ISSUE #125 • DECEMBER 2023
INSIDE Strategic Financial Leadership
Accessible B.C. Act
Effective Project Discovery
PRESIDENT’S MESSAGE | RIANNA LACHANCE
INSIDE 2 President’s Message 4 Executive Director’s Message 6 2024 Training & Events 8 GFOABC Annual Conference & AGM 9 GFOABC Membership Renewal 10 MFA’s Corner: Fossil Fuel Free Investment Options
12 Trends in Group Benefit Bargaining 14 Are You Accessibility Ready? 16 TCAs: The Case for Making Historical Cost History
18 Deposit Insurance 20 Staying Ahead of the Curve 22 Go Back to School! 24 Risk Management Considerations 26 Delivering Affordable Levels of Service
28 Business Email Compromise 30 WorkSafeBC’s Response to Bill 41 32 Discovery as a Foundation for Success 34 7 Signs Your Local Government ERP is Holding You Back
36 GFOABC Online Forums 38 Quarterly Question 40 Member Spotlight: Carolyn Brown 42 Collector’s Corner 43 Thank You Exhibitors 44 Thank You Sponsors 2 | DOLLARS & SENSE PERSPECTIVE
As this year ends, I join many of you in reflecting on the past year and look forward to the year ahead. For me, what comes quickly to my mind are the many team achievements I witnessed and the amazing work of GFOABC and GFOABC’s Board. Just as quickly, thoughts of gratitude for my family, friends and colleagues come to mind. For those that invested in me, thank you. I appreciate you. Over the past three months I couldn’t help but notice how life and all its fullness has returned to beyond normal! I spent most of the past three months rushing from meeting to meeting, rushing to dance class or soccer practice, or rushing to quietly process my thoughts after everyone has gone to bed. Although beautiful, I also can’t help but notice how this can easily translate to fatigue in even the strongest amongst us. As leaders, team members and family members, who are in service to local government finance I believe we feel the drain a little more than most. With the spirit of openness and honesty, I encourage all those in local government land (including myself) to take time when you need it, reach out to someone when you need to and give yourself a pat on the back for all you have contributed to those around you this year. Also, at this time of year for many of us in local government finance we launch into planning for next
year. We set goals, we plan dates for deliverables and figure out how it is we will again be able to respond to the many community needs. GFOABC is also hard at work in this regard. As planned, the 2023-2024 Board of Directors held the 20242029 Strategic Planning Sessions on September 28-29, 2023. Hosted at the Sidney Pier Hotel in Sidney, BC, and facilitated by Ashley Whitmore, Principal of Tapestry Advisory Group, the strategy sessions were a great success. Our starting point was the 2019-2024 Strategic Plan, with the Board affirming the current strategic pillars. Time was then devoted to member feedback provided since the Whistler conference. Member feedback aligned around some key themes: 1. To increase financial literacy of Council 2. To build more Council trust in finance 3. To increase connection with Indigenous colleagues, and 4. To build a career of connections Lastly, the Board did the heavy lifting in assessing the organization’s strengths and where there is still more to do. The Board was unanimous in the evolution of our strategic statements, agreeing the strategic outcome language should start with “We are.” For example, “To be relevant to all of our members” will become “We are relevant to all of our members.” The Board believes this should be the foundation on which we maintain and evolve our programing, activities, and brand. The Board also unanimously agreed to ensure that there was thoughtful recognition of our Indigenous finance counterparts GFOABC.CA
and non-finance partners, looking for opportunities to broaden access for Indigenous partners who could benefit from our knowledge, network, and commitment. I am proud of the work of the Board in September. It was such a great success. The 2024-2029 Strategic Plan will be launched at the 2024 Annual Conference in Kamloops June 5-7, 2024. Further member feedback on the draft plan will be sought through an online survey, which will be launched in the coming weeks.
December is a busy month for GFOABC. With the well-attended Fall PD Week just completed in November, the Board will approve the 2024 – 2026 Budget, membership renewal invoices and letters will be distributed, and the Board of Director’s Expression of Interest for new Directors will wrap up on December 28. Thank you to the membership and sponsors for your continued contributions. This year has been an outstanding year and I look forward to what we have planned for 2024.
In closing, on behalf of myself and the membership I would like to take this moment to thank the very dedicated and talented staff of GFOABC. Your dedication and commitment to quality and the local government finance cause is exemplary. I am proud to be able to support you. May the year ahead be the best yet! Rianna Lachance, GFOABC President
BOARD OF DIRECTORS
DIRECTORS AT LARGE
GFOABC STAFF
Rianna Lachance, President
Julia Aspinall, City of Vancouver
Kala Harris, Executive Director
Julia Aspinall, Vice President
Nicole Gervais, MFABC
Talitha Soldera, Secretary-Treasurer
Elio Iorio, District of North Vancouver
Matt Holme, Manager, Member Services & Communications
Nyla Attiana, Past President
Mike Kennedy, City of Rossland Lenora Lee, KPMG
Otto&Fran / www.ottoandfran.com, Graphic Design Services
Jeffrey Lovell, City of Port Coquitlam Charlotte Osborne, City of Cranbrook
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EXECUTIVE DIRECTOR’S MESSAGE | KALA HARRIS
#GFOABCBETTERTOGETHER LAST WEEK I MET UP WITH DOUG STEIN FOR OUR ANNUAL LUNCH GET-TOGETHER. HE REMINDED ME THAT THIS DECEMBER MARKS MY SEVENTH YEAR AT GFOABC. TIME FLIES WHEN YOU’RE HAVING FUN! I don’t often reflect beyond the current year in my December messages, but seven years and a new draft strategic plan on the horizon do give me pause to think about the evolution of GFOABC during my tenure.
I arrived at GFOABC in December 2016, a year after the launch of GFOABC’s new visual identity which included a new logo and website. As the new program manager, the logo and tagline, GFOABC Better Together, told me everything that I needed to know about how the association supports its members and how I needed to approach the role. In 2018, as Acting Executive Director, the Board of Directors and staff set out a new vision: to be the leading source for knowledge-sharing that empowers BC local government financial excellence. For me, that new vision and its supporting strategic outcomes better aligned with the visual identity that was developed in 2015. Both the tagline and the vision have not only stood the test of time but have been invaluable in guiding the work carried out by GFOABC in support of its members.
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The 2024-2029 Strategic Plan has been drafted with a small but important refresh to the strategic outcomes. You can read more about that in Rianna Lachance’s President’s Message on page 2. With the refresh in mind, GFOABC will continue to: • Improve education and professional development opportunities by prioritizing the Strategic Financial Leadership program (See graphic on page 5 for further details). This will help members meet the many challenges they face, like aging infrastructure, reconciliation with Indigenous Peoples, and talent retention by integrating the Leadership Competency Framework into all existing educational opportunities. • Leverage the experience and expertise of our members, government, and partners in building dialogue on local government financial matters. This will occur by maintaining and strengthening partnerships with provincial ministries and increasing engagement with partners like the Union of BC Municipalities (UBCM) to support the work to achieve the recommendations set out in the 2021 report, “Ensuring Local Government Financial Resiliency”. • Foster cross-partnership opportunities that leverage partner resources, training, and reputation within the association for the benefit of members and
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partners by maintaining the collaborative foundation that has been established over the current strategic plan envelope. Member input on the strategic plan is currently being sought. This input will help inform the plan and our work over the next five years. The final draft will be presented at the 2024 Annual Conference & AGM in Kamloops being held from June 5-7, 2024 (See graphic on page 4 for further details). In addition to introducing the refreshed strategic plan, the annual conference, Partnering with Purpose: Creating a Culture of Innovation, will highlight the collaboration of GFOABC with its partners to drive innovation, as well as the important role local government finance officers play in building relationships and leading organizations. Once again, to our members and partners, thank you for your continued support of and participation in our work this past year—and the past seven years! #GFOABCBetterTogether!
Kala Harris, Executive Director
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2024 TRAINING & EVENTS ANNOUNCEMENT
ANNUAL CONFERENCE ANNUAL CONFERENCE AND AGM
PRE-CONFERENCE WORKSHOPS
Wednesday, June 5, 2024 – Friday, June 7, 2024
Monday, June 3, 2024 – Tuesday, June 4, 2024
The 2024 Annual Conference will explore the themes of partnership, purpose and innovation, covering emerging topics where local government finance professionals can deliver strategic value and impact.
Whether you attend the 2024 Annual Conference or not, the Pre-Conference Workshops offer an amazing opportunity for further professional development. Past topics include asset management, ethics and leadership, and municipal tax sales.
MORE INFORMATION COAST KAMLOOPS HOTEL & CONFERENCE CENTRE, 1250 ROGERS WAY, KAMLOOPS, BC
FALL PD
SPRING PD
PROPERTY TAX 101 WORKSHOP
FALL PD
Tuesday, April 9, 2024 Tuesday, April 16, 2024 Tuesday, April 23, 2024
Monday, November 18 – Tuesday, November 19, 2024
Property tax is the single largest source of local government revenue. Learn more about property tax collection through this three-part virtual workshop!
An excellent opportunity for in-depth learning and networking with local government finance peers, Fall PD covers a breadth of programing. Past sessions include property tax and rate setting, long-term financial planning, and a Regional District Day – covering topics specific to regional district members.
