KPMG Service Delivery Review — full text

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1 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Township of Fauquier-Strickland Service Delivery Review Draft Report January 27, 2022 2 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Disclaimer This report has been prepared by KPMG LLP ("KPMG") for the Township of Fauquier-Strickland ("Client") pursuant to the terms of our Agreement with the Client dated November 26, 2021. KPMG neither warrants nor represents that the information contained in this report is accurate, complete, sufficient or appropriate for use by any person or entity other than Client or for any purpose other than set out in the Engagement Agreement. This report may not be relied upon by any person or entity other than Client, and KPMG hereby expressly disclaims any and all responsibility or liability to any person or entity other than Client in connection with their use of this report. This report is based on information and documentation that was made available to KPMG at the date of this report. KPMG has not audited nor otherwise attempted to independently verify the information provided unless otherwise indicated. Should additional information be provided to KPMG after the issuance of this report, KPMG reserves the right (but will be under no obligation) to review this information and adjust its comments accordingly. Pursuant to the terms of our engagement, it is understood and agreed that all decisions in connection with the implementation of advice and recommendations as provided by KPMG during the course of this engagement shall be the responsibility of, and made by, the Township of Fauquier-Strickland . KPMG has not and will not perform management functions or make management decisions for the Township of Fauquier-Strickland . This report may include or make reference to future oriented financial information. Readers are cautioned that since these financial projections are based on assumptions regarding future events, actual results will vary from the information presented even if the hypotheses occur, and the variations may be material. Comments in this report are not intended, nor should they be interpreted, to be legal advice or opinion. KPMG has no present or contemplated interest in the Township of Fauquier-Strickland nor are we an insider or associate of the Township of Fauquier-Strickland . Accordingly, we believe we are independent of Township of Fauquier-Strickland and are acting objectively 3 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Table of Contents Chapter I - Introduction - Overview of our engagement 5 - Our approach 6-7 - How to read our report 8 Chapter II - Finance Process Maps and Potential Courses of Action - Abbreviations 10 - Accounts Payable: Purchasing 11-13 - Credit Card Processing 14-15 - Accounts Payable: Recording 16-17 - Accounts Payable: Payment 18-19 - Billing and Collections: Property Tax Assessment 20-21 - Billing and Collections: Property Tax Payment 22-23 - Billing and Collections: Water and Property Tax Pre- Authorized Payment 24-25 - Billing and Collections: Water and Property Tax On-line Payment 26-27 - Billings and Collections: User Fees - Landfill 28-29 - Billings and Collections: User Fees - Hall Rental 30 - Billings and Collections: User Fees - Cemetery 31-32 Chapter II - Process Maps and Potential Courses of Action (continued) - Billings and Collections: Water Billings 33 - Billings and Collections: Grants 34-36 - Billings and Collections: End of Week Cash Reconciliation 37-38 - Borrowings 39-40 - Monthly / Quarterly Reporting Process 41-42 - Budgeting process (Operating and Capital) 43-44 - Hiring 45-46 - Payroll: Timesheet Submission 47-49 - Payroll: Payroll Processing 50-51 Chapter III - Non-Finance Process Maps and Potential Courses of Action - Agenda Preparation 53 - Resident Inquiries 54-55 Chapter IV - Non-Finance Process Maps and Potential Courses of Action - Financial Analysis 57-61 - Comparative Analysis 62-63 - Library Current and Future State Analysis 64-66 4 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Table of Contents Chapter V - Service Based Opportunities - Service based opportunities 68 Appendix A - Comparative and Financial Indicator Analysis 79 Appendix B - Municipal Service Profiles 92 5 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Township of Fauquier-Strickland Service Delivery Review Chapter I Introduction 6 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Introduction A. Overview of our engagement KPMG has been retained by the Township of Fauquier-Strickland (the "Township") to undertaken a review of its current processes within the finance department, including: - Purchasing and accounts payable - Payroll - Billing and Collections: Taxation Revenue, User Fees and Grants - Borrowings - Operational and Capital budgeting - Council Agenda preparation The goal of the review was to identify efficiencies and opportunities for process improvements and focus on reducing and eliminating potentially duplicative processes and/or process tasks. As part of the engagement, KPMG worked to complete the following: - Documentation of the business and work flow processes of the areas identified above; and - Identify potential changes in the Township's business and work flow processes with more detail including exploring the potential for an increased use of technology to increase efficiency and effectiveness in the Town's municipal service delivery. Our review is being undertaken in connection with funding received by the Township from the Province of Ontario's service modernization funding for small and rural communities (the "Fund"). The Fund was established by the Province to assist municipalities in identifying potential cost savings from operational efficiencies and other strategies. Pursuant to the provisions of the Fund, the Township is required to: - Retain a third party advisor for the purposes of the review, rather than undertaking the review internally; - Provide public disclosure as to the results of the review, including a statement from its advisors as to the quantum of potential cost savings; and - Establish that front line service reductions and increases in user fees are not outcomes of the review. The terms of reference for our review is based on our engagement letter dated November 26, 2021. Our review relied heavily on the contributions and knowledge of Township personnel, particularly Nathalie Vachon and we would like to express our appreciation and thanks for the assistance provided to us by staff. 