HomeMy WebLinkAboutCS 31/01
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REPORT TO COUNCIL
FROM:
Gillis A. Paterson
Director, Corporate Services & Treasurer
DATE: September 20,2001
REPORT NUMBER: CS 31-01
SUBJECT: Outside Agency Services
RECOMMENDATION:
It is recommended that Report CS 31-01 of the Director, Corporate Services & Treasurer be
received and that Attachment #2 as presented be approved by the Committee.
ORIGIN:
Director, Corporate Services & Treasurer
AUTHORITY:
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The Municipal Act, R.S.O. 1990, as amended and Regulations Thereunder
FINANCIAL IMPLICATIONS:
Not applicable.
EXECUTIVE SUMMARY:
Not applicable.
BACKGROUND:
At the last Audit Committee meeting held on June 18, 2001, there were some concerns raised
surrounding Outside Agency Services. Please see my Note to File (Attachment #1), which
summarizes my conclusions of the treatment of Outside Agency Services after a meeting with the
Auditor.
In addition, I have attached a draft of recommended Payment Procedures (Attachment #2) for
discussion to assist in ensuring all parties are clear on the process. Staff procedures are not
normally submitted to a Committee for review or approval but as this one affects elected officials
directly it is being submitted.
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Report to Council CS 31-01
Date: September 20,2001
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Subject: Outside Agency Services
Page 2
ATTACHMENTS:
1. Outside Agency Services
2. Outside Agency Services - Payment Procedures
Prepared / Approved / Endorsed By:
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Gillis A. Paterson
Director, Corporate Services & Treasurer
Copy: Thomas J. Quinn, Chief Administrative Officer
Bruce Taylor, City Clerk
GAP:vw
Recommended for the consideration of Pickering
City Council
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Thomas J. QuilID, Chief Administrative Officer
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NOTE TO FILE
ATTACHMENT #-1- TO REPQ&T #~ d /- 0 I
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Re: Outside Secretarial/Clerical Assistance to Councillors
On Friday, February 12, 1999 our Auditor mentioned at a meeting with Councillor
Brenner, Kristine Senior and Gil Paterson, that he felt T4's should be issued for any
payments made in excess of $500 to individuals for secretarial/clerical assistance. After
careful consideration we in the Finance Department have concluded that T4's in this
instance are not necessary as the individuals are not employees of the Town.
This opinion is based on the fact that payments may be made to an individual or a
Company such as Secretarial Overload upon receipt of a bill or invoice for the services
rendered. We conclude that an employer-employee relationship does not exist and thus
the payments are not deemed remuneration for T 4 purposes. It is their responsibility to
report the income on their annual tax returns. This is seen as no different than a
consultant billing the Town for services rendered, confirming the services were
performed, the bill is forwarded to Accounts Payable and is paid. No T4 is issued in this
case.
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TTACHMEI\rr #-LTO REPORT # 3i- Q {
DRAFT
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Outside A2encv Services - Pavment Procedures
1. An invoice must be submitted for services rendered:
Ensure the invoice indicates the service provided, the period of coverage and the
name and address of the individual or company providing the service. If applicable,
the GST registration number should be indicated on the invoice.
2. Invoice must be signed by individual providing service.
3. Invoice must be signed by Councillor to indicate service has been received.
4. Invoice forwarded to Clerk's Division for appropriate authorization.
5. Invoice forwarded to Accounts Payable for processing.
6. Cheque issued to service provider.
AL TERNATIVEL Y:
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If the above process is followed up to and including step 3 above, the invoice, upon
payment by the Councillor, may be attached to an Expense Reimbursement Form
submitted by the Councillor. Then steps 4 and 5 apply with the cheque being made
payable to the Councillor.
In this instance, the reimbursement to the Councillor will be included in the annual
Treasurer's Statement to Council of the remuneration and expenses of each member of
Council under Section 247 of the Municipal Act.
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