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Agenda - Finance Advisory Committee - 20240409Town of Aurora Finance Advisory Committee Meeting Agenda Date:Tuesday, April 9, 2024 Time:5:45 p.m. Location:Holland Room, Aurora Town Hall 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 February 13, 2024 1 That the Finance Advisory Committee Meeting Minutes of February 13, 2024, be received for information. 1. 6.Delegations 7.Matters for Consideration 7.1 Memorandum from Financial Management Advisor; Re: Budget Review the Aurora Historical Society 5 That the memorandum regarding the Budget Review of the Aurora Historical Society be received; and 1. That the Finance Advisory Committee comments regarding the Budget Review of the Aurora Historical Society be received and referred to staff for consideration and further action as appropriate. 2. 7.2 Memorandum from Project Management Office; Re: Capital Project Portfolio Update 17 That the memorandum regarding the Town’s Capital Project Portfolio Update be received for information. 1. 7.3 Memorandum from Project Management Office; Re: Municipal Service Delivery Review Update 21 That the memorandum regarding the Town’s Municipal Service Delivery Review be received for information. 1. 8.New Business 9.Adjournment Town of Aurora Finance Advisory Committee Meeting Minutes Date: Time: Location: Tuesday, February 13, 2024 5:45 p.m. Holland Room, Aurora Town Hall Committee Members: Mayor Tom Mrakas (Chair) Councillor Michael Thompson Councillor Ron Weese Other Attendees: Rachel Wainwright-van Kessel, Director, Finance Jason Gaertner, Manager, Financial Management Tracy Evans, Advisor, Financial Management* Emily Freitas, Council/Committee Coordinator *Attended electronically _____________________________________________________________________ 1. Call to Order The Chair called the meeting to order at 5:46 p.m. 2. Land Acknowledgement The Committee acknowledged that the meeting took place on Anishinaabe lands, the traditional and treaty territory of the Chippewas of Georgina Island, recognizing the many other Nations whose presence here continues to this day, the special relationship the Chippewas have with the lands and waters of this territory, and that Aurora has shared responsibility for the stewardship of these lands and waters. It was noted that Aurora is part of the treaty lands of the Mississaugas and Chippewas, recognized through Treaty #13 and the Williams Treaties of 1923. Page 1 of 27 Finance Advisory Committee Meeting Minutes Tuesday, February 13, 2024 2 3. Approval of the Agenda Moved by Councillor Thompson Seconded by Ron Weese That the agenda as circulated by Legislative Services be approved. Carried 4. Declarations of Pecuniary Interest and General Nature Thereof There were no declarations of pecuniary interest under the Municipal Conflict of Interest Act, R.S.O. 1990, c. M.50. 5. Receipt of the Minutes 5.1 Finance Advisory Committee Meeting Minutes of January 23, 2024 Moved by Ron Weese Seconded by Councillor Thompson 1. That the Finance Advisory Committee Meeting Minutes of January 23, 2024, be received for information. Carried 6. Delegations None. 7. Matters for Consideration 7.1 Memorandum from Financial Management Advisor; Re: 2024-25 Finance Advisory Committee Workplan Moved by Ron Weese Seconded by Councillor Thompson 1. That the memorandum regarding the 2024-25 Finance Advisory Committee Workplan be received; and Page 2 of 27 Finance Advisory Committee Meeting Minutes Tuesday, February 13, 2024 3 2. That the Finance Advisory Committee comments regarding the 2024- 25 FAC Workplan be received and referred to staff for consideration and further action as appropriate. Carried 7.2 Memorandum from Financial Management Advisor; Re: Budget Review of the Aurora Cultural Centre (ACC) Suzanne Haines, Executive Director, John De Faveri, President, and Michelle Lockie, Treasurer, from the Aurora Cultural Centre, accompanied by staff, presented a breakdown of their budget review, including financial statements and investments made. They provided a breakdown of the Aurora Cultural Centre's grants and expenses with a focus on 2023, the independent auditor's report, and Church Street School Cultural Centre's report. The Committee discussed the Aurora Cultural Centre's fundraiser strategies, grants received for fundraising and the relationship with funders, the increase in the marketing budget for 2024 as a result of new programs and services at Town Square, earned revenues, and the decline in