Audit & Finance Committee

Transcription

1 Audit & Finance Committee March 8, 2018, 10:30 a.m. noon Edmonton Metropolitan Region Board Office #1100 Bell Tower, Avenue Capital Region Boardroom 1. Opening 1.1 Quorum Action: Confirmation Lead: Chair Doblanko 1.2 Call to Order Action: Declaration Lead: Chair Doblanko 1.3 Chair s Opening Remarks Action: Information Lead: Chair Doblanko 2. Approval of Agenda Action: Approval Lead: Chair Doblanko Recommended Motion: That the Audit & Finance Committee approve the March 8, 2018 meeting agenda. 3. Approval of Minutes Action: Approval Lead: Chair Doblanko Page 3 of 14 Recommended Motion: That the Audit & Finance Committee approve the January 11, 2018 meeting minutes. 4. Finance Page 1 of 2 Page1 of 14

2 4.1 Grants Analysis Action: Recommendation Lead: Chair Doblanko / CEO Bruce Page 6 of 14 Recommended Motion: That the Audit & Finance Committee endorse and recommend the Adjusted 2018/19 Budget to Edmonton Metropolitan Region Board for approval. 5. CEO Update Action: Information Lead: CEO Bruce 5.1 Hawkings Epp Dumont LLP Name Change Page 13 of Business Plan Update 6. Next Meeting May 10, 2018, 1:00 3:00 p.m., EMRB Office 7. In Camera Action: Approval Lead: Chair 8. Adjournment Action: Approval Lead: Chair Recommended Motion: That the Audit & Finance meeting of March 8, 2018 be adjourned. Page 2 of 2 Page2 of 14

3 Item 3 Audit & Finance Committee Thursday, January 11, :00 a.m. 11:00 a.m. Capital Region Boardroom, EMRB Office 1100 Bell Tower, Avenue, Edmonton Members: Tanni Doblanko, Leduc County (Chair) Ray Ralph, Town of Devon John Stewart, Town of Beaumont Michael Walters, City of Edmonton Regrets: Wes Brodhead, City of St. Albert (Vice Chair) CRB Staff & Consultants: Malcolm Bruce, CEO (Acting Chair) Neal Sarnecki, Project Manager Sharon Shuya, Project Manager Loreen Lennon, Communications Manager Leslie Chivers, Operations Manager Charlene Chauvette, Office Manager Taylor Varro, Municipal Planning Intern Amanda Borman, Executive Assistant ExOfficio: Jodi Abbott, Board Chair Guests: Lindsey Butterfield, City of Edmonton Trevor Duley, City of St. Albert Jordan Evans, Leduc County Larissa Hepp, Sturgeon County Marnie Lee, Strathcona County Avril McCalla, City of Edmonton Mike Schwirtz, Town of Beaumont Julie Vizbar, Leduc County 1. Opening 1.1 Quorum Quorum achieved. 1.2 Call to Order Acting Chair Bruce called the meeting to order at 9:02 a.m. 1.3 CEO Opening Remarks Acting Chair Bruce advised members that there are two handouts and one update to Item 3.4 for the meeting. Audit & Finance Committee Meeting Minutes: Thursday, January 11, 2018 Page 1 of 3 Page3 of 14

