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HomeMy WebLinkAboutBudget Audit Advisory Board 2014.pdfToronto and Region '00 C C3nservation Authority INDEX TO BUDGET AUDIT ADVISORY BOARD MEETING #1/14 Friday, March 28, 2014 MINUTES Minutes of Meeting #3113, held on October 4, 2013 PRESENTATION Sgambelluri, Rocco, Chief Financial Officer, TRCA, re: 2014 Budget, Operating and Capital 2014 BUDGET, OPERATING AND CAPITAL 2013 YEAR END FINANCIAL PROGRESS REPORT 1 1 2 39 Toronto and Region Conserv"a"tion Authority MEETING OF THE BUDGET /AUDIT ADVISORY BOARD #1/14 April 11, 2014 The Budget /Audit Advisory Board Meeting #1/14, was held in the Weston Theatres, Black Creek Pioneer Village, on Friday, April 11, 2014. The Chair Gerri Lynn O'Connor, called the meeting to order at 8:39 a.m. PRESENT Bob Callahan Gerri Lynn O'Connor Dave Ryan ABSENT Maria Augimeri David Barrow RES. #C1 /14 - Moved by: Seconded by: MINUTES Bob Callahan Dave Ryan THAT the Minutes of Meeting #3/13, held on October 4, 2013, be approved. Member Chair Member Member Member CARRIED (a) A presentation by Rocco Sgambelluri, Chief Financial Officer, TRCA, in regard to item BAAB7.1 - 2014 Budget, Operating and Capital. RES. #C2 /14 - PRESENTATION Moved by: Dave Ryan Seconded by: Bob Callahan THAT above -noted presentation (a) be received. CARRIED 1 SECTION I - ITEMS FOR AUTHORITY ACTION RES. #C3/14 - 2014 BUDGET, OPERATING AND CAPITAL Recommends approval of the 2014 operating and capital budget. Moved by: Dave Ryan Seconded by: Bob Callahan THE BOARD RECOMMENDS TO THE AUTHORITY THAT WHEREAS the Conservation Authorities Act (CA Act) provides that a conservation authority, in establishing its annual levy, shall have the power to determine the proportion of the total benefit afforded to all the participating municipalities that is afforded to each of them; THEREFORE LET IT BE RESOLVED THAT, subject to such regulations under the Conservation Authorities Act as may be approved by the lieutenant- Governor -in- Council: (i) all participating municipalities be designated as benefitting for programs included in the 2014 Operating Budget; (ii) Toronto and Region Conservation Authority's (TRCA) share of the cost of the programs included in the 2014 Operating Budget shall be raised from all participating municipalities as part of the General Levy; (iii) the 2014 General Levy be apportioned to the participating municipalities in the proportion that the modified current value assessment of the whole is under the jurisdiction of TRCA, unless otherwise provided in the levy or a project; (iv) the appropriate TRCA officials be directed to advise the participating municipalities, pursuant to the Conservation Authorities Act and the regulations made thereunder, and to levy the said municipalities the amount of the general levy set forth in the 2014 Operating Budget, including property tax adjustments and non - Current Value Assessment (CVA) levy, and to levy the said municipalities the amount of the capital levy set forth in the 2014 Capital Budget and in the approved projects of TRCA; THAT the 2014 Operating and Capital Budget, and all projects therein, be adopted; THAT TRCA staff be authorized to amend the 2014 Operating and Capital Budget to reflect actual 2014 provincial grant allocations in order to determine the amount of matching levy governed by regulation; THAT the cost of property taxes imposed by municipalities on conservation lands owned by TRCA be charged as additional levy to the respective participating municipalities, excluding the cost of property taxes which are passed on to a third party under a lease or similar agreement; THAT, except where statutory or regulatory requirements provide otherwise, staff be authorized to enter into agreements with private sector organizations, non - governmental organizations or government agencies for the undertaking of projects which are of benefit to TRCA and funded by the sponsoring organization or agency; 2 THAT, as required by Ontario Regulations 139/96 and 231/97, this recommendation and the accompanying budget documents, including the schedule of matching and non - matching levies, be approved by recorded vote; AND FURTHER THAT authorized TRCA officials be directed to take such action as may be necessary to implement the foregoing, including obtaining approvals and the signing and execution of documents. CARRIED RATIONALE Enclosed is the recommended 2014 Budget, Operating and Capital. The budget will be presented to the Authority at its meeting scheduled to be held on April 25, 2014. Municipal Approval Status Preliminary estimates are prepared in the summer and fall of each year for submission to TRCA's municipal funding partners. Staff meets with municipal staff as required by the budget processes and budget schedules followed by each major participating municipality. Presentations are made to municipal finance staff and the committees and councils of the funding partners as required. In the case of Peel Region, TRCA works closely with staff at Credit Valley and Halton conservation authorities to align budget information and requirements. A similar process occurs with York Region where TRCA works closely with the Lake Simcoe Region Conservation Authority. In Durham Region, TRCA staff work closely with five conservation authorities to align budgets and financial submissions to meet the Region of Durham requirements. TRCA's submissions to the City of Toronto for capital and operating levy are reviewed with senior Finance and Toronto Water staff. The 2014 Preliminary Estimates were approved by the Authority in October, 2013, as the basis for submissions to TRCA's municipal funding partners. The funding identified in the apportionment of the levy reflects the amounts that the municipal funding partners have approved in their 2014 budgets for capital and operating. Contributions from the City of Toronto and the regional municipalities of Durham, Peel and York have received council approval. The Township of Adjala - Tosorontio and the Town of Mono have been advised of TRCA's levy request. MNR Transfer Payments The 2014 provincial transfer payments which must be matched with levy has not been announced. The 2014 operating budget includes a provision for MNR transfer payments at an amount equal to the funding received in 2013 or $774,000. Notice of Meeting By regulation, TRCA has provided 30 days written notice to its member municipalities of the date of the meeting at which the Authority will consider the municipal levy. At the April 25, 2014 Authority meeting, a recorded vote on the budget recommendations including the non - matching municipal levy is required. The weighted voting procedure prescribed by regulation will be used, if necessary. 3 2014 Budget Presentation In order to meet the provisions of the Conservation Authorities Act and the regulations made there under, it continues to be necessary to distinguish between general levy (operating) and benefitting levy (capital projects.) However, due to the unique budgetary requirements of each of the four major participating municipalities the distinction between operating and capital has been blurred over the years. For this reason the presentation adopted in the 2014 budget focuses on the nine service areas of the TRCA business plan, regardless of the underlying nature of the expenditure. Further, with the migration of the accounts onto the newly acquired Agresso Business World financial software, staff took the opportunity to begin the alignment of budget and financial statement presentations. Future iterations of the budget document will exclude tangible capital asset (TCA) expenditures, but will include amortization of TCA, in line with the audited financial statement disclosure. Operating Budget - Overview of Key Issues Salary/Wage Costs The Authority was advised in October, 2013, when the preliminary estimates were approved, that staff was recommending an increase of 2 %, effective for the first pay in April, 2014. TRCA salary and wage adjustments over the last five years, as outlined below, have averaged 1.8% per year, on a simple average basis. 2010-2% 2011-0% 2012-3% 2013-2% 2014-2% Staffing Levels The TRCA full time equivalents (FTEs) included in the operating budget are projected to be 409.4 for 2014, as compared to 410.3 budgeted in 2013. Please refer to the summary on page 8 of the budget document. Expenditures /Operating Revenues The 2014 operating expenditure budget is $39.2 million, an increase of $.84 million or 2.2% over 2013 budget. The increase in expenditures will be financed by additional revenues (non -levy) of 0.7 million (4.1 % increase) and additional general levy of $0.35 (2.8% increase.) Wage costs have increased $76 million and benefit costs are $0.16 million over 2013 budget. The largest segment of the operating budget is wages and benefits, representing 78.9% of gross operating expenditures. Municipal Funding Arrangements Each of TRCA's participating municipalities has its own unique budget requirements and annual budgetary pressures. TRCA has met each of the individual participating municipality's requirements within the context of the Conservation Authorities Act. In recent years, TRCA has changed the funding "formula" to achieve greater flexibility in meeting individual municipal partner guidelines. To this end, the 2014 operating levy includes a component, totalling $334,000 (2013 - $206,500) referred to as "Non -CVA Levy ". Under the provisions of the Act, TRCA makes a general levy against all of its participating municipalities to fund its general operating requirements. With regard to the portion of the levy that is for "administration costs" as defined in the Act, TRCA must use CVA as the basis of apportionment. With respect to the balance of the general levy which is raised for "maintenance costs" a conservation authority may apportion benefit using any method that is approved in adopting the budget. In essence, the non -CVA levy adjusts the amount of the general levy that relates to maintenance costs that would otherwise be apportioned using CVA as the basis and allows TRCA to meet the unique funding guidelines of each participating municipality. The non -CVA levy apportionments for 2014 have been allocated to the municipalities as follows: Municipality 2014 2013 Durham $55,900 $26,200 Peel $178,200 $89,700 Toronto - - York 99,900 $90,600 Mono $1,156 - 40.90% Adjala- Tosorontio I - 46.67% Total 1 $334,000 $206,500 After giving consideration to all of the factors that affect the general levy on a municipality including tax adjustments, year over year shifts in CVA and individual targets set municipally, TRCA has achieved total municipal levy funding in the amount of $12,851,000 representing an average increase over 2013 of 2.84 %. The general levy has been allocated to the municipal partners as follows: Municipality 2014 General Levy Change over 2013 Durham $521,287 2.74% Peel $1,635,969 4.01% Toronto $7,858,337 2.50% York $2,832,928 3.15% Mono $1,156 - 40.90% Adjala- Tosorontio 1 $1,3231 46.67% Total 1 $12,851,000 2.84% 5 Property Taxes on Conservation Lands TRCA is required to pay property taxes on its lands except where TRCA has received an exemption or partial exemption under the Conservation Land Tax Incentive Program (CLTIP). In the case of revenue producing properties such as rental houses or leased lands, taxes are covered by the revenues received. For park and conservation lands, where taxes are payable, the rates are generally relatively low. In the City of Toronto, most park and conservation lands are exempt from property taxation because the City exercised its ability under the City of Toronto Act to exempt park land from taxes. In the regions of Peel, York and Durham, the Town of Mono and the Township of Adjala - Tosorontio, property taxes are paid on conservation lands not included under CLTIP. In fairness to the City of Toronto which grants exemption, TRCA has long had a practice of allocating the cost of property taxes to the jurisdiction which levies the taxes. This is reflected as an adjustment to the apportionment of the general levy. Capital Budget Summary The 2014 capital budget is set at $86.7 million, an increase of $15.0 million over 2013. Municipal funding will pay for $49.0 million of the capital program, of which $35.9 will be raised in 2014 and the balance ($13.1 million) is on hand as carried forward levy from previous years. Funding from other sources amounts to $37.7 million. Commensurate with the growth in capital spending is the associated FTE count. The 2014 FTE estimate is 266.1, an increase of 14.3, over 2013. Capital expenditures can vary significantly from year to year as funding is made available. A summary of the 2014 capital program appears at pages 11 to 16 of the attached budget document. Capital projects are usually funded by the municipal partners on a benefitting municipality basis. That is, with few exceptions, capital projects funded by a municipality are undertaken within that municipality. These include: • erosion control projects (Peel, Toronto and York); • Remedial Action Plan program (Toronto); • waterfront development (Toronto and Durham); • natural heritage regeneration projects in Peel and York; • regional watershed monitoring; • Black Creek Pioneer Village restoration program (Toronto); • flood control works and flood plain mapping; • watershed management projects; • Peel Region Climate Change Project; • conservation land care (Peel and York); • conservation area infrastructure. Some capital programs are generally benefitting. These include: • public use infrastructure - levy based on CVA, used to fund infrastructure needs of parks and education field centres; • information technology - levy based on CVA, used to fund common capital IT needs across the organization; • major facilities retrofit - levy based on CVA, used for major capital expenditures for buildings and accommodation; III Certain capital programs are uniquely funded: • land acquisition - major acquisitions leverage funding available from regions of Peel, York and Durham, City of Toronto, local municipalities, Oak Ridges Moraine Foundation, The Living City Foundation and other sources; • the source water protection program is funded entirely by the Province of Ontario; • Toronto Waterfront Revitalization Corporation (TWRC) projects - funded directly by TWRC through delivery agreements, including Port Union, Mimico and Lower Don River; • Humber Bay Shores (Etobicoke Motel Strip) - legacy project for which the City of Toronto and Province of Ontario have continuing commitment to finance the final costs of the expropriation process; • groundwater strategies and management - costs shared by Peel, York, Durham and the City of Toronto. Special Project Funding: • TRCA works with its municipal partners to undertake special projects wherein TRCA has significant, specialized expertise. These special projects include erosion work, construction of trails, bridges and wetlands, and tree planting. This funding varies from year to year and is completely separate from the municipal operating and capital levy funding. Consolidated Overview The 2014 gross expenditure budget, capital and operating combined, is approximately $126.0 million, the highest amount in the history of the organization. The growth has been occurring mostly within the capital accounts, as previously noted, and both through the levy process and contracted work with regional and local municipalities. The 2013 audited financial statements will be available at the June meeting of the BudgeUAudit Advisory Board. While there may still be a need to process a few minor adjustments to the year end results, 2013 results indicate surplus within the operating accounts of approximately $1 million. In the capital accounts due to costs which were incurred in 2013 (to be recovered from approved funding in 2014) the accounts will show a deficit of about $0.8 million. The 2014 capital budget projects a surplus of $.94 million to offset the extra costs incurred in 2013. These projects are noted in the 2013 Year End Financial Progress Report, a separate report on this agenda. Going into 2013 the cumulative surplus was $0.3 million. Based on the analysis above, it is anticipated that the end of year surplus position will grow by $0.2 million to $0.5 million and a further $0.8 once the capital deficit has been financed after 2014. Details of the 2013 net results are available elsewhere on the agenda, in the report titled "2013 Year End Financial Progress Report". The June report to the board may include recommendations regarding transfers between reserves and surplus. 7 DETAILS OF WORK TO BE DONE At the Budget /Audit Advisory Board meeting, staff will make a presentation summarizing the 2014 operating and capital budgets. Report prepared by: Rocco Sgambelluri, extension 5232 Emails: rsgambelluri @trca.on.ca For Information contact: Rocco Sgambelluri, extension 5232 Emails: rsgambelluri @trca.on.ca Date: April 7, 2014 Attachments: 1 i Attachment 1 Toronto and Region Conservation for The Living City 2014 BUDGET OPERATING AND CAPITAL E Table of Contents Section 1 — 2014 Apportionment of Levy Apportionment of 2014 Operating Budget Levy 2014 Basis of Apportionment — Municipal Levy 2014 Levy Apportionment Section 2 — Operating and Capital Budget 2014 Operating Budget — Revenue Summary 4 2014 Operating Budget — Expenditure Summary 5 2014 Capital Budget — Revenue Summary 7 2014 Capital Budget — Expenditure Summary 8 Total 2014 Capital Levy — By Service Area 10 Full Time Equivalents 11 Section 3 — Operating and Capital Budget by Service Area 2014 Operating and Capital Budget — Revenue Summary 12 2014 Operating and Capital Budget — Expenditure Summary 13 Operating and Capital Budget — Watershed Studies and Strategies 15 Operating and Capital Budget — Water Risk Management 16 Operating and Capital Budget — Regional Biodiversity 18 Operating and Capital Budget — Land Securement and Management 20 Operating and Capital Budget —Tourism and Recreation 21 Operating and Capital Budget — Planning and Development Review 23 Operating and Capital Budget — Education and Outreach 24 Operating and Capital Budget — Sustainable Communities 26 Operating and Capital Budget — Corporate Services 27 10 Toronto and Region Conservation Authority 2014 Budget Apportionment of 2014 Operating Budget Levy Levy Excluding Tax 4djala- Tosorontio 823 Durham 337,387 Toronto 7,858,037 Mono 956 Peel 1,359, 769 York 2,555,028 Tax 500 128,000 300 200 98,000 178,000 Total 2013 Non -CVA General Operating 1,323 55,900 521,287 7,858,337 1,156 178,200 1,635,969 99,900 2,832,928 902 507,365 7,666,494 1,956 1,572,950 2,746,333 421 13,922 191,843 (800) 63,019 1 46.67% 2.74% 2.50% - 40.90% 4.01% 3.15% II 12,112,000 405,000 334,000 12,851,000 12,496,000 355,000 2.84% 11 Toronto and Region Conservation Authority 2014 Budget 2014 Basis of Apportionment - Municipal Levy (Based on 2013 for 2014 Modidfied Current Value Assessment Figures) *As provided by the Ministry of Natural Resources 12 % Of Current Value Current Value Municipality in Assessment in Population in Municipality Assessment Authority Watershed Total Population Authority $(000's) $(000's) Township of Adjala- Tosorontio 1,797,438 4 71,898 9,644 386 Durham, Regional Municipality of 35,855,041 29,485,674 199,023 165,862 City of Toronto 686,747,613 100 686,747,613 2,142,038 2,142,038 Town of Mono 1,670,438 5 83,522 6,914 346 Peel, Regional Municipality of 271,517,775 118,836,026 1,039,636 473,229 York, Regional Municipality of 244,231,488 223,294,894 749,320 675,622 1,241,819,793 1,058,519,626 4,146,575 3,457,483 Analysis of Regional Municipalities* Durham, Regional Municipality of Ajax, Town of 15,709,085 86 13,509,814 96,478 82,971 Pickering, Town of 15,984,380 95 15,185,161 83,430 79,259 Uxbridge Township 4,161,575 19 790,699 19,115 3,632 35,855,041 29,485,674 199,023 165,862 Peel, Regional Municipality of Brampton, City 86,505,848 63 54,498,685 393,660 248,006 Mississauga, City of 170,087,356 33 56,128,828 591,197 195,095 Caledon, Town of 14,924,570 55 8,208,514 54,779 30,128 271,517,775 118,836,026 1,039,636 473,229 York, Regional Municipality of Aurora, Town of 12,345,280 4 493,811 45,105 1,804 Markham, Town of 77,760,231 100 77,760,231 249,877 249,877 Richmond Hill, Town of 47,142,100 99 46,670,679 152,455 150,930 Vaughan, Town of 91,662,496 100 91,662,496 250,582 250,582 Whitchurch - Stouffville, Town of 9,347,254 43 4,019,319 32,810 14,108 King Township 5,974,127 45 2,688,357 18,491 8,321 244,231,488 223,294,894 749,320 675,622 *As provided by the Ministry of Natural Resources 12 Toronto and Region Conservation Authority 2014 Budget 2014 Levy Apportionment 43 Town of Mono Modified Current Value Assessment in 2014 General Levy 2013 General Levy Municipality Watershed Brampton Proportionate Factor Proportionate Factor Mississauga 56,128,828 $(000's) Caledon 8,208,514 Adjala - Tosorontio 71,898 0.0068% 0.0076% Durham, Regional Municipality of Aurora 493,811 Ajax 13,509,814 Richmond 46,670,679 Pickering 15,185,161 91,662,496 Whitchurch - Stouffville Uxbridge 790,699 King 2,688,357 223.294.894 29,485,674 2.7856% 3.0142% City of Toronto 686,747,613 64.8781% 64.6525% Town of Mono 83,522 0.0079% 0.0089% Peel, Regional Municipality of Brampton 54,498,685 Mississauga 56,128,828 Caledon 8,208,514 118,836,026 11.2266% 11.6254% York, Regional Municipality of Aurora 493,811 Markham 77,760,231 Richmond 46,670,679 Vaughan 91,662,496 Whitchurch - Stouffville 4,019,319 King 2,688,357 223.294.894 21.0950% 20.6914% 1,058,519,626 100.0000% 100.0000% 13 Toronto and Region Conservation Authority 2014 Budget 2014 Operating Budget - Revenue Summary $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget Revenue Municipal Operating levies Capital levies Other Government Grants Provincial Federal User fees, sales and admissions Contract services Municipal Corporate and other Rent and property interests Fundraising Donations The Living City Foundation Investment income Reserves Sundry Total Revenue 4 12,851,000 12,496,000 12,496,000 355,000 2.8% 349,000 335,000 335,000 14,000 4.2% 1,284,000 1,304,000 1,098,000 (20,000) -1.5% 1,878,000 1,904,000 1,790,000 (26,000) -1.4% 14,000 71,000 63,000 (57,000) -80.3% 17,767,000 17,073,000 16,499,000 694,000 4.1% 386,000 480,000 582,000 (94,000) -19.6% 121,000 96,000 170,000 25,000 26.0% 2,670,000 2,599,000 2,555,000 71,000 2.7% 249,000 249,000 3,000 - 0.0% 1,053,000 1,041,000 1,104, 000 12,000 1.2% 540,000 540,000 571,000 - 0.0% 213,000 30,000 30,000 429,000 - 39,190,000 38,431,000 37,695,000 974,000 2.5% 14 Toronto and Region Conservation Authority 2014 Budget 2014 Operating Budget - Expenditure Summary Expenditures Watershed Studies and Strategies Watershed and Waterfront Plans Climate and Extreme Weather Impacts Total Watershed Studies and Strategies Water Risk Management Technical Services - Water Risk Flood Management Total Water Risk Management Regional Biodiversity Natural Channels Ecosystem Management Research and Directions Habitat Restoration Works Forest Management Indigenous Plan Propagation Restoration and Regeneration Total Regional Biodiversity Land Securement and Management Property Taxes and Insurance Land Securement Land Management Archaeology Rental Properties Total Land Securement and Management Tourism and Recreation Conservation Parks Trails Bathurst Glen Black Creek Pioneer Village Public Use Infrastructure Events and Festivals Total Tourism and Recreation $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget 2,107,000 2,104,000 1,765,000 3,000 0.1% 92,000 - 92,000 92,000 0.0% 2,199,000 2,104,000 1,857,000 95,000 4.5% 20,000 20,000 18,000 - 0.0% 692,000 662,000 688,000 30,000 4.5% 712,000 682,000 706,000 30,000 4.4% - - - (34,000) 0.0% 91,000 233,000 272,000 212,000 (39,000) -14.3% 144,000 393,000 429,000 408,000 (36,000) -8.4% 461,000 146,000 214,000 125,000 (68,000) -31.8% 36,000 (20,000) (15,000) (155,000) (5,000) 33.3% 0.5% 305,000 355,000 245,000 (50,000) -14.1% 1,057,000 1,255,000 835,000 (198,000) -15.8% 610,000 644,000 561,000 (34,000) -5.3% 91,000 87,000 87,000 4,000 4.6% 155,000 144,000 150,000 11,000 7.6% 281,000 281,000 461,000 - 0.0% 2,081,000 2,045,000 2,223,000 36,000 1.8% 3,218,000 3,201,000 3,482,000 17,000 0.5% 5,120,000 5,073,000 5,020,000 47,000 0.9% 25,000 25,000 27,000 - 0.0% 1,269,000 1,271,000 1,186,000 (2,000) -0.2% 3,743,000 3,932,000 3,718,000 (189,000) -4.8% 25,000 25,000 17,000 - 0.0% 2,188,000 2,026,000 2,443,000 162,000 8.0% 12,370,000 12,352,000 12,411,000 18,000 0.1% 15 $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget Planning and Development Review Development Planning and Regulation Permitting 2,517,000 2,462,000 2,060,000 55,000 2.2% Environmental Assessment Planning and Permitting 2,903,000 3,008,000 2,617,000 (105,000) -3.5% Enquiries 1,047,000 1,040,000 1,002,000 7,000 0.7°% Policy Development and Review 153,000 273,000 205,000 (120,000) -44.0% Total Planning and Development Review 6,620,000 6,783,000 5,884,000 (163,000) -2.4% Education and Outreach Educational Infrastructure 72,000 71,000 34,000 1,000 1.4% School Programs 4,273,000 4,108,000 3,921,000 165,000 4.0% Professional Training and Development 992,000 985,000 1,009,000 7,000 0.7% Family Programs 23,000 52,000 54,000 (29,000) -55.8% Total Education and Outreach 5,360,000 5,216,000 5,018,000 144,000 2.8°% Sustainable Communities Community Engagement - 5,000 - (5,000) - 100.0% Total Sustainable Communities - 5,000 - (5,000) - 100.0% Corporate Services Financial Services 1,577,000 1,417,000 1,496,000 160,000 11.3% Corporate