HomeMy WebLinkAboutAFC 2013-11-12 AgendaCorporation of the District of Maple RidgeCorporation of the District of Maple RidgeCorporation of the District of Maple RidgeCorporation of the District of Maple Ridge
Audit & Finance CommitteeAudit & Finance CommitteeAudit & Finance CommitteeAudit & Finance Committee
Nov 12Nov 12Nov 12Nov 12, 2013, 2013, 2013, 2013
5:30 PM5:30 PM5:30 PM5:30 PM
Blaney RoomBlaney RoomBlaney RoomBlaney Room
Chairperson:Chairperson:Chairperson:Chairperson: Councillor M. Morden
Committee Members:Committee Members:Committee Members:Committee Members: Councillors: C. Bell; R. Masse; Mayor Daykin
Staff:Staff:Staff:Staff: Chief Administrative Officer: J. Rule
GM – Corporate & Financial Svc: P. Gill
GM – Public Works & Development F. Quinn
GM – Community Dev. Park & Rec K. Swift
Manager of Accounting: C. Nolan
Recording Secretary:Recording Secretary:Recording Secretary:Recording Secretary: Amanda Gaunt
AGENDAAGENDAAGENDAAGENDA
1.1.1.1. Approval ofApproval ofApproval ofApproval of aaaagendagendagendagenda
2.2.2.2. Approval of Approval of Approval of Approval of mmmminutes of inutes of inutes of inutes of May 6May 6May 6May 6, 2013, 2013, 2013, 2013
3.3.3.3. PS3260 PS3260 PS3260 PS3260 –––– Liability for Contaminated Sites ImplementationLiability for Contaminated Sites ImplementationLiability for Contaminated Sites ImplementationLiability for Contaminated Sites Implementation
4.4.4.4. 2014201420142014----2018 Financial Plan 2018 Financial Plan 2018 Financial Plan 2018 Financial Plan –––– Preliminary OverviewPreliminary OverviewPreliminary OverviewPreliminary Overview - discussion
5.5.5.5. InvestmentsInvestmentsInvestmentsInvestments – report to be circulated separately
6.6.6.6. Next MeetingNext MeetingNext MeetingNext Meeting
_”original signed by Catherine Nolan”
Agenda submitted by: C. Nolan, CGA
Manager of Accounting
District of Maple RidgeDistrict of Maple RidgeDistrict of Maple RidgeDistrict of Maple Ridge
Audit & Finance CommitteeAudit & Finance CommitteeAudit & Finance CommitteeAudit & Finance Committee Meeting MinutesMeeting MinutesMeeting MinutesMeeting Minutes
May 6, 2013
The Minutes of the Audit and Finance Committee Meeting held in the Blaney Room of
the Municipal Hall, 11995 Haney Place, Maple Ridge, BC on Monday, May 6, 2013 at
8:00 a.m.
PRESENTPRESENTPRESENTPRESENT
Committee MembersCommittee MembersCommittee MembersCommittee Members Municipal StaffMunicipal StaffMunicipal StaffMunicipal Staff
Councillor Morden, Chair J. Rule, Chief Administrative Officer
Mayor Daykin P. Gill, General Manager, Corporate & Financial Services
Councillor Bell K. Swift, General Manager of Community Development, Parks
Councillor Masse and Recreation Services
C. Nolan, Manager of Accounting
GuestsGuestsGuestsGuests T. Thompson, Manager of Financial Planning
Councillor Hogarth A. Gaunt, Confidential Secretary
Councillor Ashlie
B. Cox (BDO Canada, LLP)
The meeting was called to order at 8:00 a.m.
1.1.1.1. Approval ofApproval ofApproval ofApproval of aaaagendagendagendagenda
MOVEDMOVEDMOVEDMOVED by Mayor Daykin and SECONDEDSECONDEDSECONDEDSECONDED by Councillor Bell that the agenda be
approved as circulated.