All sessions run from 9:00 am to 11:30 am
MORE INFORMATION
MORE INFORMATION
VIRTUAL
COAST COAL HARBOUR, 1180 WEST HASTINGS STREET, VANCOUVER, BC
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2024 TRAINING & EVENTS ANNOUNCEMENT
BOOT CAMP
BOOT CAMP Sunday, August 11, 2024 – Thursday, August 15, 2024 Boot Camp is a five-day, intensive program for local government finance professionals who are new to local government or aspiring to be statutory financial officers. Graduates leave Boot Camp with a broad and deep understanding of the local government financial system.
MORE INFORMATION UNIVERSITY OF VICTORIA
STRATEGIC FINANCIAL LEADERSHIP
STRATEGIC FINANCIAL LEADERSHIP Kick-off Monday, June 3, 2024 – Tuesday, June 4, 2024 This 10-month, cohort-based program is a blend of in-person workshops, virtual meetings, one-on-one executive coaching, self-guided learning, and collaboration - helping participants develop leadership competencies, build relationships, and make a bigger impact on their organizations.
EXPRESSION OF INTEREST KAMLOOPS, VANCOUVER, RICHMOND
DECEMBER | 2023
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CREATING A CULTURE OF INNOVATION
PARTNERING WITH PURPOSE GFOABC ANNUAL CONFERENCE & AGM COAST KAMLOOPS HOTEL & CONFERENCE CENTRE | JUNE 5—7, 2024
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BYLINE | SECTION HEAD
OUR MEMBERS
OUR MEMBERS We have over 1,300 members and a circulation list of more than We have overMembers 1,300 members circulation list of regional more than 1,400. represent and 160 amunicipalities an 28 1,400.districts, Members represent an 28 regional covering 99% 160 of themunicipalities Province’s population and control more than $8.3 billion in expenditures and $9.0 billion cash and districts, covering 99% of the Province’s population andincontrol investments. more than $8.3 billion in expenditures and $9.0 billion in cash and investments. BENEFITS OF MEMBERSHIP The Government Finance Officers Association of British Columbia BENEFITS OF MEMBERSHIP (GFOABC) is the professional association for local government finance The Government Finance Officers Association of British Columbia officers and their teams in BC. For over 30 years GFOABC has provided (GFOABC) is the professional association for local government finance members with: officers and their teams in BC. For over 30 years GFOABC has provided members with: Member-discounted webinars, workshops, and annual conferences with over 100 hours of continuing professional development. Member-discounted webinars,secure workshops, and annual conferences Access to a member-only Online Forum, a valuable reference, communication, andprofessional collaboration tool for local with over 100 hours of continuing development. government finance professionals. Access to a member-only secure Online Forum, a valuable
reference, communication, and collaboration tool for local Members can also earn continuing professional development by government finance professionals.
serving on a committee or on the Board of Directors, by facilitating workshops and presenting a session at the annual conference.
Members can also earn continuing professional development by servingOUR on FOCUS a committee or on the Board of Directors, by facilitating workshops and presenting a session at the annual conference. OUR FOCUS
To provide programming that considers the full breadth of the roles and responsibilities of local government financial professionals and the diversity of experience. To leverage the experience and expertise of our members, To provide programming that in considers the full breadth government, and partners building dialogue on local of the roles and responsibilities of local government financial government financial matters. professionals and the diversity of experience. To encourage cross-partnership opportunities that leverage To leverage experience andand expertise of our members, partnerthe resources, training, reputation within the association for the benefit of members and partners. government, and partners in building dialogue on local
government financial matters. | 2023 DECEMBER
To encourage cross-partnership opportunities that leverage 2024 GFOABC Annual Membership Renewal (2023-10-01) partner resources, training, and reputation within the association
YOUR ORGANIZATIONAL MEMBERSHIP Municipalities, Regional YOUR ORGANIZATIONAL MEMBERSHIP Municipalities, Regional Districts and Improvement Districts or Other Districts
Districts and Improvement Districts or Other Districts
Members are employed in a financial capacity in municipal, regional district or related governments. accounting clerks to Members are employed in a financialFrom capacity in municipal, chief financial officers, their roles include a combination of regional district or related governments. From accounting clerks to administration financial management. chief financialand officers, their roles include a combination of
administration and financial management.
Organizational membership fees for municipalities are based on population size. Organizational membership fees for municipalities are based Organizational membership fees for regional district on population membership are size. based on the annual budget.
Organizational membership fees for regional district on the annual budget. Thesemembership membership are feesbased allow your finance team to access the benefits of membership.
These membership fees allow your finance team to access the
MEMBER TYPES Voting Members and Non-Voting Members benefits of membership. Each organizational membership consists of voting and non-voting members.
MEMBER TYPES Voting Members and Non-Voting Members Each organizational membership consists of voting and non-voting Voting members are entitled to vote on member-related issues members. such as the annual election for the Board of Directors, approval of financial statements, bylaws, etc. Voting members are on member-related Non-voting members areentitled entitledto to vote all benefits of membershipissues but such election issues. for the Board of Directors, approval of do not as votethe onannual member-related
financial statements, bylaws, etc.
TheseNon-voting membership fees alloware your financetoteam to access members entitled all benefits ofthe membership but benefits of membership. do not vote on member-related issues.
MEMBERSHIP RENEWAL These membership feesPROCESS allow your finance team to access the Membership renewal opens benefits of membership. December 1st. The primary contact for your organization will receive a series of emails to help your organization get ready for renewal.
MEMBERSHIP RENEWAL PROCESS Membership renewal opens December 1st. The primary contact for Who is your primary contact? The primary contact is the statutory your organization will designate. receive a series of emails to help your financial officer or their organization get ready for renewal. Who is your primary contact? The primary contact is the statutory Contact us financial officer or their designate. Tel: 250-382-6871 DOLLARS & SENSE PRESPECTIVE | 9 email: office (at) gfoabc.ca
MFA’S CORNER
MFA’S NEW FOSSIL FUEL FREE INVESTMENT OPTIONS FOLLOWING THE LAUNCH OF OUR LONG TERM DIVERSIFIED MULTI-ASSET CLASS (DMAC) FUND IN JANUARY 2022, THE MUNICIPAL FINANCE AUTHORITY OF BC (MFA) NOTED THAT SEVERAL LOCAL GOVERNMENTS WERE ASKING FOR A FOSSIL FUEL FREE ALTERNATIVE, DEFINED AS A PORTFOLIO OF ASSETS THAT EXCLUDE THE SECURITIES OF ISSUERS DIRECTLY INVOLVED IN THE EXTRACTION, PROCESSING, OR TRANSPORTATION OF COAL, OIL, OR NATURAL GAS. IN RESPONSE, MFA LAUNCHED A NEW FOSSIL FUEL FREE DIVERSIFIED MULTI-ASSET CLASS (FFF DMAC) FUND IN SEPTEMBER 2023. WE ARE EXCITED TO PROVIDE OUR MEMBERS WITH SOME DETAILS OF THIS NEW FUND, WHICH OFFERS BC’S LOCAL GOVERNMENTS A BROADLY DIVERSIFIED INVESTMENT OPTION TO PRUDENTLY GROW RESERVES NOT NEEDED FOR 10 YEARS OR LONGER.
Like MFA’s other pooled funds, the FFF DMAC Fund is managed by our partner Phillips, Hager, & North Institutional (PH&N) in Vancouver, a wholly-owned subsidiary of RBC Global Asset Management, Canada’s largest asset management firm. The primary purpose of the FFF DMAC Fund is to target a risk-adjusted average long-term return which exceeds long-term expected inflation by about 3.5 per cent. It aims to minimize risk primarily through asset class selection and diversification, with a global portfolio allocated to both fixed income and equities. The FFF DMAC Fund is highly diversified, both geographically and by asset class/management style, to maximize forward-looking expected risk-adjusted returns. The key difference of the FFF DMAC Fund is that it employs a full Fossil Fuel Free (FFF) screen, which means that certain assets and asset classes are excluded leading to slightly lower risk-adjusted return expectations than the regular DMAC Fund. The FFF DMAC Fund is not suitable for all local governments. Members need to carefully determine whether long-term investment in the FFF DMAC Fund is appropriate for their own circumstances. Notably, there needs to be a clear designation of reserves suitable for long-term investment, a process that first begins with an internal cash flow/reserve analysis. Once reserves have been identified as long-term in nature, there needs to be an acknowledgement by the Council or Board to ensure that the local government adheres to their original plan of long-term investment in the FFF DMAC Fund. This process can help minimize the risk of a future Council forcing staff to “sell early” and crystallize any potential paper losses during times of market volatility, as may occur from time to time. Undertaking a thorough and transparent process, which may require updating your existing Council or Board-approved Investment Policy and understanding
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the accounting impacts of the FFF DMAC Fund on your financial statements, are some of the critical steps local governments will need to undertake prior to investing in the FFF DMAC Fund. While local governments need to ascertain investments not needed within the next 10 years or longer, other exposure limits also apply. A local government’s maximum allowable combined exposure to both the DMAC Fund and FFF DMAC Fund will be either 10 per cent or 25 per cent of their reported Cash & Investments total. These percentages are based on a local government’s population – those with populations over 10,000 may invest up to 25 per cent of their total Cash & Investments, otherwise a maximum of 10 per cent applies. Second to this limit, of the Total Allowable Amount, up to a maximum of 25 per cent may be ‘derived’ from Restricted or Deferred Revenue reserves. MFA and PH&N are happy to discuss the FFF DMAC Fund with you, as well as your Council/Board, and have a variety of materials to assist in policy development and communications. As a starting point, please feel free to contact us to gain a better understanding of the FFF DMAC Fund, investment limitations, and the processes involved in investing your long-term reserves. MFA looks forward to continuing to play a leading role in assisting BC’s local governments manage their investment needs.
