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HomeMy WebLinkAboutKIN 83 4566 Agree-Prov/ BACPAC . . CORPORATION OF THE TOWN OF KINCARDINE BY-LAW NO. 4566 A BY-LAW TO AUTHORIZE THE MUNICIPALITY TO ENTER INTO AN AGREEMENT WITH THE PROVINCE OF ONTARIO FOR THE INSTALLATION OF A BASIC ACCOUNTING SYSTEM BACPAC. WHEREAS the Council of the Town of Kincardine deems it expedient to enter into an Agreement with the Province of Ontario for the installation of a basic system of accounting and for the payment by the province of a grant in aid for such installation. NOW THEREFORE the Council of the Corporation of the Town of Kincardine ENACTS as follows: 1) THAT the head of council and the clerk be and are hereby authorized to sign an Agreement with the Province Of Ontario for the 1984 installation of the BACPAC system of accounting and for the payment by the province to the municipality of a grant in aid. 2) THAT this by-law shall be effective on the date of third and final reading thereof. READ a FIRST AND SECOND TIME this 20th day of October, 1983. ~~~~ Mayor ~ nz..,~1 Clerk READ a THIRD TIME and FINALLY passed this 20th day of October , 1983. ~~ .:.- - ~ - _f _ . ~ ~# 71j"M¿q /' ...- Clerk - Mayor :::- --- .-".- --'-,-\.- MINISTRY OF MUNICIPAL AFFAIRS AND HOUSING MUNICIPALITY'S AGREEMENT 'IHIS ÞGREEMENl'made in quadruplicate thisJO-lf day o~, 1983. BE'IWEEN: HER Ml'0ESTY TIlE QUEEN, in right of the Province of Ontario as represented by the Minister of Municipal Affairs and Housing, hereinafter referred to as the "Ministry", OF TIlE FIRST PARI', AND: 'mE 'lWN OF KINCARDINE hereinafter referred to as the "Municipality", OF 'IHE SECOND PARI'. WHEREAS as part of the Ministry's program Municipal Action '85, the Municipality has undertaken the implementation of the Basic Accounting Package (hereinafter referred to as "BACPAC") project, hereinafter called the "Project"; it being understood and agreed however, that where there is a oonflict or discrepancy between any term or oondition in this 1\greement and that of the BACPAC Check List marked "Appendix A" and attached hereto, the term or oondition of this 19reement shall prevail; AND WHEREAS the Municipality by by-law No. 4566 passed on the 20th day of the Cle:rk , 1983, has authorized the Mayor of the said 11unicipality to execute this and Octd:Jer 1\greement on behalf of the Municipality; NaŸ 'IHEREroRE WI'INESSE'IH lHAT in consideration of the premises and covenants contained herein the parties agree as follows: L It is agreed that the Municipality will undertake the Project in accordance with the estimate of fees and expenses attached hereto and marked "Appendix B" and forming part of this 1\greement. 2. It is agreed that the ccrnpletion date of the project shall be the 30th day of June , 1984 on or before which date the Municipality shall have reviewed all of the chapters set out in the BACPAC manuals incllrling those with respect to year-end reporting which may rot or cannot take place until the first four to six months of 1985. 3. (a) '!he Municipality agrees to provide the Ministry with periodic reports as support for the Ministry's payments and to ensure that BACPAC is being implemented. '!he reports will be in the form as set out in "Appendix A". (h) '!he interim report will be required on or before the 1st day of March , 1984. '!he final report will be required on or before the 30th day of June , 1984. " !... .' - 2 - (c) It is further understood and agreed that the Ministry in its absolute discretion may find the reports referred to in (a) and (h) of this section to be unacceptable and may request further explanation as it oonsiders appropriate. 4. It is agreed that the Ministry will contribute the lesser of the total cost of the Project or Five Thousand Dollars ($5,000.00) which sum shall be allocated in the following manner: (a) A payment of up to Two Thousand Five Hundred Dollars ($2,500.00) may be made by the Ministry upon receipt and approval by the Ministry of the l<Linicipali ty I S interim report. (h) A further sum of up to Two Thousand Five Hundred Dollars ($2,500.00) or the unpaid balance due and payable under this Agreement may be made by the Ministry when it is satisfied that implementaticn by the Municipality has been canpleted. (c) Notwithstanding the total cost of the Project, the said Five Thousand Dollars ($5,000.00) payable by the Ministry may be applied both to professional fees and other expenses, specifically charges for one-write systems including boards, storage trays and related stationery and other stationery including journals and ledgers. 5. '!he Municipality shall sul:Jni t invoices wi th supporting information to the Ministry in a fOlJll satisfactory to the Ministry. 