Management and Infrastructure 3,547,000 3,168,000 3,057,000 379,000 12.0 % Human Resources 788,000 601,000 599,000 187,000 31.1% Marketing and Communications 1,431,000 1,405,000 1,383,000 26,000 1.9% Information Management 1,675,000 1,561,000 1,525,000 114,000 7.3% Management and Governance Services 669,000 631,000 537,000 38,000 6.0°% Project Recoveries (2,063,000) (2,055,000) (2,124,000) (8,000) 0.4% Vehicles and Equipment 30,000 30,000 42,000 - 0.0% Total Corporate Services 7,654,000 6,758,000 6,515,000 896,000 13.3% Total Expenditures 39,190,000 38,356,000 36,708,000 839,000 2.2% Net Budget - (75,000) (990,000) 75,000 - 100.0% 16 Toronto and Region Conservation Authority 7 2014 Budget 2014 Capital Budget - Revenue Summary $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget Revenue Municipal Capital levies 48,686,000 35,249,000 24,352,000 13,437,000 38.1% Other 2,537,000 2,226,000 1,366,000 311,000 14.0% Government Grants Provincial 1,768,000 1,917,000 2,516,000 (149,000) -7.8% Federal 1,466,000 1,599,000 1,612,000 (133,000) -8.3% User fees, sales and admissions 954,000 623,000 1,369,000 331,000 53.1% Contract services Municipal 23,939,000 23,523,000 14,987,000 416,000 1.8% Compensation agreements 2,236,000 1,018,000 52,000 1,218,000 119.6% Corporate and other 2,262,000 1,786,000 1,038,000 476,000 26.7% Rent and property interests 498,000 498,000 11,000 - 0.0% Fundraising Donations 3,000,000 3,000,000 13,000 0.0% The Living City Foundation 371,000 382,000 410,000 (11,000) -2.9% Investment income - - 18,000 - 0.0% Sundry 2,000 Total Revenue 87,717,000 71,821,000 47,746,000 15,896,000 22.1% 17 Toronto and Region Conservation Authority 2014 Budget 2014 Capital Budget - Expenditure Summary Expenditures Watershed Studies and Strategies Watershed and Waterfront Plans Report Cards Climate and Extreme Weather Impacts Total Watershed Studies and Strategies Water Risk Management Technical Services - Water Risk Erosion Management Flood Management Total Water Risk Management Regional Biodiversity Biodiversity, Monitoring Natural Channels Ecosystem Management Research and Directions Habitat Restoration Works Wildlife Management Forest Management Indigenous Plan Propagation Restoration and Regeneration Total Regional Biodiversity Land Securement and Management Land Securement Land Management Archaeology Rental Properties Total Land Securement and Management Tourism and Recreation Waterfront Parks Conservation Parks Trails Bathurst Glen Black Creek Pioneer Village Public Use Infrastructure Events and Festivals Total Tourism and Recreation $ Change % Change 2014 2013 2013 over2013 over 2013 Budget Budget Year to date Budget Budget 3,157,000 1,579,000 1,077,000 1,578,000 99.9% 976,000 1,330,000 546,000 (354,000) -26.6% 894,000 1,342,000 594,000 (448,000) -33.4% 5,027,000 4,251,000 2,217,000 776,000 18.3% 3,432,000 2,698,000 3,118,000 734,000 27.2% 14,084,000 7,808,000 6,692,000 6,276,000 80.4% 3,704,000 6,011,000 3,014,000 (2,307,000) -38.4% 21,220,000 16,517,000 12,824,000 4,703,000 28.5% 1,826,000 1,369,000 1,396,000 457,000 33.4% 514,000 512,000 237,000 2,000 0.4% 977,000 1,177,000 852,000 (200,000) -17.0% 7,607,000 6,022,000 3,053,000 1,585,000 26.3% 196,000 118,000 150,000 78,000 66.1% 361,000 343,000 233,000 18,000 5.2% 180,000 144,000 (12,000) 36,000 25.0% 3,076,000 3,168,000 3,155,000 (92,000) -2.9% 14,737,000 12,853,000 9,064,000 1,884,000 14.7% 5,248,000 5,250,000 1,588,000 (2,000) 0.0% 3,203,000 3,236,000 1,950,000 (33,000) -1.0% 47,000 45,000 59,000 2,000 4.4% 563,000 2,000 1,000 561,000 28050.0% 9,061,000 8,533,000 3,598,000 528,000 6.2% 12,610,000 10,446,000 7,369,000 2,164,000 20.7% 741,000 1,121,000 813,000 (380,000) -33.9% 2,128,000 2,546,000 504,000 (418,000) -16.4% 2,180,000 19,000 150,000 2,161,000 11373.7% 3,000 - 419,000 3,000 0.0% 3,741,000 3,374,000 1,285,000 367,000 10.9% - - - - 0.0% 21,403,000 17,506,000 10,540,000 3,897,000 22.3% • Planning and Development Review Environmental Assessment Planning and Permitting Policy Development and Review Total Planning and Development Review Education and Outreach Educational Infrastructure School Programs Professional Training and Development Total Education and Outreach Sustainable Communities Living City Transition Program Community Engagement Total Sustainable Communities Corporate Services Corporate Management and Infrastructure Human Resources Information Management Project Recoveries Total Corporate Services $ Change % Change 2014 2013 2013 over2013 over 2013 Budget Budget Year to date Budget Budget - - 86,000 - 0.0% 593,000 561,000 564,000 32,000 5.7% 593,000 561,000 650,000 32,000 5.7% 3,714,000 1,706,000 1,610,000 2,008,000 117.7% 1,036,000 877,000 869,000 159,000 18.1% 802,000 741,000 705,000 61,000 8.2% 5,552,000 3,324,000 3,184,000 2,228,000 67.0% 4,501,000 4,544,000 3,749,000 (43,000) -0.9% 2,572,000 2,353,000 1,597,000 219,000 9.3% 7,073,000 6,897,000 5,346,000 176,000 2.6% 1,357,000 687,000 549,000 670,000 97.5% - - (6,000) - 0.0% 741,000 690,000 674,000 51,000 7.4% 5,000 - (110,000) 5,000 0.0% 2,103,000 1,377,000 1,107,000 726,000 52.7% Total Expenditures 86,769,000 71,819,000 48,530,000 14,950,000 20.8% Net Budget (944,000) - 782,000 (944,000) 0.0% 19 Toronto and Region Conservation Authority 2014 Budget Total 2014 Capital Levy by Service Area 10 20 Total by Service Service Area Peel Toronto York Durham Adjala Mono Total Area $(000's) $(Doe's) $(000's) $(000's) $(000's) $(000's) Watershed Studies and 2014 Capital Strategies Levy 605 1,693 85 50 - - 2,433 3,180 Carryforward 230 492 22 3 - - 747 2014 Capital Water Risk Management Levy 2,231 8,699 1,771 331 - - 13,032 16,313 Carryforward 1,615 808 794 56 - - 3,273 2014 Capital Regional Biodiversity Levy 3,497 2,460 894 234 - - 7,085 8,409 Carryforward 768 378 125 20 - - 1,291 Land Securement and 2014 Capital Management Levy 1,368 477 466 38 - - 2,349 2,856 Carryforward 466 37 5 - - 508 2014 Capital Tourism and Recreation Levy 1,790 404 62 138 - - 2,394 4,291 Carryforward 2,452 19 - 33 - - 2,504 Planning and Development 2014 Capital Review Levy 517 143 147 59 - - 866 943 Carryforward 17 25 17 17 - - 76 2014 Capital Education and Outreach Levy 1,757 310 1,149 - - - 3,216 4,107 Carryforward 833 58 - - - - 891 2014 Capital Sustainable Communities Levy 2,024 553 563 64 - - 3,204 4,327 Carryforward 750 265 108 - - - 1,123 2014 Capital Corporate Services Levy 311 731 228 33 1,303 4,043 Carryforward 331 1,791 536 82 2,740 Capital Total Levy 14,100 15,470 5,365 947 - - 35,882 Carryforward 7,462 3,836 1,639 216 - 13,153 Total by Municipality 21,562 19,306 7,004 1,163 49,035 20 Toronto and Region Conservation Authority 2014 Budget 2014 Full -time Equivalent Employees (FTEs) Type Full Time Non -FT Grand Total Operating Watershed Studies and Strategies 15.4 0.1 15.5 Water Risk Management 4.9 4.9 Regional Biodiversity 14.5 2.3 16.8 Land Securement and Management 14.2 7.4 21.6 Tourism and Recreation 49.7 97.5 147.2 Planning and Development Review 62.7 0.5 63.2 Education and Outreach 42.7 19.8 62.5 Sustainable Communities 0.1 0.1 Corporate Services 76.7 0.8 77.5 Operating Total 280.9 128.5 409.4 Capital Watershed Studies and Strategies 11.8 0.1 11.9 Water Risk Management 54.9 13.5 68.3 Regional Biodiversity 60.1 22.6 82.7 Land Securement and Management 16.0 0.2 16.3 Tourism and Recreation 17.2 1.6 18.9 Planning and Development Review 3.1 3.1 Education and Outreach 14.5 2.0 16.5 Sustainable Communities 42.9 2.2 45.1 Corporate Services 3.2 0.2 3.4 Capital Total 223.8 42.3 266.1 Total FTEs 504.7 170.8 675.5 2013 Total FTEs 445 217.1 662.1 Year over Year Change 59.7 -46.3 13.4 21 11 Toronto and Region Conservation Authority 12 2014 Operating and Capital Budget 2014 Operating and Captial Budget - Revenue Summary $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget Revenue Municipal Operating levies 12,851,000 12,496,000 12,496,000 355,000 2.8% Capital levies 49,035,000 35,584,000 24,687,000 13,451,000 37.8% Other 3,821,000 3,530,000 2,464,000 291,000 8.2% Government Grants Provincial 3,646,000 3,821,000 4,306,000 (175,000) -4.6% Federal 1,480,000 1,613,000 1,675,000 (133,000) -8.2% User fees, sales and admissions 18,721,000 17,669,000 17,868,000 1,052,000 6.0% Contract services Municipal 24,325,000 24,003,000 15,569,000 322,000 1.3% Compensation agreements 2,236,000 1,018,000 52,000 1,218,000 119.6% Corporate and other 2,383,000 1,882,000 1,208,000 501,000 26.6% Rent and property interests 3,168,000 3,097,000 2,567,000 71,000 2.3% Fundraising Donations 3,249,000 3,249,000 16,000 - 0.0% The Living City Foundation 1,424,000 1,423,000 1,514,000 1,000 0.1% Investment income 540,000 540,000 589,000 - 0.0% Sundry 30,000 30,000 432,000 - Total Revenue 126,909,000 109,955,000 85,443,000 16,954,000 15.4% 22 Toronto and Region Conservation Authority 2014 Operating and Capital Budget 2014 Operating and Captial Budget - Expenditure Summary 13 Regional Biodiversity Biodiversity Monitoring 1,826,000 1,369,000 1,396,000 $ Change % Change Natural Channels 2014 2013 2013 over 2013 over 2013 Ecosystem Management Research and Directions Budget Budget Year to date Budget Budget Expenditures 8,000,000 6,451,000 3,460,000 1,549,000 24.0% Watershed Studies and Strategies 196,000 118,000 150,000 78,000 66.1% Watershed and Waterfront Plans 5,264,000 3,683,000 2,842,000 1,581,000 42.9% Report Cards 976,000 1,330,000 546,000 (354,000) -26.6% Climate and Extreme Weather Impacts 987,000 1,342,000 685,000 (355,000) - 26.5% Total Watershed Studies and Strategies 7,227,000 6,355,000 4,073,000 872,000 13.7% Water Risk Management Technical Services - Water Risk 3,452,000 2,718,000 3,136,000 734,000 27.0% Erosion Management 14,084,000 7,808,000 6,692,000 6,276,000 80.4% Flood Management 4,396,000 6,673,000 3,702,000 (2,277,000) -34.1% Total Water Risk Management 21,932,000 17,199,000 13,530,000 4,733,000 27.5% Regional Biodiversity Biodiversity Monitoring 1,826,000 1,369,000 1,396,000 457,000 33.4% Natural Channels 514,000 513,000 237,000 1,000 0.2% Ecosystem Management Research and Directions 1,210,000 1,449,000 1,064,000 (239,000) -16.5% Habitat Restoration Works 8,000,000 6,451,000 3,460,000 1,549,000 24.0% Wildlife Management 196,000 118,000 150,000 78,000 66.1% Forest Management 507,000 557,000 358,000 (50,000) -9.0% Indigenous Plan Propagation 160,000 129,000 (167,000) 31,000 24.0% Restoration and Regeneration 3,381,000 3,523,000 3,400,000 (142,000) -4.0% Total Regional Biodiversity 15,794,000 14,109,000 9,898,000 1,685,000 11.9% Land Securement and Management Property Taxes and Insurance 610,000 644,000 561,000 (34,000) -5.3% Land Securement 5,339,000 5,337,000 1,674,000 2,000 0.0% Land Management 3,358,000 3,380,000 2,101,000 (22,000) -0.7% Archaeology 328,000 326,000 519,000 2,000 0.6% Rental Properties 2,644,000 2,047,000 2,224,000 597,000 29.2% Total Land Securement and Management 12,279,000 11,734,000 7,079,000 545,000 4.6% Tourism and Recreation 2,517,000 2,462,000 2,060,000 55,000 2.2% Waterfront Parks 12,610,000 10,446,000 7,369,000 2,164,000 20.7% Conservation Parks 5,861,000 6,194,000 5,833,000 (333,000) -5.4% Trails 2,153,000 2,571,000 531,000. (418,000) -16.3% Bathurst Glen 3,449,000 1,290,000 1,335,000 2,159,000 167.4% Black Creek Pioneer Village 3,746,000 3,932,000 4,137,000 (186,000) 4.7% Public Use Infrastructure 3,766,000 3,399,000 1,302,000 367,000 10.8% Events and Festivals 2,188,000 2,026,000 2,443,000 162,000 8.0% Total Tourism and Recreation 33,773,000 29,858,000 22,950,000 3,915,000 13.1% Planning and Development Reveiw Development Planning and Regulation Permitting 2,517,000 2,462,000 2,060,000 55,000 2.2% Environmental Assessment Planning and Permitting 2,903,000 3,008,000 2,703,000 (105,000) -3.5% Enquiries 1,047,000 1,040,000 1,002,000 7,000 0.7% Policy Development and Review 747,000 834,000 769,000 (87,000) -10.4% Total Planning and Development Reveiw 7,214,000 7,344,000 6,534,000 (130,000) -1.8% Education and Outreach Educational Infrastructure 3,786,000 1,777,000 1,643,000 2,009,000 113.1% School Programs 5,309,000 4,985,000 4,790,000 324,000 6.5% Professional Training and Development 1,794,000 1,726,000 1,714,000 68,000 3.9% Family Programs 23,000 52,000 54,000 (29,000) -55.8% Total Education and Outreach 10,912,000 8,540,000 8,201,000 2,372,000 27.8% 23 Corporate Services Financial Services 1,577,000 1,417,000 1,496,000 160,000 14 Corporate Management and Infrastructure 4,904,000 3,855,000 3,606,000 $ Change % Change Human Resources 2014 2013 2013 over 2013 over 2013 Marketing and Communications Budget Budget Year to date Budget Budget Sustainable Communities 2,416,000 2,251,000 2,199,000 165,000 7.3% Living City Transition Program 4,501,000 4,544,000 3,749,000 (43,000) -0.9% Community Engagement 2,572,000 2,358,000 1,597,000 214,000 9.1% Total Sustainable Communities 7,073,000 6,902,000 5,346,000 171,000 2.5% Corporate Services Financial Services 1,577,000 1,417,000 1,496,000 160,000 11.3% Corporate Management and Infrastructure 4,904,000 3,855,000 3,606,000 1,049,000 27.2% Human Resources 788,000 601,000 594,000 187,000 31.1% Marketing and Communications 1,431,000 1,405,000 1,383,000 26,000 1.9% Information Management 2,416,000 2,251,000 2,199,000 165,000 7.3% Management and Governance Services 669,000 631,000 537,000 38,000 6.0% Project Recoveries (2,058,000) (2,055,000) (2,234,000) (3,000) 0.1% Vehicles and Equipment 30,000 30,000 42,000 - 0.0% Total Corporate Services 9,757,000 8,135,000 7,623,000 1,622,000 19.9% Total Expenditures 125,961,000 110,176,000 85,234,000 15,785,000 14.3% Net Budget (944,000) (75,000) (209,000) (869,000) 1158.7% 24 Toronto and Region Conservation Authority 2014 Budget Operating and Capital - Watershed Studies and Strategies )ascription: 3omprehensive studies to further the understanding of the physical resources, natural features and systems of the watersheds and :ubwatersheds and how they are impacted by growth and climate change. Revenue Municipal Capital levies Other Government Grants Provincial Federal User fees, sales and admissions Contract services Municipal Corporate and other Fundraising Donations The Living City Foundation Total Revenue Expenditures Watershed and Waterfront Plans Watershed Plan Updates and Follow -up Integrated Shoreline Management Plans Total Watershed and Waterfront Plans Report Cards Living City Report Card Trail Planning Total Report Cards Climate and Extreme Weather Impacts Research and Adaption Program TRCA Trail Strategy Total Climate and Extreme Weather Impacts Total Expenditures Net Budget 15 (1,667,000) (1,437,000) (1,663,000) (230,000) 16.0% 2014 2013 2012 Measures: Estimate Actual Actual 1. TBD - - - 2. TBD - - - 3. TBD - - - 4. TBD - - - 25 $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget 3,180,000 1,902,000 948,000 1,278,000 67.2% 28,000 - 5,000 28,000 0.0% 330,000 462,000 298,000 (132,000) -28.6% 310,000 250,000 267,000 60,000 24.0% 3,000 - 23,000 3,000 0.0% 977,000 1,215,000 599,000 (238,000) -19.6% 373,000 518,000 77,000 (145,000) - 28.0% 238,000 238,000 50,000 - 0.0% 121,000 35,000 143,000 86,000 245.7% 5,560,000 4,620,000 2,410,000 940,000 20.3% 2,611,000 2,131,000 1,944,000 480,000 22.5% 2,653,000 1,552,000 898,000 1,101,000 70.9% 5,264,000 3,683,000 2,842,000 1,581,000 42.9% 70,000 61,000 62,000 9,000 14.8% 906,000 1,269,000 484,000 (363,000) - 28.6% 976,000 1,330,000 546,000 (354,000) - 26.6% 527,000 1,069,000 349,000 (542,000) - 50.7% 460,000 273,000 337,000 187,000 68.5% 987,000 1,342,000 686,000 (355,000) - 26.5% 7,227,000 6,355,000 4,074,000 872,000 13.7% (1,667,000) (1,437,000) (1,663,000) (230,000) 16.0% 2014 2013 2012 Measures: Estimate Actual Actual 1. TBD - - - 2. TBD - - - 3. TBD - - - 4. TBD - - - 25 Toronto and Region Conservation Authority 2014 Budget Operating and Capital - Water Risk Management strategic treatment of water based on the study of hydrology, hydraulics and hydrogeology and their relationship to the natural Tres and functions of the urban landscape. Water Risk Management entails planning, developing, distributing and managing the num use of water through engineering, ecology and the design of green infrastructure. The Watershed /Subwatershed Planning ram is generally aimed at maintaining state -of- the -art planning tools to protect life and property and to assist municipalities with al plan updates and amendments to ensure a robust natural heritage system and water management strategy. Flood vulnerable s, stormwater management and infrastructure for new and redeveloping urban areas is a key focus. Revenue Municipal Capital levies Other Government Grants Provincial Federal User fees, sales and admissions Contract services Municipal Compensation agreements Corporate and other Investment income Total Revenue Expenditures Technical Services - Water Risk Groundwater Strategies Source Water Protection Strategy Regional Monitoring Hydrology Stormwater Management Flood Plain Mapping Total Technical Services - Water Risk Erosion Management Capital Works Hazard Monitoring Total Erosion Management 16 26 $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget 16,305,000 9,932,000 6,761,000 6,373,000 64.2% 31,000 49,000 118,000 (18,000) -36.7% 996,000 916,000 1,315,000 80,000 8.7% 1,000 1,000 3,000 - 0.0% 33,000 31,000 21,000 2,000 6.5% 3,884,000 5,584,000 4,368,000 (1,700,000) -30.4% 200,000 - - 200,000 0.0% 24,000 4,000 1,000 20,000 500.0% 17,000 - 0.0% 21,474,000 16,517,000 12,604,000 4,957,000 30.0% 773,000 594,000 520,000 179,000 30.1% 996,000 913,000 1,229,000 83,000 9.1% 651,000 633,000 574,000 18,000 2.8% 98,000 195,000 230,000 (97,000) 49.7% 579,000 138,000 359,000 441,000 319.6% 355,000 244,000 223,000 111,000 45.5% 3,452,000 2,717,000 3,135,000 735,000 27.1% 13,123,000 6,844,000 5,714,000 6,279,000 91.7% 961,000 964,000 978,000 (3,000) -0.3% 14,084,000 7,808,000 6,692,000 6,276,000 80.4% 26 Measures: 1. Technical training - number of sites monitored 2. Flood risk remedial work locations - by cluster 3. Flood plain managed - by hectares 4. TBD 27 Estimate Actual Actual 6 6 5 42 42 42 14,000 13,911 17 $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget Flood Management Flood Forecasting and Warning 360,000 335,000 361,000 25,000 7.5% Flood Risk Management 2,975,000 3,294,000 1,609,000 (319,000) -9.7% Flood Infrastructure and Operations 1,060,000 3,044,000 1,732,000 (1,984,000) - 65.2% Total Flood Management 4,395,000 6,673,000 3,702,000 (2,278,000) -34.1% Total Expenditures 21,931,000 17,198,000 13,529,000 4,733,000 27.5% Net Budget (458,000) (681,000) (926,000) 223,000 -32.7% Measures: 1. Technical training - number of sites monitored 2. Flood risk remedial work locations - by cluster 3. Flood plain managed - by hectares 4. TBD 27 Estimate Actual Actual 6 6 5 42 42 42 14,000 13,911 Toronto and Region Conservation Authority 2014 Budget Operating and Capital - Regional Biodiversity 1s service area includes programs, projects and activities that together create a comprehensive and integrated approach to regional biodiversity green infrastructure management. The focus is on protecting, enhancing and managing all forms of green infrastructure (both aquatic and )strial) throughout the landscape, helping to realize the full benefits biodiversity provides to community and human well- being. monitoring program establishes base line ecological conditions, informs site specific land use changes and allows for meaningful evaluation of >ystem trends over time. Ecosystem management research and directions develop strategies that guide actions in planning and development, ogical restoration, land acquisition, and remediation. Restoration and regeneration programs provide an inclusive and effective approach to 'oving ecosystem health and wildlife habitat. The forest management program establishes and maintains healthy, vigorous and diverse forest Revenue Municipal Capital levies Other Government Grants Provincial Federal User fees, sales and admissions Contract services Municipal Compensation agreements Corporate and other Fundraising The Living City Foundation Investment income Net gain /loss on sale of tangible capital assets Sundry Total Revenue Expenditures Biodiversity Monitoring Regional Monitoring Activity Based Monitoring Terrestrial Inventory and Assessment Total Biodiversity Monitoring Natural Channels Natural Channel Design Total Natural Channels Ecosystem Management Research and Directions Aquatic System Priority Planning Terrestrial (and Integrated) Ecosystem Management Compensation Restoration Total Ecosystem Management Research and Directions • $ Change % Change 2014 2013 2013 over2013 over2013 Budget Budget Year to date Budget Budget 8,376,000 6,265,000 5,069,000 2,111,000 33.7% 291,000 261,000 287,000 30,000 11.5% 226,000 37,000 (94,000) 189,000 510.8% 382,000 515,000 383,000 (133,000) -25.8% 577,000 669,000 971.,000 (92,000) -13.8% 4,301,000 4,534,000 2,926,000 (233,000) -5.1% 937,000 879,000 (225,000) 58,000 6.6% 386,000 361,000 360,000 25,000 6.9% 79,000 77,000 126,000 2,000 2.6% - - 1,000 - 0.0% - 0.0% 15,555,000 13,598,000 9,804,000 1,957,000 14.4% 651,000 633,000 574,000 18,000 2.8% 796,000 606,000 572,000 190,000 31.4% 380,000 130,000 250,000 250,000 192.3% 1,827,000 1,369,000 1,396,000 458,000 33.5% 514,000 512,000 237,000 2,000 0.4% 514,000 512,000 237,000 2,000 0.4% 203,000 248,000 228,000 (45,000) -18.1% 980,000 1,145,000 808,000 (165,000) -14.4% 27,000 56,000 29,000 (29,000) -51.8% 1,210,000 1,449,000 1,065,000 (239,000) -16.5% • Habitat Restoration Works Shoreline Restoration Wetlands Riparian and Flood Plain Restoration Natural Channel and Stream Restoration Terrestrial Planting Invasive Species Management Essential Wildlife Habitat Total Habitat Restoration Works Wildlife Management Wildlife Habitat Management Total Wildlife Management Forest Management Managed Forest Tax Incentive Planning Forest Management Planning Forest Management Operations Total Forest Management Indigenous Plan Propagation Propagation and Sale of Plants Total Indigenous Plan Propagation Restoration and Regeneration Inland and Lakefill Soil Management Infill Projects Watershed Restoration Private Land Stewardship Planning Total Restoration and Regeneration Total Expenditures Net Budget 19 $ Change % Change 2014 2013 2013 over 2013 over2013 Budget Budget Year to date Budget Budget 1,052,000 794,000 593,000 258,000 32.5% 615,000 701,000 477,000 (86,000) -12.3% 1,139,000 913,000 533,000 226,000 24.8% 2,457,000 1,516,000 933,000 941,000 62.1% 2,339,000 2,174,000 730,000 165,000 7.6% 386,000 343,000 159,000 43,000 12.5% 12,000 10,000 35,000 2,000 20.0% 8,000,000 6,451,000 3,460,000 1,549,000 24.0% 196,000 118,000 150,000 78,000 66.1% 196,000 118,000 150,000 78,000 66.1% 4,000 3,000 1,000 1,000 33.3% 34,000 33,000 37,000 1,000 3.0% 469,000 521,000 320,000 (52,000) -10.0% 507,000 557,000 358,000 (50,000) -9.0% 160,000 129,000 (167,000) 31,000 24.0% 160,000 129,000 (167,000) 31,000 24.0% 318,000 285,000 306,000 33,000 11.6% - - - - 0.0% 2,389,000 2,598,000 2,615,000 (209,000) -8.0% 675,000 640,000 479,000 35,000 5.5% 3,382,000 3,523,000 3,400,000 (141,000) -4.0% 15,796,000 14,108,000 9,899,000 1,688,000 12.0% (240,000) (511,000) (94,000) 271,000 -53.0% 29 2014 2013 2012 Measures: Estimate Actual Actual 1. TRCA annual planting total 300,000 278,884 313,289 2. River and riverbank stabilization works - in linear metres 3,950 730 1,077 3. Terrestrial inventory and assessment - in Hectares 1,300 1,000 1,000 4. Number of monitoring sites (terrestrial, aquatic, species) 642 608 593 29 Toronto and Region Conservation Authority 2014 Budget Operating and Capital - Land Securement and Management Description: Includes greenspace securement and looking after TRCA -owned lands. The process of managing the use and development (in both urban and rural settings) of land resources. This service area is informed by other service areas. 