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HomeMy WebLinkAboutCS 31/01 - 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: - 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. - Report to Council CS 31-01 Date: September 20,2001 - Subject: Outside Agency Services Page 2 ATTACHMENTS: 1. Outside Agency Services 2. Outside Agency Services - Payment Procedures Prepared / Approved / Endorsed By: ~ .~ ~-- '-- 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 - Thomas J. QuilID, Chief Administrative Officer - NOTE TO FILE ATTACHMENT #-1- TO REPQ&T #~ d /- 0 I - 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. ,~ - TTACHMEI\rr #-LTO REPORT # 3i- Q { DRAFT - 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: - 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. -