HomeMy WebLinkAboutFinance Sub-Committee 1981
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the metropolitan toronto and region conservation authority
minutes
FINANCE SUB-COMMITTEE MONDAY-MAY-11-198l 11/81
The Finance Sub-Committee met at the Authority Office, 5 Shorcham Drive Downsview,
on Monday, May 11, 198], comnencing at 10 00 a m.
PRESENT WERE
Chairman J S Scott
t-iembers M \V H Biggar
t-irs F Edna Gardner
Chairman of the Authority Dr J K Reynolds
Vice-Chairman of the Authority t-irs. Florence Gell
General Manager K G Higgs
Deputy General Manager \V A McLean
Secretary-Treasurer W E Jones
Executive Secretary Mrs K Conron
Supervisor, Budget Control, F&A J D Finch
Supervisor, Accounting Services, F&A P D Torkoff
ABSENT \'lERE
Members E V Kolb
Mrs N Stoner
STAFF FINANCIAL PROGRESS REPORT
The staff prese!'lted financial statc:ncnts for the periods ending March 20 and April
19, 1981
Following discussion, it was agreed that the staff will submit quarterly the
Financial Statement in its present format, and, at approximately four-weekly
intervals, the summary pages only of the statement, accompanied by comments upon
variances
Res. H Moved by Mrs Florence Gell
Seconded by Mrs F Edna Gardner
RESOLVED THAT Th~ Staff Financial Progress Report for the periods ending March 20
and April 18, 1981, be received
CARRIED;
AUDIT OF 1978 AND 1979 EXPENDITURE REPORTS
CARRIED OUT BY MINISTRY OF NATURAL RESOURCES,
JUNE 9-AUGUS'l' 8, 1980
The Secretary-Treasurer presented a report advising that as part of the Ministry of
Natural Resource s' regular programme, an audit was conducted on the above reports
submitted by the Authority for grant
As a result of the audit, the Authority has been requested to repay to the
Government of the Province of Ontario an amount of $355,186 83
Res t2 Moved by Mrs Florence Gell
Seconded by Dr. J K. Reynolds
RESOLVED THAT The staff report dealing with the 1978-1979 audit of Expenditure
Reports by auditors of the Ministry of Natural Resources, as appended as Schedule
'A' of these Minutes, be received; and
THE COMMITTEE RECOMMENDS THAT A cheque in the amount of $355,186 83 be forwarded
to the Governmcnt of the Province of Ontario forthwi th as full settlement of the
adjustments in connection with the 1978-1979 audit; and
THI\T no action be taken on financing the deficit created by the adjustments, in the
amount of $154,584 73, and the 1980 operating deficit of $53,078 00, until such
time as the 1980 audit has bcen completed by the Ministry of Natural Resources'
auditors.
CARRIED;
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GUIDELINES FOR THE PREPARATION OF THE 1982 BUDGET
The General Manager presented a report having regard to the preparation of the 1982
Preliminary Budget Estimates
Res. #3 Moved by Dr. J K Reynolds
Seconded by Mrs F Gell
RESOLVED THAT The report submitted by the General Manager, entitled "Guidelines
for the Preparation of the 1982 Budget", as appended as Schedule 'B' of these
Minutes, be received; and
THE COMMITTEE RECOMMENDS THAT The guideline for estimating the funding for the
1982 Preliminary Budget be an increase over the 1981 funding by the current
inflation factor, plus 5 percent
CARRIED;
NEW BUSINESS
Mrs Gell expressed deep concern regarding reductions in the Educational Programme
at the Black Creek Pioneer Village
Staff advised that various alternatives are being considered, and a report and
recommendations will be presented at the earliest opportunity
Due to insufficient time for consideration of this Finance Sub-Committee report
before the Executive Committee meeting of May 13, it was the decision of the
Chairman, Mr J S Scott, that it be submitted to Meeting #7/81 of the Executive
Cormni t tee, scheduled for May 27, 1981
ADJOURNMENT
On Motion, the meeting adjourned at 12 20 pm, Nay 1]
J.S Scott W E Jones
Chairman Secretary-Treasurer
KC.