displacement cost from Town Square. Moved by Councillor Thompson Seconded by Ron Weese 1. That the memorandum regarding a Budget Review of the Aurora Cultural Centre (ACC) be received; and 2. That the Finance Advisory Committee comments regarding the Budget Review of the Aurora Cultural Centre (ACC) be received and referred to staff for consideration and further action as appropriate. Carried 8. New Business None. Page 3 of 27 Finance Advisory Committee Meeting Minutes Tuesday, February 13, 2024 4 9. Adjournment Moved by Councillor Thompson Seconded by Ron Weese That the meeting be adjourned at 6:12 p.m. Carried Page 4 of 27 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Finance Re: Budget Review the Aurora Historical Society To: Finance Advisory Committee From: Tracy Evans, Financial Management Advisor Date: April 9, 2024 Recommendation 1. That the memorandum regarding the Budget Review of the Aurora Historical Society be received; and 2. That the Finance Advisory Committee comments regarding the Budget Review of the Aurora Historical Society be received and referred to staff for consideration and further action as appropriate. Background As per its budget process document, the Finance Advisory Committee is required to undertake a detailed review of each department and community service partner’s core operating budgets prior to the conclusion of the Council term. These detailed reviews allow for a more strategic review of the Town’s draft operating budgets by the Budget Committee. During the course of these detailed reviews any arising budget concern areas can be explored and addressed as part of a future Town budget process. Attachments 1 – Aurora Historical Society detailed budget materials Page 5 of 27 2018 Audited 2019 Audited 2020 Audited 2021 Audited 2022 Audited 2023 Projected - Unaudited 2024 Forecast 2025 Forecast 2026 Forecast Operating Revenue $16,409 $11,454 $11,382 $27,089 $22,226 $16,195 $15,850 $16,250 $16,750 Donations & Fundraising $61,816 $42,728 $14,132 $61,725 $82,730 $12,733 $15,000 $27,000 $20,000 Municipal Funding $79,500 $77,900 $81,675 $82,830 $84,600 $88,597 $85,900 $87,600 $89,400 Grant Revenue $22,091 $24,640 $24,631 $61,755 $31,877 $35,036 $28,042 $25,242 $25,242 COVID-19 Funding $0 $0 $15,556 $38,804 $44,935 $0 $0 $0 $0 Total Revenue $179,816 $156,722 $147,376 $272,203 $266,368 $152,561 $144,792 $156,092 $151,392 Operating Expenses $147,886 $128,029 $96,716 $126,129 $207,000 $200,748 $185,225 $145,900 $149,800 Fundraising Expenses $25,091 $16,944 $2,982 $29,625 $32,665 $6,559 $7,000 $5,000 $5,000 Restoration Costs $0 $0 $3,653 $43,183 $58,794 $5,000 $0 $0 $0 Total Expenses $172,977 $144,973 $103,351 $198,937 $298,459 $212,307 $192,225 $150,900 $154,800 Operating Surplus/Deficit $6,839 $11,749 $44,025 $73,266 -$32,091 -$59,746 -$47,433 $5,192 -$3,408 Transfer in/out from Reserves $0 +$11,749 (in)+$21,995 (in)-$38,836 (out)-$44,692 (out)$0 $0 $0 $0 Attachment 1Page 6 of 27 AURORA HISTORICAL SOCIETY AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2022 BATEMAN, GRAHAM & FITZPATRICK CHARTERED PROFESSIONAL ACCOI.JNTANTS Page 7 of 27 BATEMAN, GI{AIIAM & FITZPATRICK crmrrnno pRoFEssroNAL Accor.rNrANrs IOHN P BATEMAN, BBA, CPA, CA" LPA" CPA (Illinois)* SCOTT A FITZPATRICK MBA' CPA' CAv CMA' LPA CPA (Illinois)* SCOTT R IUDGES, BBA, CPA" CA" LPA* DOI{ALD PEYLE BA" CPA" CA-Associate * opentingthrough a professional corporation TELEPHONE: (90s) 895-9457 1-888-895-91157 FACSIMILE: (90s) 895-8519 1.8n-895-8575 757 Bogart Avenue, Newmarket ON I3Y 2A7 E-MAIL: info@batemangraham.com INDEPENDENT AUDITORS' REPORT To the Board of Directors Aurora Historical Society Qualified Opinion We have audited the financial statements of Aurora Historical Society (the "Society"), which comprise the statement of financial position as at Decemb er 31, 2022, statement of operations and net assets, statement of cash flows for the year then ended, and notes to the financial statements including a summary of significant accounting policies. In our opinion, except for the possible effects of the matter described in the Basri for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Society as at December 31,2022, its financial performance and its cash flows forthe yearthen ended in accordance with Canadian accounting standards for not-for-profit organizations. Basis for Qualified Opinion In common with many not-for-profit organizations, the Society derives revenue from donations and fund-raising activities, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, verification