4 2. Approval of Agenda AFC Motion: That the agenda of January 11, 2018 be approved as amended to include the update to Item 3.4. Moved by: Mayor Ray Ralph, Town of Devon Decision: Carried unanimously 3. Governance 3.1 Selection of Chair AFC AFC Motion: That the Audit & Finance Committee appoint Mayor Tanni Doblanko to the Chair position and recommend that the Edmonton Metropolitan Region Board endorse and reaffirm that appointment. Moved by: Councillor Michael Walters, City of Edmonton Decision: Carried unanimously Motion: That the Audit & Finance Committee direct Administration to destroy the ballots. Moved by: Councillor Michael Walters, City of Edmonton Decision: Carried unanimously 3.2 Selection of Vice Chair AFC Motion: That the Audit & Finance Committee appoint Councillor Wes Brodhead to the position of Vice Chair. Moved by: Councillor Michael Walters, City of Edmonton Decision: Carried unanimously 3.3 Audit & Finance Committee Terms of Reference Comment: The Terms of Reference were revised by the Audit & Finance Committee (page 2, paragraph 3, changed appointed to confirmed ) AFC Motion: That the Audit & Finance Committee endorse and recommend the revised Audit & Finance Committee Terms of Reference to the Edmonton Metropolitan Region Board for approval. Moved by: Mayor Ray Ralph, Town of Devon Decision: Carried unanimously 3.4 Appointment of Auditors Comment: There were only 2 responses to the RFP. King & Company is a smaller local company but has the depth to fulfill the RFP. They would also represent a change after six years with our previous accountant. Audit & Finance Committee Meeting Minutes: Thursday, January 11, 2018 Page 2 of 3 Page4 of 14

5 AFC Motion: That the Audit & Finance Committee endorse and recommend the appointment of King & Company, Chartered Accountants to the Edmonton Metropolitan Region Board for approval. Moved by: Councillor Michael Walters, City of Edmonton Decision: Carried unanimously 4. Finance /19 Initial Budget and Workplan Comment: The CEO informed the committee that a grant analysis is being conducted. Administration will confirm and develop scenarios for the Audit & Finance committee to review for an ultimate recommendation to the Board. AFC Motion: That the Audit & Finance Committee endorse and recommend the 2018/19 Initial Budget and Workplan to the Edmonton Metropolitan Region Board for approval. Moved by: Mayor John Stewart, Town of Beaumont Decision: Carried unanimously Business Plan CEO Bruce reviewed the first draft of the Business Plan with the members of the Audit & Finance Committee. 5. CEO Update No further updates from CEO Bruce. 6. Next Meeting Thursday, March 8, 2018 at 1:00 3:00 p.m., Capital Region Boardroom, EMRB Office 7. In Camera Chair Abbott reviewed the conditions for going in camera with members of the Audit & Finance Committee. The Audit & Finance Committee members were in support of the addition of in camera sessions and this item is to be brought in front of the Board for consideration. 8. Adjournment The Chair declared the meeting adjourned at 10:24 a.m. Committee Chair, Tanni Doblanko Audit & Finance Committee Meeting Minutes: Thursday, January 11, 2018 Page 3 of 3 Page5 of 14

6 Administration Recommendation to the Audit & Finance Committee Item 4.1 March 8, 2018 Grants Analysis That the Audit & Finance Committee endorse and recommend the Adjusted 2018/19 Budget to Edmonton Metropolitan Region Board for approval. Background EMRB Management engaged Metrix Group LLP (the Metrix ) formerly known as Hawkings Epp Dumont LLP to perform a grant analysis of grants received and spent, to reconcile and check the allocations of funds to specific projects in order to ensure the accuracy of the grant carryover amounts and the programs and projects to which EMRB is committed. The purpose of this analysis is to assist EMRB management in developing future financial strategy. The findings from the grant analysis have identified the Edmonton Metropolitan Region Board has $2,382,883 in uncommitted deferred revenue. EMRB Administration has reviewed the Strategic Direction of the Board from the Strategic Planning Retreat on February 8, 2018 and has identified some options for the Board s consideration. The following table outlines three scenarios for the investment of the uncommitted differed revenues, including establishing a Board Initiatives Reserve Fund, completing more of the Board s identified priority projects, and reevaluating Membership Contributions, alone or in combination with other options. Page 1 of 3 Page6 of 14