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TO The Chairman and Members of the Finance Sub-Committee SCHEDULE 'A'
FROM W E Jones, Secretary-Treasurer
RE 1978 and 1979 Audit of Expenditure Reports by the Ministry
of Natural Resources' Auditors
As part of the Ministry of Natural Resources regular program,
an audit was conducted on the 1978 and 1979 expenditure reports
submitted by this Authority for grant The audit took place between
June 9 and August 8, 1980 The audit was headed by Mr P I Camacho
of the Ministry's Southern Audit Section From the outset, it was
obvious that this audit was to be far more in depth than previous
audits by the Ministry
Mr D A Dooling, Audit Manager, and Mr P I Camacho of the
Ministry's staff attended at the Authority's offices on August 28,
1980, and a draft of the recommended adjustments was discussed in
detail with Messrs Higgs, Jones and Finch of the Authority's staff
The Audit Report was received in the Authority's offices during
the week of September 15, 1980
For your information, appended herewith, is an extract from the
Report marked Appendix flAil From this extract you will note there
were 62 recommended adjustments representing an overpayment of grant
in the amount of $418,586 76
The Audit Reoort was discussed in some considerable detail by
Authority staff at a number of meetings and the following was included
in a lengthy report prepared by Mr Higgs, directed to the Finance
Sub-Committee at a meeting held September 25 and continuing September
26, 1980
"MINISTRY OF NATURAL RESOURCES AUDIT OF 1978 & 1979 EXPENDITURES
-REPORTS
The Authority has bcc~ subject to ~~ i~tc~3iva audit v[ 1978
and 1979 expenditures by the Ministry of Natural Resources The
staff is preparing a complete report on this matter The Authority
will be required to negotiate the repayment of some Provincial
grants paid in 1978 and 1979, and the reasons for this are
-poor accounting practices;
-major changes in interpretation of Provincial policy "
Following the aforesaid Finance Committee meeting, Authority staff
prepared a reply to the Audit Report and forwarded same to Mr D A
Dooling under date of October 16, 1980, attached hereto as Appendix liB"
On November 4, 1980, Messrs Hunter and White of the Ministry
of Natural Resources Central Region staff met with Messrs Higgs, Jones
and Torkoff of The Metropolitan Toronto and Region Conservation Authority
staff and the entire 62 adjustments were discussed in some depth We
were unable to arrange a further meeting until March 24, 1981, at which
time Messrs Hunter and White of the Ministry's Central Region Office
met with Dr J K Reynolds and Mr S Scott along with Messrs Jones,
Finch and Torkoff and the adjustments were again discussed in depth
It was agreed that Ministry of Natural Resources staff would review
the various adjustments requested by the Authority's staff and would
provide the Authority with revised recommendations This report was
received on April 27, 1981 and the adjustments recommended by Ministry
staff represents an overpayment in grant by the Ministry of $355,186 83
as follows
1 Adjustment #41 in the amount of $200,602 10 represents amounts
overclaimed on Water and Related Land Management programs for
1979 Funds for repayment are on hand and do not affect the
Authority's funding At our meeting with Ministry staff on
November 4, 1980, we offered to forward a cheque forthwith,
however, we were requested to withhold same until the entire
audit had been settled
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Adjustments affecting Authority funding in the amount of $154,584 73
are as follows
1. Items on which grants were claimed but were not eligible
amount to $11,648 45
2 Items on which the Authority has been receiving grants since
its inception, i e telephones located in Superintendents'
residences, workshops, Black Creek, amount to $15,020 36
3. Rent income not previously shared with the Province amounted
to $94,936 70
4. Weed and grass cutting - waterfront lots - ineligible for
grant amount to $5,958 75
5. Pump for Petticoat Creek C A pool - ineligible for grant
amounted to $1,587 51
6. Hydro easements revenue - not previously shared amount to
$52,176 59.
7 Adjustments in favour of the Authority amount to $26,743 63
Negotiations with Ministry staff resulted in a reduction of repayment
in the amount of $63,399 93
In any post-audit system where policy statements are subject to
interpretation, it is virtually impossible to eliminate the necessity for
making adjustment However, accounting controls have been implemented,
where possible, to reduce the possibility of error
The 1980 audit of the Authority claims will undoubtedly produce sub-
stantial adjustments The adjustment for rent income alone will be
approximately $65,000 00 Host, if not all, of the telephone adjustments
were eliminated in 1980 and are completely eliminated in 1981 It is not
possible, at this time, to accurately forecast the amount which the Author.ity
must repay to the Province for 1980
The Authority has been requested to repay to the Province an amount of
$355,186 83 As previously stated, the repayment of $200,602 10 does not
have any effect on the Authority's funding However, the repayment of the
remainder i e $154,384 73 has a serious effect on funding and creates a
deficit which when added to the 1980 deficit of $53,078 00 totals $207,662 73
exclusive of further added adjustments for 1980 and 1981 deficits, if any
There appear to be only two ways the Authority may be able to fund any
deficit incurred up to and including December 31, 1981, i e
A. Levy in the 1982 Budget an amount sufficient to cover the deficit
(Provincial grants are not available for deficit financing) -
B Seek authorization from member Municipalities to use levy monies
already on hand (this seems to be the logical course of action
to take).
RECOMMENDATION
IT IS RECOMMEND THAT the staff report dealing with the 1978-79 audit
of Expenditure Reports by the Ministry of Natural Resources' auditors be
received; and that
THE Finance Sub-Committee recommend to the Executive Committee that a
cheque in the amount of $355,186 83 be forwarded to the Province of Ontario
forthwith as full settlement of the adjustments in connection with the
1978-79 audit; and further
THAT no action be taken on financing the deficit created by the
adjustments in the amount of $154,584 73 and the 1980 operating deficit
of $53,078 00, until such time as the 1980 audit has been completed by the
Ministry of Natural Resources' auditors
WEJ/mrd/j
1981.05.07.