of these revenues was limited to the amounts recorded in the records of the Society. Therefore, we were not able to determine whether any adjustments might be necessary to revenues, contributions, general fund - shortfall ofrevenue over expenditures, and cash flows from operations for the years ended December 31,2022 and2021, current assets as at December 31,2022 and202l and net assets as at January I and December 3 I for both 2022 and 2021 . Our audit opinion on the financial statements for the year ended December 3 l, 2022 was modified accordingly because of the possible effects of this limitation in scope. We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Society in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a qualified basis for our opinion, Emphasis of Matter - Amended Financial Statements We draw attention to Note l0 to the financial statements, which describes that the financial statements that we originally reported on June 12, 2023 have been amended and describes the matter that gave rise to the amendment of the financial statements. Our opinion is not modified in respect of this matter. Responsibilities of Management and Those Charged with Governance for the Financial Stotements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Society's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Society or to cease operations, or has no realistic alternative but to do so. Those charged with govemance are responsible for overseeing the Society's financial reporting process. Page 8 of 27 Auditors' Responsibilities for the Audit of the Financial Stqtements Our objectives are to obtiin reasonable assurance about whether the financial statements as a whole are free from material misstatlment, whether due to fraud or eror, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditirig standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material it individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: o Identiff and assess the risks of material misstatement of the frnancial statements, whether due to fraud or eror' design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion, The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. o Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Society's internal control. o Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. o conclude on the appropriateness ofmanagement's use ofthe going concern basis ofaccounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Society's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the flrnancial statements or, if such disclosures are inadequate, to modifi our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Society to cease to continue as a going concern' o Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any signihcant deficiencies in internal control that we identifl during our audit. + Chartered Professional Accountants Licensed Public Accountants Newmarket, Ontario June 12, 2023, exceptas to Note 10, which is as at September 15,2023 6*e*^H^r* Page 9 of 27 AURORA HISTORICAL SOCIETY STATEMENT OF FINANCIAL POSITION AS AT DECEMBER3L,2022 See accompanying notes to the financial statements BATEMAN, GRAHAM & FITZPATRICK CHARTERED PROFESSIONAI ACCOUNTANTS $ 182,983 $ 63,640 9,983 9.819 223,336 63,640 27,745 8.1 75 2022 2021 ASSETS Current Cash Short-term investments (Note 3) Accounts receivable and accrued interest Prepaid expenses FIXED (Note 4) LIABILITIES Current Accounts payable and accrued expenses (Note 9, l0) Deferred revenue (Note 8) LONG-TERM DEBT (Note 6) NET ASSETS (Note 7) Invested in capital assets Unrestricted Restricted - Medical History Course (unchanged) Restricted - Building and Grounds Fund On behalf of the Board Director Director 322,896 10.806 $ 274.885 $___333J02_ $42,938 $ 5 001 9,255 s-41 0 47,939 14,665 47.939 7 4 665 8,460 212,105 2,747 3.634 10,806 197,158 2,747 48.326 226.946 25 s 017 $ 274.88s $___333J02_ 266,425 8.460 Page 10 of 27 AURORA HISTORICAL SOCIETY STATEMENT OF OPERATIONS AND NET ASSETS FOR THE YEAR ENDED DECEMBER3L,2022 2022 s 161,412 10,805 31,499 16,259 44,803 1.590 $ 1 83,3 89 17,080 9,478 20,989 550 3 8,1 07 2.610 2021 REVENUES Grants Sales and other income Donations and fundraising Special events Investment Hillary House ball Membership EXPENDITURES Depreciation Wages and benefits (Note 6) Fundraising Insurance Professional fees (Note 10) Office and miscellaneous Repairs and maintenance Readman project expenses Restoration Restoration - building and grounds fund