7 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Introduction B. Our approach Our review involved a series of facilitated working sessions with Township staff to discuss the current processes used by the Township for the delivery of services detailed on the previous page. During these working sessions, KPMG facilitated discussion with Township staff to identify the individual steps in the process under review, as well as any items that were perceived as impacting operating efficiencies, customer service, internal controls or risk management. The approach adopted to review the Township's processes reflected the LEAN concept of value-stream mapping. While there are many different definitions of LEAN, we define LEAN thinking as the belief that there is a simpler, better way through a continuous drive to identify and eliminate waste, or inefficiencies and errors, in day-to-day work. It is about making work environments efficient and effective, so organizations can provide higher quality of services to their customers. LEAN helps create time for quality improvement to be part of everyday routine activity. There are five common principles of LEAN thinking: 1. Value is defined by the voice of the client. If a process or function doesn't create value for the client (recognizing that clients can be internal or external), the question is why is it being performed. 2. LEAN requires that you understand your process. Process mapping allows you to have a picture of your process so that you can begin to make improvements. Without this understanding, it is difficult to have transparency and see where the problems are. It also helps teams gain an understanding of everyone's involvement in the process. 3. LEAN seeks to develop flow, so that products or services move fluidly and without interruptions through the process. 4. LEAN seeks to establish pull, so that activities are undertaken in response to what a client needs when they need it, by reacting to a trigger. This is contrary to how many processes are structured, which involves a push to the next user regardless of whether they are ready or not. 5. LEAN is a means of continuous improvement. When done right, LEAN is not a one-time event but rather a journey to continually improve processes and constantly strive to supply value, from the perspective of the client. 8 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Introduction LEAN methodologies are intended to help organizations identify and address one of eight typical types of inefficiencies. Inefficiency Description Examples Defects Work or services that are not completed correctly the first time. Departments key in hours worked incorrectly, requiring payroll to fix errors. Overproduction Doing more than what is required to complete the task. Generating reports that are not used by management. Waiting Idle time when material, information, people or equipment are waiting. Waiting for approvals prior to issuing cheques. Non-utilized talent Not utilizing all of the skills of employees. Incurring overtime because staff working in other departments cannot be used. Transportation Moving equipment, supplies or equipment from place to place. Transferring paper files from one location to another rather than using email. Inventory Having more material and supplies on hand than what its needed. Stocking extra stores inventory to prevent stockouts caused by poor order management. Motion Unnecessary movement by employees to complete an activity. Having staff attend meetings in person rather than by video or teleconference. Extra processing Spending extra time and effort for an activity, including duplication of efforts. Developing Excel spreadsheets to track information that is already available in MIS. 9 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Introduction C. How to read our report For each process under review, we have provided process maps that outline the individual worksteps undertaken as part of the process in Chapter II. These maps are outlined in flowchart form and are intended to assist in understanding (i) the individual worksteps performed by Township personnel; (ii) the sequential ordering of the worksteps; and (iii) decision points included in the process. Where an area for potential improvement has been identified, they have been indicated in the process maps through the following markers: Included with the process maps are the potential areas for improvements, as well as potential courses of action that could be adopted by the Township to address the identified issues. P S F L Process inefficiencies, which may include duplication of efforts, manual vs. automated processes and the performance of work with nominal value Client service limitations, representing aspects of the Township's operations that may adversely impact on customer satisfaction Financial risk, representing areas where the Township's system of internal controls is insufficient to prevent the risk of financial loss Litigation risk, consisting of potential areas where the Township's processes may expose it to risk, including areas where existing measures to mitigate risk are considered insufficient 10 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Township of Fauquier-Strickland Service Delivery Review Chapter II Finance Process Maps and Potential Courses of Action 11 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Abbreviations AA Administrative Assistant DH Department Head DMS Director of Municipal Services/Municipal Clerk PWEO Public Works Equipment Operator PWS Public Works Superintendent RFP Request for Proposal RFQ Request for Quote RFT Request for Tender GL General Ledger AP Accounts Payable WO Work Order J/E Journal Entry PAP Pre-Authorized Payment FT Full time PT Part time YTD Year to date COLA Cost of living adjustment PW Public Works OT Overtime 12 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Accounts Payable: Purchasing Product or service need identified Purchase Between $0 to $10,000 Purchase between $10,000 to $150,000 Purchase greater than $150,000 Yes Yes Yes Budgeted purchase? DH obtains a written quote DH makes the purchase Purchase is approved by DMS prior to obtaining quote Yes No DMS prepares RFQ/RFP based on specifications with DH Presented to Council for approval RFQ/RFP emailed to vendors and posted on website RFQ for services prepared to obtain information for RFT process Brought to Council for approval of RFQ P1 RFQ assessment process performed Awarded RFQ back to council for approval Work with awarded consultant/engineer for RFT Suggested RFT award brought to council for approval To: Accounts Payable: Recording P2 P3 13 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Issue Potential Course of Action For each RFT process required, an RFQ process is initially completed to acquire information with respect to consulting or engineering services to assist with the development of the RFT. Currently, the documented RFQ process followed by the Township requires a Council resolution to initiate the process. Council resolution is required again for the awarding of the RFQ. Finally, Council resolution is again required for the RFT award. This may cause delays in projects as staff await council approval. This also may create redundant review steps if projects were already identified and approved through the annual budgeting process. Consideration should be given to amending the purchasing policy to adjust the procurement thresholds requiring council approval. Council approval should only be required throughout the annual budgeting process and upon the awarding of the project through the formal awarding of the contract. This will assist in reducing project delays for an RFT process. Council resolution is required for purchases greater than $10,000. This may cause delays in purchasing while staff await council approval. This also may create redundancies if purchases were already identified and approved through the annual budgeting process. Consideration should be given to amending the purchasing policy to adjust the procurement thresholds requiring council approval. To ensure adequate controls over purchasing in lieu of council approval, a purchase order system may be an appropriate alternative. We suggest the Township implement a centralized purchase order and receipt system to improve internal accounting controls over purchasing. The purchase order system would include the following controls: - Purchase orders should be numbered sequentially, required for all purchases of inventory and supplies, controlled numerically, and bear the appropriate documented approval from the appropriate responsible official. - Personnel requesting and approving purchase orders should be independent of the individuals in the receiving area, to allow for a proper segregation of duties. - The receiving reports should be matched with the purchase order by the AA and this comparison documented on the receiving report. Any differences should be reviewed on a timely basis. - Vendor invoices received should be matched with the attached purchase order and receiving report and the procedure documented on the invoice to determine that the invoice reflects the merchandise ordered and received. Potential Courses of Action P1 P2 14 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Issue Potential Course of Action The DH gathers quotes for purchases below $10,000. This can create redundancies and inefficiencies in the process if budgeted spending has already been approved through the annual budgeting process. Consideration should be given to amending the purchasing policy to avoid the requirement for quotations for purchases below $10,000. The requirement for a quotation should only be required for purchases between $10,000 to $150,000. This will assist in reducing purchasing delays. Potential Courses of Action P3 15 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Required purchase by credit card identified 1 Credit Card Processing 1 Credit cards do not have set policy on the types of purchases allowed. There are 3 active credit cards held by PWS, PWEO, and the AA. Credit cards are typically only used for purchases when accounts are not available (Canadian Tire and Walmart). The AA uses the credit card to book conferences for staff/council. Purchases made while at conferences are paid personally and reimbursed to employees as the AA credit card does not leave the office. Purchase is made and receipts are maintained by the purchaser of the card Receipts are provided to DMS to reconcile to the credit card bill DMS records transaction in GL (manual entry) Debit slip prepared with package for 2 council signatures Signed slip brought to the bank for credit card payment P1 P2 P3 16 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action A credit card policy does not exist, and therefore, direction is not currently available on the types of purchase can be made by credit card (purchasing policy indicates "business expenses" which is generic). Although a formal credit card purchasing policy is not in place at the current time, given the current limits on the credit cards there is limited ability to make significant purchases on the credit cards. The Township should develop a credit card policy which establishes the type of purchases that are authorized to be made by credit card (hotel, travel costs etc.) along with the timelines for the submission of the receipts for purposes of the recording of the transactions. The credit card policy should also ensure there are stipulations included in the policy that outline the timeline for the submission of the receipts and the steps for removal of the credit card should policies not be followed. Currently, a separate credit card statement is received for each credit card. As a result, the DMS is required to open and review multiple credit card statements. The Township should contact their bank and inquire if it is possible to receive only one monthly credit card statement with all corporate charges included, broken up by cardholder. In addition, is it common for financial institutions to provide corporate credit cards in electronic format (via email). The bank should be contacted to determine if the electronic format to the billings is