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A})PENDIX A
Ministry of llatural Resources
Inlenlal l\ucU t Scrvi ces Branch
11111)} 'r OF 197R i1l1d 1979 F''1'ENl1f'I'llIlI' "":POHTS
'I1IE Ml';THOPOLITl\N TOHON'J'O l\ND HI',f, J ON
CONSERVl\1'ION l\UTIlORITY
The Fxpenrl i lure Pq >orts ;ubmillcr1 by "'he 11<'t lOp'" i 1,1n '!'or0nt-o ;lI1d
Region ('nn;(",>rvdl;on l\ll1horily \-It'''l.C f:-':llllll\('(l ()II'. I IJllin II ion
included a general review of account i ng p,oc,,,lll'-"S dnd tests of
the accounting records and other supporU ng evidence
We are unable, ns a consequence of the following 1:1"0 conditions,
to give an opinion as to the accurncy and fairnC'ss of the claims
sub.nitted for grant
- Some accounting practices and related records,
including those pertnining to Vehicle and r.qnipml'nt
Rpntnls, Tonrnal Entries rind R('Vf Ilue, ''IN )"c (\ i t h(~r
not reviewed in great uetail, or were p(~rus('d, for
only one of the 1.\"0 years subj'~ct to audi t
It }J., (rIW .{.ntell.tton .to JIf'\'}CW tI'Pbe_
I'lcll:.te-'lJ., ill g,~ea.teJt ne.taJ.f. !'.Ilrell nex.t
It'e \!.{J.,},t .the AttUIOWt/
- The \lIltlsually large number of reculI"npllc',,,l i.HljllstmC'nls
resulled primarily from our review (sample) of vouchers
processed by the Authority As the sample ~ize wns a
relatively small proportion of total vouchers processed,
it is conceivable that further review of vouchers would
have resnl ted in the observation of illl evt'n 'Jn~ater
number of inel igible items clnimed [or <jrilnt
The attached 62 recOIn'ncnded ildjustrnl?nts, rel'J'( sent- i ng a lie t
ovelp.lyment of g,-nnt in the amount of $4)8,581', -'6, ,1re subj"ct to
thc review ann dpproval of the RC<Jional oi n,c;! or 011C primary
reason for the incligible it-ems hein'J cLlirll'Jd \,'"u1,1 "I'l"--"C to be
errors in the coding of invoices ilnd their sub.,e'luent posting to
the \"rong ilccolmts Coding of invoices is the rc"!,unsihility of
the Division initiating the transaction In our opinion, an nudit
of these codes, prior to posting, would sel-ve to re,luce futllre e1-ror5
\~i thin l-he last yr.ar, the 7\ul:h01-1 ly h,,.:; """XPf ri...llc....(l ,nrne Cll'll\(J0;" ilt
the supervisory levels, in the finallce iltJd J\(lm;ni~t '-ilf ion nivision
f'vcry !lllCCf>SS is wi h..n I hp:e C'lIIpl nYf'( \n I h, I. f 1111, IV/).-',
Prepared by
l~o..l~~(.ctl ~
P I Camacho
Field Auditor
Southern Section
, APPENDIX B
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the metropolitan toronto and region conservalion aulhority
!> !>horch,un drivp. . dOWIlWIIl\V ont.1I11) 1T131l 154 (4 llil (j(j 1 "hOll
1980 10 16
Mr D A Dooling,
Audit Hanager,
Southern Section,
Ministry of Natural Resources,
MAPLE, Ontario
LOJ 1EO
Dear Mr Dooling
Ministry of Natural Resources Audit of 1978
and 1979 Expenditure Reports - H T H C A
We have received and studied the Audit Heport on 1978 and 1979
grants prepared by your tiLa[[ dated June-August 1980
Our comments are as follows
R A 1 & 15 - Benefits 1978 and 1979 - This problem arose due to
charges which should have been trons[erred from
administration to the experience program Therefore,
we accept the adjustment of $1,682 06 for 1979 and
$3,751 49 for 1978
,
R A 2 - Service Awards - It is not directly stated in the
f.lanua1 that these items are eligible or ineligible,
but we realize it has been the past experience that
they are to be funded through Municipal levies We,
therefore, accept the adjustment of $1,319 06
R A 3 - Office Furniture - The sofL! in que'S ti on w~s purchased
for the lIdministrotive O[fice, and ill our view ip
..
clearly eligible and should not be adjusted Page 13-4,
Sectiol1 3, paragraph 4 states, Offices (i e Administra-
tive Headquarters) and \vorkshops Includes initial
supply of furniture, equipment and tools and their
2
R. G Henderson Mrs, F Gell K G HIOgs, R P F
~I''''''' VICe.Cha"mAn ~,,.'rl.II\' h,..1',1"I"
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replacement if lost, broken, or worn out I"'e,
therefore, submit L11<1t thi i [('Ill i III cl i'li.b.k
expenditure in the amount of $46U 13
R A 4 - Alcohol - The two .items cOllcern.in'l 1J)"j<JhLs I'" i IIU; \vcre
adj\l:'stcd from account 01-03-03 <HId chilr<Jed Lo accounL
11-01-04 which is an account not eligible for grant
This was corrected by a journal entry on December 31,
1979 We, therefore, submit the correction was made
and this item should not be adjusted in the amount of
$119 12 The last item to lIiram IlLllker is clearly
not eligible for grant, and we approve the adjustment
in the amount of $23 32
R A 5 - Florist, Liquor Licence Clml PClU] GOdrl:cLI,:,~ullL~.!::j~n _
'I'hese three items are clearly not funded by the Hinistry
and \-.'e, therefore, accept the recommcnded adjusl:l1lent
in the amount of $387 50
R A 6 - R L Clark Hetiremcnt, Staff Dinner LInd !'oundaLion
Business Cards - These items should not havcbeCl1
charged to the administration account and we accept
the adjustment in the amount of $171 90
R A 7 - Fl()v.7Ar~ ;lnrl I!1~'-~!."2.l;C'2 Cl.::.i::~ {1'.!ick NoJ.ii'O l;uu.liilJc) _
Item no 1 is clearly not eligible and we accept the
adjustment in the amount of $12 50 Item no 2 was
submitted to our Insurance Acljusters, W A King and Co
Ltd , and the Authority was rciml.'urs('d j n the amount
of $963 00 on November 5, 1979, \-.'hich \vas credited to
account 01-07-03 We, therefore, accept an adjustment
for the difference amounting to $160 50
R A 8 & 16 - UIC Overpayment 1978 and 1979 - A calculation error in
UIC deductions when certain employees reccived two T4
slips This account could be claimcd from the Conmlission
however, we accept the adjustment of $7 57 in 1979 and
$13 00 in 1978
R A 9 & 20 - Telephones Located in Various Autho~iJ:y:-OwlI_c:d Hesi~~~
OccupJ_ed by Conservation Area SUpCrJ_I]LCllLlent_~ - Thjs
telephone service is for securj ty purJ>o~;[,s and hil~; alwilYs
been charged to the Authority administriltion account