7 Administration Recommendation to the Audit & Finance Committee March 8, 2018 Reserves Projects Membership Contributions $300,000 Board Initiatives Reserve Fund is an uncommitted Reserve account established for the purpose of providing funding to Board Initiatives that are not allocated for in the normal budget cycle. (Policy F007) $500,000 Shared Investment for Shared Benefit Note 2 year project and requires 1 FTE Regional Project Manager with economist background. Once this project is completed this PM will address future work on Cost of Growth. Projected budget does not include FTE. It is recommended that the Shared Investment for Shared Benefit Project be a Board Project as opposed to forming a Task Force $300,000 Energy Phase 2 Note Supported by 1 contracted position for 1 year $100,000 Broadband Phase 2 Note $50,000 is in approved 2018/2019 Budget for a Gap Analysis, additional funding needed to develop a Regional Strategy $140,000 Regional Agriculture Master Plan Note Full Funding to support approved project $250,000 KPI Development to create a web based measurement dashboard Note Supported by 1 contracted position for 1 year ($85,000) Housing Symposium Membership contributions can be revisited over a multiyear budget and is dependent on funding levels from the Government of Alberta TOTAL INCLUDING RESERVE $1,505,000 Deferred Projects to be reviewed against organizational capacity in future years Cost of Growth Housing Symposium Additional Costs $90,000 addition of 1 FTE Regional Project Coordinator to support up to 5 regional project managers Page 2 of 3 Page7 of 14

8 Administration Recommendation to the Audit & Finance Committee March 8, 2018 The remaining unallocated funds will be used for: o Minor Office Renovations $50,000 o Board and Committee Collaboration Events $30,000 o Additional Meeting Costs to support additional Projects over a two year period (i.e. meetings rooms, per diems, food & beverage, etc.) $65,000. Also, Partnerships will continue with post secondary institutions to support projects as opportunities arise. Rationale Board can deliver on strategic priority projects, moving the Region forward Can build organizational capacity and support succession planning Attachments 1. Proposed Adjusted Budget 2. Draft 3 Year Work Plan and Budget 3. Policy F007 Reserves Page 3 of 3 Page8 of 14

9 DRAFT Adjusted Budget Item 4.1 Attachment 1 Revenue 2018/19 Budget Approved 2018/19 Budget Adjusted 2019/20 Adjusted 2020/21 Adjusted GOA Operating Grant $ 2,000, $ 2,000, $ 2,000, $ 2,000, GOA Planning Intern Grant $ 43, $ $ 43, $ 24, Member Contribution $ 1,351, $ 1,351, $ 1,468, $ 1,428, Noncommitted funds $ $ 2,382, $ Carry over $ $ $ 564, $ 323, Total Revenue $ 3,394, $ 5,733, $ 4,075, $ 3,775, Expenditures Board & Committee Board & Committee Collaboration Events $ $ 30, $ $ Honorarium $ 25, $ 25, $ 25, $ 25, Meetings $ 17, $ 17, $ 17, $ 17, Additional Meeting Support $ $ 32, $ 32, $ Travel $ 12, $ 12, $ 12, $ 12, Chair Retainer $ 80, $ 80, $ 80, $ 80, Total Board & Committees $ 134, $ 167, $ 167, $ 134, Salaries and benefits* $ 1,586, $ 1,826, $ 1,881, $ 1,937, Office lease $ 300, $ 300, $ 300, $ 300, Professional fees Legal/Advisory $ 55, $ 55, $ 55, $ 55, Travel/ Professional Development $ 30, $ 30, $ 30, $ 30, Information technology $ 25, $ 25, $ 25, $ 25, DMS/Records Management $ 20, $ 20, $ 20, $ 20, Office Communications $ 38, $ 38, $ 38, $ 38, Office Supplies $ 30, $ 30, $ 30, $ 30, Operational $ $ $ $ Insurance $ 8, $ 8, $ 8, $ 8, Meetings Non Board/Committee $ 20, $ 20, $ 20, $ 20, GIS $ 20, $ 20, $ 20, $ 20, Bank Charges and interest $ 2, $ 2, $ 2, $ 2, Other expenses $ 8, $ 8, $ 8, $ 8, Total Administration $ 2,142, $ 2,382, $ 2,437, $ 2,493, Regional Mandate Compliance $ 56, $ 56, $ 47, $ 51, Education $ 50, $ 50, $ 50, $ 50, Communications $ 70, $ 70, $ 80, $ 70, GP Implementation $ 335, $ 335, $ 205, $ 205, Regional Projects** $ 439, $ 354, $ 590, $ 485, REF $ 100, $ 100, $ 125, $ 125, Total Regional Projects $ 1,050, $ 965, $ 1,097, $ 986, Additional Regional Projects*** Board initiatives reserve $ $ 300, $ $ Shared investment for shared benefit $ $ 500, $ $ Energy phase 2 $ $ 300, $ $ Broadband phase 2 $ $ 100, $ $ Regional Ag Master Plan $ $ 140, $ $ KPI Dashboard development $ $ 250, $ $ Total Regional Projects $ $ 1,590, $ $ Capital and Other Planning Intern $ 50, $ 14, $ 50, $ 50, Office Furniture/Equipment $ $ 50, Total Capital and Other $ 50, $ 64, $ 50, $ 50, Total Expenditures $ 3,377, $ 5,169, $ 3,751, $ 3,664, Unallocated Funds Surplus (Deficit) $ 16, $ 564, $ 323, $ 111, Accumulate surplus beginning of year Accumulate surplus end of year * Additional FTEs become part of operational budget in 2021/2022 ** Difference due to removing Housing Symposium for 2018/19 *** Projects funded in 2018/19 but can be multiyear Page9 of 14

