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AGENDA - Finance Advisory Committee - 20230509Town of Aurora Finance Advisory Committee Meeting Agenda Date:Tuesday, May 9, 2023 Time:5:45 p.m. Location:Holland Room Meetings are available to the public in person and via live stream on the Town’s YouTube channel. To participate, please visit aurora.ca/participation. Pages 1.Call to Order 2.Land Acknowledgement 3.Approval of the Agenda 4.Declarations of Pecuniary Interest and General Nature Thereof 5.Receipt of the Minutes 5.1 Finance Advisory Committee Meeting Minutes of April 11, 2023 That the Finance Advisory Committee Meeting Minutes of April 11, 2023 be received for information. 1. 6.Delegations 7.Matters for Consideration 7.1 Memorandum from Financial Management Officer; Re: Compensation and Support for Members of Council Policy Review and Update 1 That the memorandum regarding the Compensation and Support for Members of Council Policy review and update be received; and 1. That the Finance Advisory Committee comments regarding the Compensation and Support for Members of Council Policy be received and referred to staff for consideration and further action as appropriate. 2. 9 7.2 Memorandum from Director, Finance; Re: Financial System Project Update That the memorandum regarding Financial System Project Update be received; and 1. That the Finance Advisory Committee comments regarding Financial System Project Update be received and referred to staff for consideration and further action as appropriate. 2. 8.New Business 9.Adjournment 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Finance Re: Compensation and Support for Members of Council Policy Review and Update To: Finance Advisory Committee From: Tracy Evans, Financial Management Advisor Date: May 9, 2023 Recommendation 1. That the memorandum regarding the Compensation and Support for Members of Council Policy review and update be received; and 2. That the Finance Advisory Committee comments regarding the Compensation and Support for Members of Council Policy be received and referred to staff for consideration and further action as appropriate. Background The Town’s Compensation and Support for Members of Council Policy (otherwise known as, Policy 57) was last updated on April 9, 2013. In consideration of the present policy’s age and the town’s recent shift to a ward system, Council requested staff undertake a review and update of this policy during its Budget Committee proceedings. Analysis Staff have undertaken a review and update of the existing policy As requested by Council, staff have undertaken a review and proposed changes to the current Compensation and Support for Members of Council Policy. Staff’s proposed changes mostly relate to:  An update to the list of provided technology and work tools to Council members to reflect the present reality.  The inclusion of direction relating to ward specific expenditures. Page 1 of 11 Compensation and Support for Members of Council Policy Review and Update May 9, 2023 Page 2 of 2  An update to the approval authority for elected official expenses. Should a dedicated budget(s) be established for eligible ward specific costs? What would be an appropriate value for this budget(s)? In recognition of the Town’s new ward format, the proposed policy update includes the provision of a budget to Council members to which eligible ward expenditures may be applied. The proposed ward budget may take different forms. For example, an individual ward budget could be established for each ward within the Town; or alternatively a single pooled ward budget could be created. The draft policy currently proposes that an individual budget be established for each ward for eligible ward costs. Further, the value of the established ward budget(s) would need to be determined. The funding of these newly created budget(s) will need to be identified as well. Attachments Attachment #1 – Updated Compensation and Support for Members of Council Policy Page 2 of 11 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Compensation and Support for Members of Council Finance Contact: Director, Finance Approval Authority: Council Effective: February 12, 2013 ______________________________________________________________________________________ Purpose The Town of Aurora is committed to providing clear expectations and guidance for existing and potential members of Council with respect to compensation of members of Council, as well as the support and services provided to them as members of Council as they carry out the duties of their elected position. This policy document is meant to set clear expectations to avoid conflicts between members of Council and the administrative staff. Scope Elected Officials and Electoral Candidates. Definitions Corporate expenses – an expense that is incurred by or on behalf of the governing body and includes, but is not limited to, costs related to presentations, awards, public engagement/ceremonies, attendance at events required by Council and standard Town office support (administrative assistance, supplies, corporate equipment). Corporate expenses are set by Council in one of two ways: •during the budget process •by policy or protocol An expense incurred at the discretion of Council is a corporate expense. In most cases, it would then be administered by staff in line with the established policies, procedures and practices. Discretionary expenses – an expense that is incurred by choice of an individual Elected Official. In includes, but is not limited to, conferences, conventions, training courses, meals, hotels, travel, mileage, attendance at events (other than those Town events where an Elected Official’s attendance is required by Council), and other business expenses. Attachment 1 Page 3 of 11 2 The responsibility for determining the appropriateness of discretionary expenses rests with the individual Elected Official and not with staff. The Elected Official is accountable to the public. Policy The Corporation of the Town of Aurora provides appropriate and clear support for Members of Council in their activities required to carry out the duties of their elected position. Direct Compensation and Benefits: Council sets its own compensation and benefits remuneration from time to time, and changes are enacted by by-law. Any Council may revisit the enacted by-law at any time, subject to the