We respectfully submit that to change this practice
retroactively would create an undue hardship on the
Authority and if there is to be a change in policy, it
should be effective January 1, 1981
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R A 10 & 19 - 'felephones Located in Workr;hop in Revenue Producin~
Conservat1on Areas - This telephone service 1S [or
--- and has <:1lw~ys hel n clw r~lcd to the
securJty purposes
Authority administration budget, and we rC';,pectfully
submit that to make th" change retroactively would
create an undue hardship on the Authority and ifa
change in policy is to be made, it should be effective
January 1, 1981
R A 11 & 17 - Bruce's Mill Telephone 1978 and 1979 - These telephone
charges are clearly not eli9151e for grant and have been
corrected as of January 1, 1980 We, therefore, accept
the adjustment of $277 96 for 1979 and $262 79 for 1978
R A 12 & 18 - Black Creek Pioneer Vil1~~ Telephones - These telephones
are used in the operat1on of Black Creek Pioneer Village
and, therefore, are not eli_'Jible for '1r lilt ~Ild w(~ ilCClpt
the adjustment in the amount of Sl,:l% 95 for 1979 and
$326 11 for 1978 This item has been corrected as of
January 1, 1980
R A 13 - Advertisement for Staff at I3l<:1ck Cl'eek riO!lCer Village _
This item is also not eligible [or grant and was charged
to this account in error \<le, therefore, accept the
adjustment vf $279 69
R A 14, 27,
36, 44 & 57 - Revenue and Costs Associa ted \',' i th Various Ren ta 1
Properties - The net revenue derived from rental
properties is included in the Authority's budget under
administration ?nd without same the Authority would
have been unable to finance its <:1 (1m i n j s t I" il t ion cosLs
'l'he Province has received its share being 50 percent
of the administration cost which otherwise would have
been funded by additional grant We respectfully
submit tha t the Auditors and other Officials of the
Ministry arc aware of this Authority's treatment of
revenues and to make any adjustment retroactively
would create a tremendous hardShip for the Authority
The Policy and Procedures Manual is unclear on this
matter We understand a new manual is being prepared
and will become effective on or I,,'foro .Jallllilry 1, 1911l
t'le, therefore, respectfully submit and request tha t if
there is to be Clny change in the I-r,,~ tmr:llt of revell\Jes
by the Authority to other tlwn the procedures used by
this Authority then these procedures arc to become
effective January 1, 1981
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R A 15 - See H A 1 & 15
R A 16 - See H A 8 & 16
R A 17 - See R A 11 & 17
R A 18 - See R A 12 & 18
R A 19 - See R A 10 & 19
R A 20 - See R A 9 & 20
R A 21 - ~~.!:.-~ lel~~..!~.L.~i..J)ama'J~::: - In llece'l1\h. 1 of 1977 a CO~l L \<Jt'1S
burned while on a rack at Lhc IIcll[way lIou~e lJr I:.
Cafarelli received $82 50 'I'his chcque \-Jas issued in
March 1978 and an insurancc clajm vl'l sul)rn it tcd On
May 31, 1978, thc full amount W<:IS recovl.'red <:Int! creditcd
to the account previously charged No adjustmcnt is
neccssary
R A 22 - Dienni~l Conference - These items arc not <.:ligib1e for
grant and we accept the adjustmcnt in the amount of
$124 50
P 1\ 23 - 1 Plastic name plates - These i L,-",\:;, \V'-'l.e pULchased co
~Ci)lc.'::G i:01u;''es i...~JCl L W~1.. t::: uc1l11al.jelt U1: IvUrl1 U\1(. un tile
grounds surrounding the Jldministrutivc Building Page
E-7 Classifications Adminl.straUon cxpen:"12s s t<:l tcs
"Administrative Office rent, cleaning and maintcnance
including janitorial services, snOI, removal and
ground maintenance" are eligiblc for grant It is our
opinion tha t this item shoult1 noL be ~t!J\I tctl
2 Suggcstion Award - It hLls bccn the polic} of the
Authority that persons making sugCJcstions that bencfit
the Authority shall receive a $30 00 Llward Because
both the Authority and ~1inistry bcncfit from these
suggestions, it is our opinion that this itcm should
not be adjusted in the amount of $15 00
3 Decals - Canadian Offsct Co - During our investigation
we were unable to find the invoice for this adJustment
If these passes werc sold to thc public as scasons passes,
they would not be cliCJihlc LInd wc Iv"ld.u, thc'l'c [01'(',
accept the adjustment ot $376 72 Thc q u0.~; L iOI1 hilS Iwe' n
brought to our atLcnLion th" t co I l :1 in 1';\ !.il~ ;111<1 <.I,c.II
are also purchased and given to employees for identifi-
ca tion pUl'poses to enter areas in complcti n<J thcir work
tasks If this was the case, it is our oplnjon L1li.lt
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it bc an allowable cxpenditurc This ilmount Cilnnot
be c1arificd wi thout the OJ i.qlnaJ <!ocumell L
R A 24 - 1 Coffee and Food Services - This itcm is clearly
ineligible and we accept the adjustment in the amount
of $67 25
2 and 3 Retirement (H Lund and M Elliott) - It
has been the policy of this Authority (as per page F-3
of the Authority's Policy and Proccdures Manual) to
grant $10 00 for each year of service upon retirement
Because this is calculated on years of service and
encourages staff to remain with the Authority, we feel
it should be treated as an cmploYt,C b0ncfit., thcrC'fon~,
a grantable item It is our opinion lh.:lt there should
not be an adjustment in the amount of $170 00
R A 25 - Liquor and Mix - These items are not eligiblc and we
accept the adjustment in the amount of $173 08
R A 26 - Passes - With reference to R A 23, these passes were
definItely given to employees for identification purposes
The complimentary and day passes arc givcn to persons
requiring temporary entrance to our Areas (i e Insurance
Adjusters, Surveyors) These passeG ure also sent to
Officials at each of our Regions who have been levied
Th1s g1ves them the right to inspect our grounds at dny
time We, therefore, request that this be an eligible
expenditure and no adjustment bl: made in the amount of