Hillary House ball expenses Special event expenses Program Utilities Curatorial and collection (DEFTCIENCY) EXCESS OF REVENUBS OVER EXPENDITT]RES FOR THE YEAR NET ASSETS, beginning of year NET ASSETS, end of year 266.368 .203 2,346 112,444 1,130 10,5 83 35,421 I 1,590 16,122 2,003 14,102 44,692 26,006 9,221 983 6,203 5.61 3 1,887 66,956 732 10,282 5,317 11,725 14,789 1,953 4,347 38,836 23,729 8,553 250 5,209 4.372 298.459 198.937 (32,091) 259.037 s 226.946 73,266 185.771 s 2s9.037 See accompanying notes to the financial statements BATEMAN, GRAHAM & FITZPATRICK CHARTERED PROFESSIONAL ACCOLTNTANTS Page 11 of 27 AURORA HISTORICAL SOCIETY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBBR3L,2022 2022 2021 souRCEs (usEs) oF GASH: OPERATING ACTIVITIES (Deficiency) excess ofrevenues over expenditures for the year Items not involving cash Depreciation Forgiveness ofdebt Changes in non-cash working capital items Short-term investments Accounts receivable and accrued interest Prepaid expenses Accounts payable and accrued expenses Deferred revenue II\TVE STING AC TTVITIE S Purchase of capital assets Repayment of long-term debt NBT (DECREASE) INCREASE IN CASH CASH, beginning of year CASII, end of year $ (32,091) $ 2,346 73,266 1,887 (49,745) 75,153 17,762 (1,644) 33,683 (409) ( 1,073) (t8,221) (ee0) t97 1 152 (3 s3)56.418 (8,020) (40.000) (40.000) (40,353) 223.336 $ 182.983 48,398 r74.938 s 223.33L See accompanying notes to the financial statements BATEMAN, CRAHAM & FITZPATRICK CHARTERED PROFESSIONAL ACCOTINTANTS (8.020) Page 12 of 27 l. AURORA HISTORICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER3L,2022 OPERATIONS Aurora Historical Society is a non profit organization, incorporated without share capital, devoted to the preservation and sharing of Aurora's history. The organization is funded by various government agencies, charitable organizations, donations and fundraising efforts. The organization is exempt from federal and provincial income taxes' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations and are in accordance with Canadian generally accepted accounting principles, the most significant of which are summarized as follows: Use of estimates The preparation of financial statements in conformity with generally accepted accounting principlei requires management to make estimates and assumptions that affect the reported umourtr of aisets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the year. These amounts are reviewed periodically and any adjustments are reported in earnings in the period they become known. The principal estimates used in the preparation of these financial statements include useful life and valuation of fixed assets and accruals. Actual results could differ from management's best estimates as additional information becomes available in the future. Revenue recognition Revenues from government ministries and foundations are recognized when the Society has met the terms of any related contracts. Amounts received but where the Society has not met the conditions ofthe contract are recognized as deferred revenues. Donations and other revenues are recorded as received. Fixed assets Fixed assets are stated at cost. Depreciation is calculated on the diminishing balance basis over the estimated useful lives of the assets. The percentages used are as follows: Equipment - 20% Computer equipment ' 30% Contributed seruices and materials Donated services received by the organization are not recognized in the financial statements because of the difficulty in determining their fair value. Donated materials received by the organization are recognized in the financial statements at fair market value. BATEMAN, GRA}IAM & FITZPATRICK CHARTERED PROFESSIONAL ACCOIJNTANTS 2 Page 13 of 27 3. AURORA HISTORICAL SOCIETY NOTES TO THE FINAI\CIAL STATEMENTS FOR THE YEAR ENDED DECEMBER3L,2022 Financial instruments Measurements of financ ial instruments The organization initially measures its financial assets and financial liabilities at fait value. It subsequently measures all its financial assets and financial liabilities at amortized cost. Financial assets measured at amortized cost include cash and accounts receivable. Financial liabilities measured at amortized cost include accounts payable and deferred revenue. Impairment Financial assets measured at cost are tested annually for impairment. If there are indicators of impairments, the amount of the write-down is recognized in net income. Fund accounting The organization follows the