6. '!he 11inistry shall receive copies of all reports incllrling copies of the systems and procedures documentation and oopies of reports generated, charts of accounts and other documents prepared by or for the Municipality in the oourse of carrying out the project and the Ministry may make this documentation available at 00 charge to any other municipality in the Province to assist those other municipalities in the installation of their own systems. 7. lbe Municipali ty shall indemnify and save harmless the Ministry fran and against all claims, actions, losses and expenses, oosts or damages of every nature and kind whatsoever which may be occasioned as a result of the negligence of the Municipality or any oonsultant or agent retained by the Municipality in connection with the Project. 8. '!he Ministry may at any time by written ootice of at least ten (10) working days, suspend or terminate this 1\greement. 9. Any notice herein provided for or given hereunder if given by the Ministry to the Municipality shall be sufficiently given if mailed to the Municipality by prepaid registered post addressed to: T<:7.Im of Kincardine Box 329 707 Queen Street Kincardine, Ontario NOG 2GO - 3 - 10. Any notice herein provided for or given hereunder if given hy the Municipality to the Ministry shall be sufficiently given if mailed to the Ministry by prepaid registered post addressed to: Mr. Alec Trafford Director Municipal Management Policy Branch Ministry of Municipal Affairs and Housing 3rd floor, Mowat Block Queen's Park 'lbronto, Ontario r-rlA lC2 11. Any ootice shall be deemed to have been given on the date of mailing. Either the Ministry or the Municipality may at any time give notice in writing to the other of any change of éðdress of the party giving such notice and after the giving of such notice the address therein specified shall be deemed to be the éðdress of such party for the giving of such notice thereafter. 12. This Agreement or any portion hereof shall not be assigned without the consent in writing of the Ministry. 13. This 1\greement supersedes all previous 1\greements, arrangements or understandings between the parties, whether written or oral in connection with or incidental to the Project. 14. '!his 1\greement shall be deemed to have cx:me into force and effect on the 1st day of January ,1984 and will terminate on the 30th day of June , 1984. IN WI'lNESS VlfERIDF Mr. Alec Trafford, Director, Municipal Management Policy Branch, has, on behalf of the Minister of Municipal Affairs and Housing on behalf of the Province of entario hereunto set his hand, and Mr. Charles Marm, Mayor and Mr. C. R. ~rritt, Cle:rk on behalf of the Þhmicipality, have hereunder set their hands. SIGNED, SEALED AND DELIVERED ) IN TIlE PRESENCE OF: ) ) wi ) ) ) ) ) : ~/ ~-~~ ) ~~f the Municipality ) ) ) ) ) ) ) Wi tness ~~ /~,--- W1 e-- ~ en beh of the Mini ter f Municipal Affairs and Housing / / - -:~~~ -2.::. "--' ~~A~ fi half of Municipal1ty - -' ~, . . . : . . . APPENDIX A BACPAC CHECKLIST (name of municipality) This checklist is designed to ensure that all the major elements of BACPAC have been implemented to the satisfaction of the municipality and the Province. A "no" answer to any point requires an acceptable explanation as to why a particular item has not been implemented. YES NO Chapter 1010 - Accountin 1; Activities I. The three basic activities have been explained and understood: - bookkeeping - accounting - auditing Chapter 1020 - Double Entry Bookkeepin 1; 2. The following have been explained and understood: - double entry concept - rules for debits and credits - dual entries for interfund transfers Chapter 1030 - Bases of Accountin 1; 3. The following have been explained and understood: (ï) Bases of Accounting: -cash - accrual - modified accrual - encumbrance or commitment - concept of cash versus accrual (ii) Classification and reporting of revenues and expenditures by: - function - subfunction or activity - object and sub-object - source of financing Chapter 1040 - Fund Accountin 1; 4. The principles, purposes and effects of fund accounting have been explained and understood particularly regarding: - revenue fund - reserve funds - capital fund - trust funds - dual entries for interfund transfers - requirements for interfund borrowings Chapter 1050 - Basic Journal Entries for Municipal Purposes 5. The following have been explained and understood: - types of entries unique to municipalities - the specific examples and account numbers used - the 'T' account postings and trial balance tapes Cha1ter 1060 - Books of Ori 1;inal Entry 6. i) The purpose, use and types of books of original entry have been explained and understood: . ~ .' ~""-o"o . . APPENDIX A BACPAC CHECKLIST (name of municipality) This checklist is designed to