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PSAB Update

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

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PSAB Update

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  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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