PETER URBANC has over 30 years of finance and institutional investment experience in both the global banking arena and the public sector. For close to 20 years, he was an investment banker with a specialty focus on the debt capital markets. In 2009, Peter joined the Province of Nova Scotia’s Department of Finance as Treasurer. Mr. Urbanc also served as a Director of the Nova Scotia Pension Services Corporation and Trustee of both the Nova Scotia Teachers’ Pension Plan and the Nova Scotia Public Service Long Term Disability Plan Trust. In 2016, Mr. Urbanc took on the role of Chief Executive Officer at the Municipal Finance Authority of British Columbia. Mr. Urbanc holds a Bachelor of Commerce degree from McGill University and an MBA from the J.L. Kellogg School of Management.
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SPONSOR ARTICLE | UBCM
TRENDS IN GROUP BENEFIT BARGAINING HEADING INTO 2024 MARKET NORMS FOR GROUP BENEFITS OFTEN MOVE AT A GLACIAL PACE – SO SLOWLY, IN FACT, THAT THEY CAN OFTEN FLY UNDER THE RADAR.
There are a few key reasons why: • Many plans only consider incremental changes every three to four years at the expiry of a collective agreement or as part of a larger compensation-based initiative. • Many plans rely on benchmarking data when reviewing coverage, which is often slow to recognize and draw attention to emerging trends. This article includes three examples that fit this mold – trends being more commonly asked about, but don’t yet shape the “norms” in the market (specifically for municipalities in BC):
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1. EXPANSION IN COUNSELLING AND PSYCHOLOGICAL COVERAGES Group benefit plans generally offer counselling services through one or both of the following sources: • Employee and Family Assistance Plan (“EFAP”): most EFAP plans provide short-term (two to- four sessions) of triaged counselling services with an approved provider within the network. • Psychological Coverage: Members can claim under the health plan based on the specific plan limits in place. Over the past few years, we have seen a focus on psychology coverage to further support employee mental health. In particular:
limited complexity of the medications offered. Today’s environment is very different as medications for certain conditions can cost over $50,000 annually and the pipeline of new drugs hitting the Canadian market is ever expanding. As a result, plan sponsors are becoming more and more engaged in reviewing drug pricing strategies (i.e., mandatory generic or dispensing fee deductibles) and/or managed formularies to ensure plan sustainability. It will take time, but if these trends continue then they will be influential in shaping a new “normal” for prevalent plan coverage levels.
• More widespread implementation and communication of EFAP plans. • An expansion in the number of practitioners eligible for psychological coverage (i.e., registered clinical counsellors, amongst others). • Increases to the annual coverage limits for psychological coverage. Psychologists can be costly and difficult to book, therefore plan sponsors are keen to expand coverage options and explore higher limits to ensure members can access several treatments with their coverage.
2. INFLATION ADJUSTMENTS TO ANNUAL MAXIMUMS Most plans provide paramedical (i.e., massage or physiotherapy) and vision care coverage with fixed coverage maximums. Since the costs of these services regularly increase with inflation (especially of late), many plan sponsors are reviewing their existing caps to ensure they are not inadvertently passing too much of the cost to members.
3. FOCUS ON PRESCRIPTION DRUGS PLAN STRATEGY Prescription drug plans established in the 1990s or early 2000s were set up under a different environment for prescription drugs – notably, the annual price tag for most medications were typically low and there was DECEMBER | 2023
ABOUT THE AUTHOR This article has been drafted on behalf of the UBCM Benefits Plan, a collective of approximately 130 municipal and affiliated groups across British Columbia. If you have any questions about the Plan, please contact Jenn Hanna (GroupBenefitsPlan@ubcm.ca) to assist you. DOLLARS & SENSE PRESPECTIVE | 13
SPONSOR ARTICLE | ZINNIA KHUBBAR & MAX BRAULT
ARE YOU ACCESSIBILITY READY? FOLLOWING THE PASSING OF THE FEDERAL ACCESSIBLE CANADA ACT, PROVINCES AND TERRITORIES ARE PASSING, OR HAVE PASSED THEIR OWN ACCESSIBILITY REGULATIONS AND LAWS. THE ACCESSIBLE B.C. ACT BECAME LAW IN 2021 AND PROVIDES A FRAMEWORK FOR B.C. PUBLIC SECTOR ORGANIZATIONS TO IDENTIFY, REMOVE, AND PREVENT BARRIERS TO ACCESSIBILITY.
The Act applies to over 750 public sector organizations including: • Municipalities and regional districts • Municipal police • Public libraries • School districts • Post-secondary institutions • Health authorities • Crown corporations and other public sector agencies
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The Government of Canada estimates that 6.2 million Canadians have a disability and there are many forms of disabilities: visible, invisible, permanent, and temporary. All of these have implications for how people interact and perform in the workplace. As a professional living and working with a disability, I know about barriers to accessibility and I’m not talking about wheelchair ramps and larger washrooms. Barriers often exist in the way an organization does things. Consider for example: How do you hold meetings? How do you distribute information and communicate with your teams? The most harmful barrier of all are attitudes. False beliefs about people with disabilities persist. I am proud to be a part of the BDO Accessibility Consulting team. Led by Max Brault, we are helping our clients to understand, become aware, and build stronger relationships with the disability community. Our client service approach draws upon our own lived experiences, to help our clients integrate accessibility principles into the whole employee lifecycle.
The Act is being implemented in a phased approached. September 1, 2023, was the deadline for organizations identified under phase one, and September 1, 2024, is the deadline for phase two. Within those 12 months, organizations must establish:
ZINNIA KHUBBAR is a CPA professional and an
assurance manager at BDO Canada LLP. She has over 12 years of public practice experience and her clients include not-for-profits and public sector organizations. She is the B.C. representative for BDO’s Accessibility Consulting services and works closely with Max Brault.
• An accessibility committee • An accessibility plan • A tool to receive feedback The heavy lifting is in the creating and writing of the plan and policy. It cannot sit on a shelf once it is created. It must be evaluated, revised, and refined so that it reflects the changing needs of the organization.
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MAX BRAULT is the National Leader for Accessibility
Consulting services at BDO. Max was instrumental in guiding the Federal government toward new and progressive accessibility legislation, Bill C-81, the Accessible Canada Act. He is the Recipient of the Diamond Jubilee Medal, the Correction Service Canada Award of Distinction, and the Michelle C. Comeau Human Resources Leadership Award. Max is bilingual and is comfortable working in French and English.
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MEMBER ARTICLE | MICHAEL KENNEDY
TCAs: THE CASE FOR MAKING HISTORICAL COST HISTORY WHAT IF I TOLD YOU THAT THE CITY OF ROSSLAND (POPULATION 4,140) HAS FINANCIAL STATEMENTS THAT ARE MISSTATED BY ABOUT $135 MILLION DOLLARS? . This would probably raise a few flags, especially given that the small, rural municipality has an annual operating budget of approximately $12 million dollars. Thankfully for the staff and Council (and of course, taxpayers!) of Rossland, this is not the case! The City has had a strong track record of unqualified audit opinions over the past several years. That said, when looking at the City’s financial statements (and those of countless local governments across the country) there is arguably a major gap: a clear capture of the local government’s infrastructure funding gap. In the case of Rossland, $135 million represents management’s best estimate of what it will cost to cover the next 25 years to replace assets to maintain current service levels. Based on current capital investment trajectory and limited appetite to impose multiple years of double-digit tax increases, this represents an annual shortfall of about $3 million. Like many communities across the country, Rossland is struggling to close the infrastructure funding gap. In the absence of supporting guidance or disclosure requirements under Public Sector Accounting Standards (PSAS), it is crucial for local government financial leaders to explore options to better articulate the challenges they face on maintaining service levels.
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ARTIFICIAL SURPLUSES & LESSONS FROM DOWN UNDER ON TCA ACCOUNTING In a world that has seen 20 per cent annual construction inflation of late, historical cost accounting is losing its relevance as a measure for users of local government financial statements. At a time when the public sector is grappling with ageing infrastructure, climate change impacts and heightened regulatory requirements, rearview mirror facing disclosures fail to capture significant liabilities required to be incurred to continue service delivery. Communities across the country are effectively legally required to meet standards of service delivery on water, sewage treatment, and dam safety, to name a few; however, the inevitable capital replacement costs associated with required assets are not something currently captured in financial reporting. Chris Paine, Director of Finance and Asset Management District of Oak Bay probably thinks about long-range financial planning more than most people. He’s long been a proponent of shining a light on the true costs of sustainably funding infrastructure. “The Institute of Public Works Engineering Australiasia’s best practice guide for long term financial planning notes that achieving an operating surplus in the Statement of Comprehensive Income is a financial indicator of sustainability; however, they also mention Australian Accounting Standard 116, Property, Plant, and Equipment, which allows for a range of valuation methods, including the use of a revaluation model using fair value. Under this standard, an operating surplus would indeed be an indicator of financial sustainability because depreciation would be inflated to fair value,” he says. “PSAS requires that depreciation is recorded at historical cost, resulting in what I call ‘artificial operating surpluses’. These artificial operating surpluses absolutely cannot be an indicator of sustainability. If we were to start reporting assets at fair value, we would be producing significant operating deficits, as the true cost of carrying out necessary replacement of these assets is not captured.”
