Report to: General Committee                                               Report Date: September 24, 2007

 

 

SUBJECT:                          COMRIF Funding for Asset Management Program

PREPARED BY:               Raj Raman, Ext.2013

 

 

RECOMMENDATION:

That the report COMRIF Funding for Asset Management Program (AMP) be received for information:

 

And that the COMRIF funding in the amount of $68,218 be allocated to fund work  required to inventory and value the Town’s capital assets and to a tangible capital asset accounting module:

 

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

EXECUTIVE SUMMARY:

The Governments of Canada and Ontario launched the Asset Management Program (AMP) component of the Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF) in Nov 2004 to assist eligible municipalities to improve their knowledge, skills and expertise in the management of infrastructure assets. The Association of Municipalities of Ontario (AMO) has been involved in the design of this program under which, a notional funding of $68,218 has been allocated to the Town to carry out Asset Management Initiatives with the expectation that the Town commits to spending at least 50% of the  grant to be eligible for this funding initiative.

 

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

 

PURPOSE:

The Town had submitted an Expression of Interest (EOI) for participating in this funding program and has been successful in availing the funding. The Town intends to utilize this funding on resources required to inventory its tangible capital assets and enable the reporting of these assets on the Town’s annual financial statements as mandated by the Public Sector Accounting Board (PSAB).

 

OPTIONS/ DISCUSSION:

The Governments of Canada and Ontario launched the Asset Management Program (AMP) component of the Canada-Ontario Municipal Rural Infrastructure Fund (COMRIF) in Nov 2004 to assist eligible municipalities to improve their knowledge, skills and expertise in the management of infrastructure assets. The Association of Municipalities of Ontario (AMO) has been involved in the design of this program.

 

The Asset Management Program (AMP) has been designed to address five principal stages in asset management namely

  1. Diagnostic – Focused primarily on asset management education
  2. Inspection – Conduct inventory of assets, including determining among other things the location, condition and remaining useful life of the asset
  3. Valuation – Determine the historical cost and/or fair market value of assets, depreciation policies and schedules and establishing threshold policies, replacement schedules and lifecycle analysis
  4. Sustainability/Planning – Determine policies to replace or renew assets and
  5. Financial Model – Determine the funding and implementing a financial plan to manage assets

 

The Canadian Institute of Chartered Accountants Public Sector Accounting Board (PSAB) has approved the recommendations of Section 3150, Tangible Capital Assets, which makes it mandatory for Public Sector local governments to include accounting for and reporting Tangible Capital Assets in their financial statements commencing the fiscal year 2009. In order to comply with the mandated requirements, an inventory of existing assets in the Town will be completed for accounting purposes. Further, the Town will need to establish threshold policies and procedures for valuation and depreciation thereof.

 

The Town has applied for this funding to plan the implementation of the above requirements, especially relating to the Inspection and the Valuation stage. This process will involve consulting, dedicated staff time and systems related expenditures. The 2007 Capital Budget included $100,000 to offset some of these expenditures. The availability of this additional funding will also partially fund the acquisition of financial systems required to record tangible capital assets and maintain them.

 

 

FINANCIAL CONSIDERATIONS AND TEMPLATE: (external link)

 

 

ENVIRONMENTAL CONSIDERATIONS:

Not Applicable

 

ACCESSIBILITY CONSIDERATIONS:

Not Applicable

 

 

ENGAGE 21ST CONSIDERATIONS:

Not Applicable

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Asset Management

 

 

RECOMMENDED

                            BY:    ________________________          ________________________

                                      Barb Cribbett, Treasurer                     Andy Taylor, Commissioner,

                                                                                                Corporate Services

 

 

 

 

 

ATTACHMENTS:

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