20 Expenditures Property Taxes and Insurance Property Taxes and Insurance 610,000 644,000 561,000 $ Change % Change Total Property Taxes and Insurance 2014 2013 2013 over2013 over2013 Land Securement Budget Budget Year to date Budget Budget Revenue 5,339,000 5,337,000 1,674,000 2,000 0.0% Municipal 5,339,000 5,337,000 1,674,000 2,000 0.0% Capital levies 2,857,000 3,279,000 2,593,000 (422,000) -12.9% Other 1,600,000 1,616,000 1,277,000 (16,000) -1.0% Government Grants 748,000 1,136,000 761,000 (388,000) - 34.2% Provincial 5,000 5,000 (1,000) - 0.0% Federal 6,000 10,000 42,000 (4,000) -40.0% User fees, sales and admissions 50,000 40,000 117,000 10,000 25.0% Contract services 3,358,000 3,380,000 2,101,000 (22,000) -0.7% Municipal 751,000 199,000 427,000 552,000 277.4% Compensation agreements 1,072,000 89,000 209,000 983,000 1104.5% Corporate and other 90,000 18,000 2,000 72,000 400.0% Rent and property interests 3,123,000 3,066,000 2,464,000 57,000 1.9% Fundraising 2,644,000 2,047,000 2,224,000 597,000 291% Donations 3,000,000 3,000,000 1,000 - 0.0% The Living City Foundation 5,000 96,000 6,000 (91,000) -94.8% Sundry - - 67,000 - Total Revenue 12,559,000 11,418,000 7,204,000 1,141,000 10.0% Expenditures Property Taxes and Insurance Property Taxes and Insurance 610,000 644,000 561,000 (34,000) -5.3% Total Property Taxes and Insurance 610,000 644,000 561,000 (34,000) -5.3% Land Securement 499 495 2. Land secured by TRCA - cumulative - in Hectares 18,058 Greenspace Land Acqusition 5,339,000 5,337,000 1,674,000 2,000 0.0% Total Land Securement 5,339,000 5,337,000 1,674,000 2,000 0.0% Land Management Hazard Tree Management 97,000 79,000 46,000 18,000 22.8% Resource Management Planning 748,000 1,136,000 761,000 (388,000) - 34.2% Inventory and audit 64,000 - 131,000 64,000 0.0% Implementation 2,449,000 2,165,000 1,162,000 284,000 13.1% Hazard Management - - 1,000 - 0.0% Total Land Management 3,358,000 3,380,000 2,101,000 (22,000) -0.7% Archaeology Archaeology 328,000 326,000 519,000 2,000 0.6% Total Archaeology 328,000 326,000 519,000 2,000 0.6% Rental Properties Rentals 2,644,000 2,047,000 2,224,000 597,000 291% Total Rental Properties 2,644,000 2,047,000 2,224,000 597,000 29.2% Total Expenditures 12,279,000 11,734,000 7,079,000 545,000 4.6% Net Budget 280,000 (316,000) 125,000 596,000 - 188.6% 30 2014 2013 2012 Measures: Estimate Actual Actual 1. TRCA buildings in asset register 500 499 495 2. Land secured by TRCA - cumulative - in Hectares 18,058 17,933 17,863 3. Archaeological assessments - in Hectares 39 39 51 4. Number of Hectares inventoried and audited 4,000 3,000 3,612 30 Toronto and Region Conservation Authority 2014 Budget Operating and Capital - Tourism and Recreation 21 Description: Includes a variety of programs and activities which promote outdoor recreation and nature -based tourism, encouraging the connection between health and well -being and time spent in natural environments. Expenditures Waterfront Parks General Maintenance 240,000 226,000 276,000 $ Change % Change Park Planning 2014 2013 2013 over 2013 over 2013 Total Waterfront Parks Budget Budget Year to date Budget Budget Revenue Municipal 699,000 740,000 601,000 (41,000) -5.5% Capital levies 4,898,000 5,235,000 2,244,000 (337,000) -6.4% Other - - 213,000 - 0.0% Government Grants 84,000 83,000 79,000 1,000 1.2 % Provincial 324,000 324,000 227,000 - 0.0% Federal 13,000 15,000 130,000 (2,000) -13.3% User fees, sales and admissions 9,079,000 8,878,000 8,390,000 201,000 2.3% Contract services 977,000 868,000 856,000 109,000 12.6% Municipal 14,047,000 12,201,000 7,153,000 1,846,000 15.1% Compensation agreements - - - - 0.0% Corporate and other 121,000 5,000 229,000 116,000 2320.0% Rent and property interests - - 71,000 - 0.0% Fundraising 5,862,000 6,195,000 5,832,000 (333.,000) -5.4% Donations 11,000 11,000 3,000 - 0.0% The Living City Foundation 64,000 75,000 219,000 (11,000) - 14.7% Sundry - - 3,000 - 93.2% Total Revenue 28,557,000 26,744,000 18,882,000 1,813,000 6.8% Expenditures Waterfront Parks General Maintenance 240,000 226,000 276,000 14,000 6.2% Park Planning 12,370,000 10,220,000 7,093,000 2,150,000 21.0% Total Waterfront Parks 12,610,000 10,446,000 7,369,000 2,164,000 20.7% Conservation Parks Day Use 699,000 740,000 601,000 (41,000) -5.5% Picnics 439,000 444,000 363,000 (5,000) -1.1% Swimming 514,000 528,000 517,000 (14,000) -2.7% Fishing 84,000 83,000 79,000 1,000 1.2 % Mountain Biking 17,000 16,000 - 1,000 6.3% Camping 932,000 919,000 688,000 13,000 1.4% Cross Country Skiing 63,000 42,000 113,000 21,000 50.0% Administration 977,000 868,000 856,000 109,000 12.6% General Maintenance 1,022,000 1,030,000 1,321,000 (8,000) -0.8% Visitor Services 365,000 415,000 447,000 (50,000) -12.0% Infrastructure 740,000 1,100,000 813,000 (360,000) - 32.7% Filming 10,000 10,000 34,000. - 0.0% Total Conservation Parks 5,862,000 6,195,000 5,832,000 (333.,000) -5.4% Trails Trail Development 1,983,000 2,483,000 408,000 (500,000) -20.1% Trail Management 170,000 88,000 123,000 82,000 93.2% Total Trails 2,153,000 2,571,000 531,000 (418,000) -16.3% Bathurst Glen Golf Course 3,449,000 1,290,000 1,335,000 2,159,000 167.4% Total Bathurst Glen 3,449,000 1,290,000 1,335,000 2,159,000 167.4% 31 Black Creek Pioneer Village Heritage Village Total Black Creek Pioneer Village Public Use Infrastructure Pan -Am Games Arsenal Lands CA State of Good Repair Total Public Use Infrastructure Events and Festivals Private Functions Day Festivals Total Events and Festivals Total Expenditures Net Budget 22 $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget 3,746,000 3,932,000 4,137,000 (186,000) -4.7% 3,746,000 3,932,000 4,137,000 (186,000) -4.7% 715,000 901,000 654,000 (186,000) -20.6% 870,000 750,000 130,000 120,000 16.0% 2,181,000 1,748,000 518,000 433,000 24.8% 3,766,000 3,399,000 1,302,000 367,000 10.8% 1,259,000 1,058,000 1,376,000 201,000 19.0% 929,000 968,000 1,067,000 (39,000) -4.0% 2,188,000 2,026,000 2,443,000 162,000 8.0% 33,774,000 29,859,000 22,949,000 3,915,000 13.1% (5,217,000) (3,115,000) (4,068,000) (2,102,000) 67.5% asures: Estimate Actual Actual 1. Conservation parks total visitor admissions - annually 510,000 508,216 516,000 2. Bathurst Glen total visitor admissions 55,000 54,125 48,000 3. Number of new trails constructed - in metres 13,100 10,100 1,850 4. Black Creek Pioneer Village adminisions 125,000 121,000 131,600 32 Toronto and Region Conservation Authority 2014 Budget Operating and Capital - Planning and Development Review Description: Environmental review in support of development. Conservation authorities have a legislated and mandated responsibility under the Conservation Authorities Act to have board - approved policies to further the conservation, restoration, development and management of natural resources. Revenue Municipal Capital levies Other User fees, sales and admissions Contract services Municipal Corporate and other Total Revenue Expenditures Development Planning and Regulation Permitting Planning Permitting Development Enforcement and Compliance Total Development Planning and Regulation Permitting Environmental Assessment Planning and Permitting Planning Permitting Development Enforcement and Compliance Technical Services Total Environmental Assessment Planning and Permitting Enquiries Technical Services Total Enquiries Policy Development and Review Policy Development and Review Total Policy Development and Review Total Expenditures Net Budget 23 $ Change % Change 2014 2013 2013 over2013 over 2013 Budget Budget Year to date Budget Budget 942,000 896,000 899,000 46,000 5.1% 1,194,000 1,299,000 958,000 (105,000) -8.1% 4,978,000 4,504,000 4,943,000 474,000 10.5% 26,000 - - 26,000 0.0% - - 90,000 - 0.0% 7,140,000 6,699,000 6,890,000 441,000 6.6% 1,424,000 1,393,000 1,082,000 31,000 2.2% 1,093,000 1,069,000 975,000 24,000 2.2% - - 3,000 - 0.0% 2,517,000 2,462;000 2,060,000 55,000 2.2% 718,000 705,000 579,000 13,000 1.8% 731,000 675,000 688,000 56,000 8.3% 270,000 262,000 296,000 8,000 3.1% 1,184,000 1,367,000 1,140,000 (183,000) -13.4% 2,903,000 3,009,000 2,703,000 (106,000) -3.5% 1,047,000 1,040,000 1,002,000 7,000 0.7% 1,047,000 1,040,000 1,002,000 7,000 0.7% 747,000 834,000 769,000 (87,000) -10.4% 747,000 834,000 769,000 (87,000) -10.4% 7,214,000.00 7,345,000.00 8,534,000.00 - 131,000.00 -1.8% (74,000) (645,000) 357,000 571,000 -88.5% 33 2014 2013 2012 Measures: Estimate Actual Actual 1. New section 28 permits received 1,065 1,064 1,032 2. Section 28 permits issued 970 970 944 3. Environmental assessments - applications 220 168 103 4. Master environmental servicing plans 20 15 18 33 Toronto and Region Conservation Authority 2014 Budget Operating and Capital - Education and Outreach Description: Education and Outreach promotes a culture of life -long learning by providing education, outreach and training opportunities for residents of all ages. This includes programs provided at our education centres, in the community and in the home. Revenue Municipal Capital levies Other Government Grants Provincial Federal User fees, sales and admissions Contract services Municipal Corporate and other Fundraising Donations The Living City Foundation Investment income Total Revenue Expenditures Educational Infrastructure Retrofits Bolton Camp Development Total Educational Infrastructure School Programs Early Childhood Education Field Centres Kortright Black Creek Children's Water Festivals Weston Family Environmental Leaders of Tomorrow Community Characteristics Mapping Education Development and Curriculum Services Outreach Education Total School Programs 24 34 $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget 4,107,000 2,840,000 2,040,000 1,267,000 44.6% 505,000 5,000 (481,000) 500,000 10000.0% 775,000 850,000 1,315,000 (75,000) -8.8% 87,000 17,000 183,000 70,000 411.8% 3,499,000 3,424,000 2,917,000 75,000 2.2% 55,000 20,000 27,000 35,000 175.0°% 519,000 - 4,000 519,000 0.0°% - - 1,000 - 0.0% 931,000 821,000 868,000 110,000 13.4% - - 3,000 - 0.0% 10,478,000 7,977,000 6,877,000 2,501,000 31.4% 2,876,000 1,277,000 1,535,000 1,599,000 125.2% 910,000 500,000 109,000 410,000 82.0% 3,786,000 1,777,000 1,644,000 2,009,000 113.1% 292,000 273,000 333,000 19,000 7.0% 2,504,000 2,489,000 2,291,000 15,000 0.6% 775,000 762,000 753,000 13,000 1.7% 331,000 325,000 325,000 6,000 1.8% 80,000 80,000 81,000 - 0.0% 61,000 60,000 106,000 1,000 1.7°% 72,000 40,000 44,000 32,000 80.0% 320,000 198,000 122,000 122,000 61.6°% 874,000 757,000 735,000 117,000 15.5% 5,309,000 4,984,000 4,790,000 325,000 6.5% 34 Net Budget (434,000) (563,000) (1,324,000) 129,000 -22.9% 2014 2013 2012 25 Estimate Actual Actual 1. $ Change % Change 102 2014 2013 2013 over 2013 over 2013 49,800 Budget Budget Year to date Budget Budget Professional Training and Development English as a Second Language - number of participants 4,000 3,755 2,310 STEP Training 667,000 602,000 426,000 65,000 10.8% Development of Internationally Trained Professionals 859,000 855,000 817,000 4,000 0.5% Teacher PD 131,000 130,000 93,000 1,000 0.8% EcoSchools and EcoCentres 137,000 139,000 379,000 (2,000) -1.4% Total Professional Training and Development 1,794,000 1,726,000 1,715,000 68,000 3.9% Family Programs Black Creek Pioneer Village - - 1,000 - 0.0% Kortright 23,000 52,000 52,000 (29,000) -55.8% Total Family Programs 23,000 52,000 53,000 (29,000) -55.8% Total Expenditures 10,912,000 8,539,000 8,202,000 2,373,000 27.8% Net Budget (434,000) (563,000) (1,324,000) 129,000 -22.9% 35 2014 2013 2012 Measures: Estimate Actual Actual 1. M2P and PAIE program participants 152 102 102 2. Black Creek Pioneer Village education bookings - number of students 49,000 46,489 49,800 3. Outreach education participants 26,000 24,057 24,849 4. English as a Second Language - number of participants 4,000 3,755 2,310 35 Toronto and Region Conservation Authority 2014 Budget Operating and Capital - Sustainable Communities Descriotiow TRCA sustainable communities programs focus on catalyzing awareness and action on the combined social, economic and environmental sustainability in the region. They include initiatives to encourage neighborhoods and business sectors to make themselves more sustainable, to create understanding and capacity for area residents to be leaders in sustainability, and to help TRCA partners overcome technical, policy and market bamiers to using more sustainable practices and technologies. Revenue Municipal Capital levies Other Government Grants Provincial Federal User fees, sales and admissions Contract services Municipal Compensation agreements Corporate and other Fundraising Donations The Living City Foundation Investment income Net gain /loss on sale of tangible capital assets Sundry Total Revenue Expenditures Living City Transition Program Sustainable Neighbourhood Action Plans (SNAP) Community Transformation Partners in Project Green Urban Agriculture Sustainable Technology Evaluation Program Total Living City Transition Program Community Engagement Multicultural Connections Program Stakeholder Engagement Community Stewardship EVN (Environmental Volunteer Network) Private Land Stewardship Total Community Engagement Total Expenditures Net Budget 26 $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget 4,327,000 3,955,000 3,047,000 372,000 9.4% 171,000 299,000 87,000 (128,000) -42.8% 215,000 453,000 472,000 (238,000) -52.5% 566,000 690,000 667,000 (124,000) -18.0% 345,000 66,000 371,000 279,000 422.7% 284,000 250,000 70,000 34,000 13.6% 27,000 50,000 68,000 (23,000) -46.0% 871,000 977,000 424,000 (106,000) -10.8% - - (38,000) - 0.0% 223,000 168,000 151,000 55,000 32.7% - - - - 0.0% 0.0% 7,029,000 6,908,000 5,319,000 121,000 1.8% 1,051,000 910,000 827,000 141,000 15.5% 916,000 1,241,000 812,000 (325,000) -26.2% 1,475,000 1,254,000 931,000 221,000 17.6% 209,000 168,000 99,000 41,000 24.4% 850,000 971,000 1,081,000 (121,000) -12.5% 4,501,000 4,544,000 3,750,000 (43,000) -0.9% 135,000 108,000 108,000 27,000 25.0% 1,193,000 1,061,000 476,000 132,000 12.4% 1,058,000 986,000 877,000 72,000 7.3% - 5,000 - (5,000) - 100.0% 185,000 198,000 136,000 (13,000) -6.6% 2,571,000 2,358,000 1,597,000 213,000 9.0% 7,072,000.00 6,902,000.00 5,347,000.00 170,000.00 2.5% (44,000) 6,000 (28,000) (50,000) - 833.3% 36 2014 2013 2012 rsures: Estimate Actual Actual 1. Stewardship participants 13,000 11,194 13,818 Number of innovative partnerships realized to 2. achieve regional sustainability objectives 37 24 13 Number of people engaged in regional 3. sustainability and stewardship initiatives 32,118 19,902 14,105 36 Toronto and Region Conservation Authority 2014 Budget Operating and Capital - Corporate Services 27 Description: Activities related to the overall managment of the organization, that combine or consolidate certain company -wide needed support services, provided based on specialized knowledge, best practices and technology to serve internal (and sometimes external) customers and business partners. Revenue Municipal Operating levies Capital levies Government Grants Provincial Federal User fees, sales and admissions Contract services Municipal Corporate and other Rent and property interests Fundraising The Living City Foundation Investment income Sundry Total Revenue Expenditures Financial Services Budgeting and Capital Planning TRCA and Project Needs Assessment Total Financial Services Corporate Management and Infrastructure Corporate Secretariat Corporate Strategies Corporate Sustainability Reporting Major Facilities Food Services Total Corporate Management and Infrastructure $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget 12, 851,000 12,496,000 4,043,000 1,281,000 774,000 774,000 115,000 115,000 159,000 57,000 12,496,000 355,000 1,087,000 2,762,000 774,000 - 115,000 102,000 14,000 (150,000) 2.8% 215.6% 0.0% 0.0% 178.9% 0.0% 0.0% 45.2% - 100.0% 0.0% 3,083,000 19.9% 1;485,000 1,325,000 1,000 - - 22,000 45,000 31,000 31,000 - 150,000 - 540,000 540,000 567,000 30,000 30,000 363,000 18,557,000 15,474,000 15,456,000 14,000 (150,000) 2.8% 215.6% 0.0% 0.0% 178.9% 0.0% 0.0% 45.2% - 100.0% 0.0% 3,083,000 19.9% 1;485,000 1,325,000 1,341,000 160,000 12.1% 92,000 92,000 154,000 - 0.0% 1,577,000 1,417,000 1,495,000 160,000 11.3% 1,158,000 1,049,000 1,028,000 109,000 10.4% - - - - 0.0% 40,000 40,000 40,000 - 0.0% 3,605,000 2,659,000 2,462,000 946,000 35.6% 101,000 107,000 76,000 (6,000) -5.6% 4,904,000 3,855,000 3,606,000 1,049,000 27.2% 37 Human Resources Health and Safety Staff Support Total Human Resources Marketing and Communications Digital Media Design, Production and Distribution Print Media Design, Production and Distribution Branding Strategy Corporate Communications Promotions Enterprise System Development Total Marketing and Communications Information Management Information Technology Infrastructure Knowledge Data Management and Databases Business Applications Total Information Management Management and Governance Services Governance Services Total Management and Governance Services Project Recoveries Project Recoveries Total Project Recoveries Vehicles and Equipment Vehicles and Equipment Total Vehicles and Equipment Total Expenditures Net Budget 28 $ Change % Change 2014 2013 2013 over 2013 over 2013 Budget Budget Year to date Budget Budget - - (6,000) - 0.0% 788,000 601,000 599,000 187,000 31.1% 788,000 601,000 593,000 187,000 31.1% - - 3,000 - 0.0% - - 3,000 - 0.0% - - 3,000 - 0.0% 1,282,000 1,258,000 1,248,000 24,000 1.9% - - 5,000 - 0.0% 149,000 147,000 121,000 2,000 1.4% 1,431,000 1,405,000 1,383,000 26,000 1.9% 734,000 711,000 833,000 23,000 3.2% 1,182,000 1,118,000 1,041,000 64,000 5.7% 500,000 422,000 325,000 78,000 18.5 % 2,416,000 2,251,000 2,199,000 165,000 7.3% 669,000 631,000 537,000 38,000 6.0% 669,000 631,000 537,000 38,000 6.0% (2,058,000) (2,055,000) (2,234,000) (3,000) 0.1% (2,058,000) (2,055,000) (2,234,000) (3,000) 0.1 % 30,000 30,000 42,000 - 0.0 % 30,000 30,000 42,000 - 0.0% 9,757,000 8,135,000 7,621,000 1,622,000 19.9% 8,800,000 7,338,000 7,834,000 1,462,000 19.9% niLej 2014 2013 2012 Measures: Estimate Actual Actual 1. Total area of jurisdiction 2,492 2,492 2,492 2. Employee injury reports 35 35 39 3. Number of marketing promotional materials produced TBD TBD TBD 4. Corporate sustainability TBD TBD TBD niLej SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD RES. #C4/14 - 2013 YEAR END FINANCIAL PROGRESS REPORT Recommends receipt of the 2013 year end financial progress report. Moved by: Dave Ryan Seconded by: Bob Callahan IT IS RECOMMENDED THAT Toronto and Region Conservation Authority's (TRCA) Financial Progress Report dated December 31, 2013, be received. CARRIED BACKGROUND The Financial Progress Report is a tool through which staff advise the Authority of the financial status of TRCA's budget. As part of the financial management process, staff provide to the Budget /Audit Advisory Board (BARB) financial progress reports. This report covers the year ended December 31, 2013. RATIONALE Staff has included within the 2014 Operating and Capital Budget documents, 2013 actual and 2013 budget information for comparison. Staff will be working with the auditors on the 2013 financial statements in May 2014. The financial statements will be presented to BAAB at its meeting scheduled to be held on June 20, 2014. In finalizing the 2013 financial statements, the 2013 actuals may be adjusted, but not significantly. The 2013 financial performance resulted in a combined operating and capital surplus of $208,000. Separately, details for each of the operating and capital financial results are listed below. The 2013 operating results disclose a surplus of $990,000. Key factors of the variance are outlined in Attachment 1. The 2013 capital budget produced a deficit of $782,000, the majority of which will be recovered through future year budgets. Key factors of the variance are outline in Attachment 2. There are multiple other capital projects for which expenditures varied from budget. Reasons include factors such as: • project completion schedules which cover multiple years; • delays in obtaining various approvals and matching funding; and • weather conditions which cause delays of in- ground work. Provision is made for the carry- forward of funding for capital works that are delayed. Report prepared by: Janice Darnley, extension 5768 Emails: jdarnley @trca.on.ca For Information contact: Rocco Sgambelluri, extension 5232 Janice Darnley, extension 5768 Emails: rsgambelluri @trca.on.ca, jdarnley@trca.on.ca Date: April 02, 2014 Attachments: 2 39 Attachments 2013 Operating Variance Division Surplus Explanation (Deficit) HR, Marketing and 461,000 WSIB NEER rebate and Sun Life premium rebates of Communication $356,900 and $50,000 lower Information Technology contracting services led to the surplus. Parks and Culture (335,000) Wedding revenue shortfall and increased staffing costs incurred of $275,600; Conservation parks revenue shortfalls including closure of the Heart Lake pool for a month contributed a further $169,400 to the shortage. Planning and 1,008,000 Higher revenues of $335,500 were received and salary Development savings $487,600 were experienced due to gapping contributing to the surplus. Restoration Services 144,000 Revenues higher than anticipated based on increased plant material sales volume while costs remained close to budget. Watershed (223,000) Teacher job action which began in 2012 and continued Management into 2013 resulted in low bookings at the field centres. Other (65,000) Multiple accounts with minor year -end balances. Total 990,000 i Attachment 2 2013 Capital Variance Project Surplus Explanation (Deficit) Kortright Centre (276,000) Capital expenditures spent in 2013 which will be recovered in future years, in accordance with approved Authority direction. EcoSchools Program (140,000) After last year's job action, this program is experiencing a resurgence in registration and participation in 2013/14. As such, the deficit is due to rebounding program numbers which limited the ability to recapture prior year deficit of $118,000. The increased deficit will be carried forward and managed in 2014. Albion Hills (55,000) This deficit is due to the acceleration of the resource Environmental Weeks renewal time -line /increased school engagement and has resulted in increased expenditures and limited ability to recover prior year deficit of $48,000 in 2013. Shoreline (279,000) Overruns as a result of the July 8 2013 storm response Maintenance and (inspections, geo- technical investigations, etc). Funding Monitoring will be available in 2014. Erosion Control (79,000) Overrun due to additional excavation required at Albion Hills Conservation Area (128 -92) and relocation of stockpile area. Funding is available in 2014. Black Creek Pioneer (146,000) A number of essential projects were completed in 2013, Village including necessary repairs to infrastructure. The largest project was the Emergency Preparedness Infrastructure which included the emergency generator. Funding is available in 2014. West Don Landform 127,000 Surplus resulting from a special purpose project undertaken for Infrastructure Ontario. Erosion Work Major (42,000) Project continues in 2014. Maintenance Natural Channel (57,000) Project continues in 2014. Habitat Restoration Heart Lake (52,000) Unanticipated deficiency issues increased costs and delayed the permit approval. Project continues in 2014. Information (134,000) Information technology multi -year projects including Technology capital for databases and financial information system. Petticoat Pool 193,000 Recoveries to offset expenses in prior years. Replacement Various Projects 158,000 A number of projects with minor surplus and deficits Total (782,000) 41 TERMINATION ON MOTION, the meeting terminated at 9:06 a.m., on Friday, April 11, 2014. Gerri Lynn O'Connor Chair /ks UT Brian Denney Secretary- Treasurer Toronto and Region onservation Authority INDEX TO BUDGET AUDIT ADVISORY BOARD MEETING #2/14 Friday, June 20, 2014 MINUTES Minutes of Meeting #1/14, held on April 11, 2014 43 PRESENTATION Sautner, Michelle, CPA, CA, Principal and Elliott, Branda, CPA, CA, Manager, Grant Thornton LLP re: 2013 Audited Financial Statement and Auditors Report 43 2013 AUDITED FINANCIAL STATEMENTS 44 Toronto and Region Conservation Authority MEETING OF THE BUDGET /AUDIT ADVISORY BOARD #2/14 June 20, 2014 The Budget /Audit Advisory Board Meeting #2/14, was held in Weston Room B, Black Creek Pioneer Village, on Friday, June 20, 2014. The Vice Chair, Authority, Maria Augimeri , called the meeting to order at 8:43 a.m. PRESENT Maria Augimeri David Barrow Bob Callahan Gerri Lynn O'Connor Dave Ryan RES. #C5 /14 - Moved by: Seconded by: MINUTES Dave Ryan David Barrow THAT the Minutes of Meeting #1/14, held on April 11, 2014, be approved. PRESENTATIONS Member Member Member Chair Member CARRIED (a) A presentation by Michelle Sautner, CPA, CA, Principal and Brandy Ellliot, CPA, CA, Manager, Grant Thorton LLP in regard to item BAAB7.1 -2013 Audited Financial Statement and Auditors Report. RES. #C6 /14 - PRESENTATIONS Moved by: Dave Ryan Seconded by: Maria Augimeri THAT above -noted presentation (a) be received. 