GFOABC.CA
Paine is an advocate translating this issue into language that is easy to understand. He provides the following table to demonstrate the impact of a fair value-based approach for the District of Oak Bay in 2022:
“The gap between fair value and historical cost reporting creates a false impression of financial health in local governments, suggesting no need for tax increases. Without proper funding for infrastructure, these perceived surpluses will grow, leading to more public criticism.”
EXPERIMENTING WITH VOLUNTARY DISCLOSURES AND MORE A few efforts are underway to experiment with year-end note disclosures pertaining to TCAs for fiscal year end 2023. The District of Oak Bay is looking at voluntary disclosure options to better articulate their infrastructure funding gap for 2023: “My intention is to reproduce the income statement and balance sheet using Australian financial standards to demonstrate that it would produce an operating deficit which is an indicator of unsustainability,” says Paine. “Arguably more important than a technical disclosure like Australia’s is crafting an effective narrative for financial statement users that shows the true cost of funding assets our communities rely on.” Justin Brogan, a member of GFOABC’s initial Strategic Financial Leadership program and CPA with the City of Rossland, is also working on voluntary disclosure, while being mindful of the staff time limitations many local governments are facing. “I believe this issue is one where it is crucial to get the narrative right and ensure users are
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provided with better information to understand pending asset replacement costs,” says Brogan. “When it comes to how this might look in a voluntary disclosure, we’d like to borrow from the approach many jurisdictions are using with respect to natural assets disclosures, which have been focused on providing users with basic, unaudited information to acknowledge a fundamental risk and opportunity communities face. A note disclosure rather than an entirely separate statement brings this growing issue to the forefront for auditors and will get better information in front of Council directly via the financial statements.” Rossland’s City Council has shown support for this initiative through the updated Tangible Capital Assets policy, calling for the disclosure of the replacement values to be included in the City’s Financial Statements.
A CALL TO ACTION Consider this a note of encouragement to GFOABC members to start conversations with provincial officials, funders, accounting standards boards, local Councils, and auditors on the need for better information to demonstrate the infrastructure funding gaps we face. By doing so, we can help ensure that the financial statements of our local governments accurately reflect their true fiscal health and long-term sustainability and that we are making a stronger case for investments in assets we need to run our communities.
MICHAEL KENNEDY , CPA, CA is the imperfect CFO of
the City of Rossland, British Columbia and serves on GFOABC’s Board of Directors. .
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EXHIBITOR ARTICLE | YVETTE WU
DEPOSIT INSURANCE:
A STRONG CASE FOR DIVERSIFICATION WHAT IS DEPOSIT INSURANCE? DEPOSIT INSURANCE PROTECTS DEPOSITORS, ENSURING THEIR FUNDS ARE SAFE AND RETRIEVABLE EVEN IN TURBULENT TIMES. LET’S DIVE DEEP INTO THE ROLE OF DEPOSIT INSURANCE AND WHY IT MAKES A STRONG CASE FOR DIVERSIFICATION.
WHO PROTECTS YOUR INVESTMENTS? Many countries have a specific organization, like the Canada Deposit Insurance Corporation (CDIC) that safeguard the funds of depositors and stabilize financial markets.
WHAT IS THE CANADIAN DEPOSIT INSURANCE CORPORATION? The CDIC is a federal agency that offers protection to depositors in Canada. The CDIC protects various deposit types, including Guaranteed Investment Certificates (GIC)[1]. Deposits, including any interest earned, are protected with a CAD $100,000 limit, when using a CDIC member institution. The CDIC ensures coverage on a per-account basis, offering a significant safety net so investors can strategically place deposits across various account types to maximize their protective coverage[1]. However, it’s important to note that not all financial instruments are protected by the CDIC, including mutual funds and cryptocurrencies, which are riskier and more volatile[1].
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WHAT HAPPENS IF YOUR FINANCIAL INSTITUTION FAILS AND IT’S NOT COVERED BY DEPOSIT INSURANCE? Institutions that are not covered by deposit insurance leave depositors vulnerable to losing their invested money. Traditional banks and federal credit unions align with the CDIC for deposit protection. On the other hand, provincial credit unions, while adhering to rigorous standards, typically have their own distinct deposit insurance frameworks. This differentiation ensures robust protection for depositors across the board but also underlines the importance of understanding where and how your funds are safeguarded.
PROVINCIAL CREDIT UNIONS HAVE THEIR OWN CREDIT INSURANCE In Canada, credit unions function differently from traditional banks as they are covered by provincial deposit insurance schemes instead of the CDIC. Although these provincial systems are separate, they offer comparable deposit protection, which assures depositors based on their region.
HOW TO INVEST AND PROTECT YOUR MONEY
DIVERSIFICATION Diversification is crucial to safeguard your investments against unpredictable market behaviors. Credit unions are a stable and community-oriented financial option, offering security and investment opportunities. They prioritize the welfare of their members and often provide returns that are comparable to traditional banks. Many investors don’t know where to begin when it comes to diversifying and investing with credit unions. Yield Exchange helps with that. Yield Exchange makes it easy to connect with banks and credit unions and lock down competitive rates, thereby making it easier to diversify your portfolio without any additional risk.
FINAL THOUGHTS Organizations like the CDIC highlight the importance of diversifying financial assets through deposit insurance. This means more than just protecting assets but also promoting responsible financial decision-making, especially as the market changes both on a macro and micro scale. Deposit insurance remains a steadfast principle, making a strong case for diversification.
Financial professionals should prioritize both financial health ratings and diversification among their investment strategies, while relying on deposit insurance for security.
FINANCIAL HEALTH RATINGS Ratings are like a health checkup, but to get the full picture you need to evaluate more factors such as:
Coverage may change by the CDIC at any time. Please review their site for the most up-to-date information. [1]
• ●Capital adequacy ratio (CAR) • ●Liquidity ratio • ●Deposit insurance • ●Geographic risk • ●Historical profitability While a higher rating may indicate the bank is financially stable and less risky, using these additional considerations as a guide, you can reduce the chances of any financial problems down the line. DECEMBER | 2023
YVETTE WU is the CEO and co-founder of Yield
Exchange, a digital treasury management platform that simplifies the rate shopping experience by connecting organizations directly to financial institutions for custom and competitive GIC rates. She has over 15 years of experience in banking and strategic consulting, holding previous positions at Vancity. Yvette has been nominated for the RBC Women in Entrepreneur Award and featured in multiple publications like Betakit, and Fast Company.
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SPONSOR ARTICLE | SANDRA MAYO
STAYING AHEAD OF THE CURVE: HOW LOCAL GOVERNMENTS CAN ADAPT TO THE EMERGENCY AND DISASTER MANAGEMENT ACT IN BC, THE CURRENT EMERGENCY PROGRAM ACT (EPA) HAS UNDERGONE A SIGNIFICANT REVIEW AND UPDATES THAT INCORPORATE THE REQUIREMENTS FROM THE UN DECLARATION OF THE RIGHTS OF INDIGENOUS PEOPLES (UNDRIP) AND ADDRESSES THE WEATHERRELATED EVENTS AND CHALLENGES OUR PROVINCE HAS EXPERIENCED. A NEW MINISTRY HAS ALSO BEEN ESTABLISHED: EMERGENCY MANAGEMENT AND CLIMATE READINESS (EMCR), WHICH INCLUDES THE FORMER RESPONSIBILITIES OF EMERGENCY MANAGEMENT BC. The new legislation, now named the Emergency and Disaster Management Act (EMDA) is expected to receive royal assent by the end of 2023. To support the implementation of the legislation, there is a phased compliance timeline with several new and updated regulations over the coming years.
The impact of this legislation to local governments includes: • An emphasis on disaster risk reduction using the United Nations Sendai Framework. • Promoting intentional connections and collaboration with First Nations. • The requirement that each local government has a business continuity plan (BCP) in place. It is important to differentiate between BCP and emergency response through your Emergency Operations Centre (EOC). Your EOC is designed to facilitate the recovery of your community, whereas BCP focuses on the recovery of your local government’s business functions. While each can function independently, they can also work together in a larger interruption scenario. BCP is more than just a project; it’s a continuous process where your local government plans to respond to an interruption in a way that ensures the continuation of your critical business functions within a planned level of disruption. It’s a journey, not just a destination, and extends beyond the initial implementation phase. Currently, there is no apparent funding mechanism available from the Province to support this new requirement, and it remains unclear whether this is being considered as part of the implementation process. In the interim, there may be a gap in both compliance and funding for local governments, potentially impacting
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their capacity to address the new requirement. As time progresses, more information about these gaps may become clearer. In the meantime, we recommend that local governments: • Consider how they will prioritize BCP alongside other competing priorities for 2024 and beyond. • Assess how the cost of implementing BCP will be integrated into the budgeting process moving forward. This may include expenses for consultants, services, and testing. • Plan for how your local government will implement and maintain BCP. A Business Impact Analysis (BIA) is a critical step first step at the beginning of the BCP process. To get started, local governments can: • Identify critical services. • Identify key staff responsible for these critical services. • Consider cross-training to enhance coverage. • Document the processes supporting critical services. • Ensure documentation is readily accessible in the event of an interruption For more information on the changes, please visit the BC Government website. Additionally, MIABC members can find resources and information related to BCP on our website. Members can also reach out to us anytime at AskUsAnything@miabc.org if they have specific questions.
SANDRA MAYO CRM, RIMS-CRMP, CBCP is the
MIABC’s Manager of Risk Management Services and brings experience in local government from her previous risk management roles with a large B.C. city. Sandra uses her skills to assist members with a variety of risk management and loss control challenges, and provides specialized support in business continuity.