10 Item 4.1 Attachment 2 DRAFT 3 Year Work Plan and Budget Line # DRAFT Work Plan Resources 2017/ / / /2021 Ref. Mandatory A 1 Edmonton Metropolitan Region Growth Plan (EMRGP) $ 30,000 Edmonton Metropolitan Region Servicing Plan & Implementation EMRB/CAO/ Muni/ 2 $ 20,000 $ 150,000 $ 50,000 Oversight Facilitator 3 Public Engagement Policy EMRB/CAO $ 20,000 Budget for REF increases due to increased volume and anticipated oversight of Metro 4 REF EMRB/External $ 100,000 $ 100,000 $ 125,000 $ 125,000 Servicing Plan Component 5 Compliance EMRB $ 35,000 $ 41,000 $ 47,000 $ 51,000 Ongoing as specified in Regulation e.g. Annual report 6 2 Year Update of EMRGP 7 EMRB/Muni $ 50,000 Mandatory B Revise KPI to align with EMRGP and Update KPI to align with Strategic Plan and in 2019/ Monitoring & Reporting EMRB $ 25,000 $ 25,000 $ 25,000 the creation of an online Dashboard. Includes Board Retreat for Strat Plan and up to 3 education session per year on emerging 9 Board Information EMRB/External $ 27,500 $ 50,000 $ 50,000 $ 50,000 topics 10 Advocacy includes Energy Corridors EMRB/Board/External $ 30,000 $ 20,000 $ 30,000 $ 20,000 Energy Corridors Forum Q and ongoing Advocacy 11 Communications $ 80,000 $ 50,000 $ 50,000 $ 50, Transition Year, budget includes changes to Brand and Growth Plan. Revise Criteria to align with EMRGP and create new report of Transportation Priorities. 12 Transportation Prioritization List Transition Year Internal Function. 13 IRTMP Update $ 150,000 $ 100,000 TOR start 2018/2019; project completion 2019/2020 Effective once EMRGP is approved Includes additional work in the form of Regional Context 14 Growth Plan Implementation $ 20,000 $ 130,000 $ 130,000 $ 130,000 Statements, Revised MDP's, review of non Stat Plans, Ag Impact Assessments and Special Study Areas. Coordinates with Projects M4 and M5 above. This is an addition of 1 FTE. Discretionary A 15 Board Strategic Plan EMRB/CAO/Board/ Facilitator 16 Agriculture Master Plan EMRB/ External/CAO/ Muni $ 5,000 $ 15,000 $ 134,000 $ 134, Land Evaluation and Site Assessment (LESA) $ 75, Integrated Regional Opens Spaces Master Plan (Recreation & Wildlife) Corridors Economic Development Entity $ 50,000 $ 100,000 $ 100,000 Discretionary B 19 Public Transit Cost Sharing Formula Review EMRB/CAO/Muni Need to review if applicable with change in Board membership 20 Regional Housing Symposium* EMRB/External $ $ $ 50, Regional Transit Congestion Management Phase 2 EMRB/External $ 100,000 Could be considered with IRTMP update 22 Regional Housing Plan Phase 4 Final Phase EMRB/ External $ 130,000 Requires further discussion with Board as to CRB's role 23 Our Affordable Future Implementation EMRB/Muni $ 35,000 $ 35, Shared Investment for Shared Benefit EMRB/External 25 Regional Broadband Needs Assessment EMRB/External $ 50, Exploration of Best Practices to Build Complete Communities EMRB/External $ 50, Regional Infrastructure Master Plan EMRB/CAO/ Muni/External $ 200,000 Phase 1 28 Regional Economic Competitiveness Analysis EMRB/External $ 50,000 Project to be completed by Ec Dev Entity 29 Specialized Transit Cost Benefit Analysis $ 50,000 Cost of Growth External = Consultants/ or other Subject Matter Experts TOTALS $ 501,500 $ 965,000 $ 1,097,000 $ 986,000 Additional Regional Projects Board Initiatives Reserve N/A $ 300,000 EMRB/CAO/BOARD/ Shared Investment for Shared Benefit Facilitator $ 500,000 Energy Phase 2 EMRB/External $ 300,000 Broadband Phase 2 EMRB/External $ 100,000 EMRB/ External/CAO/ Regional Agriculture Master Plan Muni $ 140,000 KPI Dashboard Development EMRB/External $ 250,000 TOTALS $ $ 1,590,000 $ $ NOTES all project estimates are subject to change based on Approved Terms of Reference EMRGP completed October 2016 awaiting Provincial Approval. Budget is for updating of Growth Plan to reflect the change in membership includes design, production and printing costs. Terms of Reference (TOR start Project Completion 2 years from Approval (est. 2019/2020) Project completed in Years following Provincial Approval, estimate 2020/2021 may include Ag Master Plan, and SSAs as examples Environmental Scan starts Q4 2017, Strat Plan approved and effective July 2018 TOR Q4 2017, Project Completed in 2 years from approval, and approval of the Board Regulation. Estimate completion 2019/2020. Budget in 2018/2019 assumes matching funds from Province. LESA component to begin following the completion of Ag Master Plan TOR start 2019, project completed 2020, subject to Board priorities. Definitions Mandatory A list initiatives are those outlined in the EMRB Regulation Mandatory B list initiatives are operationalized and core initiatives that support Mandatory A initiatives Discretionary A list projects are projects the Board has identified as priority Discretionary B list are the residual projects to be addressed when resources are available (time, $ and people) *Housing Symposium removed for 2018/19 Page10 of 14