43 SECTION I - ITEMS FOR AUTHORITY ACTION RES. #C7/14 - 2013 AUDITED FINANCIAL STATEMENTS The 2013 audited financial statements are recommended for approval. Moved by: Dave Ryan Seconded by: Maria Augimeri THE BOARD RECOMMENDS TO THE AUTHORITY THAT the transfer of funds from reserves to surplus in the amount of $302,000.00, as outlined in Note 7(a), "Continuity of reserves" to the financial statements be approved; AND FURTHER THAT the 2013 audited financial statements, as presented, be approved, signed by the Chair and Secretary- Treasurer of Toronto and Region Conservation Authority (TRCA), and distributed to each member municipality and the Minister of Natural Resources, in accordance with subsection 38 (3) of the Conservation Authorities Act. CARRIED RATIONALE The 2013 TRCA audited financial statements are presented for approval. The accounting firm Grant Thornton LLP has completed its audit and has included with the financial statements an unqualified auditor's report. The audited financial statements are presented as Attachment 1 to the report. A representative from Grant Thornton LLP will be in attendance to present the auditor's report on the 2013 financial statements. Auditor Communication on Audit Strategy and Results Included as Attachment 2 is a report from Grant Thornton LLP addressed to the Budget/Audit Advisory Board (BARB), entitled, "Report to the Budget /Audit Advisory Board - communication of audit strategy and results ". This report addresses various matters, including the auditors approach to the audit, quality control and independence, audit results, reportable matters, status report on the audit process and other matters which may be of interest to the members. The section of this report entitled "Reportable Matters" includes one internal control recommendation. It is recommended that bank reconciliations occur on a more timely basis. Management agrees with the recommendation, and with the full implementation of the bank reconciliation module in the new financial reporting system complete future bank reconciliations will now occur on a more timely and efficient basis. Financial Statement Structure The Statement of Operations and Accumulated Surplus reports revenues, expenses and surplus position for the year, excluding the impact of tangible capital asset (TCA) expenditures and disposals. The Statement of Financial Position reports financial assets and liabilities, defining net assets of the organization. Further, the Statement of Financial Position discloses non - financial assets. The Statement of Changes in Net Financial Assets (Debt) reconciles the surplus for the period to the change in net assets (debt). Finally, the Statement of Cash Flows discloses the cash inflows and outflows during the year, classified as operating, investing or capital activities. a The Statement of Operations and Accumulated Surplus and the supporting schedules does not include tangible capital asset amounts. Note 11 in the audited financial statements explains the modifications to the approved budget required in order to provide a more meaningful comparison to actual operating results. Also, to assist with the comparison of results to budget, the actual amortization for the year has been added to the approved budget. In 2013 the supporting "Schedules of Operations" have been reorganized to conform to the business plan format included within the 2014 approved TRCA budget. Each schedule represents a Service Area within the business plan. This approach allows for a consistency in financial reporting. The 2013 audited financial statements include a number of other minor changes which improve the presentation. Starting in 2013 amounts are rounded to the nearest thousand dollars. The notes have also been reorganized in order to keep the discussion on similar items together. Tangible Capital Assets Effective January 1, 2009, financial statements incorporate a new approach to accounting for tangible capital assets, which are in non - financial assets that have a physical substance and have useful economic lives which extend beyond the current accounting period. Excluded from the definition of TCA are a number of intangible assets such as trademarks, patents and the cost of easements. Before these changes were introduced, expenditures on the acquisition of TCA were expensed in the year that the assets were acquired. Starting in 2009, the costs are spread (amortized) across the years that the asset is considered to have a useful life. The balance of the asset costs which have yet to be amortized are reported on the statement of financial position as non - financial assets and offset within the "accumulated surplus" section of the same statement. As at December 31, 2013, the total book value of the tangible capital assets is $559.7 million of which $131.5 million has been amortized. The unamortized balance of $428.2 million is reported in the statement of financial position as the net book value of tangible capital assets. Land, which is carried on the books at a cost of $335.8 million is not amortized. During 2013, $8.0 million in TCA was acquired and assets having a book value (original cost) of $0.67 million have been disposed. The schedule of "Tangible Capital Assets" included in Note 6 to the audited financial statements itemizes the various components of TCA. Operating Surplus / Deficit Position The "cash basis" analysis presented below looks at available funding as compared to actual expenditures, the same basis upon which the annual budget was developed and presented to the members for approval. TRCA's operating surplus position as of December 31, 2013 is $454,000, as reported in Note 7 of the financial statements. This compares to a surplus position of $293,000 at December 31, 2012, an increase of $161,000. (In April 2014, staff had projected the surplus at $208,000 in the 2013 Financial Progress Report to the Board.) In 2013 TRCA incurred capital expenditures in the approximate amount of $1 million which will be recovered from municipal levies in 2014. If the funding had been available in 2013, the 2013 in -year surplus position would have been reported as $1,161,000 and the accumulated surplus as $1,454,000. 45 Reserves: The status of TRCA reserves is presented in Note 7(a) of the financial statements. Some of the more significant reserve transactions that occurred in 2013 are as follows: • Vehicle and Equipment Reserve: the cost of capital acquisitions and the cost of operations exceeded usage charges to programs by an amount of $94,000, decreasing the reserve balance from $611,000 to $517,000. • Funds Held Under Provincial Revenue Sharing Policy Reserve: The reserve balance decreased by $57,000, from $998,000 to $941,000. Note 7(b) to the financial statements explains the rules which govern the use of funds in this reserve and itemizes the transactions which flowed through the reserve during the year. • The operating contingency reserve was drawn down by $150,000, from $3,854,000 to $3,704,000 in order to carry out major maintenance and IT work at the Boyd Centre. These items were not in the budget. SUMMARY From a "bottom line" perspective the 2013 operating results are very favourable. Available funding exceeded expenditures and as a result it was possible to grow the accumulated surplus by a modest amount. Further, the 2014 capital funding which is available to finance the 2013 capital deficit will improve the 2014 "bottom line" or surplus position by $1,000,000. Report prepared by: Rocco Sgambelluri, extension 5232 Emails: rsgambelluri @trca.on.ca For Information contact: Rocco Sgambelluri, extension 5232; Emails: rsgambelluri @trca.on.ca Date: June 12, 2013 Attachments: 2 ER Attachment 1 GrantThornton Financial Statements Toronto and Region Conservation Authority December 31, 2013 47 Contents Page Independent Auditors Report 1 -2 Statement of Financial Position 3 Statement of Operations and Accumulated Surplus 4 Statement of Changes in Net Financial Assets (Debt) 5 Statement of Cash Flows 6 Notes to the Financial Statements 7-15 Schedules of Operations Introduction 16-17 Schedule of Operations — Watershed Studies and Strategies 18 Schedule of Operations — Water Risk Management 19 Schedule of Operations — Regional Biodiversity 20 Schedule of Operations — Land Securemenl and Management 21 Schedule of Operations — Tourism and Recreation 22 Schedule of Operations — Planning and Development Review 23 Schedule of Operations — Education and Outreach 24 Schedule of Operations — Sustainable Communities 25 Schedule of Operations — Corporate Services 26 A.&-T W., Curtilw�umlLP. ACe NmAa4&G tlha MbiWmdIltl M GrantTh3rntr Independent Auditor's Report Grant Therrien LLP Suite 20D 15 Allstate Parkway Markhan. ON UR 594 7.1 416 366 0100 F .1 805 475 8906 nw.eGWIttrmlrn.ra To the Members of the Toronto and Region Conservation Authority We have audited the accompanying financial statements of Toronto and Region Conservation Authority ("TRCA "), which comprise the statement of financial position as at December 31, 2013, and the statements of operations and accumulated surplus, changes in net financial assets (debt), and cash flows for the 3 eu then ended, and a summary of significant accounting policies and other explanatory Information. Management's responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financta ktatements in accordance with Canadian public sector accounting standards, and for such internal control as management detemvnes is necessary to enable the preparation of financial statement that are free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement An audit involves performing procedures to obtain audit evidence about the amounts and disclosure in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of mate ial misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the of fcd%eness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Auer•TU•Wo, GI:i. LIP. A CenMan MuhA Gmil Th.. Wo.alW A . GrantThornton Opinion in our opinion, the financial statements present Early, in all material respects, the financial position of TRCA as at December 31, 2013, and the results of its operations, changes in net financial assets (debt), and its cash Flows for the year then ended in accordance with Canadian public sector accounting standards. Markham, Canada June •, 2014 AuM-T •M q G1ml:M1 .LMPCmv Murata!d Gra ^ATM WhbM —J LW 50 Chartered Accountants Licensed Public Accountants Toronto and Region Conservation Authority Statement of Financial Position (in thousands of dollars) Financial Assets Cash and cash equivalents Restricted cash (Note 3) Marketable securities (Note 4) Receivables (Note 5) Liabilities Payables and accruals Deferred revenue Municipal capital levies Capital, special projects and other Net Financial Assets Non - Financial Assets Inventory Prepaids Tangible capital assets (Note 6) Accumulated surplus (Note 7) Contingent liabilities and commitments (Note 9) On behalf of TRCA 2013 2012 $ 9,313 $ 8,762 812 2,001 18,030 15,968 14,756 12.815 42.911 39.546 11,554 13,031 13,200 10,151 14.715 12.846 39.469 36.028 3.442 3.518 378 428 243 176 4211213 426.892 428.834 427.496 $ 432,276 $ 431,014 Chair Secretary Treasurer See accompanying notes to the financial statements. 51 3 Toronto and Region Conservation Authority Statement of Operations and Accumulated Surplus (in thousands of dollars) Year Ended December 31 2013 2013 2012 Budget Actual Actual (Note 11) Revenue Municipal Operating levies $ 12,496 $ 12,496 $ 11,948 Capital levies 35,585 24,778 27,768 Other 3,529 2,976 1,628 Government grants Provincial 3,820 4,004 6,518 Federal 1,613 2,277 979 User fees, sales and admissions 17,041 16,610 16,768 Contract services 27,321 18,235 24,524 Rental income 3,097 2,649 2,834 Fundraising Donations 3,373 82 663 The Living City Foundation 1.422 1,543 1,492 Income from marketable securities 540 594 634 Net (gain) loss on sale of tangible capital assets - (274) (127) Sundry - 437 306 $ 109.837 $ 86.407 $ 95.935 Expenses Watershed Studies and Strategies 4,650 3,417 3,688 Water Risk Management 17,152 13,753 18,712 Regional Biodiversity 14,208 10,521 10,836 Land Securement and Management 8,370 6,270 6,139 Tourism and Recreation 31,680 24,802 20,735 Planning and Development Review 7,739 6,841 6,620 Education and Outreach 7,581 7,054 6,887 Sustainable Communities 6,785 5,604 4,878 Corporate Services 7.807 6.883 6.306 105.972 85.145 84.801 Net Surplus $ 3.865 $� 1,262 $134 Accumulated surplus, beginning of year 431.014 431.014 419,88 Accumulated surplus, end of year (Note 7) $ 434,879 $ 432.276 $ 431,014 See accompanying notes to the financial statements. 4 52 Toronto and Region Conservation Authority Statement of Changes in Net Financial Assets (Debt) (in thousands of dollars) Year Ended December 31 2013 2013 2012 Budget Actual Actual (Note 11) Surplus for the year $ Acquisition of tangible capital assets Contributed tangible capital assets Loss on disposal of tangible capital assets Write -off of tangible capital assets Proceeds on disposal of tangible capital assets Amortization Change in inventory Change in prepaids (Decrease) increase in net financial assets (debt) in the year Net financial assets (debt), beginning of year Net financial assets, end of year 3,865 $ 1,262 $ 11,134 (10,527) (6,671) (11,811) (1,368) (867) 274 99 - 29 6,444 6,444 - 50 (671 (218) 3.518 (76) 3,518 51 6,184 (8) 46 4,857 (1,339) $ 3,300 $ 3,442 $ 3,518 See accompanying notes to the financial statements. 5 53 Toronto and Region Conservation Authority Statement of Cash Flows (in thousands of dollars) Year Ended December 31 2013 2012 Increase (decrease) in cash and cash equivalents Operating Surplus for the year $ 1,262 $ 11.134 Non -cash charge to operations Amortization 6,444 6,184 Loss on disposal of tangible capital assets 274 99 Contributed tangible capital assets (1,368) (867) Write -off of tangible capital assets 29 6,612 16,579 Change in non -cash operating working capital Increase in receivables (1,941) (1,238) (Increase) decrease in inventory 50 (8) (Increase) decrease in prepaids (67) 46 Decrease in payables and accruals (1,477) (1,701) Increase (decrease) in deferred revenue 4.918 (3,243) 8,095 10.435 Investing Proceeds on maturities of marketable securities 5,187 8,532 Purchase of marketable securities (7,249) (6,868) (Increase) decrease in restricted cash 1,189 (21) (873) 1,643 Capital Proceeds on disposal of tangible capital assets - 51 Purchase of tangible capital assets (6,6711 (11,811) (6,6711 (11760) Net increase in cash and cash equivalents 551 318 Cash and cash equivalents, beginning of year 8.762 8.444 Cash and cash equivalents, end of year $ 9,313 $ 8,762 See accompanying notes to the financial statements. 0 54 Toronto and Region Conservation Authority Notes to the Financial Statements (in thousands of dollars) December 31, 2013 1. Nature of operations Toronto and Region Conservation Authority ('TRCA ") is established under the Conservation Authorities Act of Ontario to further the conservation, restoration, development and management of natural resources, other than gas, oil, coal and minerals for the nine watersheds within its area of jurisdiction. TRCA's area of jurisdiction includes areas in the City of Toronto, the Regions of Durham, Peel and York, and the Township of Adjala- Tosorontio and Town of Mono_ 2. Summary of significant accounting policies Basis of accounting and management responsibility The financial statements are the responsibility of and prepared by management in accordance with Canadian Public Sector Accounting Standards as established by the Public Sector Accounting Board. Significant aspects of the accounting policies adopted by TRCA are as follows: Accrual accounting Items recognized in the financial statements are accounted for in accordance with the accrual basis of accounting. The accrual basis of accounting recognizes the effect of transactions and events in the period in which the transactions and events occur, regardless of whether there has been a receipt or payment of cash or its equivalent. Accrual accounting recognizes a liability until the obligation or condition(s) underlying the liability is partly or wholly satisfied. Accrual accounting recognizes an asset until the future economic benefit underlying the asset is partly or wholly used or lost. Use of estimates The preparation of financial statements in accordance with Public Sector Accounting Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Accounts subject to significant estimates include receivables and tangible capital assets. Actual results could differ from those estimates. Cash and cash equivalents TRCA considers deposits in banks, certificates of deposit and short term investments with original maturities of 90 days or less as cash and cash equivalents. 55 Toronto and Region Conservation Authority Notes to the Financial Statements (in thousands of dollars) December 31, 2013 2. Summary of significant accounting policies (continued) Marketable securities Marketable securities consist of Guaranteed Investment Certificates and bonds. These investments are carried at cost. Investment income is recognized when earned. For fixed term securities, any discount or premium arising on purchase is amortized over the period to maturity. When there has been a loss in value of a portfolio investment that is other than a temporary decline, the investment is written down to recognize the loss. The write -down is included in the statement of operations. Inventory Inventories of goods for resale are valued at the lower of cost and net realizable value. Nursery inventory is valued at the lower of cost and replacement value. Cost is determined on a first -in, first out basis. Tangible capital assets Tangible capital assets are recorded at cost less accumulated amortization and write - downs, if any, which includes all amounts directly attributable to acquisition, construction development or betterment of the asset. Contributed tangible capital assets are recorded at fair market value at the date of contribution. Amortization is provided on a straight -line basis over the estimated useful life for all assets (except land which is riot amortized and vehicles which are amortized on a declining balance basis) as follows: Land improvements 20 -40 years Buildings and building improvements 10 -55 years Machinery and equipment 5 -12 years Vehicles 20 -30% declining balance Infrastructure 10 -50 years Assets under construction are not amortized until the asset is available for productive use. TRCA has a collection of art and historical buildings. These are not recognized in the financial statements. When a capital asset no longer contributes to TRCA's ability to provide services or the value of future economic benefits associated with the capital asset is less than its net book value, the carrying value of the capital asset is reduced to reflect the assets value. 56 Toronto and Region Conservation Authority Notes to the Financial Statements (in thousands of dollars) December 31, 2013 2. Summary of significant accounting policies (continued) Revenue recognition Government transfers received, including municipal levies, are recognized in the financial statements as revenue when the transfers are authorized and all eligibility criteria have been met except when there is a stipulation that gives rise to an obligation that meets the definition of a liability. In that case, the transfer is recorded as deferred revenue and recognized as revenue as the stipulations are met. User charges, including property rental income, and contract services revenue are recognized as revenue in the period in which the related services are performed. Amounts collected for which the related services have not been performed are recognized as deferred revenue and recognized as revenue when the related services are performed. Donations are recorded as revenue in the period they are received or receivable, when a reasonable estimate can be made of the amount involved, unless the donation is designated by an external party for a specific purpose or purposes; in that case, the donation is deferred until it is used for the purpose or purposes specified upon which it is recognized as revenue. Donated property, plant, and equipment are recorded at fair market value when fair value can be reasonably estimated. Reserves The Board has segregated portions of its accumulated surplus for future expenses and contingencies. Increases and decreases in reserves are not recorded in the statement of operations. Reserves are held for the purposes described below: Vehicle and equipment - Funds held in this reserve are used to finance the cost of new and replacement units. The change in the reserve is an allocation of usage net of costs incurred during the year, as shown in the statement of operations. Tree donation program - Funds held in this reserve were donated by The Wing City Foundation to assist with the maintenance of trees planted under the TRCA Tree Donation Program. Operating contingency - Funds held in this reserve may be used to provide a measure of financial relief in the event of a significant loss of revenues or other financial emergency for which no other source of funding is available. Funds held under provincial revenue sharing policy - This reserve is created by a provincial policy established by the Ministry of Natural Resources which requires the segregation of funds derived from the sale of properties. Additional details are included in Note 7. M 57 Toronto and Region Conservation Authority Notes to the Financial Statements (in thousands of dollars) December 31, 2013 2. Summary of significant accounting policies (continued) Donated materials and services Donated materials and services are not recorded. Volunteers contribute significant time to the governance and delivery of Toronto and Region Conservation Authority programs. Due to the difficulty in determining the fair value of these contributions, contributed services are not recognized in the financial statements. Pension plan The costs of the multi - employer benefit plan benefits are recognized as the required contributions for employees' services rendered in the period. 3. Restricted cash The restricted cash is related to funds set aside to fund a specific program. These funds are externally restricted by the Ministry of Natural Resources for the Source Water Protection program. 4. Marketable securities The fair market value of the marketable securities at December 31, 2013 is $18,139 (2012 - $16,170). 5. Receivables 2013 2 City of Toronto $ 3,054 $ 2,013 Government of Canada 588 464 Interest receivable 9 8 Province of Ontario 1,729 744 Regional Municipality of Durham 2,099 286 Regional Municipality of Peel 195 144 Regional Municipality of York 1,279 933 The Living City Foundation 897 1,206 Trade and other 4,441 6,009 Waterfront Toronto 465 1.008 $ 14,756 $ 12,815 10 i Toronto and Region Conservation Authority Notes to the Financial Statements Amodlzellon (in thousands of dollars) Beginning of year - 3,362 22,798 2,721 2,724 December 31, 2013 - 125,760 121,154 Amonizallon - 534 1,550 720 6. Tangible Capital Assets 3,326 - 6,444 6,184 Dapmals - _ 332 Building and Machinery 40 11 670 1,578 Land Building and Work in Total Total Land Improvements Improvements Eguipmenl - 3,a96 Velucles lnftaslrwtwo Progress 2013 2012 Cwt Beginning d ywr $ 334,163 $ 12,913 $ 45,416 $ 5,999 $ 3.631 $ 136,909 $ 13,621 $ 552,652 $ 541,731 A (ions 1,563 50 1,498 713 465 1.982 1,768 8,039 12,678 Disposals I - 547 288 62 11 35 944 1757 T,wW from Wok in Progress 82 270 2,800 533 8,392 (12 0771 Ent, of year 335,807 13,233 49,167 6,957 4,034 147,272 3,2T7 559,747 552.652 Aecumulatod Amodlzellon Beginning of year - 3,362 22,798 2,721 2,724 94,157 - 125,760 121,154 Amonizallon - 534 1,550 720 314 3,326 - 6,444 6,184 Dapmals - _ 332 287 40 11 670 1,578 End of year - 3,a96 24,014 3,154 2,998 97,472 131,534 125,760 Net hook value $ 335,807 $ 9,337 $ 25,153 It 3,803 $ 1,036 $ 49,$00 $ 3,277 $ 428,213 It 426,892 Contributed capital assets have been recognized at fair market value at the date of contribution. The value of contributed assets received during the year is $1,368 (2012 - $867). 11 59 Toronto and Region Conservation Authority Notes to the Financial Statements (in thousands of dollars) December 31, 2013 7. Accumulated surplus and reserve continuity TRCA has internally allocated accumulated surplus as follows: Tangible capital assets Reserves (part (a) below) Unallocated accumulated surplus Amount to be funded in future periods (a) Continuity of reserves Vehicle and equipment Tree donation program Operating contingency Funds held under provincial revenue sharing policy (part (b) below) 2013 2012 $ 428,213 $ 426,892 5,171 5,473 454 293 0,5621 (1.644) $ 432,276 $ 431,014 Balance Beginning Appropriations Balance Fred of Year from of Year 611 $ (94) $ 517 10 (1) 9 3,854 (150) 3,704 998 (5 7) 941 $ 5,473 $ (302) $ 5,171 (b) Continuity of funds held under provincial revenue sharing policy Reserve balance, end of year 746 358 11 (117) (1) $ 941 $ 997 The Ministry of Natural Resources reserves the right to direct the purpose to which the provincial share of funds may be applied or to request a refund. The proceeds on the sale of properties are attributed to the province and the member municipalities on the basis of their original contribution when the properties were acquired. The reserve balance must always be maintained in proportion to the original contribution by the province and TRCA, represented by the member municipalities. TRCA is permitted to withdraw the municipal share of the reserve provided that the corresponding provincial share is either matched by other sources of funding or returned to the province. Interest at prevailing market rates must be Imputed on the unspent balance (if any) of the reserve. 12 • c 2013 Reserve balance, beginning of year $ 997 Net proceeds from sale of properties Interest 11 Applications: Greenspace acquisition project (56) Revised Project for the Etobicoke Motel Strip (11) Reserve balance, end of year 746 358 11 (117) (1) $ 941 $ 997 The Ministry of Natural Resources reserves the right to direct the purpose to which the provincial share of funds may be applied or to request a refund. The proceeds on the sale of properties are attributed to the province and the member municipalities on the basis of their original contribution when the properties were acquired. The reserve balance must always be maintained in proportion to the original contribution by the province and TRCA, represented by the member municipalities. TRCA is permitted to withdraw the municipal share of the reserve provided that the corresponding provincial share is either matched by other sources of funding or returned to the province. Interest at prevailing market rates must be Imputed on the unspent balance (if any) of the reserve. 