Procedural By-law. Such direct compensation and benefits remuneration will include salary, but may also include auto allowances, benefits, home office expenses, and other financial or equivalent arrangements. Provision of Office Space and Support: The Mayor is provided with the following: • access to a private furnished office space at Town Hall; • a Town owned laptop computer station which shall be connected to the Town's secure network, and have access to the Internet; • the assistance of an Executive Assistant, who is an employee of the Town, and who also supports where possible the administrative needs of other members of Council; • a Town owned and subscribed mobile phone and tablet or bring your own device; • necessary and appropriate office supplies, access to a fax and copier/printer; • meeting room space to meet with constituents or other Town guests; • a reserved parking space at Town Hall; • passes for fitness, pools and ice for the duration of the term of office; and • Town logo merchandise or clothing to a value of $250 per year for personal use, funded from the Communications budget. Members of Council are provided with the following: • access to a furnished shared office space; • shared resource computers in the shared office space, which shall be connected to the Town's secure network, and have access to the Internet; • a Town owned mobile phone and tablet or bring your own device; • Internet connection rights to the Town's secured network for Councillor access; • the assistance of the Executive Assistant to the Mayor, who is an employee of the Town, and who supports where possible the administrative needs of other members of Council; Page 4 of 11 3 • necessary and appropriate office supplies, access to a fax and copier/printer; • meeting room space to meet with constituents or other Town guests; • passes for fitness, pools and ice for the duration of the term of office; and • Town logo merchandise or clothing to a value of $150 per year for personal use, funded from the Communications budget. All staff and members of Council are subject to the Town's ITS policies when using Town computer or telecommunications equipment or facilities. Reimbursement of Appropriate Expenses: The annual approved budget sets out the provision of funding for the following groups of expenses. • Conferences/seminars/training & development expenses; • Constituency business and related expenses; • Other expenses of Members of Council, including those related to holding of committee or public meetings which they chair or host; and • Discretionary Councillor Ward allotment Corporate Expenses – all corporate expenses must comply with the policies and procedures established for staff expenses. Corporate expenses incurred by Elected Officials will require approval of the Treasurer or Deputy Treasurer. Discretionary Expenses – all discretionary expenses not paid using a Town Procurement card, shall be submitted to Accounts Payable as soon as possible after receipt of good or services. They shall be reviewed by the Executive Assistant and signed off by the Treasurer or Deputy Treasurer. Eligible expenses can include: • Event tickets; • Conferences, including meals, travel expenses, hotels The Executive Assistant to the Mayor may arrange direct Town payment of certain events, conferences, or training type registration costs. Authorized conferences, seminars, training and development sessions are restricted to destinations within North America and include, but are not limited to, the following: • Conferences/Seminars o FCM Sponsored events o AMO Sponsored events o Ontario Traffic Conference o Canadian Public Works Association events Page 5 of 11 4 o Ontario Good Roads o Canadian Parks and Recreation Association o Parks and Recreation Ontario o Canadian Institute of Planners events o OMHRA Sponsored events • Training & Development o Communication/Public Speaking Training o Health and Safety / W.H.M.I.S. [First Aid / CPR] o Executive Management Workshops o Management / Supervisory Skills Workshops o Change Management / Business Process Improvements o Stress in the Workplace o Harassment and Discrimination o Information Technology Training & Development [i.e. Word, Excel, PowerPoint] The frequency and/or number of sessions attended will be determined based on availability of financial resources relative to the above referenced spending limits. The Mayor shall pre-approve Council members' attendance to a conference or training event following confirmation of remaining available funding. Travel, accommodation and ancillary expenses associated with attendance at such events are funded from the same budget account. Eligibility criteria for spending annually approved constituency expense or municipal business funding includes, but is not limited to, the following uses: • Attendance at Community events o York Regional Police Gala o United Way Charity events o Conservation Authority General Meeting • Lunch Meetings and other business related hospitality • Meals provided to Council between/prior to scheduled meetings Discretionary Ward Budget • An annual discretionary ward budget is provided for each Elected Official. Any funds remaining unspent at the end of the year shall not be carried forward to next year. • An Elected Official shall not exceed their annual budget without the approval of Council. • The Treasurer is authorized to withhold the reimbursement of expenses from an Elected Official until Council approval if, in the opinion of the Treasurer, the expense account has or will exceed its annual budget after taking into Page 6 of 11 5 consideration amounts previously expensed and committed to be expensed during the year. Eligible ward specific expenses may include: • Business meals in the interest of the Town of Aurora for meetings; • Facility rental for ward event/meeting; • Catering order, including coffee, tea, light food; • External facilitator fees; • Ward events Ineligible expenses include: • Item for personal use; • Expenses unrelated to Aurora business; • Events for a for-profit organization; • Alcohol expenses; • Election-related expenses; • Expenses for ward/constituency events after June 30th of an election year; • Accumulated expenses exceeding the Elected Official’ annual budget allocation Disclosure of Compensation and Expenses Prior to each March 31, the Treasurer must provide to Council a statement of