$269 34
R A 27 - See R A 14, 27, 36, 44 & 57
R A 28 & 29 - Administration Expenditures - These two calculations
are very complicated and we request an extension in
time until clarification can be made by your Audit
Division
R A 29 - See R A 28 & 29
R A 30 - Air Conditioncr at Illack Creek Piollt','r Vtll.l<fC - 'I'hi!,
item was installed in tllclort-to'hi>rovIJc-suit.:lble air
circulation in order to make it reasonably comfortable
for the Environffiental Studies Group to carry out their
1979 and 1980 Experience Programs A staff of 9 in
1979 and 13 in 1980 used this office because adequate
space was not available in our Administrative Building
It is our opinion that this be a gr.:lntable expenditure
in the amount of $363 69
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R A 31 & 54 - ~eed, Cutting l'iaterfront Lots - The h'~terfront Section
hilS [or the past three years 1)('L'n I-e pon!;il>le for lIIilin-
l<:linin(J AuLhority propcrLi( lhrou'IhollL Lhe pjeY.r d.n'll
Ajax vl<:llerfront Tlwse costs \Vere set ouL in our [ive-
year submission to the Ministry in January 1976 It
stated "the cost shall include land acquisition,
creation and deve10rment of land, legal and survey,
enqineering and desiCJn service, site sUJlcrvision,
demolition and property cle<:ln up These it<:ms \~'~re
completed because of public pressure to upkeep <:Ind
maintain \'}ater[ront Lnts ne~r residential .:tre.:ts Lastly,
they \'ICre ehar<jed to this account ilS per the instructions
by Nr Le\Vis of the Ministry of Niltural HCSOUJ:ccs in his
letter dated August 13,1976 Therefore, in our opinion
these costs in the <lmount of $3,7i}G 25 in 1979 and
$2,212 50 in 1978 should not be adjusted
R A 32 & 52 - Convention <lnd Tourist Bureau (Advertisement) - In 1979
the tot~l billing .....as $5,200 00 IJ0.Ci.lUsc-'-tllls benefits
all Conservation Arcas and Black Creek Pioneer Village,
$2,2uO 00 \Vas allocated to l31ack Creek pioneer Village
and only $3,000 00 to the other 15 J'.reas Therefore,
in our opinion \Ve feel that this is u reason~lJle
a11oc<ltion and that the amount or $1,:'09 (,5 in 1979 and
$1,600 Ou ~n 19/1J should not be adjusted
R A 33 - Alcohol - These charges are clearly ineligible At the
end of June a journ<ll entry \-Ias made to credit a portion
of these charges to a non-claimable account We,
therefore, accept an adjustment in the amount of $G9 30
R A 34 & 53 - ~aying Trees - The invoice from Cedarvale Tree Services
Limited erroneously stated l31ack Creek Pioneer Village
when in fact the spraying program \Vas c<:lrricd on at
Black Creek Conservation Area '1'he sprayin<] program
was carried out primarily to control Lhe C<:I tern Lcnt
caterpiller Since 1972 the Authority has been
establishing a woodlot along the eastern bank of Black
Creek Conservation Area adjacent to l3lack Creek Pioneer
Village ~1any wild apple trcC'!; ilrL fOlllld ill llle \Vood lo t
area and are part of the original vegetation (ound on the
site The caterpiller posed a serjous problem in and
around Black Creek Conservation Area as the cycle
reached its peak and endangered the success of the
planting program The sprajing also occurred within
buffer p1antings around the Village 'l'hcre[o~c,.ill
our opinion th~ amount of $220 00 in 1979 and $315 00
in 1978 should not be adjusted
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R A 35 - Alcohol - We accept the adjustment in the amount of
$320 27
R A 36 - See R A 14, 27, 36, 44 & 57
R A 37 - Pump Rel?0.irs Petticoat Crcck Swimmi.Il<J Pool - It is our
opinion that these repairs to the pumps at Petticoat
Creek Pool were related to original design and con-
struction problems and do not constitutc rcgu1ar
maintenance The repairs involvcd rcplaccmcnt of a
pump impeller which appears to havc becn damagcd by
cavitation resulting from a combination of poor pump
selection and less than ideal suction pump configuration
Since the pool was a very unusual design and in fact
was one of a kind, there was considerablc unccrtainty
involved in the selection of equipment It is apparent
from the above that the required rCJ>c1ir werc nol
a function of regular maintenance nor of operational
neglect and, therefore, it was appropriate that the
repairs be funded from Waterfront capital money until
such time as the difficulties associated with the new
and relatively complex facility were resolved Further,
the Authority served a Hrit and Statemcnt of Claim on
Project Planning Association Limitcd on April 24, 19HO,
regarding work carried eut by them in connection with
the d~s i CJn ~nrl ~up~r. i=i~~ ~nG .::cns trlH.. L~ull uf the
artificial lake The litigation is based on thc ~remise
that the design and supervision wcrc insufficiently
carried out, thus resulting in ext.ensive repairs It
is our opinion that the amount of $1,5H7 Sl should be
grantable
R A 38 - Erosion Control Exp~nse - This account is rcvenue from
property owners paying for a portion of the erosion
control work being done on their property In 1976 and
1977 we billed the owners after the work was completed
Many have been unco11ectable and wcre consequently
written off in 1980 ($2,865 50) At River Cove Drive,
the funds were received in 1979 but thc project was not
started until 1980 'l'hcrc[orc, $J,(,OO 00 wat, transferred
in that year The balancc of approxim.ltely $6,000 00
remains for jobs which startcd in .1979 and will be'
completed in 1980 'l'hereforc, in 011" opinion, tltl'
amollnt of $G,7'JO 15 should nul be ,H'jw;led .1I1t! w.w
handled under proper accounting procedures
R A. 39 - This item was claimed in error and we accept the
adjustment in the amount of $99 00
. 8
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R A 40 & 50 - 5;omp~E~~~~~!.!.~art..!:'E~~. - The ori'Jin,ll i n:.;t.ll1~t iOIl
of Un compre~;sor. W:1S fo,' a I'nJ'I'. 1111 lo j 1111) I. oVC' 1.I ,,~
water qu,llity at Heart Lake Conser.vation Arca anti was
n granLuble proS/ram which vias chuLqcd Lo 2B-2~-42