12 • c Toronto and Region Conservation Authority Notes to the Financial Statements (in thousands of dollars) December 31, 2013 8. Pension agreements TRCA makes contributions to the Ontario Municipal Employees Retirement System ("OMERS "), which is a multi - employer plan, on behalf of full -time members of staff and eligible part-time staff. The plan is a defined benefit pension plan, which specifies the amount of the retirement benefit to be received by the employees based on the length of service and rates of pay. Contributions made by TRCA to OMERS for 2013 were $3,223 (2012 - $2,811) 9. Contingent liabilities and commitments (a) Legal actions and claims: TRCA has received statements of claim as defendant under various legal actions resulting from its involvement in land purchases, fatalities, personal injuries and flooding on or adjacent to its properties. TRCA maintains insurance coverage against such risks and has notified its insurers of the legal actions and claims. It is not possible at this time to determine the outcome of these daims and, therefore, no provision has been made in these financial statements. (b) The TRCA has completed the acquisition of lands required to undertake various projects. There are 3 projects where TRCA has acquired lands under the Expropriations Act. The first project is the Revised Project for the Etobicoke Motel Strip. Properties required for this project were obtained through expropriation from five owners. Funding was obtained from the City of Etobicoke and the Municipality of Metropolitan Toronto (now collectively known as the City of Toronto) and the Province of Ontario. To date four of the expropriations have been settled and the compensation has been paid. The second project is the Port Union Improvement Project. This project is funded by the Toronto Waterfront Revitalization Corporation. One property was expropriated for this project and one property was acquired under Section 30 of the Expropriations Act which allows the owner to consent to the acquisition but still arbitrate the compensation. The expropriation has been settled and the compensation has been paid, TRCA is also responsible for the payment of the owner's costs associated with the Section 30 settlement. The matter of costs has not been finalized. The third project is the Mimico Waterfront Linear Park Project. This project is funded by the Toronto Waterfront Revitalization Corporation. One property was expropriated for this project and one property was acquired under Section 30 of the Expropriations Act. The property acquired under Section 30 has been settled and the compensation has been paid. The additional compensation for the property expropriated is not determinable. (c) Lease commitments TRCA has entered into an agreement to lease premises until July 2014. Minimum lease payments for 2014 are $170. 13 61 Toronto and Region Conservation Authority Notes to the Financial Statements (in thousands of dollars) December 31, 2013 9. Contingent liabilities and commitments (continued) (d) Loan guarantee TRCA and the City of Toronto have jointly and severally provided a loan guarantee in the amount of $7.5 million to the Evergreen Foundation for the Don Valley Brick Works restoration project. As of December 31, 2013, Evergreen Foundation had received advances in the amount of $4.8 million ($7.2 million as of December 31, 2012) from its financing institutional lender. 10. Trust funds 2013 2012 Rouge Park Alliance 185 Greater Toronto Area Agricultural Action Committee 40 117 $ 40 $ 312 The trust funds are funds administered by TRCA on behalf of the organizations above. These funds are held in trust by TRCA for the benefit of others and therefore are not presented as part of TRCA's financial position or financial activities. 14 62 Toronto and Region Conservation Authority Notes to the Financial Statements (in thousands of dollars) December 31, 2013 11. Budget figures Public Sector Accounting Standards require a comparison of the results for the period with those originally planned on the same basis as that used for actual results. The budget in the statement of operations has been adjusted to be presented on a consistent basis as actual results. Below is a reconciliation of the figures from the approved budget to the budget over the financial statements: Approved budgetper Approved Capital financial Budoet Reclassification Amortization assets statements Total revenues $ 110.520 $ (6831 $ - $ - $ 109,837 Expenses Watershed Studies and Strategies 4,922 (270) 10 (12) 4,650 Water Risk Management 17,152 (41) 2,021 (1,980) 17,152 Regional Biodiversity 14,477 (90) 55 (234) 14,208 Land Smurement and 8.0 - 683 !6821 7.807 Management 11,655 (683) $ 933 (4,218) 8,370 Tourism and Recreation 31,109 - 2,400 (11829) 31,680 Planning and Development Review 7,736 - 12 (9) 7,739 Education and Outreach 8,597 (38) 301 (1,279) 7,581 Sustainable Communities 7,084 (244) 29 (84) 6,785 Corporate Services 8.0 - 683 !6821 7.807 $ 110,738 $ (683) $ 6,444 $ (10,527) $ 105,972 (Detick) surplus for the year $ (218) $ $,865 The approved budget listed above excludes $293 in amounts coming from reserves to fund projects during the year. The resulting surplus approved by the board on April 26, 2013 is $75. 12. Comparative figures Certain comparative figures have been reclassified to conform with the financial statement presentation adopted in the year. 15 63 Toronto and Region Conservation Authority Schedules of Operations Information (in thousands of dollars) December 31, 2013 Certain allocation methodologies are employed in the preparation of the schedules of operations. Government grants, user charges, and other revenues are allocated to the specific program or service they relate to. Activity based costing is used to allocate internal support costs to departments. These costs include the net expenses for departments, such as human resources, information systems, finance and others, commonly referred to as overhead. TRCA reports on its activities in nine service areas which are reported in the accompanying supplementary schedules to the financial statements. Below is a description of each of these service areas: Watershed Studies and Strategies Watershed studies and strategies provide comprehensive, integrated policy and technical direction to other TRCA service areas and to partner municipalities related to integrated watershed management and regional sustainability. Main program areas include regular updates of watershed and subwatershed studies to meet municipal official plan and provincial policy requirements, comprehensive reporting of the health of TRCA watersheds and the Lake Ontario waterfront and risk analysis and modelling of the impacts of urban growth and climate change. Water Risk Management The service area is concerned with the management of water resources for the purpose of reducing risk to life and property. Main program areas include real time flood forecasting and warning, management and maintenance of flood control infrastructure, identification and management of erosion hazards and flood mitigation within flood vulnerable areas. Water risk management activities provide critical information on risks and hazards for the Planning and Development Review programs of the TRCA and of partner municipalities. Further, this service area provides support to municipal and provincial emergency management programs related to extreme weather risks. Regional Biodiversity The main program areas included with Regional Biodiversity are monitoring of ecological conditions and ecosystem trends, ecosystem planning and research, habitat restoration and regeneration, and forest management. The Regional Biodiversity service area supports partner municipalities in establishing and working towards goals for biodiversity, natural heritage, and community well -being through environmental health. Land Securement and Management This service area is focussed on the securement of environmentally significant and hazard sensitive lands within TRCA's jurisdiction in order to protect natural functions and eco- system services. In addition to securement of lands key programs include the management and maintenance of the existing holdings. A primary goal is the integration of activities with local and regional municipally approved land management and planning frameworks. ill • Toronto and Region Conservation Authority Schedules of Operations Information (in thousands of dollars) December 31, 2013 Tourism and Recreation The Tourism and Recreation service area provides memorable experiences for guests in nature -based settings, which make positive contributions to community health and well - being, while advancing the economic development goals of partner municipalities. Programs include management, maintenance and enhancement of conservation parks and recreation facilities including campgrounds and the Black Creek Pioneer Village. TRCA delivers these services through leveraging public and private partnerships that focus on community development, tourism and recreational offerings. Planning and Development Review Planning and Development Review programs provide input and technical support in the development and implementation of municipal official plans, secondary plans, subdivision studies and reports, and special by -laws. Support is provided to growth management and special policy studies as well as support for municipal infrastructure and growth planning through the environmental assessment review process. TRCA provides technical expertise, information and advice on flood control, stormwater management and the protection and conservation of natural systems and their functions within its watersheds. Education and Outreach Education and Outreach programs support municipal and provincial objectives for environmental education in schools, build professional capacity and competitiveness in the region's sustainable economic sectors, and engage the broader population to become active in developing healthy, sustainable communities. Formal and non - formal education and training is delivered to develop a culture of life -long learning by for residents of all ages at TRCA education centres, academic institutions and in the community. Programs include school - based education programs, and professional training and development, and programs for residents. Sustainable Communities Sustainable Communities programs facilitate and advance regional sustainability through unique collaborations with public- private and non - profit sectors and engagement of watershed communities and support municipal economic development goals through transition of our region towards a green economy. The scope of the service area is broad, encompassing programs that address neighbourhood and sector specific eco- efficiencies (water, energy, waste and greenhouse gas emissions), awareness of and need for resilience to extreme weather, catalyzing the green economy with sustainable technologies, addressing food security through near urban agriculture, and engaging residents in awareness and sustainability action to foster a caring and involved citizenry. Corporate Services Corporate Services include financial, administrative and technical support services that enable TRCA staff to efficiently and effectively deliver TRCA activities. 17 65 Toronto and Region Conservation Authority Schedule of Operations - Watershed Studies and Strategies (in thousands of dollars) Year Ended December 31 2013 2013 2012 Budget Actual Actual (Note 11) Revenue Municipal Operating levies $ 1,437 $ 1,437 $ 1,346 Capital levies 1,728 842 855 Other - 5 - Government grants Provincial 462 298 599 Federal 250 267 375 User fees, sales and admissions - 11 3 Contract services 502 169 227 Fundraising Donations 238 25 425 The Living City Foundation 35 143 80 $ 4,652 $ 3.197 $ 3.910 Expenses Watershed and Waterfront Plans Watershed Plan Updates and Follow -up $ 2,121 $ 1,935 $ 2,018 Integrated Shoreline Management Plans 1.252 897 875 3,373 2,832 2,893 Report Cards Climate and Extreme Weather Impacts Amortization Total Expenses Net (Deficit) Surplus 9 • • 61 58 85 1.205 516 697 11 11 13 4.650 3.417 3,688 2 $ (220) $ 222 18 Toronto and Region Conservation Authority Schedule of Operations - Water Risk Management (in thousands of dollars) Year Ended December 31 2013 2013 2012 Budget Actual Actual (Note 11) Revenue Municipal Operating levies Capital levies Other Government grants Provincial Federal User fees, sales and admissions Contract services Investment income Sundry Expenses Technical Services Groundwater Strategies Source Water Protection Strategy Regional Monitoring Hydrology Stormwater Management Flood Plain Mapping Erosion Management Capital Works Hazard Monitoring Flood Management Flood Forecasting and Warning Flood Risk Management Flood Infrastructure and Operations Amortization Total Expenses Net (Deficit) Surplus 681 $ 6 681 $ 4 470 9,932 6 6,855 9 9,718 49 1 118 2 20 916 1 1,315 3 3,457 1 3 3 31 2 21 4 45 5,501 4 4,370 1 10,934 - 1 17 2 25 - 4 46 17,111 $ 13.380 $ 24.715 $ 594 $ 512 $ 574 913 1,229 2,752 618 560 572 195 230 252 137 357 49 244 223 242 2.701 3.111 4.441 4,183 4,016 3,662 1.759 1.005 _ 591 5.942 5,021 4.253 335 361 383 3,252 1,588 677 2.901 1.651 6.998 6.488 3.600 8.058 2.021 2.021 1.960 17.152 13.753 18.712 $ (41) $ (373) $ 6,003 67 19 67 19 Toronto and Region Conservation Authority Schedule of Operations - Regional Biodiversity (in thousands of dollars) Year Ended December 31 2013 2013 2012 Budget Actual Actual (Note 11) Revenue Municipal Operating levies $ 511 $ 511 $ 455 Capital levies 6,455 5,197 5,643 Other 261 287 314 Government grants Provincial 124 128 15B Federal 515 383 364 User fees, sales and admissions 41 19 18 Contract services 6402 3,901 4,310 Fundraising The Uving City Foundation 77 126 53 Investment income - 1 7 $ 14,386 $ 10.553 $ 11.322 Expenses Biodiversily Monitoring Regional Monitoring Activity Based Monitoring Terrestrial Inventory and Assessment Ecosystem Management Research and Directions Aquatic System Priority Planning Terrestrial (and Integrated) Ecosystem Management Compensation Restoration Forest Management Restoration and Regeneration Natural Channel Design Propagation and Sale of Plants Inland and Lakefill Sal Management Shoreline Restoration Wetlands Restoration Riparian and Flood Plain Restoration Natural Channel and Stream Restoration Terrestrial Planting Essential Wildlife Habitat Watershed Restoration Private Land Stewardship Amortization Total Expenses Net Surplus 619 $ 549 549 519 128 244 1296 1.312 248 228 1,129 808 56 29 1.433 1.065 979 573 513 130 285 794 569 913 1,516 2162 128 2,598 836 10.444 239 (157) 306 598 387 533 956 764 222 3,054 613 7.515 $ 572 609 226 1.407 252 860 50 1.162 740 267 (315) 409 618 372 505 620 1,196 168 3,000 628 7 466 56 56 59 14.208 10.521 10.836 $ 178 $ 32 $ 486 20 68 Toronto and Region Conservation Authority Schedule of Operations — Land Securement and Management (in thousands of dollars) Year Ended December 31 2013 2013 2012 Budget Actual Actual (Note 11) Revenue Municipal Operating levies $ 316 $ 316 $ 335 Capital levies 3,200 2,556 2,722 Other 1,616 1,278 52 Government grants Provincial 5 8 Federal 10 41 18 User fees, sales and admissions 40 16 59 Contract services 306 717 1,235 Rental income 3,066 2,457 2,773 Fundraising Donations 3,000 1 - The Living City Foundation 96 6 1 Investment income - 6 Net gain/loss on sale of tangible capital assets (43) (32) Sundry 76 $ 11.655 $ 7,421 $ _ 7.177 Expenses Land Securement $ 1.293 $ 156 $ 205 Land Management Archaeology 324 522 571 Property Taxes and Insurance 644 561 714 Resource Management Planning 1,123 752 755 Inventory and audit - 131 142 Implementation 2,127 1,141 734 Hazard management 8 4.218 3.107 2.924 Rental Properties 1.926 2.074 2.002 Amortization 933 933 1.008 Total Expenses 8.370 6.270 6.139 Net Surplus $ 3,285 $ 11151 $ 1,038 21 • f Toronto and Region Conservation Authority Schedule of Operations - Tourism and Recreation (in thousands of dollars) Year Ended December 31 2013 2013 2012 Budget Actual Actual (Note 11) Revenue Municipal Operating levies $ 3,022 $ 3,022 $ 3,132 Capital levies 5,309 2,228 1,407 Other - 223 90 Government grants 5.109 4,976 5.019 Provincial 324 227 414 Federal 15 131 39 User fees, sales and admissions 8,878 8,374 8,574 Contract services 13,401 8,274 7,197 Rental income - 71 30 Fundraising 32 3.714 Donations 11 8 9 The Living City Foundation 75 221 185 Net gainfloss on sale of tangible capital 3.662 3.882 3.711 assets - (171) (20) Sundry - 3 1 $ 31.035 $ 22,611 $ 21.058 Expenses Waterfront Parks General maintenance $ 218 $ 267 $ 372 Park planning 9,887 6,852 4,160 10,105 7.119 4.532 Conservation Parks 5.109 4,976 5.019 Trails Trail Development 2,374 900 1,038 Trail Management 71 99 87 Trail Planning 1,269 573 168 Trail Strategy - 1 32 3.714 1.573 1.325 Bathurst Glen Goff Course 1,271 1,191 1217 Black Creek Pioneer Village 3.662 3.882 3.711 Public Use Infrastructure Pan -Am Games 901 654 151 Arsenal Lands 750 130 - CA Stale of Good Repair 1.748 451 437 3.399 1,235 588 Events and Festivals 2.020 2.426 2156 Amortization 2.400 2.400 2.187 Total Expenses 31.680 24,802 20.735 Net(Deficit)Surplus $ (645) $ (2,191) $ 323 22 70 Toronto and Region Conservation Authority Schedule of Operations — Planning and Development Review (in thousands of dollars) Year Ended December 31 2013 2013 2012 Bud a Actual Actual (Note 11) Revenue 577 566 Municipal 686 607 Operating levies $ 1,037 $ 1,037 $ 1,135 Capital levies 896 899 857 Other 1,299 958 966 Government grants Provincial - - 33 User fees, sales and admissions 4,504 4,936 5,132 Contract services g4 $ 7.736 $ 7.924 $ 8.123 Expenses Development Planning and Regulation Permitting Planning $ 1,389 $ 11060 $ 1,525 Permitting 1,068 974 1,358 Technical Services 1.040 1,002 818 Development Enforcement and Compliance 392 325 341 3,889 3.361 4.042 Environmental Assessment Planning and Permitting Planning 703 577 566 Permitting 673 686 607 Development Enforcement and Compliance 262 296 237 Technical Services 1.366 1.140 _ 1.043 Policy Development and Review Amortization Total Expenses Net (Deficit) Surplus 2.699 2.453 834 769 115 12 12 10 7.739 6.841 6.620 $ _�) $ 11083 $ 11503 71 23 Toronto and Region Conservation Authority Schedule of Operations — Education and Outreach (in thousands of dollars) Year Ended December 31 2013 2013 2012 Budget Actual Actual (Note 11) Revenue Municipal Operating levies Capital levies Other Government grants Provincial Federal User fees, sales and admissions Contract services Fundraising Donations The Living City Foundation Investment income Net gainlloss on sale of tangible capital assets Expenses Educational Infrastructure Retrofits Bolton Camp Development Swan Lake Centre School Programs Field Centres Kortright Black Creek Other School Programs Outreach Educations Professional Training and Development Amortization Total Expenses Net Surplus $ 582 $ 582 $ 495 2,840 2,072 2,449 5 20 6 850 815 885 17 185 21 3,424 2,826 2,614 - 153 2 20 27 51 821 889 908 3 (351 (100) $ 8.559 $ 7.537 $ 7.331 $ 114 $ 73 $ 87 413 90 40 7 52 42 534 215 169 2,485 2,287 2,285 762 754 700 325 325 323 701 729 581 757 737 948 5.030 4.832 4,837 1.716 1.706 1,604 301 301 277 7,581 7.054 6,887 $ 978 $ 483 $ 444 72 24 Toronto and Region Conservation Authority Schedule of Operations — Sustainable Communities (in thousands of dollars) Year Ended December 31 2013 201: Revenue Municipal Capital levies Other Government grants Provincial Federal User fees, sales and admissions Contract services Rental income Fundraising Donations The Living City Foundation Net gain/loss on sale of tangible capital assets Budget Actual (Note 11) 2012 Actual $ 3,944 $ 3,042 $ 3,288 299 87 180 365 447 330 690 1,267 162 66 333 274 1,209 539 616 Sustainable Technology Evaluation Program 890 90 - 104 21 178 168 158 115 121 $ 6.845 $ 5.982 $ 5.143 Expenses 108 115 Living City Transition Program 476 526 Sustainable Neighbourhood Action Plans $ 910 $ 821 Community Transformation 1,241 812 Partners in Project Green 1,251 928 Urban Agriculture 168 99 Sustainable Technology Evaluation Program 890 1.061 $ 265 4.460 3.721 Community Engagement Multicultural Connections Program Stakeholder Engagement Community Stewardship EVN (Environmental Volunteer Network) Amortization Total Expenses Net Surplus $ 736 857 959 111 732 3.395 108 108 115 1,060 476 526 1,123 5 1,270 817 2.296 1.854 1.458 29 29 25 6.785 5.604 4.878 $ 60 $ 378 $ 265 73 25 Toronto and Region Conservation Authority Schedule of Operations — Corporate Services (in thousands of dollars) Year Ended December 31 2013 2013 2012 Budget Actual Actual (Note 11) Revenue Municipal Operating levies Capital levies Government grants Provincial Federal User fees, sales and admissions Contract services Rental income Fundraising The Living City Foundation Investment income Net gairvloss on sale of tangible capital assets Sundry Expenses Financial Management Corporate Management and Governance Human Resources Communications Information Infrastructure and Management Project Recoveries Vehicles and Equipment Office Services Amortization Total Expenses Net Surplus 4,910 $ 4,910 $ 4,580 1,281 1,087 829 774 774 634 115 - - 57 74 49 (2,055) 18 3 31 31 31 150 - 150 540 573 596 - (23) 25 6.306 358 259 $ 7.858 $ 7.802 $ 7.156 1,415 $ 1,496 $ 1,707 1,327 1,279 1,105 601 593 506 1,597 1,365 1,310 2,242 1,919 1,726 (2,055) (2,266) (2,187) (494) (567) (620) 2,491 2,381 2.113 683 683 646 7.807 6,883 6.306 51 $ 919 $ 850 74 26 Attachment 2 GrantThornton Report to the Budget /Audit Advisory Board - communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 75 GrantThornton June 12,2014 - Grant ThommnttP Side 910 15 Arclale Pak aay Markham. ON UR 504 T. 4163660100 F +1 905 475 0906 w"w.GranmThom man.ca To the members of the Budget /Audit Advisory Board of Toronto and Region Conservation Authority We are pleased to report that we have now substantially completed our audit of the financial statements (hereinafter the "financial statements ") of Toronto and Region Conservation Authority (hereinafter the "Authority") for the year ended December 31, 2013. We enclose this report as a means to engage in effective two way communication with you regarding our financial statement audit. This communication will assist the committee in understanding our overall audit strategy and the results of our audit procedures, and includes comments on misstatements, significant accounting polities, sensitive estimates and other matters. This communication has been prepared to comply with the requirements outlined in CAS 260 Cormmmimulton with those Charged with Gorxrnomr. The information in this document is intended solely for the information and use of Budget /Audit Advisory Board (herein referred to as the Audit Committee), Board of Directors and management. It is not intended to be distributed or used by anyone other than these specified parties. We express our appreciation for the cooperation and assistance received from the management and staff of the Authority during the course of our audit. If you have any particular comments or concerns, please do not hesitate to raise them at our scheduled meeting. Yours sincerely, Grant Thornton LLP 9iaPa4— e.IR Anita Ferran, BComm, FCPA, FCA Client Services Parmcr Michelle Saunter, CPA, CA Assurance Services Principal cc Brian Denney, Chief Executive Officer Rocco Sgambelluri, Chief Financial Officer e Grant Thomson tlP. A C.2,110 W NAW Of GUNNIUM IN ktMdlDnal.N 11" fluir" . 76 Contents Achieving effective governance Quality control and independence Our audit approach Audit results Reportable matters Status of the audit Technical updates Appendix A — Draft Management representation letter Appendix B — Advisor Alert — Liability for contaminated sites Appendix C — PSAB Accounting developments 06.tThomim U.P. A Cmadim Yamber of GantTh mnn lwl"Aond. All dohs rnmed. 77 Page 10 11 17 23 Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 Achieving effective governance tom, mrortnndo� a Cnrn+w autgr Comma Ateirrlief There arc several fundamental components of effective governance. Those charged with governance play a key role in achieving strong governance, particularly with respect to financial reporting. Roles in ensuring strong financial reporting Role of the • Help set the tone for the organization by emphasizing honesty, ethical behaviour and fraud audit prevention committee • Oversee management, including ensuring that management establishes and maintains internal controls to provide reasonable assurance regarding reliability of financial reporting • Recommend the nomination and compensation of external auditors to the board • Directly oversee the work of the external auditors including reviewing and discussing the audit plan Role of the • Help set the tone for the organization by emphasizing honesty, ethical behaviour and fraud board of prevention directors • Oversee management including ensuring that management establishes and maintains internal controls to provide reasonable assurance regarding reliability of financial reponing • Approve the financial statements Role of • Prepare financial statements in accordance with Canadian public sector accounting management standards • Design, implement and maintain elective internal controls over financial reporting processes, including controls to prevent and detect fraud • Exercise sound judgment in selecting and applying accounting policies • Prevent, detect and correct errors, including those caused by fraud • Provide representations to external auditors • Assess quantitative and qualitative impact of misstatements discovered during the audit on fair presentation of the financial statements Role of • Provide an audit opinion the the financial statements are in accordance with Canadian Grant Thornton public sector accounting standards LLP • Conduct our audit in accordance with Canadian generally accepted auditing standards (GAAS) • Maintain independence and objectivity • Be a resource to management and to dose charged with governance • Communicate maters of interest to those charged with governance • Establish an effective two-way communication with those charges with governance, to report maters of interest to them and obtain their comments on audit risk matters. e Gum ThomMn LLP. A6mrd'un Member of Gnrnt Thornton Infemationa. All dehn mn avert. • Report to those charged with governance - Communication of audit strategy and resulls Toronto and Region Conservation Authority For the year ended December 31, 2013 Quality control and independence Quality control Grant Thornton LLP Grant Thornton LLP has a robust quality control program that forms a core art of our client service. has a robust quality q ty P Sr i> control program We combine internationally developed audit methodology, advanced technology, rigorous review procedures, mandatory professional development requirements, and the use of specialists to deliver high quality audit services to our clients. In addition to our internal processes, we are subject to inspection and oversight by standard setting and regulatory bodies. We are proud of our firm's approach to quality control and would be pleased to discuss any aspect with you at your convenience. Independence We have a rigorous process where we continually monitor and maintain our independence. The process of maintaining our independence includes, but is not limited to: Identification of threats to out independence and putting into place safeguards to mitigate those threats. For example, we evaluate the independence threat of any non -audit services provided to the Authority; • Confirming the independence of our engagement team members. a Grant Thornton LLP. ACanadhn Member of Grant Thornton Intentional. All rights ra erved. 