HomeMy WebLinkAboutAFC 2017-10-03 Agenda.pdfCity of Maple Ridge
Audit & Finance Committee
October 3, 2017
5:00 PM
Blaney Room
Chairperson: Councillor Masse
Committee Members: Mayor Read; Councillors C. Bell; K. Duncan; G. Robson; T. Shymkiw;
C. Speirs
Staff: Chief Administrative Officer: P. Gill
GM – Public Works & Development F. Quinn
GM – Community Dev. Park & Rec K. Swift
Manager of Accounting: C. Nolan
Manager of Financial Planning T. Thompson
Manager Sustainability & Corporate Planning L. Benson
Recording Secretary: Amanda Gaunt
AGENDA
1. Approval of agenda
2. Approval of minutes of July 18, 2017
3. Financial Update
4. Appointment of Auditors
5. Adjournment
“Original signed by Catherine Nolan”
_________________________________________________________________________________________________ Agenda submitted by: C. Nolan, CPA, CGA
Manager of Accounting
City of Maple Ridge
Audit & Finance Committee Meeting Minutes
July 18, 2017
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, July 18, 2017 at 5:00
p.m.
PRESENT
Committee Members Municipal Staff
Councillor Masse, Chair F. Quinn, Acting Chief Administrative Officer/General Manager
Councillor Bell Public Works & Development Services
Councillor Duncan P. Gill, General Manager Corporate & Financial Services
Councillor Robson K. Swift, General Manager Parks, Recreation & Culture
Councillor Shymkiw C. Nolan, Manager of Accounting
Councillor Speirs CK Lee, Acting Manager of Financial Planning/Finance Analyst
Attending via phone Guests
Mayor Read Ron Wallsmith Community Services Board of Directors
Graham Plant Consultant CPA Development
Clive Williams Community Services Board of Directors
Vikki Kipps Community Services Executive Director
Stuart Mont Community Services Director of Finance
The meeting was called to order at 5:00 p.m.
1. Approval of the Agenda
It was moved and seconded
That the agenda for the July 18, 2017 Audit & Finance Committee meeting be
approved as circulated.
CARRIED
2. Approval of minutes of May 29, 2017
It was moved and seconded
That the minutes of the Audit & Finance Committee of May 29, 2017 be adopted
as circulated.
CARRIED
Audit & Finance Committee Meeting Minutes
July 18, 2017
Page 2
3. Community Services Development Proposal
Staff report dated July 18, 2017 recommending that staff be directed to develop a
program to provide assistance to the Community Services Council project following
the framework of the recently expired Town Centre Incentive Plan.
Mr. Gill introduced the staff report and reviewed information that was presented at
the May 29 Audit & Finance Committee meeting. Representatives from the
Community Services Council spoke to their development proposal and some of the
related costs.
It was moved and seconded
That the staff recommendation be amended to provide assistance to the
Community Services Council project by changing the framework of the recently
expired Town Centre Incentive Plan to increase the exemption on DCC’s from 10%
to 20% and to increase the time frame for tax exemptions from 3 years to 5 years.
WITHDRAWN
It was moved and seconded
That staff be directed to develop a program to provide assistance to the Community
Services Council project following the framework of the recently expired Town
Centre Incentive Plan.
CARRIED
4. Facilities Funding Model
Staff report dated July 18, 2017 recommending that the Financial Plan be amended
to include capital projects, operating costs and associated funding as outlined in the
report titled “Funding Model for Council endorsed Parks and Recreation Facilities
and that a separate Loan Authorization Bylaw be prepared for each project.
It was moved and seconded
That the Financial Plan be amended to include the capital projects, operating costs
and associated funding, as outlined in the report “Funding Model for Council
endorsed Parks and Recreation Facilities” dated July 18, 2017, and brought
forward for Council’s consideration; and further
That a separate Loan Authorization Bylaw be prepared for each project and brought
forward for Council’s consideration.