DECEMBER | 2023
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MEMBER ARTICLE | MICHAEL KENNEDY
TO ADDRESS THE ACCOUNTING TALENT CRUNCH, GO BACK TO SCHOOL! AS IF THE WORLD WASN’T ACCRUAL ENOUGH, THE ACCOUNTING PROFESSION IS EXPERIENCING A MATERIAL TALENT CRUNCH. The recently released Association of International Certified Professional Accountants (AICPA) Trends 2023 report outlines that the number of individuals completing a bachelor’s level degree in accounting declined by 7.8 per cent between 2021 and 2022, following a consistent annual decrease of one to three per cent since the 201516 period. Simply put, fewer students are choosing to go the accounting route at the beginning of their career. Facing a shrinking talent pool, it is increasingly important for local government finance leaders to start their recruiting process further upstream. One way to do this? Going back to school.
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As a recovering academic (I taught undergraduate accounting from 2016-2021 at Acadia University prior to starting my local government journey), it was my experience that the local government often misses the opportunity to offer an appealing alternate career avenue to the next generation of accountants. The traditional path into the accounting profession is via a business/commerce program; however, exposure to local government accounting standards is generally limited to fringe discussions in upper-level courses and are rarely touched on throughout the CFE PEP program. These GAAPs (sorry, I had to) in curriculum were recognized during CPA Canada’s Competency Map 2.0 efforts and will be subject to increasing focus in years to come. While these are steps in the right direction, more can be done at the undergraduate level to provide students with insights into the business of governments or life in the public service, which line up well with changing priorities of today’s graduates. GFOABC.CA
According to a 2022 survey by the Chartered Professional Accountants of British Columbia, the top 3 career goals for accounting and non-accounting business students are: 1. Balancing work life with personal life (64 per cent), 2. Maximizing income (49 per cent), and 3. Achieving secure employment (34 per cent). Local government hits the mark on all three of these goals, particularly on maximizing income as the typical starting salary for an accounting grad in the local government is higher than that at a Big 4 Firm. Throw in a growing desire amongst recent grads to carry out meaningful work and tackle the wicked problems of our time like climate change, income inequality and housing shortages and we’ve got a very attractive offer to new grads. So, how do we excel-erate (can’t stop, won’t stop) our recruiting efforts? Governments, particularly local governments, typically lack the physical and virtual on-campus presence that accounting firms and larger private sector players have. Here are a few simple ways I challenge you to start changing that: • Be a guest speaker - Reach out to your alma mater or nearby post-secondary institution and offer to deliver a guest lecture to shine a light on the unique challenges you get to work on in the local government each day. A quick note to your favourite professor could result in opening a life pathway for one of their students. Not a public speaker? Ask that same prof if there are any students interested in a career in government and offer to grab coffee with them so share experiences. • Host a case competition - In my 20+ years of professional experience, I’ve seen few better techniques for identifying talent than case competitions. Make a few hours of time to frame up a challenge your organization is facing and let students give it their all. In a short period of time, you’ll have access to several new perspectives and insights into a problem, expose students to a new sector and efficiently identify a talent
DECEMBER | 2023
pool to draw from. Get started with something simple like unleashing a group of undergrads on a dataset to build a visualization and you might just be amazed by the result. • Hit the career fair - Yes, universities still have those. Book a booth, bring a bit of swag, and preach the gospel of the impact one can have through local government. Co-booking a booth with a neighbouring municipality or regional district is strongly encouraged. • Get on LinkedIn - Spend a few minutes a day actively building your LinkedIn profile and sharing your local government experience. Cross post roles your organization is hiring for and tag local universities and colleges (including their co-op programs). Bonus points if you use video to promote job opportunities. It is amazing what you can do with a few cups of coffee, some prompting questions and an iPhone to showcase upcoming roles! As Derek Sivers says, “what’s obvious to you is amazing to others.” Don’t underestimate the impact sharing your experiences might have on the next crop of accounting graduates. The work we do in local government is challenging, rewarding and offers us the opportunity to impact the lives of members of our community each and every day. So, what are you waiting for, get back to school!
MICHAEL KENNEDY , CPA, CA is the imperfect CFO of
the City of Rossland, British Columbia and serves on GFOABC’s Board of Directors. .
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SPONSOR ARTICLE | GLENN MINNIS
RISK MANAGEMENT CONSIDERATIONS FOR WINTER ACTIVITIES MORE THAN EVER, THE PUBLIC IS RECREATING OUTSIDE DURING THE WINTER MONTHS, ENJOYING SKATING, TOBOGGANING, SNOWBOARDING, AND OTHER COLD-WEATHER ACTIVITIES. ALONG WITH THE ADVENT OF THESE ACTIVITIES, THE MUNICIPALITY’S RISK OF LIABILITY ALSO INCREASES WHEN THEY ARE CARRIED OUT ON MUNICIPAL PROPERTY. REGARDLESS OF THE TYPE OF WINTER ACTIVITY TAKING PLACE THERE ARE SOME COMMON RISK MANAGEMENT RECOMMENDATIONS THAT WE ENCOURAGE TO MINIMIZE THE EXPOSURE TO LIABILITY.
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If there is an awareness of casual use of municipal premises for a specific recreational activity, it is appropriate to inspect the location for obvious hazards such as trees, light standards, roadways, creek beds, or anything else that may hinder the activity. Installing barriers may be necessary to prohibit use in certain locations where serious hazards exist. Signs should be posted to warn of potential dangers and hazards. Locations that are sanctioned or recognized by the municipality as active for winter recreational activities require considerable more attention. The fact that the municipality recognizes or promotes a particular location also means the responsibility to safeguard the public lies with the municipality. These locations would require removal of obvious hazards, regular inspections, a good documentation program, and a commitment to manage the risk. GFOABC.CA
If the municipality permits the use of their premises for any winter activities to another organization who is in control and responsible for the premises, we suggest a contract is drawn up between the two parties setting out their respective duties and responsibilities. The contract should contain a hold harmless and indemnification clause in favour of the municipality, and an insurance clause which would require the organization to carry an acceptable limit of Commercial General Liability Insurance, including the municipality as an additional insured. We also suggest that a current Certificate of Insurance should be provided to the municipality providing proof that the necessary insurance is in place. Every year we see claims against municipalities involving serious injury to participants taking part in winter recreational activities. As a result, we encourage municipalities to take an active risk management approach, using the suggestions mentioned here, to help minimize your exposure to liability, and more importantly - avoid unnecessary harm to the public.
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For further information on this topic and many others, visit Intact Public Entities’ Centre of Excellence at https://www. intactpublicentities.ca/centre-of-excellence
It’s all in the details.
Especially when we’re talking municipal insurance – it’s what we live and breathe, it’s even in our name. A policy is a policy, except when it’s not. We understand that your municipality requires so much more. With IPE in your corner, we can maximize risk mitigation and enhance the safety and resiliency of your community with our value added services. Our team of experts are here to deliver a sustainable and trusted insurance program that is as unique as your municipality.
GLENN MINNIS . With over 19 years experience in the property and casualty industry, Glenn joined Intact Public Entities in August 2021 as Head of Operations with oversight of Underwriting, Risk Management, Finance and Marketing & Communications.
DECEMBER | 2023
To learn more visit us at intactpublicentities.ca
EXHIBITOR ARTICLE | JEFF MUIR
DELIVERING AFFORDABLE
LEVELS OF SERVICE ASSET MANAGEMENT PLAYS A PIVOTAL ROLE IN THE DELIVERY OF HIGH YET AFFORDABLE LEVELS OF SERVICE (LOS) TO ANY COMMUNITY. IT IS A FUNDAMENTAL PRACTICE THAT ENSURES INFRASTRUCTURE PROGRAMS ARE EFFECTIVELY MANAGED TO MEET THE NEEDS OF BOTH CURRENT AND FUTURE RESIDENTS IN THE MOST SUSTAINABLE MANNER. This article explores the importance of establishing a welldefined LOS framework and suggests a three-step process for striking the right balance between budget constraints and managing citizen expectations.
DEFINING LEVELS OF SERVICE Levels of service are measurements that describe the quantity and quality of infrastructure services delivered to residents. Two sets of Key Performance Indicators (KPIs) are required: • Customer LOS – measures the end-user experience with infrastructure assets. • Technical/Operational LOS – outlines the day-to-day internal tasks completed to operate and maintain infrastructure. By aligning asset management practices and budgets with service delivery goals, communities can adopt more sustainable practices that extend the lifespan of assets while reducing long-term costs.
THREE STEPS FOR BUILDING A LEVELS OF SERVICE FRAMEWORK Step 1: Assess Community Needs and Expectations Developing a solid understanding of your community’s asset portfolio requires information such as asset quantities, condition and age profiles, current performance levels, and replacement costs. Data on lifecycle costs and demand drivers should also be collected and analyzed.
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It is also pertinent to include an audit of the people, systems, and business processes that support program delivery. Performing risk and criticality analyses will aid in prioritizing your community’s assets and help allocate limited funds based on multi-dimensional criteria, not just the physical state of the assets.
Step 2: Communicate Community Appetite for Change It’s important to ensure that key stakeholders, including the public, are aligned with future visions for the community, and are in favour of any proposed changes to service levels. Some motivations for adjusting LOS include: • Population growth or decline and shifting demographics. • Environmental considerations. • Aging infrastructure. • Budget constraints. Citizen engagement is strongly encouraged to determine the community’s willingness to accept trade-offs between different programs, their ability to pay for higher service levels, or their appetite for lower levels of service if costs can be reduced.