restricted fund accounting method. Restricted contributions for which a corresponding restricted fund is presented are recognized as revenue ofthat fund in the current period. Unrestricted contributions are recognized as unrestricted revenue of the unrestricted fund in the current period. Unrestricted funds The unrestricted funds are amounts that are available for use to carry out the activities of the organization. Invested in capital assets Invested in capital assets fund consists of net fixed assets, including purchases, disposals and amortization. Restrictedfunds - Medical History Course Approximately 25 years ago, the organization was a member of the British Apothecary Society and this fund was established to provide related courses. Restricted Funds - Building and Grounds Fund The building and grounds fund is internally restricted by the Board of Directors to the restoration and rehabilitations of the Hillary House. SHORT.TERM IIYVESTMENTS Short-term investments are comprised of cashable GIC's of $63,663 (2021 - $62,772), maturing August 4,2023 (2021 - August 9,2022). The interest rate is prime minus 4.70%o (2021 -2,24%). BATEMAN, GRAHAM & FITZPATRICK CHARTERED PROFESSIONAL ACCOUNTANTS Page 14 of 27 AURORA HISTORICAL SOCIETY NOTES TO THE FINAI\CIAL STATEMENTS FOR THE YEAR ENDED DECEMBER3L,2022 4. FIXED ASSETS Equipment Balance, beginning of year Depreciation Computer equipment Balance, beginning of year Depreciation Hillary House land and building Balance, beginning and end ofyear Hillary House, The Koffler Museum Balance, beginning and end ofyear 6. s 27.441 20.278 $ I1,268 9,418 555 $ l1.268 ______99J3_ $ $ s 27,441 Accumulated Depreciation 18,487 1.791 8,954 7.163 1,850 555 1.295 TOTALS s 38.71I $ 30.251 s 8^460 5. FINANCIAL RISK Liquidity risk Liquidity risk is that the organization will be unable to fulfill its obligations on a timely basis or at reasonable cost. Management manages liquidity risk by monitoring its operations requirements to ensure it has sufficient funds to fulfill its obligations. Interest rate risk Interest rate risk is the risk that the value or future cash flows of a financial instrument might be adversely affected by a change in the interest rates. The investments are exposed to interest rate risk arising from fluctuations in interest rates on its interest bearing cash and investment balances. In seeking to minimize the risks from interest rate fluctuations, the organization manages exposure through its normal operating and financing activities. GOVERNMENT ASSISTAI\CE The organization has received assistance through the Canada Emergency Business Account (CEBA) program. They received a $60,000 interest free loan, which $40,000 was repaid during the year. This resulted in $20,000 of loan being forgiven. The amount forgiven is included in grant income for the year. The organization also received assistance through the Canada Emergency Wage Subsidy (CEWS) program. They received $ML (2021 - $14,387) which reduced wages and benefits by this amount. BATEMAN, GRAHAM & FITZPATRICK CHARTERED PROFESSIONAL ACCOUNTANTS I Cost Net Book Value I I Page 15 of 27 AURORA HISTORICAL SOCIETY NOTES TO THE FINAI\CIAL STATEMENTS FOR THE YEAR ENDED DECEMBER3L,2022 7. CHANGE IN FUND BALANCES Operatins Capital Assets Net assets - beginning of the year $ 197,158 $ 10,806 $ 51,073 $ 259,037 $ 185,771 Restricted 2022 2021 (Deficiency) excess of revenue over expenditures t4.947 346)c2.09t)'.266 8. $__2lanQr s 8.460 $ 6.381 $ 226.946 $__259-Wl_ Each year the board reviews the surplus and determines if a transfer to the restricted funds is necessary. During the year, $44,692 (2021 - $38,836) was approved by the board to use restricted building and grounds funds surplus for restorations. DEFERRED REVENUE Deferred revenue represents unspent funds received which have been externally restricted and must be utilized as prescribed. 