We presume the ongoing hydro charqes were an oversite
after the original project und should havc been charged
to 12-09-61 l'le, therefore, accept the adjustment in
the amount of $56 88 in 1979 and in the amount of $51 31
in 1978
R A 41 - Overclaim on Water and Helated Land Muna~ - A great
amount of time has been spent on reconclling this H A
It is now apparent that there \Vas Some confusion at the
beginning of the year in clai.ming expenses allowed
between t.he Hegional Office and the Authority Amounts
on certain claims were adjusted and lJefr:>re the adjusted
figures were received, nel" cl nims were submitted aguinst
surplus funds We, therefore, accC'pt the reconunendecl
adjustment of $200,602 10 We, therefore, request this
overpayment be trea ted as an advance on 1980
R A 42 - Purchase of Snow Tires - We hl1ve been unable to fl. n d the
original document from Tire Crnft in the amoun t 0 f
$151 24 and, therefore, must accept this adjustment in
the amount o[ $83 18
R A 43 - Gifts - These items were not eligilJle [or grant and
we accept the adjustment il; the amount of $19 40
R A 44 - See R A 14, 27, 36, 44 & 57
R 1\ 45 & 58 - Telephones at Central Stores and MolJiles - We accept
the adjustment of n25 85 in 1979 and $120 83 in 1978
in favour of the Authority
R A 46 - 1I01d-back - 'I'his was an oversi te on one 0 f our claims
lve, therefore, accept the adjustment in the amount of
$2,320 50 in favour of the Authori t}
R A 47 -lvC-58- Don Channel - '1'hi" pl'oicct be~Jnn prior to ]975
01.11: public a~ditors, Cl~ry Oil (.ol-doll in c,ILiI ycar of
1975, 1976, 1977 , 1978 and 197~ set up the spending on
this project to an account cal10d II Hf'vCl1uCS from
future grants ilnd levies" J t I'il bCln difricult to
find the original documentation for this project The
work has been completed and our auditors' papers show
the expenses being set up Therefore, in our opinion
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this amount was never claimed and is eligible [or Sjrunt
and should not be adjusted in the amount of $42,327 65
R A 48 - 1\n error in making the claim to the Ministry resulted
in this adjustment of $20,820 00 in the 1\uthority's
favour and we, therefore, accept this adjustment
R 1\ 49 - Taxes and Insurance - The Authority <lccepts the
adjustment in the amount o[ $3,270 7!l in the AuLhur i ty' s
favour
R A 50 - See R A 40 & 50
R A 51 - Calcium Chloride for Roads - Calcium Chloride is used
to minimize complaints from adjacent land owners and
to ensure the safety of the men on the iob site This
item is built into the overall cost of many major
proiects as site preparation LInd ~ll.'Cr'l~S mel i n LC})~lI\( ('
Therefore, in our opinion, the ilI1l0U n t 0 [ :;,109 20 should
not be adjusted
R A 52 - See R A 32 & 52
R .7\ 53 - See R A 34 & 53
R A 54 - See R A 31 & 54
R A 55 - Life Rings - ~le are advised the Ii rC' rinSjs are used
in connection with Safe Stations at Lhe various dams
and in connection with chdnnel construction, therefore,
no adjustment should be made
R A 56 - Alcohol - We accept the adjustment in the amount of
$145 65
R A 57 - See R 1\ 14, 27, 36, 44 & 57
R A 58 - See R A 45 & 58
R 1\ 59 - Margaret Praetorius Property- - This item is clearly
grantable The only question is when! 'l'his property
was acquired by the Authority by ~ pJan of expropriation
registered on February 3, 1977 As of that daLe, the
Authority had title to the property, but were un<lule
to agree on a price to settle All ac1v~nce puymC'nt wus
made on December 20, 1977 , in Lhe dlllUlIl) Lor $(,,000 00
The matter finally came before the Land Compensat~on
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Board and in the Decision dated Auyust 21, 1978, the
Board awarded both interest and costs The Decision
was appealed and held on August 21, 1979 The Claimant
finally agreed to terminate act i.on ul1U Wo:lS paid
$22,458 24 in 1979 However, the Authority contested
the Claimant's costs in this matter which came before
the Tax Officer on March 5, 1980 A cheque in the
amount of $19,066 99 was forwo:lrded Lo G.:lrdlner, Huuerts,
our solicitors, on March 14, 1980, and the final
Certificate of Title was prepared on May 3, 1980
Because this item was of such an unusual nature and
is grantable, it should not be adjusted by the Ministry
R.A 60 - Land Acquisition - These items were an oversight by our
staff and we, therefore, accept the adjustment of $68 75
in the Authority's favour
R A. 61 - Improper Coding of Tax Billing - ^ claiming error was
made by the accounting staff of the ^uthority and we,
therefore, accept the adjustment in the LllUollnt of
$561 58
R A 62 - Revenues from Easements - Revenues derived hy the
Authority fro~ the sale of Easemnnts i~ nnt rlear1y
covered in the Policy and Procedures Manual These
revenues have always been used by the Authority to
assist in the financing of approved projects and again
Ministry Auditors and Officials have beell aware of
this Authority's treatment of these revenues To make
any change retroactively in the treatment of these
revenue& by this Authority, would create a very serious
hardship We understand the new Policy and Procedures
Manual will be in place on or before January 1, 1981,
and if any change is to be murle ill Lhe disLribution
of revenues received by the ^uthority, we respectfully
request that such changes become effective January 1, 1981
We note Mr Camacho's comments to the effect that it is intended
to review certain matters in greater detail when the Audit Team next
visits the Authority There is also the suggestion that if a greater
number of vouchers had been processed, there might have been a greater
number of ineligible claims
lie do not feel that the audit for 19713 alld 1')79 ~hould I,C' de1i1)'l'd
and if it is your i IltcntiOIl to conduct furth(~r aud i ls cOIH.:eJ:ni Ill] the!;c
two years, would it be possible to complcte S<lmc now?