79 Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 Our audit approach An understanding of the Authority and your business drives the Grant Thornton LLP audit approach. The audit methodology is risk based and specifically tailored to the Authority as depicted below: Understand your entity v and industry S Understand accounting systems, policies and internal controls Our tailored audit approach results in procedures designed to respond to an identified risk. The greater the risk of material misstatement associated with the account, transaction or balance, the greater audit emphasis placed in terms of audit verification and analysis. Throughout the execution of the audit approach, we will maintain our professional scepticism, recognizing the possibility that a material misstatement due to fraud could exist not withstanding our past experiences with the Authority or our beliefs about managemenes honesty and integrity. OGnM namw LLP. A Canadlan Member of Grant Thommn IntenabonaL All rights ramed. • 1 Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 Internal control Our audit includes gaining an understanding of the Authority's internal control over financial reporting. Our understanding focused on processes associated with the identified risk areas (see below). We used this understanding to determine the nature, extent and tuning of out audit procedures. Note that the auditor's objectives with regards to internal control are different from those of management and those charged with governance. For example, we primarily target controls that relate to financial reporting and not those that relate to the Authority's operations or compliance which may also be relevant to the authority's objectives. Therefore, management and those charged with governance cannot solely rely on our findings to discharge their responsibilities in this area. See the Reportable matters section for our internal control findings. Risk assessment Our risk assessment process identified the following areas where we focused our attention: i Risk area Audit procedures Revenue generated from municipal levies, Municipal levies were agreed to billings for the year and contracts, grants and special projects subsequent receipts. We tested a sample of expenditures on the defamed municipal levy schedule to test revenue recognition. Similar testing was completed for contract revenue and grant I revenue. Confirmed a sample of accounts receivable balances, and performed alternative procedures (subsequent receipts) it positive confirmation was not received for the balances sampled. Analytical review of revenue and various reconciliations as well as deferred revenue schedules were 11 pedamed to identify any additional balances that required investigation. Employee compensation We reviewed the T4 summary and general ledger reconciliation for reasonableness and investigated unusual items. Payroll accruals were examined and both payables and compensation i expenses were analytically reviewed. The underlying data used for analytical review was tested. Tangible Capital Assets Examined supporting documentation for significant capital asset additions. Ensured that assets were capitalized in the proper class and that those expenditures not capitalized were properly considered. Amortization was tested to ensure it was applied in accordance with the amortization policy. Operating Expenses Performed detailed analytical review comparing operating expense line items to budget, investigating and corroborating variances. Also, substantively tested various expense accounts to erasure appropriate recognition. Viewed support for Significant payables and accruals and tested cut -oft. Plimni Thornton LlP. A ernadixn aenWdrxrnfthomtw Inb gone. All righb reeved. • Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 Materiality The purpose of our audit is to provide an opinion as to whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework. Therefore, materiality is a critical auditing concept and as such we apply it in all stages of the engagement. The concept of materiality recognizes that an auditor cannot verify every balance, transaction or judgment made in the financial reporting process. During audit planning, we made a preliminary assessment of materiality for purposes of developing our audit strategy, including the detemmination of the extent of our audit procedures. During the completion stage, we consider not only the quantitative assessment of materiality, but also qualitative factors, in assessing the impact on the financial statements, our audit opinion and the matters brought to your attention. The following provides a summary 'of some of the fraud related procedures performed during the audit • Test the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements. • Review accounting estimates for biases. • Evaluate the business rationale (or the lack thereof) for significant transactions that are or appear to be outside the normal course of business. We would like to Laws and regulations obtain your Input on these matters. One of the auditor's objectives in the audit is to perform specified audit procedures to help identify instances of non - compliance with laws and regulations that may have a material effect on the financial statements. We would like know if you are aware of instances of the Authority not being in compliance with laws and regulations. ®Grant Th.W LLP. A Crnadl.n M.Wal alThO.W. Imemr..A Alri8htarerav& 9fi Fraud risk factor considerations Fraud can occur in We are responsible for planning and performing the audit to obtain reasonable assurance as to whether any company, at any time, and can be the financial statements are free of material misstatement caused by error or by fraud. Our perpetrated by responsibility includes: anyone. • The identification and assessment of the risks of material misstatement of the financial statements due to fraud through procedures including discussions amongst the audit team and specific inquires of management; • To obtain sufficient appropriate audit evidence to respond to the fraud risks noted; and • To respond appropriately to any fraud or suspected fraud identified during the audit. We would like to obtain your Input on these matters. With this regard, we are required to communicate with you on fraud - related matters, inclu q Y' • Obtaining an understanding of how you exercise oversight of management's processes for identifying and responding to the risks of fraud in the Authority and the internal control that management has established to mitigate these risks. • Inquire whether you have knowledge of any actual, suspected or alleged fraud affecting the Authority. The following provides a summary 'of some of the fraud related procedures performed during the audit • Test the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements. • Review accounting estimates for biases. • Evaluate the business rationale (or the lack thereof) for significant transactions that are or appear to be outside the normal course of business. We would like to Laws and regulations obtain your Input on these matters. One of the auditor's objectives in the audit is to perform specified audit procedures to help identify instances of non - compliance with laws and regulations that may have a material effect on the financial statements. We would like know if you are aware of instances of the Authority not being in compliance with laws and regulations. ®Grant Th.W LLP. A Crnadl.n M.Wal alThO.W. Imemr..A Alri8htarerav& 9fi Report to those charged with governance • Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 Audit results Summary of misstatements Our audit identified the following misstatement which was above our triviality threshold. Unadjusted misstatements To reclassify debit balances from Accounts Payable to Accounts Receivable To show Ministry of Natural Resources reserve as deferred revenue and remove amounts from the statement of operations Total unadjusted misstatements Percentage of financial statement amounts Oved(Under) statement of: u f Opening Assets Liabilities Accumulated Earnings Surplus $ (101,076) 1 $ (101,076) $ (941.437) $ (101,076) $ (1,042,513) $ 0.02% 2.64% 997,435 (55,998) 997AM $ (55,998) 0.23% 4.44% Summary of disclosure matters Our audit did not identify any unadjusted non - trivial misstatements from disclosure matters. 6 We have discussed die unadjusted misstatements with management. Management has decided to not adjust for the above misstatement as management has assessed that this unadjusted misstatement is not material to the financial statements of Toronto and Region Conservation Authority. Subject to approval from the Budget / Audit Advisory Board, we accept managemenes position. 0 Grant Thornton UP. A Canadian resber of Grant Th amton Warroatona].. All rights ramod. • FM Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 Reportable matters Internal control If we become aware of a deficiency in your internal controls systems, auditing standards requires us to communicate those deficiencies we consider significant. A financial statement audit is not designed to provide assurance on internal control. During the course of performing our audit, we did not identify any material deficiencies in internal control. However, during the course of performing our audit, we did identify the following matter which is a significant deficiency in internal control which we want to bring to the attention of the Budget /Audit Advisory Board. • During the course of our audit, it was noted that bank reconciliations had not been completed in a timely manner throughout the fiscal year. Without monthly reconciliations, the risk exists that the interim information provided to management and the Board could be misstated, and banking errors would not be identified for correction with your financial institutions in a timely manner. Based on our observations, the lack of bank reconciliations did not misstate the interim information of the Authority during the 2013 year. We would recommend that monthly batik statements be performed in a timely manner, for example, within one month of the month end date. This recommendation has been discussed with management. Bank reconciliations fell behind during the fiscal 2013 year as a result of the system conversion, and it is the intention of management to perform bank reconciliations within one month of the month end date going forward. 06nattaambn UP. Aemadim 11"aret6nattaomlea tmrmalanatM dOUMM nab • A Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 Significant findings from the audit As part of the audit, we identified the following significant items we wanted to discuss: Area tdatlagemem'sestimation prot�sss/disolosure Capitalization of - -- Management tdlows a methodology to tangible capital ensure that all constructed capital assets assets are reviewed to ensure that the appropriate assets and amounts are properly capitalized as tangible capital assets. Contributed assets Management obtains appraisal reports to recorded at fair value support the fair values assigned to coninbuled property. Auditor's comments We reviewed management's methodology, and on a sample basis have tested the capitalization of tangible capital assets. We agree with the method and amounts capitalized as tangible capital assets. On a test basis we reviewed the appraisal reports supporting the additions tested. The amounts recorded for contributed assets were derived from the valuation reports. Other matters to discuss The following table outlines additional [natters we would like to bring to your attention: Financial statement presentation -Statement of Operations In the current year, the financial statement presentation of the statement of operations and its supporting schedules was changed whereby amounts related to capital assets were removed from expenses on a line by line basis, as capital expenditures are not normally disclosed on the statement of operations. This new disclosure more clearly reports the operating activities for the year. In prior years, capital assets were removed it= the statement of operations and supporting schedules on a global basis. As a result of this change, the prior year comparative figures and the fiscal 2013 budget (Note 11) have been restated to conform to the financial statement presentation of the current year. Rouge Park Due to the dissduton of the Rouge Park Alliance and the new agreement with Perks Canada, revenue of $931,000 and expenses of $931,000 related to the Rouge Park work has been recorded in the Statement of Operations, and deterred revenue of $349,000 has been recorded at year end. System Conversion During the year, TRCA transtioned to a new accounting software, Agresso Business Wald. As part of our audit work, we tested the balances entered at January 1, 2013 to ensure they agreed to the balances in the previous system at December 31, 2012. No deerertces were noted. tl Grant Themte. LLP. A Canadan Ube, .1 Grant Thombn Intemabonal. All nghn rmmed. • Report to those charged with governance - Communication of audit strategy and B results Toronto and Region Conservation Authority For the year ended December 31. 2013 Status of the audit We have substantially completed our audit of the financial statements of the Authority and the results of that audit are included in this report. The following items were outstanding as at the date of this report • Completion of the bank reconciliation for December 31, 2013; • Receipt and evaluation of legal letters from the following firms: — Gardiner Roberts; — Chappell, Bushell, Steward LLP Barristers & Solicitors; — Borden Ladner Gervais; — Willms & Shier Environmental Lawyers LLP; • Receipt of signed management representation letter (attached as Appendix A); • Approval of the financial statements by the Board of Directors; • Procedures regarding subsequent events. a Grant Thornton LLP. ACanadian timber of Gant Thomt•n Int.AnnaL All right, rained. FYA • • Report to those charged with governance - Communication of audit strategy and t0 results Toronto and Region Conservation Authority For the year ended December 31, 2013 Technical updates Canadian standards in transition Accounting standards Accounting standards issued by the Accounting Standards Board which may affect your business for the current and future years include: Section PS 3260 — "Liability for contaminated sites" which will be effective for TACA for the year ending December 31, 2015 (earlier adoption is encouraged). This section which will be applied retroactively with restatement of prior petiods may have a significant impact on the TRCA financial statements. We have included as Appendix B an advisor alert on this topic. Further detail of the changes to accounting standards, including management's preliminary continents on their applicability to the Authority, are included in Appendix C. If you have any questions about these changes we invite you to raise them during our next meeting. Auditing standards 'l iere are no new auditing standards that will have a material impact on die Authority. ®Gran) Thamtan LLV. A Canadhn Mm66r of&-tThamtan Intxnational. NI right. ram ed. • Report to those charged with governance - Communication of audit strategy and It results Toronto and Region Conservation Authority For the year ended December 31, 2013 Appendix A — Draft Management representation letter ®Grant Thombn LL . A Cmedlen Member of Gant Thornton Inlnnabond.All 60hb reserved. Report to those charged with governance - Communication of audit strategy and 12 resalls Toronto and Region Conservation Authority For the year ended December 31, 2013 On TRCA letterhead June 20, 2014 Grant Thornton LLP Chartered Accountants Suite 200 15 Allstate Parkway Markham, ON UR 5B4 Dear Sit/Madam: We are providing this letter in connection with your audit of the financial statements of Toronto and Region Conservation Authority ("TRCA ") as of December 31, 2013, and for the year then ended, for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respects, the financial position, results of operations, changes in net financial assets (debt) and cash flows of Toronto and Region Conservation Authority- in accordance with Canadian public sector accounting standards. We acknowledge that we have fulfilled our responsibilities for the preparation of the financial statements in accordance with Canadian public sector accounting standards and for the design and implementation of internal controls to prevent and detect fraud and error. We have assessed the risk that the financial statements may be materially misstated as a result of fraud, and have determined such risk to be low. Further, we acknowledge that your examination was planned and conducted in accordance with Canadian generally accepted auditing standards (GARS) so as to enable you to express an opinion on the financial statements. We understand that while your work includes an examination of the accounting system, internal controls and related data to the extent you considered necessary in the circumstances, it is not designed to identify, nor can it necessarily be expected to disclose, fraud, shortages, errors and other irregularities, should any exist. Certain representations in this letter are described as being limited to matters that are material. An item is considered material, regardless of its monetary value, if it is probable that its omission from or misstatement in die financial statements would influence the decision of a reasonable person relying on the financial statements. We confirm, to the best of our knowledge and belief, as of June 20, 2014, the following representations made to you during your audit. Financial statements 1 The financial statements referred to above present fairly, in all material respects, the financial position of the entity as at December 31, 2013 and the results of its operations, changes in net financial assets (debt) and its cash flows for the year then ended in accordance with Canadian public sector accounting standards, as agreed to in the terms of the audit engagement. OOratmamba UF.Aeaalm NwbaofOra1U man klenaanatNrgM1U move& . e Report to those charged with governance - Communication of audit strategy and 13 results Toronto and Region Conservation Authority For the year ended December 31, 2013 Completeness of information 2 We have made available to you all financial records and related data and all minutes of the meetings of members, directors, and committees of directors, as agreed in the terms of the audit engagement. Summaries of actions of recent meetings for which minutes have not yet been prepared have been provided to you. All significant board and committee actions are included in the summaries. 3 We have provided you with unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. 4 There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements. The adjusting journal entries which have been proposed by you are approved by us and will be recorded on the books of the entity. 5 There were no restatements trade to correct a material misstatement in the prior period financial statements that affect the comparative information. 6 We are unaware of any known or probable instances of non- comphance with die requirements of regulatory or governmental authorities, including their financial reporting requirements. 7 We are unaware of any violations or possible violations of laws or regulations the effects of which should be considered for disclosure in the financial statements or as the basis of recording a contingent loss. 8 We have disclosed to you all known deficiencies in the design or operation of internal control over financial reporting of which we are aware. 9 We have identified to you all known related parties and related party transactions, including sales, purchases, loans, transfers of assets, liabilities and services, leasing arrangements guarantees, non - monetary transactions and transactions for no consideration. 10 You provided a non -audit service by assisting us with drafting die financial statements and related notes. In connection with this non -audit service, we confirm that we have made all management decisions and performed all management functions, have the knowledge to evaluate the accuracy and completeness of the financial statements, and accept responsibility for such financial statements. Fraud and error 11 We have no knowledge of fraud or suspected fraud affecting the entity involving management, employees who have significant roles in internal control, or others, where the fraud could have a non - trivial effect on the financial statements. 12 We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial statements communicated by employees, former employees, analysts, regulators or others. O Want ThOmtm LLP. A Canadian Member of Gran) rhomw Intemadonat. Aa dith t served. • ' Report to those charged with governance - Communication of audit strategy and 14 results Toronto and Region Conservation Authority For the year ended December 31, 2013 13 We acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud. 14 We believe that the effects of the uncorrected financial statement misstatements summarized in the accompanying schedule are immaterial, bode individually and in the aggregate, to the financial mitements taken as a whole. Recognition, measurement and disclosure 15 We believe that the significant assumptions used by us in making accounting estimates, are reasonable and appropriate in the circumstances. 1G We have no plans or intentions that may materially affect the cartying value or classification of assets and liabilities, both financial and non - financial, reflected in the financial statements. 17 All related party- transactions have been appropriately measured and disclosed in the financial statements. 18 1 he nature of all material measurement uncertainties has been appropriately disclosed in the financial statements, including all estimates where it is reasonably possible that the estimate will change in the near term and the effect of the change could be material to the financial statements. 19 All outstanding and possible claims, whether or not they have been discussed with legal counsel, have been disclosed to you and are appropriately reflected in the financial statements. 20 All liabilities and contingencies, including those associated with guarantees, whether written or oral, have been disclosed to you and are appropriately reflected in the financial statements. 21 With respect to environmental matters: a) at year end, there were no liabilities or contingencies that have not already been disclosed to you; b) liabilities or contingencies have been recognized, measured and disclosed, as appropriate, in the financial statements; and c) commitments Have been measured and disclosed, as appropriate, in the financial statements. 22 The entity has satisfactory title to (or lease interest in) all assets, and there am no liens or encumbrances on the entity's assets nor has any been pledged as collateral except under the Evergreen Loan Guarantee which is accurately described below: TRCA and City of Toronto has jointly and severally provided a loan guarantee in the amount of $7.5 million to the Evergreen Foundation for the Don Valley- Brick Works restoration project. As of December 31, 2013, the balance of the loan outstanding covered by the guarantee was $4.8 million ($7.2 million as of Dec. 31, 2012). ®Gnat Thombn 11P. Aemadim timber of Grmt Thomten Intemauonat All dghts rmme& 91 Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 23 We have disclosed to you, and the entity has complied wit h, all aspects of contractual agreements that could have a material effect on the financial statements in the event of non - compliance, including all covenants, conditions or other requirements of all outstanding debt. 24 '17he Harmonized Sales Tax (H91) transactions recorded by the entity are in accordance with the federal and provincial regulations- The 14ST hability /receivable amounts recorded by the entity are considered complete. 25 Employee future benefit costs, assets, and obligations have been determined, accounted for and disclosed in accordance with the requirements of public Sector Accounting Standards Section 3250 Relirrnnwt benefits of the Chartered Professional Accountants of Canada (CPA Canada) Handbook. 