2022 202L Defered contributions - beginning of year Contribution received Program expenses recognized Amortization expense recognized Defened contributions - end of year $ 9. GOVERNMENT REMITTANCES Government remittances payable included in accounts payable $ 5,410 $ 16,242 (16,248) (403) 4,059 17,823 (16,234) (237) $ s.001 $___l-41L 2022 7.602 $ 2021 4.35t 10. FINANCIALSTATEMENTADJUSTMENT On September 14,2023, the organization identified that a legal invoice had been accrued twice in the December 31, 2022 financial statements. The financial statements have been reissued reducing legal expense and accrued liabilities by the amount of the invoice, $13,203. BATEMAN, GRAHAM & FITZPATRICK CHARTERED PROFESSIONAL ACCOTINTANTS Page 16 of 27 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Corporate Services _______________________________________________________________________________________ Re: Memo-Capital Project Portfolio Update To: Finance Advisory Committee (FAC) From: Project Management Office, Corporate Services Date: April 9, 2024 Recommendation 1. That the memorandum regarding the Town’s Capital Project Portfolio Update be received for information. Background At the September 2023 Financial Advisory Committee (FAC) meeting, the Town's Project Management Office (PMO) presented a proposed approach to monitor the Town’s project portfolio. Subsequently, significant progress has been achieved in operationalizing this approach: Development of Processes:  The PMO has established a process for actively monitoring project progress.  A structured data collection process has been implemented, ensuring regular updates on project statuses.  Data driving the calculations needed for successful implementation of EVM continues to be refined. Draft Dashboard:  A preliminary dashboard has been developed to visualize key project metrics and performance indicators. (Exhibit 1 – Draft EVM Dashboard)  The Dashboard will be brought to the corporate management team for review/refinement at an upcoming monthly meeting. Page 17 of 27 Municipal Service Delivery Review Update April 9, 2024 Page 2 of 2 Current Challenge One notable challenge encountered in the deployment of reporting mechanisms pertains to overall familiarity with the earned value management (EVM) approach. Recognizing this as a new concept to the corporation, the PMO is proactively taking steps to address this risk factor including additional support and coaching, demonstration of value and ongoing support and guidance. Conclusion The Project Management Office is committed to fostering a data-driven culture and continuous improvement. Despite current challenges, we're dedicated to overcoming them through streamlined processes, training, and integrating earned value management practices. By prioritizing efficiency and accountability, we aim to empower management with insights for informed decision-making. Through ongoing refinement, we're confident in achieving positive outcomes aligned with the Town’s strategic objectives. Page 18 of 27 Exhibit 1 – Draft Earned Value Management Dashboard Panel 1 Panel 2 Panel 3 Page 19 of 27 Earned Value Management: is a project management methodology that keeps track of how well a project is doing by comparing the work that was planned to be done with the actual work that has been finished. It helps project managers see if the project is on time and on budget, and if any changes are needed to stay on track. EVM uses a number of KPIS to show if a project is going well or if adjustments need to be made. Term Description Planned Value (PV) How much work was supposed to be done by now. Actual Cost (AC) How much money we've actually spent so far. Earned Value (EV) How much work we've actually finished. Schedule Variance (SV) Whether we're ahead or behind the schedule. Cost Variance (CV) Whether we're under or over the budget. Schedule Performance Index (SPI) How well we're sticking to the timeline. Cost Performance Index (CPI) How well we're staying within the budget. Page 20 of 27 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 aurora.ca Town of Aurora Memorandum Corporate Services _______________________________________________________________________________________ Re: Municipal Service Delivery Review Update To: Finance Advisory Committee (FAC) From: Project Management Office, Corporate Services Date: April 9, 2024 Recommendation 1. That the memorandum regarding the Town’s Municipal Service Delivery Review be received for information. Background At the November 2023 Financial Advisory Committee (FAC) meeting, the Town's Project Management Office delivered an update on the advancement in implementing the recommendations outlined in the 2021 Municipal Service Delivery Review (SDR). The FAC received a comprehensive overview of the status of each of the 38 recommended improvement actions proposed for potential financial and productivity gains. In response to the memorandum, the FAC expressed the need for additional clarification on three key areas:  Key Tangible Benefits The FAC requested a description of the key tangible benefits achieved by the Town of Aurora's administration following the successful implementation of the recommendations outlined in the Service Delivery Review (SDR).  