possible. The DMS reconciles the credit card statements with the invoices / receipts / supporting documentation provided by the card holders. If the DMS is missing an invoice or unsure where to code the expense, a request is made to the card holder for additional information. The Township should require each card holder to reconcile the credit card statement in an excel template which is submitted to the DMS. All supporting documentation should also be provided to ensure all expenses are recorded to the appropriate accounts. The template should also include a description of the business reason for the expense. This procedure should be documented within the credit card policy which will establish the timelines associated with the reconciliation and the submission of the supporting documentation. P1 P2 P3 17 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Accounts Payable: Recording Goods or services received From: Accounts Payable Purchasing Invoice received in the office by the AA Invoice received by the DH DH provides information to facilitate expense coding AA gathers packing slips along with invoice package AA codes the invoice to the GL accounts DMS reviews/approves coding and purchase for payment Invoice package returned to AA to enter in the system To: Accounts Payable: Payment P1 F1 18 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action The Township's s account payable process is paper based, with emailed copies of invoices printed out for processing. This represents a potential inefficiency as (i) the process consumes time and resources associated with the printing of electronic invoices; and (ii) the approval process involves the physical movement of invoices as opposed to email. The Township should consider the use of electronic invoices as opposed to paper copies, whereby invoices received by mail are scanned prior to processing. Given that the Township has one generic email already ([email protected]) there could be an additional accounts payable email set up for purposes of invoice receipt ([email protected]) Invoices should be scanned and saved by date and vendor only. A naming convention should be developed that will allow for an efficient electronic search (e.g. vendor, amount, batch number, payment date, cheque number, etc.) Electronic invoices can also be saved to a shared folder location with access restricted to only the Department Heads. The AA can then retrieve the documents from this location every week to prepare the payment batch. The Township does not currently utilize the system's purchase order module. While department heads have the authority to purchase up to $10,000 based on their respective budgets without prior approval, these purchases would not be formally approved until payment is ready to be issued. Utilization of the system's purchase order system module should be considered. This would enable purchases to be approved prior to the payment process. This in turn would also strengthen controls surrounding purchasing and mitigate potentially unnecessary purchases. Given the changes proposed for the delegation of purchasing authority from Council to staff this will also help to ensure the purchasing approvals are formally documented. P1 F1 19 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Accounts Payable: Payment From: Accounts Payable: Recording AA prints prenumbered cheques 1 Payment Method EFT Cheque 2 signatures on all cheques from Council Payment is posted in the system (iCity) Cheques are put in envelopes AA brings the cheques to the post to be mailed Cheque stub filed with invoice AA selects invoice from system for EFT payment AA prints an EFT batch invoice payment listing Signatures and date from 2 Council members on payment listing AA creates and submits bank file from system to send for payment AA stamps every invoice for batch # and EFT # and date included in batch EFT report is filed in a separate binder with the Council signatures. System notifies vendor of payment P1 F1 1 Printed prenumbered cheques are locked away in a drawer at the administration office. 20 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action The majority of transactions are paid by cheque. This results in additional efforts and time required to process a payment. It was noted that the intention is to move to processing all payments using EFT in the future. The Township should consider extended use of Electronic Fund Transfers (EFTs) with integration into the accounting software. The recommended process is as follows: - AA runs EFT process in accounting system - AA prints EFT batch report and attaches invoices which are provided to the DMS for review - AA uploads EFT file to the bank (payment does not process at this time) - DMS receives notification that an EFT has been updated. DMS reviews the EFT with the provided supporting documentation and approves the EFT payment. - EFT confirmation is provided to the AA to save and file with the payment batch information. The AA is relied upon as part of the invoice entry process, prepares online bill payments without formal signing authority authorization and also prepares the monthly bank reconciliations. This creates risk of fraud with the absence of appropriate segregation of duties or appropriate authorization of online payments. The DMS should approve all online bill payments in the interim. Online payments be moved to a formal Electronic Funds Transfer process noted in P1 and the DMS should prepare the monthly bank reconciliations to ensure adequate controls and appropriate segregation of duties over the purchases, payment and reconciliation processes. P1 F1 21 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: Property Taxation -Assessment MPAC Website file accessed by DMS DMS uploads the information into the taxation system for assessments (in iCity) The DMS utilizes the prior year levy amount as a starting point for the first billing The levy at 50% of the PY final taxes (dollar value) for the first two interim (prior to end of Jan.) 1 Ownerships are updated on an ongoing basis throughout the year by the AA AA ensures mortgage banking information is accurate 2 Spot checks completed by the DMS to ensure the taxes (by rate class) Finance team ensures payments and credits are properly applied to accounts 1 Prior year final taxes are used to calculate the interim for the Township as the budget for the year is not approved until June/July of each year. Previously, tax balances are finalized for the year based on the approved budget / taxes by council in July. Interim levies invoiced to residents are compared to the final calculated levies. In 2022, the budget is to be finalized in early 2022 for purposes of the calculation of the current year tax levies. 