11 Policy F007 Reserves Item 4.1 Attachment 3 Policy: F007 Reserves Effective Date: September 9, 2010 Approved by: Board PURPOSE To establish specific reserves for emergent financial needs and to set aside funds for the replacement of existing equipment and future projects. POLICY The Board recognizes that the ongoing commitment of funds to specific reserves provides for contingency funding and flexibility. GUIDELINES 1. All reserve transactions, redesignations, revisions and new reserve requests must be ratified by the Audit & Finance Committee. 2. All reserves must be fully described and must include a purpose, application and approval. Unless otherwise stated, all funds are considered committed for the specific purpose as outlined by the reserve. 3. All reserve accounts must be represented in the Board s financial statements. 4. All reserves must be reviewed annually by the Chief Executive Officer and the Audit & Finance Committee to determine if the reserves are still required. When the original intent of the reserve has been met or changed, any remaining amounts in the reserve shall, through an appropriate review and approval process by the Chief Executive Officer, Audit & Finance Committee and the Board, be either returned to surplus or redesignated. The Audit & Finance Committee will approve and recommend any changes to reserves to the CRB. 5. Reserves can be funded from either internal or external sources. 6. Interest will not be paid to these reserves; but will accrue to general revenue 7. All expenditures from reserves must have prior approval through the annual operating or capital budget; or from an approved carryover project; or by Board resolution. 8. Approval to redesignate reserve funds or approval for interreserve transfers shall be obtained prior to the transaction occurring through approval of the Audit & Finance Committee. 9. All Board reserves shall be administered by the Chief Executive Officer and in accordance with generally accepted accounting principles. Page 1 of 2 Page11 of 14