After asset data and stakeholder feedback have been succinctly collected and analyzed, financial managers can more confidently determine which projects may need to be adjusted depending on changes in priorities. Moreover, any tradeoffs between different programs may minimize rate hikes while still guaranteeing that budgets reflect asset criticality to maintain essential services.
CONCLUSION Understanding your community’s LOS will help to balance financial constraints with the delivery of essential services, promoting financial stability and sustainable community development. However, achieving this balance takes time. By considering the three-step process outlined above, financial managers can accurately prioritize critical projects while maintaining transparency and accountability in their community’s municipal governance. Read more about how Citywide Assets can help streamline your operations by enhancing municipal communication and decision-making.
Conversely, council members and executive staff often focus on customer levels of service as these measurements approximate how likely the municipality is to achieve its long-term objectives and describe current public satisfaction levels.
Step 3: Adjust LOS to Produce a Funding Strategy The goal of creating a funding strategy is to establish a sustainable asset management program that supports affordable service delivery. The funding strategy synthesizes the findings of the current state assessment and internal and external feedback, providing direction on long-term budgeting and financial planning.
DECEMBER | 2023
JEFF MUIR is a Regional Manager at PSD Citywide.
As Regional Manager, Jeff leverages his 13+ years of experience in asset management software and consulting to help clients overcome business challenges by using technology to deliver real, lasting results. Jeff’s focus is working with clients to evaluate their unique needs and consulting on how they can make practical and meaningful advancement in their practices related to asset management, maintenance management, permitting, and budgeting.
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EXHIBITOR ARTICLE | DENNIS PARKER
BUSINESS EMAIL COMPROMISE BUSINESS EMAIL COMPROMISE (BEC) CAN BE ONE OF THE MOST HARMFUL FRAUD SCHEMES FOR ANY BUSINESS. ACCORDING TO A 2020 CANADIAN BANKERS ASSOCIATION (CBA) ARTICLE THIS TYPE OF FRAUD HAS COST BUSINESSES WORLDWIDE, INCLUDING CANADIAN BUSINESSES, MORE THAN $5 BILLION DOLLARS.
HOW DOES BEC WORK? BEC is a targeted attack where fraudsters can spend weeks gathering information from your company’s website, social media, and other reliable sources. Once enough information has been gathered a fraudster will proceed to impersonate one of your senior leaders with a spoofed email (an email manipulated to appear like it is coming from a trusted source) sent to the accounting or finance team. This email will likely come in as an urgent request, asking for confidential information or the individual to pay an invoice.
RED FLAGS • Out of the ordinary email asking employees to act urgently or confidentially. • Requests for private or financial information such as account numbers, passwords, and details. • Requests for payment changes or updates to existing vendors or employee information. • What are some steps you can take to protect your business?
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• It is easy for fraudsters to spoof an email address. Do not assume this form of communication is always a secure way of communicating; requiring two forms of communication is a smart process. Consider contacting existing information on file. • Establish policies and procedures within your business to verify payments. For example, wire payments or other forms of electronic transfers and encourage employees to question unusual requests. • Ensure all systems, networks and programs are secured with up-to-date anti-virus software. • On-going employee fraud education training. If your company has been the victim of BEC, contact your relationship manager at your financial institution immediately, inform your IT department and report the incident to the authorities.
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We’re highly specialized, yet completely down-toearth.
For further information, please read the following article at the Canadian Bankers Association website: https:// cba.ca/protecting-your-business-frombusiness-email-compromise-fraud
DENNIS PARKER is the Vice President, Business Banking Deposits and Cash Management Services, for TD Business Banking. Dennis and his team deliver a wide range of ‘value add services’ to TD’s Commercial Banking customers. During his 30+ years with TD Bank Group, Dennis has held a number of roles in commercial lending and has spent nearly 20 years focusing on Cash Management and Deposit services. He has participated in many industry initiatives which seek to improve the lives of business and retail customers across Canada with new payment opportunities. In his current capacity he is responsible for Product Management and on-going development of industry-leading Deposit and Cash Management Services. These services improve the ability of TD customers to operate their business more efficiently and to maximize the value of their deposit balances.
DECEMBER | 2023
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EXHIBITOR ARTICLE | JEN NICHOL
WORKSAFEBC’s PROPOSED POLICY IN RESPONSE TO BILL 41 IN NOVEMBER 2022, THE BRITISH COLUMBIA LEGISLATURE PASSED THE WORKERS COMPENSATION AMENDMENT ACT (NO. 2), 2022, OTHERWISE KNOWN AS BILL 41. THE CHANGES OUTLINED IN BILL 41 TAKE EFFECT ON JANUARY 1, 2024, AND TO PROPERLY SUPPORT THE NEW LEGISLATION, WORKSAFEBC IS PROPOSING SEVERAL ADDITIONS AND CHANGES TO EXISTING POLICY. THIS ARTICLE WILL SERVE TO EXAMINE THE PROPOSED CHANGES, PROVIDE CLARITY ON THE LANGUAGE AND TERMINOLOGY, AND EXPLAIN HOW THE AMENDMENTS WILL IMPACT EMPLOYERS AND WORKERS.
The changes proposed by WorkSafeBC can be summarized as four brand new policies, and a small number of amendments to existing policy to support the changes and provide consistency throughout. The four proposed additions to WorkSafeBC’s policy manual, the Rehabilitation Services and Claims Manual, Volume II (RS&CM), are as follows: • Introduction to Return to Work Obligations • Duty to Cooperate • Duty to Maintain Employment • Penalties for Failure to Comply with Duty to Cooperate and the Duty to Maintain Employment • Changes to existing policy can be found within the Rehabilitation Services & Claims Manual (RS&CM), as well as WorkSafeBC’s Assessment Manual: • Removal of policy #34.11, Selective/Light Employment, from the RS&CM • Amendment to policy APS-243-1, Assessment Payments, of the Assessment Manual By looking at the four new additions proposed by WorkSafeBC and subsequently reviewing what will be removed or amended, TeksMed delves into what exactly each change means and what repercussions can be
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expected by the employers and employees of BC. These details can be found at the TeksMed website here: https:// teksmed.com/worksafebcs-proposed-policy-in-responseto-bill-41/ While the legislative changes introduced in Bill 41 are certainly important, these additions largely solidify what many employers were already practicing. In our experience as a disability management consultancy, we know that employers are not looking to ignore workers who are off work, delay return to work efforts, or refuse cooperation in any way – quite the opposite. It is heartening to know that there is now a legal obligation for the injured worker to actively participate in their own occupational rehabilitation, with incentive to accept suitable work offers. The Duty to Maintain Employment also echoes what was already recommended best practice; it has never been a wise idea to eliminate an injured worker’s chances to return to their pre-injury work, nor to terminate their employment while on a claim. The introduction of a finite timeline of two years is surely a welcome relief to those employers who have made all efforts to return an off-work employee to their regular duties for several years. We look forward to seeing how WorkSafeBC’s consideration of feedback provided by TeksMed and numerous other interested parties impacts the final published policy. If there are any significant changes to the policy as currently exists, rest assured that TeksMed will be here to help employers understand the impact to their success.
Public procurement for all of Canada. Don’t let procurement stress you out. Whether it’s furniture, supplies, software, or technology, Canoe provides you with compliant procurement solutions and competitive pricing, so you can focus on what matters most.
canoeprocurement.ca JEN NICHOL, Communications & Business Support Manager, at TeksMed Services began her career in the disability management industry six years ago and has since become intimately familiar with the various workers’ compensation systems across the country. Her expertise and passion for writing make her a fantastic educator on the best practices of occupational disability management.
DECEMBER | 2023
SPONSOR ARTICLE | JAMIE BLACK
DISCOVERY AS A FOUNDATION FOR SUCCESS WHY IS DISCOVERY SUCH A CRUCIAL STEP? Discovery sessions are key to ensuring that a project will result in the desired outcome for our clients, our partners, and ourselves. They provide a forum for all stakeholders to build a common understanding of the challenges of the current processes and tools; the needs to be addressed by the solution; project objectives; and potential hurdles and pitfalls. A productive discovery session resolves misunderstandings and sets the tone for open, clear, and consistent communication. It is a critical first step to ensuring team buy-in and is essential to maximizing the project’s benefits.
HOW CAN WE ENSURE A FRUITFUL AND EFFECTIVE DISCOVERY SESSION? Have the right people in the room. First and foremost, include those in the trenches who perform the process. Only they can offer an intimate look at process details; practical
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feedback regarding the shortcomings, nuances, and time requirements of the current approach; and a thoughtful wish list of essential features in a new solution. They will ask the right questions, and their answers will provide invaluable insight. Next, be sure to include senior management and business process owner(s). These are the people who understand the big picture—political implications, budget and time constraints, your organization’s vision, and overall goals. They can speak to how process challenges impact the execution of your organization’s strategy. Be completely candid. The discovery session should be a safe place to voice concerns and provide honest feedback, even if the conversation becomes uncomfortable. Are you shortstaffed? Is your team relatively inexperienced? Are they lacking technological savvy? The more we understand your true challenges, the better we can design an implementation plan to tackle them.