2 This process is completed on an ongoing basis throughout the year. The banks will send this information throughout the year. The DMS prepares the new tax rates by-law once Council approves the tax rates (January / February) DMS downloads information from OPTA for property tax considerations DMS import from OPTA the tax rates into the software (iCity) Spot checks completed by the DMS to ensure the taxes (by rate class) DMS print property tax bills and billing summary to ensure accuracy of information Bills are folded and mailed by the Municipal office P1 Mortgage listing sent to mortgage companies by AA (in February and August) 22 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action It was noted that letters are provided to taxpayers when they have not made required tax and user charge payments by the appropriate due date. The Township actively follows up on amounts owing which are close to / have exceeded the 3 year outstanding threshold. In the December when the arrears are close to three years a reminder letter has been sent to the resident notifying them of the eligibility for tax sale. If they have not paid by January the resident will be notified of the commencement of tax sale. Other than the reminder letter there is no active follow up with the resident for the outstanding taxation and user charges balances that are less than three years past due. The Township should continue to follow the procedures included within the taxation collection policy and the procedures for collection of water and sewer accounts. The Township should consider different communication with the residents for balances which are greater than 3 months past due. Setting up a payment plan and formally communicating the late balances should commence in the year the payments are overdue as it will increase the likelihood the Township will collect on the balances on a more timely basis. A listing of taxation balances in arrears over a 3 months will need to be developed. Consideration should be given to utilization of a red notice (or other coloured notice in the information sent to the resident) of past due accounts to draw attention to the outstanding balances and commence the payment process. P1 23 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: Property Taxation -Payment Property taxation bill sent to property owner by mail or email Property owner receives bill Final bills indicate the in year arrears amount Receipt prepared by AA and provided to taxpayer (if requested) Taxpayer processes payment online via online payment (1 financial institution only) AA looks up the property owner's account and applies payment to O/S balance Property owner comes to Municipal office or mails in cheque On-line Cash or Cheque Taxpayer pays bill? P1 Payment method selected Billings and Collections: Water and Property Taxation - Online No Yes Property owners etransfers or automatic withdrawal the amount eTransfer Payments noted as NSF charges will be posted in the next month ($45 charge applied) Payment reversed in the system for the amount that was not available Letter sent to property owner indicating the NSF charge and the account balance To: Billings and Collections: End of Day Cash Reconciliation 24 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action It was noted that letters are provided to taxpayers when they have not made required tax and user charge payments by the appropriate due date. The Township actively follows up on amounts owing which are close to / have exceeded the 3 year outstanding threshold. In the December when the arrears are close to three years a reminder letter has been sent to the resident notifying them of the eligibility for tax sale. If they have not paid by January the resident will be notified of the commencement of tax sale. Other than the reminder letter there is no active follow up with the resident for the outstanding taxation and user charges balances that are less than three years past due. The Township should continue to follow the procedures included within the taxation collection policy and the procedures for collection of water and sewer accounts. The Township should consider different communication with the residents for balances which are greater than 3 months past due. Setting up a payment plan and formally communicating the late balances should commence in the year the payments are overdue as it will increase the likelihood the Township will collect on the balances on a more timely basis. A listing of taxation balances in arrears over a 3 months will need to be developed. Consideration should be given to utilization of a red notice (or other coloured notice in the information sent to the resident) of past due accounts to draw attention to the outstanding balances and commence the payment process. P1 25 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: Water and Property Taxation -Pre-authorized payment Current and arrears trial balance (taxes and water) is reviewed monthly P1 Property Taxation - Billing and Collections - Mailing Report prepared for Council on aged taxes year over year (annually) PAP file sent to the bank (monthly or quarterly PAP) J/E automatically created to reduce the receivable and cash balances Notification from the bank of the amount of any NSF accounts 26 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action Notices for arrears are sent to taxpayers when they have not made required tax and user charge payments by the appropriate due date. The DMS has a letter prepared the following month for the accounts which have missed payments. A more formal follow up and communication with the tax payers is completed after the taxes are in arrears greater than 3 years. Follow up after the three year mark results in a less timely collection of the outstanding balances. There