ensure that all the major elements of BACPAC have been implemented to the satisfaction of the municipality and the Province. A "no" answer to any point requires an acceptable explanation as to why a particular item has not been implemented. YES NO Chapter 1010 - Accounting Activities 1. The three basic activities have been explained and understood: - bookkeeping - accounting - auditing Chapter 1020 - Double Entry Bookkeeping 2. The following have been explained and understood: - double entry concept - rules for debits and credits - dual entries for interfund transfers Chapter 1030 - Bases of Accounting 3. The following have been explained and understood: (j) Bases of Accounting: -cash - accrual - modified accrual - encumbrance or commitment - concept of cash versus accrual (H) Classification and reporting of revenues and expenditures by: - function - subfunction or activity - object and sub-object - source of financing Chapter 1040 - Fund Accounting 4. The principles, purposes and effects of fund accounting have been explained and understood particularly regarding: - revenue fund - reserve funds - capital fund - trus t funds - dual entries for interfund transfers - requirements for interfund borrowings Chapter 1050 - Basic Journal Entries for Municipal Purposes 5. The foIlowing have been explained and understood: - types of entries unique to municipalities - the specific examples and account numbers used - the 'T' account postings and trial balance tapes Cha1ter 1060 - Books of Original Entry 6. ï) The purpose, use and types of books of original entry have been explained and understood: c " - 2 - . ~ (jj) The recommended minimum number of books have been designed, installed, and are operating effectively: - cash receipts - cheque register - payroll journal - collector's roll - tax receipts - general journal other (spedf y) . (Hi) The use of one-write systems has been investigated and the following one-write systems installed: (Specify books of original entry and ledgers (Chapter 1070» (iv) The books are balanced and posted monthly to the general ledger accounts (v) Postings are made to individual accounts in the sub-ledgers as soon as possible: - taxes receivable - tax arrears other (specify) Cha1ter 1070 - Ledl!;ers 7. i) The purpose, use and types of ledgers and sub-ledgers have been explained and understood. (H) The recommended minimum number of ledgers have been designed, installed, and are operating effectively: - general ledger for each fund - taxes receivable - tax arrears other ledgers and sub-ledgers (specify) . (Hi) The general ledger account numbers are consistent with the BACPAC model chart of accounts. (iv) Ledgers and sub-ledgers are balanced monthly. (v) Penal ties and interest on tax arrears are calculated and charged to individual accounts: - monthly - quarterly - yearl y YES NO . . '. " "~, . . - 3 - Cha1ter 1080 - Trial Balances 8. i) The purpose, use and types of trial balances have been explained and understood. (ii) The five basic reporting structures (IA' to 'E') have been explained and understood and a format adopted. (iii) The three types of adjusting entries have been explained and understood: - worksheet - general - internal fund (¡v) A general ledger trial balance is prepared each month. (v) The steps to locate errors in a trial balance have been explained and understood. Chapter 2010 - Cash Receipts 9. The following have been explained, understood and implemented: (¡) recording procedures (jj) control features (specify exceptions) Chapter 2020 - Cheque Disbursements 10. The following have been explained and understood: (i) flow of documentation (ii) recording procedures (iii) control features Chaïter 2030 - Petty Cash Fund 11. i) The purpose, use and types of petty cash funds have been explained and understood. (ii) The following have been explained, understood and implemented: - poliCy decisions on use - procedures to establish and reimburse - control features Chapter 2040 - Cash Mana~ement Procedures 12. The following have been explained, understood and implemented: - advantages of effective cash management - steps to improve cash management - monthly bank reconciliation - investment opportunities - requirements for interfund loans - steps to improve cash flow through tax billing and collection procedures - statute references and bulletins Cha1ter 2090 - Internal Control 13. i) The purpose, objectives and types of internal control have been explained and understood. YES NO . . ;. '. - 4 - , YES NO ":... (ij) The following areas of responsibility have been reviewed, explained and understood: - municipal staff and council - essential features of internal control . (Hj) The external auditor: - reviews and evaluates internal control - submits a