Sixteen Mile Sports Complex | Officially opened ... - Oakville

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Comprehensive Financial Managementand Planning PoliciesOverviewThe management of the Corporation of the Town of Oakville is responsible for the integrity, objectivity and accuracy ofthe financial information presented in our financial statements.In order to meet its responsibility for presenting accurate information, management maintains comprehensive financialand internal control systems. These systems are designed to ensure the safeguarding of assets and the integrityof the financial data. The control systems provide an organizational structure, which effectively segregates responsibility,employs highly qualified professional staff, and develops corporate policies and procedures, which are continuouslyreviewed.Financial managementThe Town of Oakville prepares its financial information inaccordance with the Canadian Public Sector AccountingStandards and prescribed policies issued by the Ministryof Municipal Affairs and Housing. The town’s sources offinancing and expenditures are recorded using the accrualbasis of accounting. This basis recognizes revenuesas they are earned and measurable, and expendituresas they are incurred and measurable as the result ofreceipt of goods or services and the creation of a legalobligation to pay. This is also the basis for developing thetown’s budget.In municipal financial operations, monies raised orsupplied for one purpose cannot be used for any otherpurpose. Legal restrictions and contractual agreementsprevent it from being used or diverted to any otheruse. Fund accounting shows that the money has beenused for its intended purpose. The funds used by theTown of Oakville are the operating fund, capital fund,reserve funds and trust funds. These funds are usedfor budget purposes and for day-to-day financialmanagement. The 2010 financial statements are fullycompliant with PSAB 3150 Tangible Capital Assetsand are not presented by fund, but on a consolidatedfund basis.Another element of financial management is to ensurethe financial stability of the corporation. By lookingforward and preparing for future needs, the town isable to deal with legislative changes, the impact ofgrowth, and changes in the economic climate withoutsignificantly impacting the tax rate.Town of Oakville 2010 Annual Report | 18
Financial policiesThe following financial policies establish the frameworkfor the Town of Oakville’s overall fiscal planning andmanagement. The success of the town’s budget processrests on a solid foundation of budget principles. Theseprinciples may be summarized as follows:1. SustainabilityThe annual budget incorporates a long-term perspectiveand should be affordable today and in thefuture. The town’s budget shall be in compliance withthe Municipal Act and thus must be balanced and shallnot plan for a deficit. The use of one-time revenuesshall not be incorporated into the town’s base budgetand revenue diversification should be maximized.2. InterdependencyThe operating and capital budgets must be reviewedwith a coordinated effort. It must be recognized thatcapital expenditures, financing decisions and strategieswill impact on future operating budgets.3. AffordabilityThe assumption of new assets and infrastructure andthe replacement of existing assets will be well planned,and appropriate financing strategies and means will beutilized to minimize the financial impact and ensurethat the tax rate is maintained at manageable levels.Growth related infrastructure is funded primarilythrough development charges in accordance with theDevelopment Charges Act. Funding for non-growthinfrastructure is funded through tax revenues. Thetown prepares multi-year operating and 10-year capitalforecasts to evaluate the town’s ability to afford newprograms, service levels changes and new facilities.The compliance to PSAB 3150 Tangible Capital Assets,provides the town with the asset foundation and valuesto assist the town in managing their future infrastructurerenewal needs.4. Fee for ServiceThe town will ensure that user fees will be utilizedto cover costs of appropriate services and are subjectto annual review.5. Management PrinciplesThe town will maximize program efficiencies whilemaintaining program effectiveness. The annual budgetwill focus on results and outcomes. The safeguardingof the town’s assets and resources shall be a keymanagement objective. Town management andstaff review the numerous programs provided by alldepartments in order to ensure community needs arebeing met.Operating budget controlsThe town has adopted various policies that allowdepartments to effectively manage programs andservices for which they are accountable. These policiesestablish a hierarchy of authority for adjusting betweenbudget appropriations. The general accountabilitiesand allowable adjustments are as follows:• Departmental services approved by Council arecarried out within the department’s net expenditureapprovals, and deviations from this policy arereported to and reviewed by the CAO or Council,as set out herein.• Department heads/commissioners are accountableto the treasurer/deputy treasurer, the chiefadministrative officer and Council for theirspending, revenue generation and service deliveryperformance against budget approvals.• Revenues received beyond the level provided forin the budget shall not be spent or committed withoutCouncil approval. At year-end, such remainingrevenues become part of the town surplus.• Reallocations between object codes that do notaffect the net operating budget of a specific programmay be made by a department head and may beimplemented on both expenditures and revenues.• The transfer of approved budgets of not more than$50,000 in respect of each reallocation betweenprograms within a department that do not affect thenet operating budget for the department shall requirethe approval of the commissioner, if applicable, thetreasurer/deputy treasurer and the CAO. Any suchreallocation shall be reported as part of the quarterlyvariance report. Reallocation of approved budgetsin excess of $50,000 requires Council approval.• The transfer of approved budgets between programsand/or services affecting the net operatingbudget for a department shall require the approvalof the treasurer/deputy treasurer and the CAO priorto seeking approval of Council.Capital budget controlsThe following points highlight the capital budgetcontrol process:Town of Oakville 2010 Annual Report | 19
Page 1 and 2: Sixteen Mile Sports Complex | Offic
Page 3 and 4: 2010 HighlightsTown services span e
Page 6 and 7: Message from the CAOOakville is a c
Page 8 and 9: To enhance ournatural environmentKe
Page 10 and 11: To continuously improve ourprograms
Page 12 and 13: To have programs and services that
Page 14 and 15: Looking aheadKey challengesand acti
Page 16 and 17: Organizational chartMayor and Counc
Page 18 and 19: assets”, which are not available
Page 22 and 23: • Council, in adopting the capita
Page 24 and 25: KPMG LLPChartered AccountantsBox 97
Page 26 and 27: Consolidated Statement of Operation
Page 28 and 29: Consolidated Statement of Cash Flow
Page 30 and 31: Notes to Consolidated Financial Sta
Page 46 and 47: Five year review (unaudited)2010 20
Page 48 and 49: Tangible capital assets by class201
Page 50 and 51: Capital operations2010 2009 2008 20
Page 52: Town of OakvilleP.O. Box 310, 1225

Sixteen Mile Sports Complex | Officially opened ... - Oakville

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