26 There have been no events subsequent to the balance sheet date up to the date hereof that would require recognition or disclosure in the financial statements. Further, there have been no events subsequent to the date of the comparative financial statements that would require adjustment of those financial statements and related notes. Other 27 We have considered whether or not events have occurred or conditions exist which may cast significant doubt on the Authority's ability to continue as a going concern and have concluded that no such events or conditions are evident. Yours very truly, Brian Denney, Chief Executive Officer Rocco Sgambelluri, Chief Financial Officer I' Gum o.w LLP.ACmad.Member or Grant Thommn mt".W.A.. Ali n9ha rmmM. 92 Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 Toronto and Region Conservation Authority Summary of unadjusted misstatements December 37, 2013 adjusted misstatements Assets Over(Under) statement of: Liabilities =n! ed Surplus Earnings To reclassify debit balances from Accounts Payable to Accounts $ (101,076) $ (101,076) $ - Receivable $ - To show Ministry of Natural Resources reserve as deferred revenue and (947,437) - 997,435 remove amounts from the statement of 55,999 ( ) operations Total unadjusted misstatements $ (101,076) $ (1.042,513) i $ 997,435 $ (56,M) Percentage of financial statement amounts 0.02% 2.64% 0.23% "4% 9GrantnomN LLP.ACanadlan nemberof Grant Thombn Intemational. NI nghte rmemed. 93 16 Report to those charged with governance - Communication of audit strategy and 17 results Toronto and Region Conservation Authority For the year ended December 31, 2013 Appendix B — Advisor Alert — Liability for contaminated sites ®Grant Thomtm LLP. ACaasrl W timber of Grml Thambn Inremsrionsl. All rights rnerved. IOTA] GrantThornton An instinct for growth Adviser alert 10 -Liability for contaminated sites March 2013 Overview Section PS 3260 1 jabllno jar Cartaixnaled Sites of the Public Sector Accounting Handbook (the Handbook) provides the recognition, measurement, presentation and disclosure requirements for liabilities associated with the remediation of contaminated sites. %While the standard is not effective until years beginning on or after April 1, 2014, it may have a significant effect on reported financial results and operations and may require the use of specialists in detemutting whether a liability for contaminated sites exists and the amount at which this liability should be measured. Summary of standard Scope Under PS 3260, a site is considered contaminated if substances occur in concentrations that exceed maximum acceptable levels under an environmental standard. This does not include airborne contamination or contaminants in the earth's atmosphere, unless such contaminants have been introduced into soil, water bodies or sediment. Typical examples of situations whereby a liability for remediation would result include • all or part of an operation that is no longer in productive use (for example, abandoned military installations); • all or part of an operation of an entity the public sector entity does not own that is no longer in productive use for which the 95 public sector entity accepts responsibility (for example, an abandoned gas station); • changes to environmental standards relating to all or part of an operation that is no longer in productive use (for example, new regulations requiring the destruction of a stored chemical); and • an unexpected event resulting in contamination (for example, accidental toxic chemical spills or natural disasters). Public sector entities should note that the section does not apply to the following • costs for the acquisition or betterment of tangible capital assets to the extent that the costs do not exceed the future economic benefits related to the asset or post - remediation fair value of the asset if held for sale (for example, redevelopment of a contaminated site for use or sale); asset retirement obligations for long -lived assets in productive use that result from their acquisition, construction or development and ongoing use (for example, operating a gas station in a municipal work yard); liabilities associated with the disposal or sale of long -lived tangible capital assets (for example, privatization of a water utility); and liabilities for closure and post - closure care of a solid waste landfill site when the site stops accepting waste. The exclusion of these items from the scope of the section does not preclude the entity from having to record a liability under other sections of the Handbook (for example, PS 3300 Liabiktier or PS 3270 Sobd If acre L an#1 /CkJr(re and Port- Closure Iluhili!y). Recognition A liability for remediation of contaminated sites is recognized when all of the following conditions exist 28 an environmental standard exists; 29 contamination exceeds an environmental standard; 30 the entity is directly responsible or accepts responsibility; 31 it is expected that future economic benefits will be given up; and 32 a reasonable estimate of the amount can be made. Environmental standard An environmental standard is generally set by statute, regulation, by -law, order, permit, contract or agreement and is legally enforceable and binding. Failure to comply may result in prosecutions, fines or similar penalties. The entity does not have to consider proposed changes in legislation, regardless of the effective date. An environmental standard can also be created by internal policies or guidelines development by a government or third party. Voluntary compliance with these environmental standards may also create a liability. An environmental standard may be both quantitative and qualitative. Quantitative standards are the most easily verifiable; however, some legislation may prohibit adverse environmental impacts in qualitative terms. For qualitative standards, entities may have to exercise more professional judgment in determining whether contamination has exceeded an environmental standard. 19 Contamination In order to determine if contamination exists that exceeds an environmental standard, an entity will have to assemble and review all available historical and current information pertaining to the site or group of sites including, but not limited to a the nature of past activities at the site(s) or adjacent properties; b site(s) location, hydrology and geology; c results from testing and field investigations; d similarities to and experience at other known contaminated sites; e significance of site(s); and f cost versus benefit of conducting detailed site assessments. The section does not specifically require an entity to obtain site assessments for each site to assess the contamination level. Nevertheless, public sector entities should understand that die event that would resolve the uncertainty about whether contamination exceeds an environmental standard (i.e., the completion of a site assessment) is within the entity's control. The lack of this confirming evidence does not absolve the entity from having to record a liability. The fact that an entity has evidence to suggest contamination may exist, but it may lack the specific information to confirm that it exists in excess of an environmental standard is a measurement issue only. In the case of uncertainty, the entity has to assess the probability that future site investigations will confirm that contamination that exceeds an environmental standard existed at the financial statement date. If the probability is likely that future site investigations will confirm contain nation, a liability must be recognized, if the amount can be reasonably estimated. Example A municipality owns various mining sites with similar characteristics (e.g., their geographical location, type of deposit they mine). In the current year, site assessments were performed at a few of the larger sites, and they demonstrated that there was contamination of a specific chemical to excess of federal environmental standards. The smaller sites were not subjected to site assessments to establish their parental contamination level. The fact that site assessments were not performed on the smaller sites cannot be used as a reason lot not waluating it a liability exists and should be recognized. The entity would have use the knowledge they have Iron the larger, similar saes which were analyzed, along with past experience and any other data available to assess the probability that the smaller sites are contaminated in excess of an environmental standard. Responsibility A public sector entity may be directly responsible for the remediation or it may accept responsibility for the remediation of a contaminated site. The entity may voluntarily assume responsibility for remediation of contaminated sites (for example, abandoned gas stations) through its own actions or promises, but the obligation must still meet the basic definition of a liability to be recognized; as a result, obligations that are based on the intention of an entity may not meet this definition. Most liabilities for contaminated sites will arise from legal obligations, the settlement of which can be enforced by a court of law. Nevertheless, some liabilities may arise from constructive and equitable obligations (those that can be inferred from the facts in a particular situation or by an established pattern of past practices and those that are based on ethical or moral considerations, respectively). Some constructive and equitable obligations may be enforced by a court in accordance with the legal principle known as promissory estoppel' or other legal principles having I Promissory estoppel is defined as the principle that a promise made without consideration may nonetheless be za similar effect. professional judgment should be used in these situations to detemhine if the entity has created a valid expectation among others that leaves it with no realistic alternative but to remediate a contaminated site or group of sites. Evidence that an entity may have a present obligation for remediation separate from legal documents may include the public sector entity body or person with the appropriate level of authority has committed the entity to a remediation plan; the remediation plan identifies the specific location of the contaminated site or sites; • the remediation plan has been communicated to those directly affected (for example, residents of surrounding communities) in such detail as to allow those affected to determine the benefits that would accrue to them; • the remediation plan specifically identifies the target level of reduction in risk the site(s) pose to human health and the environment and the amount of the environmental costs to be incurred to achieve those targets; • the time frame for implementing the plan has been identified and indicates that significant changes to the plan are not likely; and • the details of the plan are such that there is a reasonable expectation that the promise can be relied upon. Budgeting for remediation activities alone does not mean a liability for remediation actually exists. Also, announcements to provide long- term funding for remediation activities may not result in a liability because the entity maintains enforced to prevent injustice it the promisor should have reasonably expected the promisee to rely on the promise and the promisee did actually rely on the promise to his or her detriment. The Ouebw Civil Code does not recognize the doctrine of promissory estoppel but Quebec courts have developed a similar concept known as "la fin de non4ecevoir." Audit • Tax • Advlwry 9 Grant Thornton LLV_ A Canadian Mamhar of Graal Thomlon Inletnalional Ltd- All dghxs reserved, 97 total discretion over the eventual disposition of the funds conutvtted to remeeiation activities. If there is uncertainty as to whether the govcmment may be responsible, the entity should assess the likelihood a future event will confirm that it was responsible; if it is likely, a liability would be recognized if the amount can be reasonably estimated. If it is unlikely that the entity will be responsible, no liability would be recognized. If the outcome of the future event cannot be determined, the existence, nature and extent of the contingent liability would be disclosed. Measurement The estimate of the liability should consist of the costs directly attributable to the remediation activities and includes integral post- remediation operation, maintenance and monitoring costs that are a pan of the remcdiation strategy for the contannated site. The costs that would be included in the liability are • costs directly attributable to remediation activities (for example, payroll and benefits, equipment and facilities, materials, and legal and other professional services); and • .costs of tangible capital assets acquired as part of remediation activities to the extent they have no other alternative use The estimated costs would be those required to bring the site(s) up to the current minimum environmental standard for the site's use prior to contamination. The measurement of the liability will require the use of estimates and professional judgment and should be based on the best information available at the balance sheet date. The carrying amount of a liability for contaminated sites would be reviewed at each financial repotting date with any revisions to the amount previously recognized accounted for in the period in which revisions are made. zi The cost of a tangible capital asset required for rcmediation activities is reported as an expense, not an asset, in the period when a liability is recognized. If the asset has an alternative future use, only that portion of its estimated cost related to its use in remediation activities would he included in the estimate of a liability. When the asset is actually acquired, only those expenditures that relate to the alternative use would be capitalized and amortized to expense over the remainder of its useful life in the periods of alternative use. The entity may not complete a site assessment for a contaminated site each, reporting period because of the cost of gathering and processing the information required. In the years between completions of site reassessments, a review of the estimate of the liability could be based on an extrapolation of previously completed site assessments, taking into consideration such factors as changes to the remediation strategies, technological changes, experience gained, changes to assumptions, actual expenditures, changes in legislative standards, and unforeseen changes in cost estimates. When the effect of any change is significant, recognition of a new estimate may be necessary. An entity may need to perform a detailed reassessment of a contaminated site if there are technological developments; • lapsed time since the last site assessment was completed; • new information from a detailed site assessment, site characterization or technical review done on a similar contaminated site; or • a change in legislation. The entity should use a measurement technique that results in the best estimate of the amount requited to remediatc the contaminated sites. The best estimate should represent the amount that the entity would rationally pay to settle or otherwise extinguish the liability at the financial statement date. Entities will have to use • professional judgment to detertine the appropriate measurement technique and estimate of expenditures; they should also supplement this judgment with experience, third party quotes and reports of independent experts. If the payments required to settle the liability will occur over an extended period of time or at a future date, this timing should be reflected in the measurement of the liability. Generally, a present value technique is the best measurement technique to estimate the liability. The liability should be reduced for any expected recoveries net of costs associated with the effort to collect them (for example, insurance proceeds related to the contamination), if a reasonable estimate of the amounts involved can be made. Any disbursements that are trade related to die liability would be deducted from the hability as they are trade. Disclosure The section requires disclosure of the following concerning a liability for contaminated sites: I the nature and source of the liability; 2 the basis of recognition and measurement of the liability including significant assumptions used (for example, discount rate and anticipated timing of future expenditures, when possible); 3 when a net present value technique is used, the estimated total undiscoumcd expenditures and discount rate; 4 the reasons for not recognizing a liability (for example, die reason why a reasonable estimate of tite amount involved cannot be trade or why it is not expected that future economic benefits will be given up); and S the estimated recoveries. Additional disclosures may also be required under other sections of the handbook, such as PS 2130 Mrammiaeot Unartainty, ]JS 3200 Liabiklier and PS3300 Contingent About Grant Thornton Liabiblier. In Canada Grant Thornton LLP is a Effective date leading Canadian accounting and advisory This section is firm providing audit, tax effective for all and advisory services to private and public entities applying organizations. Together sector with the Quebec firm public Raymond Chabot Grant accounting Thornton LLP, Grant standards for fiscal Thornton has approximately 4,000 years beginning on people in offices across April 1, Canada. Grant Thornton or after LLP is a Canadian 2014; earlier member of Grant Thornton International adoption is Ltd, whose member firms permitted. In operate across too accordance with PS countries worldwide. 2120 Aaaanku� We have made every Change{ entities will effort to ensure information in this have to apply the publication is accurate as of its issue date. standard Nevertheless, information retroactively with or views expressed herein are neither official restatement of prior statements of position, periods. We nor should they be considered technical recommend that advice for you a your entities start earl on y organization without consulting a professional estimating their business adviser. For liabilities to provide or e information about thmis topic, please contact them with sufficient your Grant Thornton time [o determine if adviser. It you do not have an adviser, please contamination contact us. We are happy exceeds to help' environmental standards and estimate the costs to remediate the sites because the work involved may require significant estimation time and consultation with third -party experts. If you have any questions about this new standard, please contact your Grant Thornton Ll li adviser. c _ _�. r ._ , ,n.o �:a r ,�s �cscr..a • • Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31. 2013 Appendix C — PSAB Accounting developments Audit -Tax - Advlwo , Z Gronrthorston LLP 100 Report to those charged with governance - Communication of audit strategy and results Toronto and Region Conservation Authority For the year ended December 31, 2013 24 Section 3450 Financial Instruments, Section 2601 Foreign currency translation and Section 1201 Financial statement presentation PS 3450 Financial instruments is a new section that establishes standards for recognizing and measuring financial assets, financial liabilities and non - financial derivatives. PS 2601 Foreign currency translation revises and replaces Section PS 2600 Foreign currency translation. PS 1201 Financial statement presentation revises and replaces Section PS 1200 Financial statement presentation. PS 3041 Portfolio investments revises and replaces Section PS 3040 Portfolio investments, The issuance of these new sections also includes consequential amendments to • introduction to accounting standards that apply only to government nor- for - profit organizations • PS 1000 Financial sIwsmenf concepts • PS 1100 Financial statement objectives • PS 2125 First -time adoption by government organizations • PS 2500 Basic principles of consolidation • PS 2510 Additional areas of consolidation • PS 3050 loans receivable • PS 3060 Government partnerships • Section PS 3070 Investments in government business enterprises • PS 3230 Longterm debt • PS 3310 Loan guarantees • PS 4200 Financial statement presentation by not - for - profit organizations PSG -6 Including results of organizations and partnerships applying fair value measurement was withdrawn as a result of the issuance of these sections. Section $450 Financial Instruments This Section has been amended toclarify that the requirements in PS 3100 Resfricted Assets and Revenues apply when reporting on externally restricted assets that are financial instruments. As a result, a change in the fair value of a financial asset in the fair value category that is externally restricted and income attributable to or gains or losses associated with a financial instrument that is externally restricted must be recognized as revenue in the period in which the resources are used for the purpose or purposes specified. Amounts recognized before this criterion has been met must be reported as a liability until the resources are used for the purpose or purposes specified. Section 3260 Liability for contaminated sites This Section establishes the recognition, measurement and disclosure requirements lot reporting liabilities associated with remediation of contaminated sites. The Section does not deal with tangible capital asset retirement obligations, liabilities associated with the disposal or sale of a tangible capital asset and acquisition/betterment costs for tangible capital assets that are less than the future economic benefits. An entity will be required to recognize a liability it they have contamination at a site that exceeds an environmental standard, the entity is responsiblelaccepts responsiblity, the entity expects to have to give up future economic benefits and the amounl can be reasonably estimated. It an entity cannot reasonably estimate the amount, they must still provide disclosures concerning the liability. 101 The new requirements are all required to be applied at the same time. For governments, the sections are effective for fiscal years beginning on or after April 1, 2016. For government organizations that applied the CPA Canada Handbook - Accounting prior to their adoption of the CPA Canada Public Sector Accounting Handbook, the sections are effective for fiscal years beginning on or alter April 1, 2012. For all other government organizations, the sections are effective lor fiscal years beginning on or after April 1, 2015. This effective date was changed in May 2013 from fiscal years beginning on or after April 1, 2012. Earlier adoption is permitted. Fiscal periods beginning on or after March 1, 2013. Earlier adoption is permitted as of the beginning of the fiscal year in which the Section is first applied. This section applies to fiscal years beginning on or after April 1, 2014. Earlier adoption is encouraged. TERMINATION ON MOTION, the meeting terminated at 9:00 a.m., on Friday, June 20, 2014. Gerri Lynn O'Connor Chair /ks 102 Brian Denney Secretary- Treasurer '00A Toronto and Region C onservation Authority INDEX TO BUDGET AUDIT ADVISORY BOARD MEETING #3/14 Friday, October 31, 2014 MINUTES Minutes of Meeting #2/14, held on June 20, 2014 103 PRESENTATIONS Sgambelluri, Rocco Chief Financial Officer, and Connie Pinto, Manager, Special Projects - Waterfront, TRCA re: 2015 Budget Update 103 2015 BUDGET UPDATE 104 2014 FINANCIAL PROGRESS REPORT TO AUGUST 31. 2014 127 Toronto and Region Conservation Authority MEETING OF THE BUDGET /AUDIT ADVISORY BOARD #3/14 October 31, 2014 The Budget /Audit Advisory Board Meeting #3/14, was held in Weston Room B, Black Creek Pioneer Village, on Friday, October 31, 2014. The Chair Gerri Lynn O'Connor, called the meeting to order at 8:45 a.m. PRESENT Maria Augimeri David Barrow Gerri Lynn O'Connor ABSENT Bob Callahan Dave Ryan RES. #C8 /14 - Moved by: Seconded by: MINUTES Maria Augimeri David Barrow THAT the Minutes of Meeting #2/14, held on June 20, 2014, be approved. Member Member Chair Member Member CARRIED (a) A presentation by Rocco Sgambelluri, Chief Financial Officer, and Connie Pinto, Manager, Special Projects - Waterfront, TRCA, in regard to item BAAB7.1 - 2015 Budget Update. RES. #C9 /14 - PRESENTATIONS Moved by: David Barrow Seconded by Maria Augimeri THAT above -noted presentation (a) be received. CARRIED 103 SECTION I - ITEMS FOR AUTHORITY ACTION RES. #C10/14 - 2015 BUDGET UPDATE Update on the status of the 2015 TRCA budget process. Moved by: David Barrow Seconded by Maria Augimeri THE BOARD RECOMMENDS TO THE AUTHORITY THAT Toronto and Region Conservation Authority's (TRCA) 2015 operating budget make provision for a cost of living adjustment of two percent (2 %) effective April 5, 2015; THAT the preliminary estimates for the 2015 operating budget include municipal levy increases consistent with the guidelines determined by the respective participating municipality; AND FURTHER THAT TRCA staff be directed to submit the 2015 estimates and multi -year funding requests to the City of Toronto, the regional municipalities of Peel, York and Durham, the Town of Mono and the Township of Adjala - Tosorontio in accordance with their respective submission schedules. CARRIED BACKGROUND TRCA staff has been involved in the municipal 2015 and multi -year budget estimates process since the spring of this year. Various staff level meetings have occurred and a number of presentations have been made. Over the next several months and into 2015, staff will also make presentations to councils and various committees of councils. Each jurisdiction has its own unique budget process, leading in each instance to an approved level of funding for TRCA from the councils. As this is an election year, the funding approvals will be delayed but staff still anticipates that approvals will be available in time for the Authority to adopt the 2015 budget and the associated municipal levy at its meeting in April 2015. This report provides an update on the status of the budget process and negotiations for municipal funding and provides an opportunity for the board to direct staff on any matter related to the budget. RATIONALE Operating Budget The internal process of compiling the 2015 operating estimates has commenced. The operating budget will amount to approximately $40 million in expenditures and will be balanced with projected revenue and municipal levy. The operating budget includes the direct operating and maintenance components of the following programs: conservation parks; Bathurst Glen Golf Course; Kortright Centre for Conservation; Black Creek Pioneer Village; conservation field centres; planning and development services; various watershed management, ecology and corporate services. 