HomeMy WebLinkAboutCS 20-08
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REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 20-08
Date: June 9, 2008
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Hiring of Consultant to Implement Public Sector Accounting Board (PSAB)
3150 Reporting Requirements
Recommendations:
1. That Report CS 20-08 of the Director, Corporate Services & Treasurer be
received;
2. That the Director, Corporate Services & Treasurer be authorized to engage the
firm of TCA Consulting Limited to assist the municipality in implementing the
reporting requirements of Public Sector Accounting Board (PSAB) 3150 as
provided in the 2008 Current Budget; and,
3. That the appropriate officials of the City of Pickering be authorized to take the
necessary action to give effect hereto.
Executive Summary: There is a Provincial requirement for municipalities to
significantly change their financial reporting by incorporating tangible capital assets
within their financial statements by 2009. This requirement has been legislated by the
Public Sector Accounting Board (PSAB), the body which sets the standards for
reporting for municipalities. This will require the inventorying, valuation and conditional
assessment of all tangible capital assets owned by the municipality.
The City needs to hire a consultant to assist staff in meeting the December 31 st
deadline and to comply with the requirements of the City's external auditors. The
consultant selected has prior work experience specifically in implementing PSAB 3150
and the City would benefit from his knowledge and experience in meeting the deadline.
If the City does not meet the external auditor requirements, the City will not be able to
issue "clean" financial statements that in-turn would impede the City's ability to borrow
funds for future years' capital projects.
Financial Implications: Financing for the consultant is provided through the 2008
Current budget as approved by Council. The total estimated cost for the consultant is
approximately $35,000 for the balance of 2008. We anticipate the work carrying on into
2009 to assist in meeting the December 31,2009 deadline.
Report CS 20-08
Date: June 9, 2008
Subject: Hiring of Consultant to Implement PSAB 3150
Page 2
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Sustainability Implications: Without the use of the consultant, the City may not be
able to meet the December 31 st deadline and therefore put at risk the financial
sustainable of this corporation.
Background: City staff are recommending that staff engage the consulting services
of TCA Consulting Limited and their principal consultant is Mr. Calvin Hawke a
chartered accountant with over thirty years of municipal accounting experience.
Staff have selected TCA Consulting Limited for the following reasons:
1. Relevant Project Work Experience
. Mr. Calvin Hawke participated in the Ontario Municipal CAO's Benchmarking
initiative (OMBI), Tangible Capital Assets pilot site manager - County of Brant.
(In other words, he has implement or completed the reporting requirements of
the project).
2. Knowledge & Training
. AMCTO has offered several different training sessions throughout the Province
to assist municipal staff in implementing TCA reporting requirements. One of
their major speakers and or trainers is Mr. Calvin Hawke.
The consultant will be required throughout the project to do the following tasks: review
and analyze gathered information, provide guidance and advice on various capital asset
issues, meet with external auditors and provide guidance and assistance to the project
team to best meet the project deadline. The City has considered other consultants
however, the consultants did not have the practical work experience and or background
to assist the City. In other words, the City is trying to maximize its resource dollars by
selecting a competent consultant who can assist the City to meet the quickly
approaching deadline. TCA consulting has been used by the following municipalities:
City of Oshawa, Toronto, Waterloo Region, Town of Perth and City of Fredericton (New
Brunswick).
Recommendation 2 is seeking Council authority and or approval to basically single
source the hiring of TCA Consulting for this part of the project. Consulting resources
may be required for other phases of the project such as building valuation or other
technical valuation issues. By using TCA Consulting's knowledge and expertise, the
City will be in a better position to meet the December 31 st reporting deadline.
Report CS 20-08
Date: June 9, 2008
Subject: Hiring of Consultant to Implement PSAB 3150
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Attachments:
None
Prepared By:
Prepared I Approved By:
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Gillis A. Paterson
Director, Corporate Services & Treasurer
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St~n Karwowski ----
Manager, Finance & Taxation
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Co : Chief Administrative Officer
Recommended for the consideration of
Pickering City Council
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