CARRIEDCARRIEDCARRIEDCARRIED
2.2.2.2. Approval of Approval of Approval of Approval of mmmminutes of inutes of inutes of inutes of April 22April 22April 22April 22, 2013, 2013, 2013, 2013
MOVEDMOVEDMOVEDMOVED by Mayor Daykin and SECONDEDSECONDEDSECONDEDSECONDED by Councillor Bell that the minutes of
April 22, 2013 be approved.
CARRIEDCARRIEDCARRIEDCARRIED
3.3.3.3. 2012 Audit Update2012 Audit Update2012 Audit Update2012 Audit Update
Overview of 2012 audit by external auditor
The auditor provided an overview of audit findings and reviewed the
management letter dated April 23, 2013
Audit & Finance Committee Meeting Minutes
May 6, 2013
Page 2
He advised that the District has received a clean audit opinion and that all
transactions, balances, statements and disclosures are accurate in all material
respects. He highlighted the section on possible fraud and illegal activities and
advised that it is the auditor’s responsibility to report any activities brought to
their attention and that there is nothing to report on this issue.
The Auditor addressed audit materiality and the level set for materiality.
The General Manager of Corporate and Financial Services advised on the
transactions in the utility fund.
The auditor reviewed the management letter and advised that they look for
practices which benefit or do not benefit the organization and put forward
recommendations pertaining to a process which may be helpful. He also
advised on Canada Revenue Agency regulations relating to the use of a service
provided by a non-resident organization.
4.4.4.4. InvestmentsInvestmentsInvestmentsInvestments
Review of investment listing and ROI information
The Manager of Financial Planning reviewed the staff report and the investment
report summary. He advised on internal investments and terms as well as the
budgeting process for investments.
Note:Note:Note:Note: All All All All staff left staff left staff left staff left the meeting at 8:34 a.m. to allow Council to meet with the Auditor.the meeting at 8:34 a.m. to allow Council to meet with the Auditor.the meeting at 8:34 a.m. to allow Council to meet with the Auditor.the meeting at 8:34 a.m. to allow Council to meet with the Auditor.
5.5.5.5. Next MeetingNext MeetingNext MeetingNext Meeting
AdjournmentAdjournmentAdjournmentAdjournment –––– 8:45 a.m.8:45 a.m.8:45 a.m.8:45 a.m.
____________________________________________
Councillor Morden, Chair
1 of 2
District of Maple RidgeDistrict of Maple RidgeDistrict of Maple RidgeDistrict of Maple Ridge
TO:TO:TO:TO: Councillor Michael Morden MEETINGMEETINGMEETINGMEETING DATE:DATE:DATE:DATE: 12-Nov-2013
and Members of the Audit & Finance
Committee FILE NO:FILE NO:FILE NO:FILE NO:
FROM:FROM:FROM:FROM: Manager of Accounting MEETING:MEETING:MEETING:MEETING:
SUBJECTSUBJECTSUBJECTSUBJECT: PS3260 – Liability for Contaminated Sites
Executive SumExecutive SumExecutive SumExecutive Summarymarymarymary
As per the Community Charter, the District is required to prepare its financial statements in accordance with
generally accepted accounting principals for local governments, which in Canada are prescribed by the
Public Sector Accounting Board (PSAB). As new standards are introduced the District must implement those
standards. By the end of fiscal year 2015 the District must implement PS3260 – Liability for Contaminated
Sites, a new standard that requires the District to review its land holdings for possible contamination, and
based on the District’s intended actions, determine whether or not a liability needs to be recorded to
recognize a future economic cost. Implementing this standard will require some dedicated funding be set
aside as part of our 2013 year-end processes.
Recommendation: Recommendation: Recommendation: Recommendation:
Receive for information.
Discussion:Discussion:Discussion:Discussion:
The Community Charter (section 167) requires us to prepare our financial statements in accordance with
generally accepted accounting principles for local governments. The Public Sector Accounting Board (PSAB)
is the accounting standard setting body for all government entities in Canada. In order for us to receive a
clean audit opinion and meet our Community Charter obligations, we must follow PSAB accounting
standards.