104 The net cost of the services included in the operating budget is funded through the general levy, as adopted by the Authority. The TRCA general levy formula apportions the net cost of these services to the participating municipalities on the basis of current value assessment in each municipality, as modified by TRCA policy. The components of the operating budget are distinguished from those included in the capital and special levy budget discussed below by the fact that the net cost of capital projects is for the most part designated by the Authority as singularly benefitting and therefore the capital levy is raised from the municipality where the project is undertaken. Staff will continue to work on the operating budget through the winter and present the final 2015 version at the April 2015 meeting of the Budget/Audit Advisory Board. Operating Expenditures The operating budget is comprised of wage related costs of approximately 79 %. In addition to the proposed cost of living adjustment (COLA), wage related pressures include accommodations; cost of staff returning from maternity and other leaves; annualization of positions hired in 2014; and the addition of a few key positions. One new position will occur in the Payroll department and another is being considered to assist with the growing work load associated with the TRCA e- commerce business. For 2015, staff is recommending a 2% COLA effective the first full pay in April. The annual COLA increase between 2009 and 2015 will average (simple) approximately 1.6 %, as indicated in the following chart: TRCA salary and wage (COLA) adjustments, April 1: • 2009 -0% • 2010 -2% • 2011 -0% • 2012 -3% • 2013 -2% • 2014 -2% • 2015 - 2% (proposed) The proposal for a 2% COLA increase in 2015 is comparable to the average of our Municipal Partners, Conservation Authorities in the Greater Golden Horseshoe and the Consumer Price Index. Tax Adjustment TRCA policy requires that the cost of property taxes paid by TRCA in a participating municipality be added back to the general levy of that municipality as a tax adjustment. This practice ensures equity in the levy allocation process, as the City of Toronto exempts TRCA non - revenue producing property from taxation. Starting in 2015 with the consolidation of administrative offices at 101 Exchange Way, City of Vaughan, TRCA will be leasing new taxable property. The estimated net cost of taxes after allowing for the 40% charitable rebate generally available to TRCA and other charitable organizations will amount to $37,000, growing to about $160,000 in 2017, when TRCA will be responsible for 100% of the taxes under the lease agreement. A special request has been included in the York Region budget for a levy increase to cover the new taxes or in the alternative for a 100% rebate or complete exemption. The matter is under consideration by York Region staff. 105 Municipal Operating (General) Levy Below is a summary of the status of the discussions that have been held at the staff level with the participating municipalities: • Adjala and Mono - No formal communication has occurred. • Durham Region - Informally, regional staff has indicated that the 2015 levy guideline will likely come in at 2 %, when released. TRCA has requested a 4% increase in its preliminary submission. • Peel Region - Peel staff has indicated a 3% increase can be accommodated for 2015. TRCA staff has agreed to work within that guideline. • Toronto - Toronto Water staff will support a 2.5% increase over 2014 on the portion of the levy funded from water revenues (57 %). Toronto Finance staff is considering a TRCA request for a similar 2.5% increase on the 43% of the budget that is funded from the tax base (an amount of $84,000). • York Region - The submission made to York Region includes a 4% increase ($114,000) over 2014, excluding the impact of the tax adjustment described above. The preliminary level of funding recommended by York Region as contained in its operating envelope recommended for TRCA allows for only a 1.5% increase over 2014 funding levels. TRCA staff is considering a reduction in the land care budget in order to meet a portion of the 2% COLA within the general levy funding envelope. Below is a summary of the general levy requested from each of the participating municipalities of TRCA in 2015: Participating Municipality Apportionment* % Funding $ (000's) Change Over 2014% Adjala - Tosorontio 0.0 1.3 1.8 Durham 4.1 542.2 4.0 Mono 0.0 1.2 2.9 Peel 12.7 1,685.0 3.0 Toronto 61.21 8,054.01 2.5 York 22.0 2,946.3 4.0 Total 1 100.01 13,230.0 3.0 * Based on latest CVA data provided by MNR applicable to the 2015 fiscal year as adjusted by TRCA policy The final 2015 TRCA budget and general levy will include the funding levels that are ultimately negotiated and staff will report back to the board in April 2015. 106 Operating Revenues User fees and revenue from other sources fund 63% of the operating budget (the remainder, 37 %, is funded through the general levy.) The final version of the operating budget will include a number of fee adjustments, including fees associated with new or expanded program areas. For example, the planning and development fee changes approved by the Authority in the spring of 2014 will be fully implemented in the 2015 budget. Staff is anticipating the automated parking lot gate system soon to be operational at Black Creek Pioneer Village (BCPV) will improve revenues as the lot will be operational 24 hours per day. As well, year -to -date results for weddings and corporate functions at BCPV and Kortright Centre have surpassed budget expectations at September 30, 2014 and there may be room to adjust 2015 revenue budgets accordingly. As we get closer to the end of the budget year, staff will analyze the 2014 results and make appropriate provisions for the new year. Capital and Special Project Budgets Participating municipalities usually require that TRCA provide 10 year capital budget projections and each municipality has its own requirements and format for this information. Increasingly, more scrutiny is occurring to the post 2015 estimates. Attachment 2 includes summary tables for capital and special project programs in the City of Toronto and the regions of Peel, York and Durham. Staff prepares for the City, Peel and York regions, budget binders which include detailed information on each capital project and program. These binders are available to members who require them. As a matter of course, TRCA staff regularly consult with municipal staff, to ensure that there is alignment on objectives and deliverables; to avoid duplication of effort; to coordinate activities and procurement to realize maximum value and efficiency; and to report on the achievement of project deliverables. City of Toronto The 2015 core capital submission at $14.069 million is based on core funding for long- standing programs which meet the existing City of Toronto targets. The City funds TRCA core capital programs from both debt and water rate funding which may include reserve funding. The City's annual debt guideline for TRCA is $3 million and has remained unchanged for many years. The 2015 portion of the core budget funded from water rates is $11.069 million, which includes the second instalment of $5 million for critical erosion control works, also available in 2014. This funding is not available beyond 2015 in the City's capital program. Pending progress made by TRCA on priority sites, City Water staff may be open to revisiting TRCA's funding requirements during the 2016 budget cycle. A provision of $2 million in special water reserves funding which was scheduled to end in 2015 will be allowed to continue for the duration of the 10 -year budget plan, as was confirmed with the approval of the 2014 - 2023 plan. Excluding the special $7 million funding noted above, the $4.069 million level of water funding for 2015 represents a 2.5% increase over 2014. Toronto Water staff has confirmed this level of funding will be included in its 2015 estimates. 107 Further, Toronto Water has confirmed its commitment to fund the Environmental Assessment for the Scarborough Waterfront Access Plan, which will ensure continuous public access from Bluffers Park eastward. The City is making available to TRCA $3 million over two years, 2014 and 2015, for the study. This funding, which is not included above as part of the levy, will be billed by TRCA as the expenses are incurred. In recent meetings with City of Toronto senior staff, TRCA staff has been advised that the City is currently developing a request with the federal and provincial government to provide cost share funding to assist the City with a number of long outstanding capital needs. TRCA staff understand that a portion of TRCA river and waterfront erosion related infrastructure needs will be included in this ask. Regional Municipality of York York Region guidelines provide for a flat line in water rate funding at $3.1 million and 1.5% increase in tax supported funding which includes the TRCA general levy. The water rate funding is proposed to be flat lined for 2015 and the next three years, while modest increases will be permitted in tax supported funds. The current version of the York Region budget provides $1.72 million in tax supported capital funding, a decrease of 2.6% ($46,000). The TRCA multi -year submission to the Region includes a list of potential projects which have been termed unaccommodated pressures by the Region in the amount of $5.004 million. A list of these projects is included in Attachment 1. Prior to the commencement of the current cycle, TRCA staff met with key York Finance staff to advise of TRCA's intention to substantially increase its funding request of the Region for the budget cycle commencing in 2015. Although the additional requests were positively received by staff, the Region's current financial pressures has not allowed staff to be in a position to confirm additional funding other than the additional 1.5% increase on the tax supported items. TRCA's list of unaccommodated projects totalling $5.004 million is currently being reviewed together with all the other pressures across the Region. Regional Municipality of Peel The core 2015 capital submission to Peel at $15.450 million reflects a 2.5% increase in capital funding as compared to 2014 ($14.099 million.) TRCA has also made a special request for $1.25 million in 2015 and in 2016 to bring servicing to the Bolton Camp site. Peel staff explored undertaking the works directly but recently decided that it would be appropriate for this item to come before council as part of the TRCA budget request. The Peel guidelines for TRCA have been met with the one exception - Bolton Camp servicing. TRCA staff will be making a special presentation to Peel Council at the appropriate time to showcase the plans for the Bolton Camp Project. Regional Municipality of Durham Capital funding for Durham Region totalled $910,000 in 2014 and the preliminary 2015 request is at $1,135,000. Included in this amount are two special 2015 asks for erosion control site assessment ($18,000) and Land Care ($180,000). Excluding the special asks, the total Durham submission has been made at 5% over the previous year. Preliminary indication from Durham Finance staff is that a 2% increase over 2014 will likely be recommended. Guidelines are not yet available. dw DETAILS OF WORK TO BE DONE Following year end, the capital budget can be finalized and will include the municipal capital projects as approved by the respective participating municipalities as well as all other capital projects such as those projects funded by Toronto Waterfront Revitalization Corporation. The operating estimates will become final following year end, at which time staff can determine the impact of the 2014 operating season and final municipal approvals. Staff is prepared to describe in detail the projects and programs included in the submissions at the Budget /Audit Advisory Board meeting or at the Authority Meeting scheduled to be held on October 31, 2014. Report prepared by: Rocco Sgambelluri, extension 5232 Emails: rsgambelluri @trca.on.ca For Information contact: Rocco Sgambelluri, extension 5232 Emails: rsgambelluri@trca.on.ca Date: October 15, 2014 Attachments: 2 109 Attachment 1 TRCA - York Region Unaccommodated Service Area Watershed Plan Living City Report Cards Climate Change Consortium 2015 2016 2017 2018 20 95 175 210 75 95 85 85 150 150 155 155 Watershed Studies and Strategies 245 340 415 450 Management and Evaluation - Stormwater 125 140 140 155 Stormwater Pond Maintenance 100 200 200 205 Stormwater STEP 50 50 50 55 TRCA Flood Line Mapping Program 60 60 60 100 Flood Forecasting - 225 50 50 Program - - 400 100 Water Risk Management 335 450 500 665 Post Construction Natural Channel Monitoring - 60 60 60 Aquatic Systems Priority Planning Program 50 55 60 70 Reforestation for Biodiversity Program - - 80 85 Natural Channel Design Habitat Implementation 250 250 255 260 Emerald Ash Borer 100 50 Regional Biodiversity Bruce's Mill Master Plan Implementation Nashville RMT Man. Plan Implementation Plan Implementation Land Care Land Securement and Management Humber Trails Land & Trail Management Granger Greenway Land & Trail Management Kortright Centre for Conservation Trails Washroom Upgrades CA Road Upgrades Municipal Sewer Connection @ Boyd CA Boyd CA - Bridge Access Project Energy Management Plan - Conservation Parks Public Use Future Projects IT Infrastructure -York Region (Parks) Black Creek North Property 400 100 273 415 250 400 300 298 455 500 600 300 376 475 500 600 300 469 373 1,248 1,776 1,869 50 50 25 25 50 50 50 50 150 340 325 250 200 300 300 200 125 200 200 225 150 150 150 50 100 400 57 Kortright Municipal Servicing 40 10 500 75 75 100 100 90 100 110 170 250 250 250 250 Tourism and Recreation 1,155 1,925 1,510 1,270 Planning and Development 100 100 100 100 Planning and Development Review 100 100 100 100 York Environmental Weeks 100 100 100 100 York Outreach Ed Services 70 90 125 125 Community Characteristics & Demographic Mapping 42 44 45 46 Adult Education Programming 50 50 53 57 Kortright Municipal Servicing 1,000 1,000 500 Lake St. George Learning & Education Facility Upgrades - - 200 350 110 Service Area 2015 2016 2017 2018 Education and Outreach 1,262 1,284 1,023 678 Sustainable Neighbourhood Retrofit Action Plan Program 91 97 100 100 Community Transformation Partnership Program 100 120 120 130 Urban Agriculture 140 140 140 140 Partners in Project Green 65 70 70 75 Energy 80 80 100 100 BRE Innovation Park 252 252 252 299 York Region Stewardship Program 50 50 75 75 Stouffville Reservoir / Greenway Habitat Improvements 200 200 200 - Greenspace Accessibility for Human Health 50 50 50 50 Living City Campus 28 33 37 37 Sustainable Communities 1,056 1,092 1,144 1,006 Office Facilities Infrastructure - - 221 221 Capital Base COLA 78 157 238 321 Corporate Services 78 157 459 542 5,004 7,011 7,382 7,055 111 Attachment 2 O WATERSHED A < O ' O v p W d { O 1 O v O V1 N STUDIESAND STRATEGIES N O 0 Q r1 \ j 0 0 d < 1 v p O O M A � O M � c S tp "* � O N c s N �* x O N c S � 'Ow � '_ w° w 3 A Ol M N w o N 3 A l0 D N w° V w 3 A O O n Na O O O 3 M O O O 3 w O > O > � O A CL O O. 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D � d (D r+ �O r rD M t� CL 0 C) 0 v o G r+ d � r+ M k N m m � A T m 0 N MN N o A H A N rh N FO+ � Ln UJ O� 0- N I o O � ~ O N O N V N O N e SECTION IV - ITEMS FOR THE INFORMATION OF THE BOARD RES. #C11 /14 - 2014 FINANCIAL PROGRESS REPORT TO AUGUST 31, 2014 Information is provided on Toronto and Region Conservation Authority's financial performance as of August 31, 2014 with projections for the year. Moved by: David Barrow Seconded by: Ben Cachola THAT Toronto and Region Conservation Authority's (TRCA) 2014 Financial Progress Report to August 31, 2014, be received. CARRIED BACKGROUND As part of TRCA's financial management process, staff provides to the Budget /Audit Advisory Board a financial progress report with regard to TRCA's financial status. The report covers the period from January 1, 2014 through August 31, 2014 and provides a projection to year end, December 31, 2014. RATIONALE The 2014 projected financial performance for operating is projecting a surplus of approximately $144,000. Within the capital budget, the deficit noted ($1,250,000) with respect the Head Office move will be financed through the use of prior years' unallocated surplus funds or reserves, as noted below. Key Operating Results The 2014 operating results indicate a surplus of approximately $144,000 by year end. Attachment 1 lists the larger variances by division with a summary explanation. Additional factors contributing to the surplus includes staff gapping and noticeable revenue increases in areas such as weddings and corporate functions at Black Creek Pioneer Village and Kortright Centre for Conservation. In addition, Tree Top Trekking revenue at Heart Lake and Bruce's Mill conservation areas contribute to the surplus at these locations. Key Capital and Special Project Progress Capital and special projects are mostly on track. A majority of capital projects will vary from budget normally due to timing as projects span multiple years, delays in permits, agreements or approvals, and /or delays caused by weather conditions The status of a number of larger projects can be found in Attachment 2. These projects are multi -year, therefore will likely result in a carry- forward of funds into 2015 or receiving additional funds in future years. Report prepared by: Janice Darnley, extension 5768 Emails: jdarnley @trca.on.ca For Information contact: Rocco Sgambelluri, extension 5232; Janice Darnley, extension 5768 Emails: rsgambelluri @trca.on.ca; jdarnley@trca.on.ca Date: October 15, 2014 Attachments: 2 127 Attachment 1 2014 Operating Variance Division (Surplus) /Deficit Explanation CEO's Office (449,000) a due to refunds from property tax appeals and applications for Conservation Land Tax exemptions from prior years, as well as additional interest revenue. • savings in rent costs result from delay to new head office building. Ecology (51,000) a higher staffing costs in some areas of Ecology more than offset by gapping in Ecology administration for a senior position and coordinator. Parks and Culture 163,000 • includes ice storm damages, which may be partially recovered. • better than expected revenues at Kortright, Food Services, Bathurst Glen and conservation areas • losses slightly offset by increased revenues at Black Creek Pioneer Village Watershed Management 210,000 a school booking projected below target by 100 total days. To offset this lower revenue, expenditure savings have been found through staff gapping. To help mitigate there is a fundraising program underway with improved interest and commitments. As well, new school board partnerships are being developed to improve school participation. Other 1 (17,000) 1 • various minor variances. Net Operating Surplus 1 (144,000) 128 Attachment 2 2014 Capital and Special Projects Project Approved Projected Status Expense Expense Budget Variance (under budget)/ over budget 2014 Enhanced 4,600,000 On budget • consists of numerous erosion projects Erosion Major including Jennifer - Whitburn slope Maintenance stabilization, Norfield emergency works which are expected to be completed in 2014, Northover and Riverhead slope stabilization phase 1 which have started and continue into 2015. Arsenal Building 870,000 (751,000) • project delayed due to: review of land use Renovation zoning restrictions; need to identify long term partners /tenants for the redeveloped building and to confirm a suitable end use of redeveloped building. Goal is to secure partners /tenants, building end -use and additional funding by end of 2014 and begin construction in 2015. There will be a carry- forward into 2015 and 2016. Bolton Camp Site 910,000 (140,000) • this is a multi -year project. Work continued Improvement through the summer and anticipate additional construction work in 4th quarter. Brock North and 805,000 (519,000) • a multi -year project works include on stream South Redside restoration and fish barrier removals. Carry Dace forward surplus for ongoing restoration and Compensation monitoring. Eco Business 1,550,000 On budget • action numerous projects including People Program Power Challenge, Materials Exchange, Eco- Efficiency Assessment Program and Energy Leaders Consortium. Flood Remedial 1,782,000 (1,213,000) • a 5 year work plan has been developed for Work the Flood Remedial Works program to address the 8 priority flood risk sites in Peel Region. The majority of the carry - forward funds identified in 2014 will be utilized by the end of 2016. Frenchman's Bay 3,600,000 On budget • west and east breakwaters completed on schedule. Contract for concrete walkway within estimated cost. Scheduled to be completed on schedule. 129 Project Approved Projected Status Expense Expense Budget Variance (under budget)/ over budget Greenspace Land 5,148,000 On budget • purchase of priority properties within TRCA Acquisition jurisdiction in 2014. Heart Lake Master 1,383,000 On budget • project is progressing well towards Plan completion following the receipt of all Implementation approvals. The delay in obtaining municipal approvals caused the project implementation delay. Workshop building completed. Humber Bay 667,000 (236,000) • project was delayed in 2014 due to finalizing Landform agreement between TRCA and Toronto Water and data collection during Step 1 of the Scoping Study - carry- forward to 2015 is anticipated. Kortright Centre 1,000,000 Deferred • funding for this project has been deferred to Servicing 2015 by the Region of York. Lakeview Design 813,000 On budget • coastal engineering is nearing completion. Physical model and topographic surveys of Serson Creek are completed. Initial stream analysis complete. Signed access agreement with OPG. Surveys of near shore and shore of Marie Curtis Park and WWTF finished. Obtained appraisal for water lots. Developed plan for permit acquisition including EA amendment templates. Consultation plan drafted. Proceeding with river design. Major Facilities 3,537,000 1,250,000 • by year -end renovations to the Swan Lake Retrofit/ Office Project should be completed. Accommodation • Includes capital costs for the office move as previously reported to the Authority for 101 Exchange Avenue. This deficit will be offset with unallocated prior year surplus funds or reserves. Mimico - Phase II 1,679,000 162,000 • land purchase and sale agreement related to this project is in progress. Funding for cost overrun is confirmed. 130 Project Approved Projected Status Expense Expense Budget Variance (under budget)/ over budget ORM Developer 1,072,000 (1,072,000) • ORM Project with Conservation Lands Compensation anticipated 2015. Pan -Am Equestrian 715,000 On budget • in 2013, site servicing and grading were Facility completed which included installation of synthetic footing material in the Main Hunter Ring, Annex Jumper Ring and a training ring. In 2014, the Pavilion and Judges Tower were completed along with the installation of synthetic footing material in the Grand Prix Ring and associated training ring. Construction commenced in the beginning of October for Auxiliary Buildings 1 and 2. Auxiliary Building 1 includes indoor competition and training rings and community space. Auxiliary Building 2 includes stabling facilities." Peel Campground 959,000 (100,000) • part of the Environmental Compliance Improvements Approval (ECA) process completed at Albion Hills Conservation Area has identified that the Chalet septic system requires complete replacement. A design has been completed and submitted to the Ministry of the Environment (MOE) for review and approval together with a complete ECA document. TRCA anticipates approval from the MOE in late 2014, and to commence the Chalet septic system replacement in early 2015. Scarborough 1,500,000 (317,000) • external contracts bids have not yet been Waterfront Access received therefore projected spending are Plan - estimates. Environmental Assessment South East 1,053,000 Deferred • project for trail construction and pedestrian Collector 2 - Trail bridge has been deferred until 2015. Construction 131 TERMINATION ON MOTION, the meeting terminated at 9:24 a.m., on Friday, October, 31, 2014. Gerri Lynn O'Connor Chair /ks 132 Brian Denney Secretary- Treasurer