is a current tax and user charge collection policy which should be modified to include timelines for the notice of arrears to be sent to the taxpayers. This will ensure a consistent approach is followed and can allow these tasks to be allocated to other individuals at the Township (i.e. the DMS will only be required to review the letters once prepared). A listing of taxation balances in arrears over six months will need to be developed which aligns with the newly developed policy which will facilitate the preparation of the letters by the staff on a timely basis. The Township should consider the use of a coloured notice to highlight the outstanding balance on a monthly basis. P1 27 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: Water and Property Taxation -Online Payment Online payment sent directly by the bank Bank emails payment summary to the Township by Roll # (sent when payments made only) Payment details emailed to the DMS and other finance staff depending on the bank The finance staff looks up roll number or acct. # from payment summary The AA creates and uploads the cash batches for each report received from the bank Payment is applied to user's account by roll number or acct. # Current and arrears trial balance (taxes and water) is reviewed monthly P3 Property Taxation - Billing and Collections - Mailing Report prepared for Council on aged taxes year over year (annually) P1 P2 28 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action Online payment details are provided by the bank to support the payments made online. There is no separate email address used for each payment occasion for the Township for all online payment details (for both accounts receivable and accounts payable invoices provided). Certain payment summaries and details are emailed to the DMS and other payment details to a generic email address. When individuals are away from the office this can create delays in the application of the payments associated with online payments and can create difficulties when completing the bank reconciliation given that payment details from the bank may not be followed up / entered on a timely basis. A generic email address for the Township should be used as the contact for all banks for the submission of online banking transactions. Given that the Township has one generic email already ([email protected]) this account should be utilized and be able to be accessed by the DMS and the AA. The email account should be accessed by the AA on a daily basis with the AA entering the transactions into the accounting system. The DMS should only be involved in the entering and follow up of the payments should an error be noted or follow up required. Throughout the course of the process mapping it was noted the DMS is responsible for accessing the information from the banks relating to online payments through the [email protected] email address. In addition, given that the DMS is provided with certain payment details, the DMS may be involved in the processing of these transactions within the accounting system. As noted above, the AA should be responsible for accessing the payment details from the financial institutions are processing these payments within the accounting system. This would allow for the DMS to focus on situations where there are issues with the payments or focus on strategic items such as the tax and user charges collection and arrears process. Notices for arrears are sent to taxpayers when they have not made required tax and user charge payments by the appropriate due date. The DMS has a letter prepared the following month for the accounts which have missed payments. A more formal follow up and communication with the tax payers is completed after the taxes are in arrears greater than 3 years. Follow up after the three year mark results in a less timely collection of the outstanding balances. There is a current tax and user charge collection policy which should be modified to include timelines for the notice of arrears to be sent to the taxpayers. This will ensure a consistent approach is followed and can allow these tasks to be allocated to other individuals at the Township (i.e. the DMS will only be required to review the letters once prepared). A listing of taxation balances in arrears over six months will need to be developed which aligns with the newly developed policy which will facilitate the preparation of the letters by the staff on a timely basis. The Township should consider the use of a coloured notice to highlight the outstanding balance on a monthly basis. P1 P2 P3 29 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: User Fees (Landfil) By-law prepared that specifies the landfill user charges (schedule of fees updated once per year) On an as needed basis tipping fees and landfill pass fees are determined User fees approved are posted on the board at the landfill site and on website Invoice mailed to resident / non resident as needed P1 Vehicle arrives at the gate and attendant determines fee based on vehicle and trailer size Manual summary of the transactions that occurred in the day (Wednesday, Thursday and Saturday) Cash or cheque received for the deposit at the landfill If no cash available, attendant records fees and address iCity updated for landfill fees and related AR (if any) Receipt / invoice is prepared by the attendant at the landfill Receipts and summary of invoices are provided to the Township staff Landfill fees can be paid by cash, cheque, landfill pass (non-resident card holder) or can be invoiced to the resident at a later date by the Township office. The current landfill fees and landfill pass fees are determined for residents and non-residents annually. At the current time, landfill costs are recovered at approximately 50% via the landfill user fees. Landfill user charges average $10,000 per year. To: Billings and Collections: End of Day Cash Reconciliation 30 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action On a as needed basis, the landfill attendant provides the AA the manually prepared tracking sheet for purposes of billing landfill charges to those who have not paid for the landfill transactions and to record the residential transactions from landfill transactions (transactions are paid by cash, cheque or