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We are selldinl) LI. copy of this report Lo Nr H M DixolI, to the
attention of Mr Dick Hunter, and a copy to 1-11' Iv '1' l'oster,
Assistant Deputy Minister of Southern Ontario
\Ie are requesting a meetinq with the ReqionL11 Ilirector. at the
earliest opportunity for the purpose of discussiny your audit in
further detail
Yours very truly,
K G Higgs,
Secretary-Treasurer
WEJ/PT/mrd
CC f-Ir R M Dixon (attention Mr Dick Hunter),
Mr. W T Foster
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SCHEDULE 'B'
FSC-17
TO: The Chairman and Members of the Finance Sub-Committee
Meeting #1/81 Monday-May-11-198l
FROM: K.G. Higgs, General Manager
RE: GUIDELINES FOR THE PREPARATION OF THE 1982 BUDGET
In order to meet the deadlines of the Authority's funding agencies for the
submission of the 1982 Budget Estimates and in order to allow adequate time
for thorough discussion of the budget by Authority Committees, it is necessary
to begin the preparation of the Preliminary Budget Estimates during the month
of May. As in past years, the first step in budget preparation is the
establishment of guidelines by the Executive Committee
The programs and policies of the Authority have been established in the
Watershed Plan adopted December 5th, 1980 The implementation and funding of
these programs presents a substantial challenge for the Authority and the
rate at which the Authority wishes to proceed with its work will be a
determining factor in selecting the appropriate approach to the 1982 Budget.
The following alternatives are listed in order of slowest rate to fastest
rate of dealing with the implementation of programs set out in the Watershed
Plan. All of the alternatives will require a recognition of a 12% inflation
rate and assume no growth in revenues with the exception of the educational
programs
(a) No Growth Budget
Funding of current and capital programs would be at the same level as 1981
providing only for the inflation rate
(b) No Growth Budget
The total funding for both capital and current would be at the same le"el as
1981, increased only to provide for inflation but there would be a re-
allocation within the total to address all or some of the following areas of
the Authorjty's nperation wher~ weaknesses or di~qatjsfM~tion havp been
expressed:
(1) Administration systems have not been updated A particular need
is in personnel services and data processing~
(2 ) Virtually no new vehicles and equipment have been acquired~
(3) No long-term maintenance (road resurfacing, building maintenance,
water and hydro services) has been carried out~
(4) The development of the Kortright Centre and Conservation Areas
has been severely curtailed, thus limiting opportunities to
foster visitor growth and revenues
(5) Restored buildings at Black Creek Village have been closed
to public use~
(6) Education programs at Black Creek Pioneer Village have been
curtailed.
It should be recognized that this approach would mean a curtailing of work in
other program areas, Th7 onlY,real oppo:tunity for this is in the capital
programs and reduct~ons ~n cap~tal spend~ng do not assist in reducing
increases in the current levy.
(c) An Improvement Budget
An improvement budget would address the programs and priorities established in
the Watershed Plan and would provide funds over and above the inflation rate
to:
(1) Implement the capital projects at a rate that would be dependent
upon the Provincial cash flow which could be made available for
the purpose; and
(2) Increase the current levy over and above the inflation rate to
provide funds to deal with the problems referred to in (b)
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The rate at which improvement would occur would be dependent upon the levy
and cash flow increase which the Authority is prepared to request and press
for. It could range from 1% over and above the inflation rate to 12% over
the inflation rate which would fully fund the Watershed Plan.
A sub-alternative within the improvement budget could be to provide some
improvement through increased levy and some improvement in areas of highest
priority through re-allocation.
The views of the Finance Sub-Committee will be of great value in determining
the appropriate course for the Authority.
KGH/mm
1981 05 07.
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the metropolitan toronto and region conservation authority
minutes
FINANCE SUB-COMMITTEE 81.08.05 #2/81
The Finance Sub-Committee met at the Authority Office, 5 Shoreham Drive,
Downsview, 81.08.05 1000.
PRESENT
Chairman J.S. Scott
Members *Mrs. Lois Hancey
*C.F. Kline
E.V. Kolb
*Dr. T.H. Le i th
Authority Vice-Chairman Mrs. Florence Gell
Staff W.A. McLean
W.E. Jones
Mrs. K. Conron
J.D. Finch
Mrs. E. Mellor
P.D. Torkoff
*Appointed to Finance Sub-Committee at Executive Meeting #12/81, held
81.07.29, for the purposes of Finance Sub-Committee Heeting #2/81 only ,
(Appointments to be ratified and confirmed at Executive Committee
Meeting #13/81 - 81.08.12)
ABSENT
Members M.W.H. Biggar
Mrs. F. Edna Gardner
Mrs. Norah Stoner
MINUTES
Res. l!4 Moved by: Mrs. F. Gel!