GFOABC.CA
IF WE DON’T INCLUDE THE RIGHT PEOPLE, WHAT COULD GO WRONG? In a word, everything. Without the right people in the room, you risk wasting countless hours and hundreds of thousands of dollars. Failing to reveal key considerations up front can lead to process gaps you may not have the budget to fix. You might end up having to change or shrink the project’s scope. You might have installed the wrong software and be forced to start over. Worst case scenario, your implementation could result in complete failure. After all, a whopping 70 percent of IT projects fail. Change management research has revealed that a significant change without input from your whole team will likely engender frustration and resentment, creating project adversaries instead of advocates. Learn more about managing change (https://blog.fhblackinc.com/changemanagement-overview)
IF WE PRIORITIZE DISCOVERY, WHAT COULD GO RIGHT? When all stakeholders have a voice in discovery and project goals are on target, everyone wins. As the US Navy Seals say, “Slow is smooth, smooth is fast.” When you focus on conducting each step of the implementation— starting with discovery—correctly and completely, you will see your desired results more quickly. Take your time. Do it once; do it right.
What We Do We help public sector finance, budget, and audit departments select, customize, and implement the best technology for their needs, while streamlining business processes.
Why Choose Us? Our Team • CPAs & tech experts • Budget Book/ACFR/CANFR Award reviewers
Our Experience • 50+ yrs in public sector finance • 30+ yrs in custom solutions • 100+ yrs in IT consulting
Our Results JAMIE BLACK , President, FHB. For more than
30 years, Jamie has analyzed needs, redesigned processes, and implemented custom solutions to help finance professionals across Canada and the US improve efficiency and effectiveness. He is a Canadian Association of Government Finance Officers (CAGFO) board member and a regular trainer/speaker on process automation, internal controls, data analytics, and effective communication.
• 700+ satisfied clients • 1,000+ projects completed • 99.8% client retention rate “FHB understood our goals and objectives and got us operational very quickly. We continue to receive excellent support from them. They go above and beyond…” Nicole Adams, CGA, Associate Director of Finance, University of the Fraser Valley, BC
DECEMBER | 2023 www.fhblackinc.com | +1 844 852 5225 | info@fhblackinc.com
SPONSOR ARTICLE | SYLOGIST
7 SIGNS YOUR LOCAL GOVERNMENT ERP IS HOLDING YOU BACK: A GUIDE FOR SMALL MUNICIPALITIES LOCAL GOVERNMENTS AND MUNICIPALITIES WITH A POPULATION UNDER 200,000 FACE UNIQUE CHALLENGES IN MANAGING THEIR OPERATIONS EFFICIENTLY AND EFFECTIVELY. TO STREAMLINE THEIR PROCESSES, MANY RELY ON ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS TAILORED TO THEIR SPECIFIC NEEDS. HOWEVER, NOT ALL ERP SYSTEMS ARE CREATED EQUAL, AND SOME MAY HINDER PROGRESS RATHER THAN SUPPORT IT. IN THIS BLOG, WE WILL EXPLORE SEVEN TELLTALE SIGNS THAT YOUR LOCAL GOVERNMENT ERP IS HOLDING YOU BACK AND DISCUSS THE IMPORTANCE OF UPGRADING TO A MORE SUITABLE SOLUTION.
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1. OUTDATED TECHNOLOGY: Is your current ERP system running on outdated technology? If you find yourself struggling with slow response times, frequent system crashes, or compatibility issues with modern devices, it’s a clear indication that your ERP is limiting your productivity and frustrating your staff. Upgrading to a more advanced and up-to-date ERP solution can provide the technological foundation you need to thrive.
2. LACK OF INTEGRATION: Local governments often deal with multiple departments, such as finance, human resources, public works, and utilities. If your ERP lacks seamless integration between these departments, it can lead to data silos, inefficiencies, and increased manual work. An integrated ERP solution designed specifically for local governments can streamline processes, improve collaboration, and provide a unified view of your municipality’s operations resulting in a single source of truth. GFOABC.CA
3. LIMITED REPORTING AND ANALYTICS:
7. LIMITED SCALABILITY AND FLEXIBILITY:
Do you find it challenging to access real-time insights and generate accurate reports from your current ERP system? Local governments need data-driven decisionmaking capabilities to allocate resources effectively, plan budgets, and assess performance. If your ERP lacks robust reporting and analytics features, it’s a sign that you’re missing out on critical information needed for strategic decision-making.
As your municipality grows, your ERP system should be able to scale and adapt to your evolving needs. If your current ERP lacks scalability and flexibility, it can hinder your ability to handle increased data volumes, expanding departments, or changing regulations. Investing in a scalable ERP solution designed for small municipalities ensures that you can grow without technological limitations.
4. INEFFICIENT PERMITTING AND LICENSING PROCESSES: For local governments, permit and licensing processes are vital for economic growth and community development. If your current ERP system fails to streamline these processes, resulting in delays, errors, or excessive paperwork, it’s time for a change. A modern ERP solution can automate workflows, digitize forms, and enable online self-service portals to improve citizen experience and expedite approvals.
5. LIMITED CITIZEN ENGAGEMENT:
If your local government ERP is holding you back with outdated technology, limited integration, inefficient processes, and inadequate features, it’s time to take action. Upgrading to a modern and tailored ERP solution for local governments - like SylogistGov built on Dynamics 365 Business Central - can unlock your municipality’s true potential, streamline operations, enhance citizen engagement, and empower your community. Embrace the future of efficient governance by investing in an ERP system that propels your municipality forward. Remember, the success of your local government starts with choosing the right ERP solution.
Engaging citizens and fostering transparency are crucial for local governments. However, if your ERP lacks citizencentric features such as online portals, and self-service options, you’re missing an opportunity to enhance citizen participation and improve satisfaction. Upgrading to an ERP solution with citizen engagement capabilities can empower your community, increase transparency and collaboration, and promote active involvement.
6. INADEQUATE SECURITY AND COMPLIANCE: With the ever-increasing threat of cybersecurity breaches, local governments must prioritize data security and compliance. If your current ERP system lacks robust security measures, including user access controls, encryption, and audit trails, it puts your municipality’s sensitive information at risk. Upgrading to a secure ERP solution built with stringent security standards can safeguard your data and ensure compliance with regulations.
DECEMBER | 2023
To learn more about SylogistGov: sylogist.com/sylogistgov-erp
DOLLARS & SENSE PRESPECTIVE | 35
MEMBER ARTICLE | VANESSA GREEN
GFOABC ONLINE FORUMS WHY DO YOU COME TO THE FORUM? Like most others, I go to the Forum to see if there’s information regarding a certain topic or issue I’m currently work on. It also provides a bit of a pulse check to see what’s going on with other municipalities and reminds me I’m not alone in this crazy world of municipal finance.
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GFOABC.CA
IS LOGGING ON PART OF YOUR DAILY ROUTINE? I don’t log on every day; however, I do receive email notifications when a new comment is posted, which is a great reminder to check in and stay connected. Email notifications are also great as I can forward them to a colleague if I think they might be interested in the discussion topic.
WHAT FEATURES OF THE FORUM DO YOU USE THE MOST, (POSTING DISCUSSIONS, COMMENTING ON EXISTING DISCUSSIONS, SEARCHING THE DATABASE FOR INFORMATION, ETC.)? I mostly use the forum to search the database for information. I’ve found discussions from past years that have been really helpful. However, I also really appreciate the lighthearted postings, especially by Mike Kennedy, which help to remind me not to take things too seriously. I also really like the hi-lite feature that indicates when there’s a new reply on a discussion thread.
WHAT ARE SOME OF YOUR PERSONAL BEST PRACTICES WHEN IT COMES TO ENGAGING ON THE FORUM? I try to keep postings short and to the point, as well as provide links or attach documents for others to access if applicable. There’s also a component of self-compassion that I practice too. Sometimes I struggle with “posting remorse” where after hitting the post button I wonder if I commented too much, not enough, or if I even interpreted the question correctly. That’s when I take a deep breath, say a few reassuring words to myself and then take a moment to feel good about contributing to the wealth of knowledge shared by the GFOABC community.
HOW DO YOU THINK EXPANDED ENGAGEMENT ON THE FORUM AMONG GFOABC MEMBERS CAN HELP THEM IN THEIR DAY-TO-DAY WORK? The Forum has been an essential resource since I first started working at the City of Campbell River. Whenever an issue has come up and that question of “where do I even start?” enters my mind, I’m immediately put at ease knowing the Forum is there. Even if the answers aren’t readily available, it provides a means to reach out to others who can possibly provide answers or give some guidance and direction. Expanded engagement on the Forum helps to build the diverse pool of knowledge and experience, but it also helps to reinforce that sense of community. Whether working in a small, remote town, or for a large municipality, we can all feel alone, isolated, and overwhelmed. Taking the time and effort to engage on the forum can help members to feel connected and supported with their day-to-day work.
VANESSA GREEN is the Accountant III at the City of
Campbell River. She has held his position for the past five years and is mainly responsible for compiling the annual budget, capitalizing tangible assets and most recently, diving into the fantastic world of asset management. .
DECEMBER | 2023
DOLLARS & SENSE PRESPECTIVE | 37
QUARTERLY QUESTION | CIVIC INFO BC
?
quarterly question
FINANCE DEPARTMENT STAFFING IN THE SEPTEMBER ISSUE OF DOLLARS & SENSE PERSPECTIVE GFOABC AND CIVICINFO BC INITIATED A SURVEY ON FINANCE DEPARTMENT STAFFING IN LOCAL GOVERNMENTS ACROSS BC. THE RESULTS REVEALED A HOST OF CHALLENGES AND INTRIGUING TRENDS. THE SURVEY HAD A ROBUST 64 PER CENT RESPONSE RATE, AND SHEDS LIGHT ON THE STAFFING LANDSCAPE - PROVIDING VALUABLE INSIGHTS FOR DECISION-MAKERS. One notable finding is that 34 per cent reported being understaffed compared to their budgeted full-time equivalents (FTEs). The survey reveals hiring and retaining staff in finance departments present multifaceted challenges. These factors contribute to the complexity of attracting and keeping qualified finance professionals. The graph below shows the notable challenges faced by local governments. In the “Other” category respondents emphasized two main themes: the lack of a flexible working environment and the scarcity of housing.