landfill pass only. There is no ability to pay by debit or credit at the landfill). There is no reconciliation completed at the current time for all the cash and cheque transactions. At the current time, the document provided to the AA for purposes of billing and recording within the system is a summary which is manually prepared by the landfill attendant. Given the lack of reconciliation it is possible transactions will be missed on the summary resulting in additional reconciliations required at month end while completing the bank reconciliation. The payment report with all transactions should be provided to the AA in order to complete a reconciliation of the landfill transactions. On a weekly basis, prior to submitting the documents by the landfill attendant to the Township office, the payment listing should be reconciled to the payment summary to ensure accuracy. P1 31 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: User Fees (Hal Rental) Contract prepared and signed for each rental Schedule of fees available for the hall rentals (dependent on rental type) User contacts Municipal office to rent the call AA selects user fee from schedule of available fees Deposit provided for the rental (cheque, cash, debit or credit) Rental takes place Invoice prepared for the rental and provided to individual / group Individual pays invoices To: Billings and Collections: End of Day Cash Reconciliation 32 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: User Fees (Cemetery) Schedule of rates available for all cemetery services (in by-law and on website) Individuals come to the Township office to purchase their required services Contract prepared by the AA for the cemetery purchase that has been made Cash / Cheque / Credit received in payment for the services (paid in full) List summarized for any purchases that have taken place in the year (manually) P1 Annually, a reconciliation is completed for all user fees for the cemetery Expenses are tracked and coded P2 To: Billings and Collections: End of Day Cash Reconciliation 33 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action All transactions relating to the cemetery user fees and purchases are manually tracked in a summary sheet which is not stored electronically. As a result, should the summary sheet be misplaced or there be damage to the Township office there is the risk the information may be destroyed and would not be available to record and reconciled within the accounting system. A summary of all cemetery transactions should be accumulated within Excel and saved on the Township server to ensure the information is available electronically. The Excel document should be updated after each transaction to ensure the information relating to the cemetery transactions are completely captured. An analysis of total operating revenues and expenses associated with the cemetery operations is currently not available as the labour is not allocated to the cemetery operations for the time allocated to maintenance activities. The Township should require staff (including summer students) working on the cemetery operations to code this time to the cemetery location as part of the time keeping process to ensure an accurate reporting of the cemetery operating expenses. P1 P2 34 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: Water Bilings Flat rate water fees set annually (in the water and sewer by-law) Water bill sent to residents by mail every 3 months User comes to Municipal office (drop box option as well) or mails in payment AA receives cash or cheque payment AA prepares receipt if requested and provides it to user AA accesses the user's account and applies the payment Resident pays bill? Interest applied to the account (1.25% per month) and reminder sent to resident of unpaid bills Resident pays bill? Due to non-payment water is shut off at the resident's home ($65 fee to restarted) Payment method for bill? Property owner enters payment information (ID number) online (Caisse Populaire only) Online Cheque or cash To: Billings and Collections: Water, Sewer and Property taxation - Online Yes No Yes No To: Billings and Collections: End of Day Cash Reconciliation Formal letter sent for the water arrears (3 notices are sent to arrange for payment) Property tax owner pays by eTransfer eTransfer 35 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: Grants For government grant applications, DMS identifies applicable program DMS obtains grant application Application is sent to Funder P1 For non-government applications the DMS completes the grant application DMS complete application DMS archives submitted application Grant approved? Letter of approval from funder is sent to DMS Yes Unsigned Agreement is sent to DMS Council approval required? No P2 Agreement is discussed reviewed and approved by Council (and financial implications to Township if not 100% funded) Yes Agreement signed by the DMS and/or Mayor per the grant requirements No Project milestones achieved and reported on by DMS to receive payment Payment received from grant provider Subsequent reporting to funding sources and/or Council performed by DMS DMS records revenue information into accounting system Council approves applying for grant (based on municipal funding requirement) P2 P3 To: Billings and Collections: End of Day Cash Reconciliation 36 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action A strategic plan has not been formally been drafted for the Township to determine the areas of focus. In addition, currently there is no formal guidance provided by Council annually to establish grant priorities (operating, capital, job creation etc.) As a result, the DMS may be focusing efforts on initiatives that are not a priority of the Township or applying for any grant available to increase funding levels overall for the Township which is not sustainable. A strategic plan should be formally developed by the Council and Township staff to determine the priorities of the Township for the next five years. This will assist with prioritizing the grant opportunities the DMS will be applying for. On an annual basis, the following procedures should be developed to ensure priority areas are focused on for the grant search. This should include the following: - Prior to the budgeting