Seconded by: C.F. Kline
THAT the Minutes of Meeting #1/81 be adopted as if read.
CARRIED;
FINANCIAL STATEMENT AND REPORT TO JULY 10, 1981
Res. #5 Moved by Mrs. F. Gel!
Seconded by: Dr. T.H. Leith
THAT the Financial Statement and Report for the period ending July 10, 1981, be
be rece~ved with appreciation.
CARRIED;
MINISTRY OF NATURAL RESOURCES - 1981 CONSTRAINT
Res. #6 Moved by: Mrs. F. Gel!
Seconded by: Dr. T.H. Le i th
THAT the staff report concerning 1981 funding constraint, in the amoun t of
$359,740.00, be received;
THAT the action taken by the staff be confirmeqi and
,
THE COMMITTEE RECOMMENDS rHAT the surplus Municipal Levy, amounting to
approximately $250,000.00, resulting from the Provincial constraint, be
credited to the appropriate levy of the 1982 Budget Estimates;
FSC-20 -2-
THAT a letter be directed to the Ministry of Natural Resources expressing the
Authority's grave concern regarding the effects of budget constraints imposed
l~ mid-year after projects have been approved and implemented, and the 10ng-
range implications of such action by the Ministry;
AND FURTHER THAT copies of this letter be forwarded to the Premier of the
Province of Ontario, and to all Members of the Provincial Parliament in the
Central Reg ion.
CARRIED;
REPORT OF LEVY MONIES ON HAND
Res. ft7 Moved by Dr. T.H. Leith
Seconded by: Mrs. F. Gel!
THAT the staff report in connection with municipal levy monies on be rece i ved.
CARRIED;
REPORT ON MINISTRY OF NATURAL RESOURCES' AUDIT ASSESSMENT
AND 1980 DEFICIT
Res. #8 Moved by: Dr. T.H. Leith
Seconded by C.F. Kline
THE COMMITTEE RECOMMENDS THAT any deficits shown in the Authority's aud i ted
balance sheet as at December 31, 1981, be budgted for in the 1982 budget under
Municipal Levy in the General Operations account
CARRIED;
1982 BUDGET - PROGRESS REPORT
Res. #9 Moved by C.F. Kline ,
Seconded by Mrs. L. Hancey
THAT the Progress Report on the 1982 Budget Estimates be received.
CARRIED;
DATA PROCESSING PROPOSAL
Res. UO Moved by: Mrs. F. Gel1
Seconded by: E. V. Kolb
THE COMMITTEE RECOMMENDS THAT the proposal by M.A.I. for the supply of a mini
computer, software, and first-year maintenance, at a purchase price of
$98,000.00, plus Provincial Sales Tax, be approved;
THAT the purchase price of the equipment be financed from interest income;
AND FURTHER THAT approval of the Ministry of Natural Resources be sought for
grant purposes.
OTHER BUSINESS
KORTRIGHT CENTRE FOR CONSERVATION
-Presentation to Canadian National Sportsmen's Fund
Res. Ul Moved by C. F. Kline
Seconded by: Mrs. F. Gel!
THE COMMITTEE RECOMMENDS THAT an amount of approximately $4,000.00 be made
available to the Information & Education Division for preparation of audio-
visuals and graphics for a presentation to, and request for g r;ant from, the
Canadian National Sportsmen's Fund for the Kortright Centre for Conservation.
CARRIEp;
ADJOURNMENT
On Motion, the meeting adjourned at 1300 hours 81.08.05.
-
J.S. Scott W.E. Jones
Chairman Secretary-Treasurer
KC.
~ FSC-21
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the metropolitan toronto and region conservation authority
minutes
- -
FINANCE SUB-COMMITTEE 81 09 18 13/Sl
.
The Finance Sub-Committee met at the Authority office, 5 Shoreham Drive,
Downsview, 81 09 18 09 30.
PRESENT
Chairman J S. Scott
Members Mrs. F Edna Gardner
E.V. Kolb
Mrs. Norah Stoner
Authority Chairman Dr. J Keith Reynolds
Vice Chairman Mrs. Florence Ge11
Staff W.A. McLean
W.E. Jones
J.D. Finch
Mrs. E. Mellor
ABSENT
Member M.W H Biggar
MINUTES
Res. #12 Moved by: Mrs F. Edna Gardner
Seconded by E.V Kolb
THAT the Minutes of Meeting 12/81 be adopted as if read.
CARRIED:
1982 PRELIMINARY BUDGET ESTIMATES
Res. #13 Moved by E.V. Kolb
Seconded by Mrs. F. Edna Gardner
THE COMMITTEE RECOMMENDS THAT the 1982 Preliminary Budget Estimates be approved
CARRIED:
WATERSHED PLAN AND WATERFRONT - PROJECTS
Res. 114 Moved by Mrs. F. Edna Gardner
Seconded by Mrs. Norah Stoner
THE COMMITTEE RECOMMENDS THAT a delegation, consisting of the Chairman and
two or three members of the Authority, attend upon the Minister of Natural
Resources to discuss with him the seriousness of the Authority's position
concerning approval of Watershed Plan and Waterfront Projects
CARRIED:
ADJOUIU-'MENT
On Motion by Mrs. F. Edna Gardner, the meeting adjourned at 11.15 hours 81.09.1S.
J.S Scott W.E. Jones
Cha~rman Secretary Treasurer
em