It is not unusual for PSAB to issue new accounting standards, most of which can be implemented with little
impact. From time to time, however, new standards are introduced that require work from multiple
departments to implement. The most recent was the implementation of PS3150 – Tangible Capital Assets
and the related reporting model. Implementing this standard required us to inventory and value all of our
tangible capital assets; a significant undertaking that involved resources from most municipal departments
as well as dedicated funding.
Over 2014 and 2015, all governments are required to implement PS3260 – Liability for Contaminated Sites.
The standard limits the scope of “contamination” to include only those substances for which an
environmental standard has been defined. In BC, the Ministry of Environment has set those standards in
their Contaminated Sites Regulation.
PS3260 requires us to look first at our land holdings that are not in productive use. This is the land
recorded as “undeveloped land bank properties” on our Financial Statements. We will need to determine if,
based on historical use of the site, it is likely that contamination, as defined by the PSAB standard, exists.
Once we have a list of possible contaminated sites we will need to determine if environmental testing is
required to define the extent of the contamination and estimated remediation costs, and record the related
liability. If there is no intent to undertake remediation, and there is no likelihood of future economic cost to
the District, then there is no need to undertake testing and no liability to record.
Implementing PS3260 does not require us to undertake remediation, but does require us to recognize the
future economic cost to the District as a result of our intended future actions relating to contamination. An
MAPLE RIDGE
British Columbia
2 of 2
example of property that will be considered under this standard is the town centre land acquired by the
District a few years ago. As the committee will recall, there was contamination discovered on the site after
we acquired it and some remediation work was undertaken. On the recommendation of a consultant, the
District opted not to undertake further remediation work or pursue an Environmental Certificate of
Compliance at the time as the standard of remediation could differ depending on the final use. Our intent is
to market the property in the future and the final sale price will take into consideration any further costs
needed to satisfy Ministry requirements. In order to satisfy PS3260 requirements we will need to consider
whether or not we need to record a liability for this site.
The procedures noted above do not apply to District land that is in productive use, for example our parks or
other facilities. What PS3260 will require us to do for our productive land is to consider the impacts of
“unexpected events” starting in the year of implementation. An example of an “unexpected event” would be
something like a chemical spill at the Operations Centre. Starting in 2014, should something like this occur
we would need to determine if an environmental standard had been exceeded, estimate the cost of
remediation or other economic loss, and record a liability if appropriate.
Implementing this standard will require work from several departments and this commitment is reflected in
their business plans. In addition to staff time, it may be necessary to have environmental assessments
conducted and there will be additional audit work required. It is difficult to estimate what the cost of this will
be; some government entities are facing costs of up to $150,000 for environmental assessments on
individual properties. As noted in the Financial Update report of August 26, it will be necessary to dedicate
some funding to this project as part of our year-end processes. We’re recommending that $125,000 be set
aside as part of our 2013 year end processes to start building the capacity to implement this standard. This
may need to be augmented in future years. Any funding set aside that is not needed for the implementation
will be returned to surplus.
ConclusionsConclusionsConclusionsConclusions::::
As noted above, the District does not have any discretion about whether or not to follow PSAB accounting
guidelines or implement new standards; to receive a clean audit opinion, as required by the Community
Charter, we must follow PSAB guidelines. To implement this standard successfully, staff is recommending
that $125,000 be set aside as part of our 2013 year-end processes, recognizing that this may need to be
augmented in future years. Any funding set aside that is not needed for the implementation will be returned
to surplus.
_____”Original signed by Catherine Nolan”________
Prepared by: Catherine Nolan, CGA
Manager of Accounting
_____”Original signed by Dane Spence” for_______
Approved by: Paul Gill, CGA
GM, Corporate and Financial Services
_____”Original signed by Jim Rule”______________
Concurrence: J.L. (Jim) RuleJ.L. (Jim) RuleJ.L. (Jim) RuleJ.L. (Jim) Rule
Chief Administrative OfficerChief Administrative OfficerChief Administrative OfficerChief Administrative Officer