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2010 PSAB Compliance and Financial Updates for Municipalities

This presentation provides an overview of the Public Sector Accounting Board (PSAB) compliance updates, financial statement reporting for 2009, and the 2010 budget considerations for municipalities. Key highlights include compliance statistics showing 91% of Rural Municipalities (RM) meeting new TCA reporting requirements, insights into the effects of amortization on operating surplus, and guidance on preparing financial statements. Additionally, the presentation discusses future initiatives, potential audits, and resources for municipalities to navigate financial reporting effectively.

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2010 PSAB Compliance and Financial Updates for Municipalities

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Presentation Transcript

  1. PSAB Update 2010 RMAA Convention

  2. Presentation Overview • Introduction • PS 3150 Compliance Update • 2009 Financial Statements • 2010 Budget Update • PS 3150 – Where to from here? • Concluding Comments

  3. Introduction • Who did or will do the happy dance when TCA reporting is all finished for 2009? • PSAB support update via www.sasktca.ca • Compliance workload • 2010 will focus more on understanding and using the new financial information

  4. 2009 PS 3150 Compliance • To date, 67 RM 2009 statements have been received • At this point last year, 187 RM statements were received • 91% are compliant with the new TCA reporting requirements • 85% of urban statements are compliant with the new TCA reporting requirements

  5. 2009 PS 3150 Compliance • In March of 2010, a number of audit firms in the province were contacted • Approximately 50% of the 786 municipalities covered • Auditors under budgeted on their PS 3150 work • Estimated municipal client compliance between 60 to 100% • Possibly one or two adverse auditor opinions for 2009 financial statements

  6. PSAB Compliance • Adverse Auditor Opinion – is a audit opinion where a municipality’s financial statements are not prepared in accordance with PSAB or the prescribed GAAP • Area’s of concern: • Tangible capital asset reporting in 2010 • Consolidating controlled entities (i.e.) Water Utility Boards • Talk to your auditor about any concerns you have

  7. Other Compliance Items • Section 186 of the Municipalities Act requires financial statements sent to Municipal Affairs by July 1st • Under the gas tax program, to receive your 2nd installment for 2010-2011, your 2009 financial statements must be in • Section 404 of the Municipalities Act allows council to extend the reporting deadline by 90 days

  8. 2009 Financial Statements • Amortization effects on statements: • Approx. 66% of RM statements had their operating surplus increase • Approx. 50% of Urban statements had their operating surplus increase • Further information and analysis over the next couple of years is needed • 2010 interpretation workshops – Analyzing and understanding your 2009 financial statements

  9. 2009 Financial Statements • Items to watch for when preparing your 2009 statements: • Operating and capital grant reporting • Reporting your financial statement in the current PSAB format • Reconciling your 2009 numbers to your 2008 statement format

  10. 2009 Financial Statements • Recording capital grants

  11. 2009 Financial Statements • Recording operating grants

  12. 2009 Financial Statements • Reconciling 2008 to 2009 statements

  13. 2009 Financial Statements • Reconciling 2008 to 2009 statements Calculation: $800,763 + ($1,034,877) = ($234,114)

  14. Budget Update • Prepare a budget in 2010 you are comfortable with. (i.e.) Cash budget • Capital expenditures or fixed asset acquisition still need to be budgeted for • Municipal Budget Clarification regulation • Interpreting your 2009 financial statements for your cash surplus or deficit

  15. Municipal Budget Clarification Regulation • Currently going before Cabinet • Allow municipalities to ability to choose to fund their tangible capital asset amortization • Short term in nature • Other provinces currently require municipalities to incrementally fund their tangible capital asset amortization

  16. PS 3150 – Where to from here? • Currently initiating or working on: • RM of Buckland Phase 2 Pilot • Focus on primary roads and bridges • 3 bridges currently need immediate rehabilitation • Rehabilitation work will need a large investment • Town of Dalmeny Phase 2 Pilot • Focus on road network • Estimated $1.5 million for roads over 10 years • Does not include water and sewer costs

  17. PS 3150 – Where to from here? • 2010 Canadian Network of Asset Management Conference • 12 representatives from Saskatchewan attended • Leveraging your PS 3150 information for infrastructure planning • Infrastructure risk management • Inter-municipal cooperation and development

  18. Concluding Comments • Keep it simple, don’t get lost in the details • Talk to your auditors • If further workshops are needed in 2010, please provide your comments to the www.sasktca.ca website • PSAB support will be available until March 2011

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