management letter - discusses recommendations with council (iv) An effective system of internal control has been implemented Chapter 3010 - Taxation 14. The following have been explained and understood: - purposes for which mill rates are required - amounts to levy for each purpose - allocations to other bodies - assessment base used - mill rate calculations and differentials - recording procedures for taxes levied - tax billing requirements: . interim . final - statute references and bulletins Chapter 3020 - Payroll 15. The following have been explained and understood: - preparation and maintenance of a payroll journal and earnings record - recording and posting of payroll information - recording of employer's share of contributions - use of a payroll clearing account - preparation of T -4 slips - control procedures Cha1ter 3030 - Capital Transactions 16. j) The purpose and objectives of a capital budget have been explained and understood. (ii) The following have been explained and understood relative to capital transactions: - approvals required - determination of costs - methods of capital financing - capital budget formats - accounting procedures - control of financing requirements (iii) The municipality prepares: - a capital budget - a five-year capital forecast . Cha1ter 3090 - Budget Preparation 17. j) The basic procedures essential to effective budget preparation have been explained, understood and implemented. (ii) The following have been explained, understood and implemented: - preparation of detailed estimates - adoption of a budget format þ ;. . - 5 - , ""i-'>.,. . - compatability with the general ledger chart of accounts - requirements for local boards - allocations to other bodies - mill rate calculations - budgetary control procedures - budget calenclarization - capital budgets - reserve and reserve fund budgets - statutory requirements for surpluses/ deficits Cha ter 7010 - The Munici I Auditor 18. i The different nature of the three main services provided by the auditor have been explained and understood: - bookkeeping - accounting - auditing (ii) The role of the auditor is clearly understood, and the following have been explained and considered: - appointment, duties and rights - engagement letter - general preparation for the audit - specific requirements for: · interim audits · year-end audits - periodic meetings to discuss the results of the audit and any other matters Cha ter 7020 - In-Year Financial Re rtin 19. i) The purpose, use and benefits of in-year reports have been explained and understood. (ii) The following have been explained and understood concerning preparation of reports: - preparation on a monthly basis - adjustments required (cash to accrual) - inclusion of all funds and activities - preparation of calendarized budgets - formats based on user needs - review of variances - other internal reports . Chagter 7030 - Cash Flow Reporting 20. (i) The purpose, benefits and types of cash flow reports have been explained and understood. (ii) The following have been explained, understood and implemented: - purpose, preparation and use of: · calendarized budget on the accrual basis · calendarized cash flow budget - preparation of daily (weekly) cash summaries - preparation of monthly cash management report - difficulties in preparing cash budgets - inclusion of cash flows for aU purposes - types of report formats YES NO ~.- ...- , . . . - 6 - YES NO Cha ter 7040 - Year-End Financial Re rtin e purpose and types of year-end reports have been explained and understood. (ii) The following have been explained and understood concerning year-end reports: - responsibility for preparation - five basic steps for year-end close - review of examples given - formal year-end reports required - auditor involvement - publication of reports - statutory requirements ----, Chapter 8090 - BiblioJ:raphy 22. The list of publications has been reviewed and acquisitions recommended. Model Chart of Acounts 23. (i) The chapters on the chart of accounts have been reviewed, explained and understood. (H) A chart of accounts has been designed and implemented. (Hi) A copy of the chart of accounts is attached. INTERIM REPORT Date Municipal Treasurer Date Consultant FINAL REPORT Date Municipal Treasurer Date Consultant "'- ~. .~ APPEN>IX "8" . BASIC ACCOLtIfTING PACKAGE MU-OC:IPAL ACTION '85 ESTIMATE OF FEES AHJ EXPENSES (to be provided by the municipality) NAME OF cnn'RlCroR: GiJ:;b, Watson & Assoc. - Kincardine PIVftSSlOOAL FEES $5,000.00 $3,000.00 'lU1'AL AKXJN1' OF CPNI'RACl': The above fees and ~es include $2,000.00 for the autaoation of œrtain eu'l"-'uents of BACPJ\C, the oost of which is not eligible for grant under the MJnicipality's MJnicipal Action I 85 Ayn.enent with the Provinœ. .