12 Policy F007 Reserves Nolan Crouse, Board Chair Revisions Date Status Comments June 6, 2016 Amend Delegated ability to approve reserves to Governance Priorities & Finance Committee September 8, Approve Approved by the Board 2016 October 31, 2017 Amend Nonsubstantive changes to ensure compliance with the new MGA, Regulation, Growth Plan, and approved Board Governance Structure Page 2 of 2 Page12 of 14

13 Item 5.1 With a new name comes a bit of change. These are the main items to be aware of no action is required on your part, aside from updating your records to include our new name, or passing on the news to anyone else that might need to know. WHAT S NEW? Hawkings Epp Dumont LLP is becoming Metrix Group LLP effective January 31, Since our beginnings in 1962, the direction of our firm has been shaped and guided by several generations of partners. Through their effective leadership, we have been very fortunate to experience a significant amount of growth. To allow us even more room to grow, and to provide consistency to our clients as we continue to evolve, we look forward to many more years of growth as Metrix Group LLP. LOGO With a new name comes a new logo. To leverage existing familiarity with our brand, no major changes have been made. The wordmark has been updated to say Metrix Group LLP and the CPA descriptive style has been revised to comply with recent legislation changes. SIGNAGE Each Metrix Group LLP office will be updated with new exterior signage to make sure our clients know where to find us. Interior signage will be updated at a later date. EMRB Audit & Finance Committee Mtg WEBSITE metrixgroup.ca Our website will be updated to reflect our new name and will be overhauled with a brand new look and layout. The new website will be mobile friendly, easier to navigate, and will reemphasize use of our client portal for transfer of large files or sensitive client information. name@metrixgroup.ca In tandem with the website domain change, our addresses will be updated. This will not take effect until January 31st, so watch for the change. Our old addresses will be forwarded to our new addresses for one year, just in case you send something to an old account, we ll still get it. SOCIAL To expand the reach of our firm, we re diving into the world of social media. Metrix Group LLP will have profiles on Facebook, Instagram, Twitter and LinkedIn. We look forward to following you, and sharing what we re up to as well. Agenda Package March 8/18 Page13 of 14

14 Same direction since New name on January 31, WHY METRIX GROUP? Our Partners deliberated long and hard in the selection of a name that would accurately represent our identity and cultivate positive meaning over time. The name Metrix Group LLP has three significant components that work together to define our firm s identity and communicate our values: METRICS THE LETTER X GROUP An ordinary word meaning a system or standard of measurement, metrics speaks to our firm s standard of providing excellent service in all circumstances. It represents our measurement of success through the relationships we establish with our clients and through our reputation as experts in our field. You ll notice we made a slight alteration to the word metrics, ending instead with the letter X. In algebra, X represents an unknown value defined by solving an equation. This is similar in nature to the work we do for our clients. We use our knowledge of industry standards and best practices to solve for X we help our clients to make informed decisions in order to navigate through unique challenges. The word group places emphasis on the contributions of our firm as a whole, rather than the contributions of a few individuals. Through effective leadership and teamwork, we thrive together. One key member of our team is our valued clients, who we look forward to serving for many years to come. X is also the symbol for multiplication, in this case representing growth. Our insightful analysis and precise measurement facilitates our clients growth, and our own, as we open new offices, hire new staff and mentor them in developing their careers. EMRB Audit & Finance Committee Mtg Agenda Package March 8/18 Page14 of 14