CARRIED
5. Adjournment – 6:05
____________________________________________
B. Masse, Chair
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City of Maple Ridge
TO: Councillor Bob Masse MEETING DATE: 3-Oct-2017
and Members of the Audit & Finance
Committee FILE NO:
FROM: Manager of Accounting MEETING: Audit & Finance
SUBJECT: Financial Update - 2017
EXECUTIVE SUMMARY:
This report provides an update on financial activities to the end of August 2017. While forecasts of
year-end results have not been provided, information about emerging trends has been included. By
the end of August, the majority of the city’s revenues have been realized and expenses are in line
with financial plan targets. If all activities in the Financial Plan adopted in May are completed we will
see a draw on General Revenue Surplus of approximately $650,000. Indications are that year end
results will be favorable in comparison to planned results. A preliminary update of financial results
for 2017 will be provided in the first quarter of 2018.
RECOMMENDATION:
None required – information only.
DISCUSSION:
The purpose of this report is to provide the Audit & Finance Committee with an update on financial
performance and information regarding emerging trends for 2017 in the General Revenue Fund.
The report is based on information as at the end of August and focusses on some of the key items
that typically contribute to year-end results.
Forecasts of year-end results have not been provided, although indications are that results will be
favourable in comparison to the financial plan. The City’s normal business cycle results in revenues
being realized in the first half of the year with expenses being recorded more evenly, but with the
majority recorded in the latter half of the year.
As noted above, by the end of August the majority of the City’s revenues for the year have been
realized through the property tax levy. Other items to make note of regarding our revenues include
the following:
Building permit revenues at the end of August are $2.8 million, ahead of financial plan
targets of $2.46 million for the year.
Investment earnings are trending ahead of financial plan targets as at the end of August. It
should be noted, that the size of our investment portfolio ($183 million) is driven in part by
timing differences between planned and actual delivery of capital projects. Should we see
this timing difference begin to close we will see a corresponding drop in investment earnings.
The sale of the first phase of town centre lands completed in June resulting in proceeds of
$1.582 million. As per Council direction, the monies from the sale of these lands are being
directed toward the development of artificial turf fields.
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Gaming revenues are expected to exceed financial plan targets and will be directed to
reserves in accordance with Council’s policy.
The Financial Plan includes an expected $300,000 in revenue from gravel sales that will not
be realized in 2017. There is work underway to determine if there is an economic benefit to
further developing the site.
On the expense side, costs are below budget, as expected at this time of year. Some key items we
continue to monitor include:
The progress toward various studies & projects. These items are often carried forward from
prior years as the work can span a number of years. Variances in these accounts can create
the appearance of savings, but as the unspent budgets are transferred to reserves at year -
end they do not contribute to bottom line savings.
A number of areas will see some savings in salaries due to vacancies.
Overall costs in the Fire Department. This is one of our largest cost centres and the
department takes care to ensure costs are within the overall budget envelope each year. To
date there is nothing to indicate they will not be able to achieve this in 2017.
Borrowing for Fire Hall #4 will not be entered into this year resulting in savings on principal &
interest of $800,000. Funding for this comes from the Fire Department Capital Acquisition
Reserve and the monies will remain in the reserve until needed.
As in previous years, we will likely see some savings for the RCMP contract costs. In line with
practice, a portion of these savings will be transferred to the Police Services Rese rve to
provide for future costs.
Overall, costs in Parks, Recreation & Culture are in line with expectations at the end of
August. The decision to keep the Leisure Centre open this year, in advance of the shutdown
for renovations, could impact final results for the facility but if current trends continue we
expect to be within financial plan targets for the year.
Costs for snow removal exceed the financial plan targets as a result of the higher than
normal volume of snow received in the first quarter of 2017. Forecasters are already
warning that we may see another year of higher than normal snow accumulations, if
forecasts are correct, costs will continue to increase. The Snow Removal Reserve is
available to help offset higher than normal costs.