Methodology for Calculating Financial and Productivity benefits: The FAC sought further clarification on the methodology employed to determine the net annual savings associated with the implementation of the recommended improvement actions. The FAC communicated that a clear understanding of the calculation methodology will assist them in making informed decisions and Page 21 of 27 Municipal Service Delivery Review Update April 9, 2024 Page 2 of 6 accurately assessing the anticipated financial benefits of the proposed initiatives.  Regular Progress Updates: Acknowledging the significance of transparency and accountability in governance, the FAC underscored the importance of receiving regular updates on the progress of implementation. Consistent reporting on the advancement of each improvement action enables the FAC to understand performance against objectives and make necessary adjustments as needed. In response to the FAC's queries, the Project Management Office (PMO) committed to providing detailed explanations regarding the key tangible benefits of each completed initiative and an explanation of the calculation methodology used to determine the potential financial and productivity benefits. To further assist the FAC in informed decision-making, the PMO has scheduled regular updates on the progress of the SDR throughout 2024. Analysis Key Tangible Benefits The Town of Aurora’s management team has completed nine service improvement recommendations and realized a series of service improvement and administrative benefits listed below. Category: Innovative Practice Improvement Opportunity: Accommodating Hybrid Work Key Tangible Benefits  Business continuity: Town of Aurora has improved its overall resilience to service disruptions and is able to continue to deliver services to residents in the face of unplanned events (pandemics, adverse weather events, transportation issues)  Environmental benefits: Reduced commuting and office occupancy has supported lower carbon emissions and environmental impact, contributing to our sustainability goals and corporate social responsibility efforts  Talent access, well being and retention: Offering hybrid work options support our talent and enable access to a broader talent pool, including remote workers who may Page 22 of 27 Municipal Service Delivery Review Update April 9, 2024 Page 3 of 6 not be geographically located near the office. Additionally, providing flexibility has improved employee satisfaction, work life balance and mental health. Category: Service Driven Improvement Opportunity: Shifting Corporate Communication's Focus  Enhanced strategic decision-making and planning as resources are redirected to more impactful initiatives.  Improved stakeholder engagement and reputation management through focused communication efforts.  Increased alignment of communication activities with organizational goals and objectives. Improvement Opportunity: Digitizing Road Occupancy Permit Applications  Reduced processing time and administrative burden associated with manual permit applications.  Improved accuracy and transparency in permit processing, reducing errors and delays.  Enhanced compliance monitoring and enforcement capabilities through digitized records and data analysis. Improvement Opportunity: Transition the focus of PMO to Focus on Transformation Projects  Improved project management capabilities and oversight, leading to more successful monitoring and evaluation of corporate project portfolio.  Increased alignment of project activities with organizational goals and strategic priorities.  Enhanced strategic planning and decision-making through centralized management and coordination of administrative operations and transformation initiatives. Improvement Opportunity: Transition Access Aurora to Community Services  Improved customer experience and satisfaction through dedicated and specialized customer service channels.  Enhanced efficiency and effectiveness in addressing community service-related inquiries and requests. Page 23 of 27 Municipal Service Delivery Review Update April 9, 2024 Page 4 of 6  Increased visibility and recognition of community service offerings, leading to greater community engagement and participation. Improvement Opportunity: Empowering Front-line Staff  Improved customer satisfaction and service delivery through better-trained and empowered front-line staff.  