, bank balances and short term investments; 7. To review the monthly finance report prepared by the Executive Director and presented to the Board at each regular Board meeting, by the Treasurer or the Finance Committee Chair. 8. To review short and long term plans for the development of the Museums and corresponding financial requirements are in conformance with the Mission Statements and Mandates and in line with Strategic Priorities; 9. To review adequate funding is available from grant programs (federal, provincial, municipal and private sectors) to meet budget expenditures; 10. To ensure the Municipal Audit includes the Clarington Museums &Archives financial audit by the Municipal Auditor; S. Meetings The Committee meets at least four times per year. Additional meetings may be held as deemed necessary by the Committee Chair or as requested by any Committee member or the External Auditor. The Finance Committee Chair meets once a month with the Executive Director to review financial statements. 6. Reporting The Committee will report its activities to the Board at the next Board meeting. 7. Responsibility for Policy Review The Committee has responsibility to review the Finance Committee Terms of Reference at least every two years, and more frequently if necessary (e.g., based on legislative or regulatory changes, or a development in governance best practices). Terms of References be reviewed, updated and presented to the Board for approval every 3 years.