all remuneration and expenses paid in the prior year to members of Council and members of appointed boards and committees. Such report is a statutory report required of the Municipal Act, 2001, S.O. 2001, c. 25 as amended (the "Act"), and is a public record. Further, this policy document, any By-law of the Corporation, compensation of members of Council, and expense supporting documentation (subject to the Municipal Freedom of Information and Protection of Privacy Act), is a public record. Council expenses will also be reported publicly semi-annually by way of publication in a logical and readily located section of Town's website. The form of such report shall be that as used in reporting year-end expenses. The interim reports are not to be placed on the public agenda, rather produced and published by staff on the website. The website published reports are to "be retained on the Town's website for the duration of the Council term". The annual statutory report will continue to appear in the public agenda as required by legislation, and will also be available at the new "Expenditures of Council" section of the website. Updates Minor administrative updates to this policy by the CAO are authorized, provided no material changes affecting members of Council or changes which may have a material financial impact on the corporation are made without Council approval. Page 7 of 11 6 Responsibilities Not applicable. Monitoring and Compliance In accordance with the Town of Aurora policies, any non-compliance with this policy will result in an investigation. Any member of council found to be disrespecting the terms of this policy, other than under exceptional circumstances is subject to possible discipline. The CAO / Treasurer will work collaboratively to resolve issues related to this policy. References • Annual Budget • Employment Expenses for Staff • Municipal Elections Act • Municipal Freedom of Information and Protection of Privacy Act Review Timeline This policy will be reviewed 2 years after the initial approval date. Page 8 of 11 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Finance Re: Financial System Project Update To: Finance Advisory Committee From: Rachel Wainwright-van Kessel, Director, Finance Date: May 9, 2023 Recommendation 1. That the memorandum regarding Financial System Project Update be received; and 2. That the Finance Advisory Committee comments regarding Financial System Project Update be received and referred to staff for consideration and further action as appropriate. Background In 2022, a procurement was awarded to Vigilant to implement Oracle Fusion as the Town’s new financial system. The financial system will replace the following systems:  Vadim/iCity: The current financial system  FMW: Currently used for budgets, forecasts and reporting  Caseware: Used for financial statement preparation in accordance with Public Sector Accounting Standards  SmartSheet: Used for project management The system implementation began in August of 2022, with a goal of going live in Q2 2023. Page 9 of 11 Financial System Project Update May 9, 2023 Page 2 of 3 Analysis Most of the functionality of the system will go live on May 31 On May 31st most of the system will go live except for accounts receivable which includes tax and water billing. In April, the team completed the final testing of the modules going live at the end of May. This month the team is focused on delivering training to staff across the organization for the areas they will need to know day one. This includes: procurement, accounts payables and expenses. More training will follow in the months to come on other features in the system including project management which brings project execution and financials together in one place. Accounts receivable, including taxes and water billing, requires more time The accounts receivable module includes property taxes, water billing, general invoicing and cashiering. Due to the complexity of tax and water billing more time is needed to complete the configuration and testing of this part of the system. The timing of the go live for this module also needs to consider property tax billing. In June the final billing for property tax will be issued. This will result in the go live for this module to be planned for late June. After this module goes live, the team will be able to start offering more online services to residents including email billing for taxes. More information on this will be going out to residents in the fall. Post go live support for the project and staff During the first month in the new system our consultant team from Vigilant will be proving support through the first month in the system should any issues arise. The Aurora project team(staff) will provide ongoing support and training for the new system. They will be available to help others perform their day-to-day tasks in the system and learn how to leverage the new tools available to them. Page 10 of 11 Financial System Project Update May 9, 2023 Page 3 of 3 Continuous improvement and learning will be the focus after go live The new system is expected to provide some efficiencies and automate some processes, however at first the learning curve will be steep and will require time to get people comfortable and knowledgeable about the new system. Many processes today will look very different after go live including:  Procurement: elimination of most manual forms, automated system workflow for approvals, ability to manage and track status on contracts  Accounts payable: teaching the system to manage invoices through scanning and electronic submission (this will take time for the system to learn - about 8 to 12 months)  Budget and forecast: integration with Excel to make it easier to analyze data and share with non-finance staff  Project management: the module includes project execution management and project financials in one place. This will make it easier for project managers as they will see their budget, spending and amounts committed on purchase orders for their projects  Reporting: the system includes flexible tools to create reports and dashboards In the fall, the project team plans to continue training on more features in the system and also continue to build upon the reporting and dashboarding available in the system by leveraging the skills developed during the project implementation. Attachments None Page 11 of 11