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GFOABC.CA
The survey also asked about length of service in local government finance departments. Notably, 57.85 per cent of local governments report at least one staff person with a tenure of one year or less, while 60.33 per cent report at least one staff person with a tenure of one year to less than three years. This suggests a dynamic employment landscape with turnover and potential challenges in retaining experienced staff.
The survey also investigated forthcoming retirements in local government finance departments. The data reveals that 37.19 per cent of local governments report at least one staff person retiring in one year or less, emphasizing a potential need for succession planning.
The survey paints a vivid picture of the challenges and trends in finance department staffing across BC’s local governments. As municipalities navigate these complexities, the data offers valuable benchmarks and insights for effective workforce management and strategic planning in the finance sector. The need for flexibility, competitive housing options, and proactive succession planning are highlighted as critical areas of attention in ensuring stable and competent financial operations in the years to come.
Detailed results for this survey can be obtained by emailing surveys@civicinfo.bc.ca
THE NEXT QUARTERLY QUESTION SURVEYS THE EFFECT OF INFLATION ON LOCAL GOVERNMENT BUDGETS
DECEMBER | 2023
Please use this link to be a contributor. This short survey should only take 3-5 minutes to complete. If you would like to contribute topics for upcoming questions, please contact office@gfoabc.ca or call (250) 382-6871.
DOLLARS & SENSE PRESPECTIVE | 39
MEMBER SPOTLIGHT | CAROLYN BROWN
STRATEGIC FINANCIAL LEADERSHIP The role of a government finance professional is one of constant change and challenge. The Strategic Financial Leadership Program is designed to give high-potential, established and emerging local government finance professionals a chance to level up their leadership and expand their network. It is part of the network of leadership tools GFOABC has built to support local government finance excellence, including the Leadership Competency Framework and the Next Level Finance Tool. GFOABC members can find the Leadership Competency Framework and the Next Level Finance Tool documents in Memberlink at the GFOABC website.
In this 10-month, cohort-based program, a blend of inperson workshops, virtual meetings, one-on-one executive coaching, self-guided learning, and cohort collaboration are supporting participants as they develop leadership competencies, build relationships, and make a bigger impact on their organizations and their communities. To demonstrate the value of the pilot to date and a sliver of the experience of the nine-person cohort at the half-way mark, we have asked Carolyn Brown, CFO at the Town of Golden to answer a few questions. Carolyn has held this position for almost two years, having been previously Golden’s Deputy CFO for almost seven years.
WHAT MADE YOU WANT TO APPLY FOR THE STRATEGIC FINANCIAL LEADERSHIP PROGRAM? I love to learn, so I think I’m always looking for different ways to grow and develop my professional skills. I’ve attended Bootcamp and gone to conferences and courses offered by GFOABC and CPA amongst others – all of which provided great opportunities for course work and networking – but this new program really seemed to offer something different and exciting. The focus on strategic leadership was something I hadn’t seen offered before and I must admit that the access to executive coaching was way too exciting to pass up. The most appealing part for me though was the ability to integrate a reallife proje ct into the program. Making time for courses and learning over and above an already heavy workload can sometimes feel daunting, so I was really excited to see how this program would support me in a real-work proje ct and provide networking, mentorship, and strategic leadership growth.
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GFOABC.CA
AS THE CFO OF A LOCAL GOVERNMENT, YOU BALANCE MANY RESPONSIBILITIES. HOW HAVE YOU FOUND ADDING STRATEGIC FINANCIAL LEADERSHIP TO DEMANDS OF YOUR JOB? I think one of the most interesting and innovative parts of this program is that it supports your professional development goals through a project that is directly relevant and integral to the job you are already doing. I’m always working towards goals within my role as a finance officer – developing policies, improving processes, adapting to new requirements – all of these are day-today challenges that we face. This program has helped me take one of those projects and focus on it with the added benefit of a cohort of other municipal finance professionals. My cohort meets informally and discusses the program, which is very valuable. Furthermore, having a mentor with extensive related experience, an executive coach to support my personal development, and the amazing and consistent support of the facilitators - Brittney Dawney and Emily Lewis – has enriched the program beyond my expectations. The way that the program is set up makes me feel like my growth and development is being supported through a stronger focus on existing work and projects, rather than adding an unrelated project on top of an already significant workload.
CAROLYN BROWN , CPA, CGA is the CFO at the Town of Golden. She has held this
position for almost two years, having previously Golden’s Deputy CFO for almost seven years. Prior to joining the Town of Golden Carolyn worked as an accountant in private industry.
DECEMBER | 2023
HOW IS IT THE SAME AND DIFFERENT FROM OTHER TRAINING OR DEVELOPMENT OR EDUCATION YOU HAVE COMPLETED? You might laugh (or cringe) but I think that the collaborative nature of the cohort could be compared to university “group work” – but this program is so much better in so many ways! Instead of working on one project together, you each have your own project and development goals, but you have a core group of other finance professionals with which to connect and work. The ability to build relationships, discuss what you’re working on or the challenges you’re facing, and learn from others with a wide variety of backgrounds is truly one of my favourite parts of this program. Professional development is often done in a straight line. Take the course, attend the conference, go to the webinar. This program doesn’t have that rigid type of structure to fall back on, which is challenging and rewarding as it really mirrors what it is like in the workplace.
The EOI for our next cohort is open now. For more information, click here: https://www.gfoabc.ca/events/ strategic-financial-leadership/
!
IF THERE IS SOMEONE IN YOUR ORGANIZATION THAT YOU’D LIKE TO RECOGNIZE IN THE NEXT MEMBER SPOTLIGHT, LET US KNOW. Contact office@gfoabc.ca.
DOLLARS & SENSE PRESPECTIVE | 41
COLLECTOR’S CORNER | DOUG STEIN
Collector’s Corner:
TO APPORTION OR NOT TO APPORTION?
APPORTIONMENT IS THE RE-DISTRIBUTION OF THE ASSESSMENT VALUES AND PROPERTY TAXES OF A PROPERTY (THE PARENT) TO NEWLY CREATED PARCELS (THE CHILDREN) WITHIN THAT PROPERTY. THIS IS DUE TO A SUBDIVISION, AND SOMETIMES CONSOLIDATION, OF ONE OR MORE PROPERTIES, INCLUDING WHEN STRATA UNIT PARCELS ARE CREATED WITHIN A PROPERTY. Legislation for apportionment of taxes is found in the Community Charter S242 and 246. Property taxes are levied on parcels based on the assessed values per the assessment roll. When taxes are levied, there is no need for apportionment – until: Situation #1 - CC S242 states “(1) If a plan of subdivision is deposited in the land title office after November 30 in any year and before June 1 in the next year, the collector may (a) apportion the property value taxes payable in that next year between the parcels created by the subdivision in the same proportions as taxes would have been payable in respect of the parcels had the subdivision occurred on or before November 30 in the first year…” Since the legislation states “may apportion”, the collector has a choice. Apportionment benefits a new owner who, if eligible, would be able to claim a home owner grant for that year. However, particularly with large condo strata properties, apportioning the taxes requires time and resources, including having to generate a new tax notice for each child parcel. If the collector chooses to apportion the taxes, then S242(3) states “the assessor for the area in which the land is located must provide the collector with the assessed values necessary to calculate the proportions of taxes referred to in subsection (1).” What is the method used by the assessor to determine the assessed values for the child properties? The assessor prorates the land assessment based on the land area and adds the applicable improvement assessments to each
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respective new lot. For example, a vacant lot subdivided into a two-lot subdivision – 50/50 apportionment. Or, for a 20-unit condo, the land value is divided by 20 and the improvement value of each strata parcel is based on the unit value of each condo. The apportionment is based on the parent property’s assessed values. BCA does not reassess the child properties to current values. The total of the apportioned assessments and taxes are equal to the assessments and taxes of the parent property. The process to apportion is: add the new children folios, apportion the assessments and taxes from the parent property to the child properties, make the parent folio inactive (but not delete the parent property), confirm the current owners of the child properties, and send out amended tax notices. Situation #2 – Say a folio has outstanding property taxes as of December 31 but on the newly completed assessment roll that parent folio has been deleted due to the addition of subdivision and child folios to the roll. What to do? CC S247 states, “the collector must apportion taxes in arrear and delinquent taxes in the same proportion as the assessment for each new parcel bears to the total assessment.” So, after the year end rollover to the new tax year, the outstanding taxes of the parent parcel are prorated, based on the new assessments of the child parcels and transferred to the child parcels. The parent property is then made inactive. Any unpaid arrears taxes on the child properties will be reported on the current year property tax notice. Or you can send out an outstanding tax notice now to inform the new owners of their share of the unpaid apportioned taxes. Happy apportionments!
DOUG STEIN has worked in municipal finance for
over 30 years. In 2011 he retired from his position as Manager of Revenue Services for the District of Saanich. Doug leads the Collectors’ Forum, is a GFOABC Life Member, and a CPA, CMA.
GFOABC.CA
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DECEMBER | 2023
DOLLARS & SENSE PRESPECTIVE | 45