CONCLUSIONS:
Overall financial results are in line with expectations at the end of August, with the majority of our
revenues received and expenses lagging slightly. The Financial Plan adopted in May would result in
a draw on General Revenue Surplus of approximately $650,000 if all activities were completed as
planned. At this time, indications are that results will be favorable in comparison to financial plan
expectations. An update on preliminary 2017 results will be provided to the Audit & Finance
Committee in the first quarter of 2018.
“Original signed by Catherine Nolan”
Prepared by: Catherine Nolan, CPA, CGA
Manager of Accounting
“Original signed by Paul Gill”
Concurrence: Paul Gill, CPA, CGA
Chief Administrative Officer
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City of Maple Ridge
TO: Councillor Bob Masse MEETING DATE: 3-October-2017
and Members of the Audit & Finance
Committee FILE NO:
FROM: Manager of Accounting MEETING: Audit & Finance
SUBJECT: Award of Audit Services Contract
EXECUTIVE SUMMARY:
The City issued a Request for Proposals (RFP) for audit services in July (RFP-F17-59) and received
four submissions. Staff reviewed the proposals in accordance with the evaluation criteria contained
in the RFP and is recommending that the contract be awarded to BDO Canada LLP as their proposal
represents overall best value to the city
The proposal is within the annual budget envelope and will result in a reduction of overall costs for
audit services.
RECOMMENDATION:
That the Audit & Finance Committee recommend to Council that the contract for audit services be
awarded to BDO Canada LLP.
DISCUSSION:
a) Background Context:
The City last issued an RFP for audit services in 2001 with BDO Canada LLP being the
successful proponent. Since that time the contract with BDO has been extended a number
of times to address a need for audit continuity through the implementation of various
complex new accounting standards.
The Audit & Finance Committee last recommended an extension of the contract with BDO
May of 2014 through to the end of the 2016 audit. That was completed in May of this year
and an RFP for audit services was issued in July.
The City received four proposals in response to the RFP from the following proponents:
BDO Canada LLP
KPMG
MNP
PWC
The evaluation criterion was designed to determine the best overall value to the City and the
evaluation process was conducted in two phases. All four proposals were evaluated on the
basis of technical expertise and price with the top two proponents proceeding to the second
phase.
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At the completion of the first evaluation phase, BDO Canada LLP and KPMG were identified
as the top two proponents.
The second evaluation phase was designed to determine which of the top two proponents
was best able to communicate complex financial matters in clear, easily understood
language.
Our evaluation concludes that BDO Canada LLP, our existing auditors, represent overall best
value for the city.
b) Interdepartmental Implications:
The City’s auditor interacts with most City departments in order to complete their work. A
decision to change auditors would mean that the new firm would need to familiarize
themselves with the systems and processes in place at the City. This would result in a
significant increase in the amount of time that City staff from all departments needs to spend
with various members of the audit team.
c) Business Plan/Financial Implications:
The recommendation of staff is to award the contract for audit services to BDO Canada LLP.
Their proposal is within the annual budget envelope and will result in a reduction in overall
costs for audit services.
d) Policy Implications:
Issuing an RFP for Audit Services is in line with the City’s purchasing policy. The
responsibilities of the Audit & Finance Committee include recommending to Council the
appointment of the City’s external auditors.
e) Alternatives:
The Committee could choose to not follow the recommendation of staff and award the
contract for Audit Services to KPMG. This is not recommended as their proposal did not
represent the best overall value to the City.
CONCLUSIONS:
After evaluating the four proposals received in response to the City’s RFP for audit services the
evaluation committee is satisfied that the proposal received from BDO Canada LLP offers the best
overall value to the City. The proposal is within the annual budget envelope and offers a reduction
from previous costs.
“Original signed by Catherine Nolan”
Prepared by: Catherine Nolan, CPA, CGA
Manager of Accounting
“Original signed by Paul Gill”
Concurrence: Paul Gill, CPA, CGA
Chief Administrative Officer