Increased efficiency and effectiveness in handling customer requests, leading to shorter response times and higher-quality service.  Reduced escalations and complaints as front-line staff are better equipped to address issues independently. Improvement Opportunity: Developing Council-Approved Special Events Policy  Streamlined and standardized process for planning and organizing special events, reducing administrative burden.  Improved coordination and communication among interested parties involved in event planning and execution.  Enhanced compliance with regulations and policies, leading to safer and more successful events. Improvement Opportunity: Defining HR Strategy Linked to Strategic Plan  Improved employee engagement and performance alignment with the organization's strategic direction.  Enhanced talent acquisition and retention strategies tailored to meet the organization's evolving needs.  Strengthened organizational culture and employee morale through clear communication of HR initiatives and goals Category: Leading Municipal Practices Improvement Opportunity: Formalizing and Sustaining Pandemic Practices  Streamlined various administrative processes, reducing paperwork and manual tasks.  Increased agility and adaptability in responding to future crises or disruptions. Page 24 of 27 Municipal Service Delivery Review Update April 9, 2024 Page 5 of 6  Improved communication and collaboration among team members, fostering a more connected and cohesive workforce. Methodology for Calculating Financial and Productivity benefits: Expert Consultation The methodology for calculating the financial and productivity benefits was developed by Strategy Corp, a trusted and leading municipal consulting firm. Their expertise is a significant contributing factor to our pursuit of operational excellence, and we confidently rely on their guidance to drive meaningful change within our municipality. Explanation of Calculations Quantifying Financial Benefits The financial analysis within the SDR identifies potential financial benefits and cost savings opportunities for the Town of Aurora. The methodology applied conservative benchmarks based on municipal data sources, internal financial information, and expert estimations. The analysis forecasts productivity savings across three main areas:  People and Talent  Digitization  Process Standardization For instance, by enhancing people management practices, the Town could realize savings between 8 and eighteen per cent. Similarly, digitization efforts could yield a ten to twenty-five per cent reduction in costs through tech implementation and workflow automation. The review also suggests standardizing processes to eliminate duplication, potentially saving five to ten per cent. These projections are based on a detailed financial assessment, which includes one-time investments and ongoing operational expenses against the anticipated annual savings, providing a net annual savings estimate. (Appendix 1-Financial Calculation Method) Transparency and Caution To support transparent and effective financial stewardship, it is important to provide clarity regarding the nature of the savings projections. While these projections represent potential benefits resulting from the implementation of recommended improvement initiatives, it's Page 25 of 27 Municipal Service Delivery Review Update April 9, 2024 Page 6 of 6 essential to recognize the inherent uncertainties in projecting savings and the fluid nature of municipal service delivery. It is recommended that the FAC approach these figures with a balanced perspective, recognizing them as valuable aspirations and not absolutes that the Town can leverage in its pursuit of prudent financial management and operational excellence. Regular Progress Updates: Commitment to Monitoring and Evaluation Our commitment is to report to the FAC on a regular basis regarding the implementation of the improvement initiatives. We understand the importance of ongoing evaluation to gauge the effectiveness of these measures and adjust accordingly. By providing transparent updates, we aim to keep the FAC informed and involved in our efforts to enhance efficiency and improve our service delivery to Aurora’s residents. Conclusion The ongoing monitoring and analysis of the SDR improvement portfolio by the PMO will continue to support a successful implementation of the SDR recommendations which will contribute to enhancing the service delivery for all of Aurora’s residents. Page 26 of 27 Appendix 1 Page 27 of 27