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HomeMy WebLinkAboutFinance Sub-Committee 1981 ~ FSC-l , 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; FSC-2 -2- 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. FSC-3 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 FSC-4 - 2 - 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. FSC-5 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 FSC-6 tt, ~ . V 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" · ! FSC-7 It - ) - 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 3 . j'SC-8 - J - 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 4 . FSC-9 I - 1\ - 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 5 . \ F'S(-lO - 5 - 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 6 \ FSC-ll - h - 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 7 . I FSC-12 I - 7 - 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 ~ h _ ,_ ~ .... _" # I , FSC-13 , - II - 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 9 . t ~-14 - 'I - 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 10 -- - , - - ~---- . . - ~<- ,- *-- ....,."..... .- --. _.~......._~... --- --- . , FSC-15 .' - 10 - 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? . 11 . . ~-16 - 11- 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 -, - 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) . . . . . /2 ---- -- - --, - - -, - FSC-18 - 2 - 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. , ~~ FSC-19 (p :.// .' ~ .'I"'~ 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 IT 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