process, Council should set specific priorities for operating, capital and job creation to ensure grant research is focused on the relevant areas. - Assign accountability for the grant research by type (operating, capital and job creation to the Department Head or DMS as applicable). - On a standing, monthly basis have an update presented to Council on the grant research and applications. It was noted there is no formal tracking of the grant submissions and the status of the submissions. This can result in grants not being followed up on a timely basis and the information not available to provide an update to Council on the status of the grants. It is recommended a grant tracking sheet be maintained by the DMS. This will ensure the status of the grant application is available on an as needed basis. It will also facilitate the follow up on successful and unsuccessful grants and can be used as a starting point when subsequent grant applications are submitted (so the successful grant applications are used as a starting point). P1 P2 37 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action At the current time the DMS has overall responsibility for all grant applications for the Township. As indicated previously there is no formal direction or priorities established to determine which grants should be applied for rather all available grants tend to be applied for to increase the chance of additional funding for the Township. While this approach has resulted in a number of grants for various projects, it is also time consuming and inefficient to have a senior level staff member (the DMS) applying for all possible grants. Consideration should be given to hiring a Treasurer / Deputy Clerk or consideration of a shared arrangement with local municipality requiring assistance with certain Treasury functions to allow the DMS to focus on more strategic opportunities for the Township. This would allow the DMS to develop the strategic plan in consultation with Council and ensure the focus of the DMS is on the strategic priorities of Council. P3 38 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Bilings and Colections: End of Week Cash Reconciliation System reports accessed / printed by the AA to prepare deposit (batch balance report from iCity) AA compares the cash/cheque collected to the batch report / end of day from cash machine If staff unable to determine cause of the difference AA will assist and review Staff investigates the difference to determine cause (prior to deposit being made) AA prepares deposit slip for cash and cheque (system will print the slip) Cash/cheque stored in the locked room (AA and DMS have access to the room) AA will bring cash/cheques to bank to be deposited Billing and Collections - User fees Billing and Collections - Property taxes Billing and Collections - Water Do the amounts reconcile? Staff will void or correct transactions to balance to cash collected (if needed) No Yes F1 39 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action It was noted that both the AA and DMS have access to the safe and are aware of the combination. Given all staff are aware of the combination for the safe, funds can be removed from the cash stored in the safe and there would be no way to determine who has accessed the safe. The access to the safe should be limited to individuals who are not preparing the cash deposit information or bringing the cash to the bank. This is needed to ensure should cash be missing in the safe there would be a limited number of individuals who have access to the safe. Given the limited staff compliment it may not be possible to fully limit access to the safe in the event other items are stored in the case. As a result, it is recommended a lock box is used for the storage of cash and cheques not yet deposited at the bank. The safe should be located within the DMS's office / temporary desk location to ensure the location of the cash can only be accessed by individuals who are not part of the deposit process to ensure segregation of duties. F1 40 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Borrowings Capital project identified and borrowing required for municipal portion Borrowing proposal presented to Council for approval Provincial funding sources contacted to arrange for the borrowing Principal repayments made on the loan over term of the loan Borrowing recorded within iCity P1 41 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action It was noted that at the current time a formal borrowing policy has not been developed for the Township. When a capital project requires a portion to be funded by the Township, the request is brought to Council in order to approve the borrowing. A Capital Financing and Borrowing policy should be developed for the Township for the use and administration of capital financing and debt. The policy should consider the following items: - Borrowing objectives - Statutory borrowing requirements (per Municipal regulation) - Suitable and authorized financing instruments - Financing risk identification and mitigation strategies (including available debt capacity to fund future projects as needed) - Responsibilities and delegation of authority - Maximum terms for financing and the related assets eligible for financing P1 42 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Monthly / Quarterly Reporting Process Monthly reconciliation of the bank account transactions Monthly transactions recorded Capital transactions updated in the accounting system as purchases are made Income statement YTD of budget to actual spent and staff report for Council Income statements with the YTD actual and budget by the DMS (quarterly) Variances reported on to Council (no standard threshold for commentary) Finance and staff report prepared and presented to Council by DMS Council package prepared and provided in advance of meeting (Friday at four for Tuesday meeting) P1 Presentation of financial results to Council 43 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action The DMS is responsible for presenting the budget vs. actual financial results within the financial statements to Council at the meetings. There is no standard threshold for follow up which is required to be commented on for the finance report and council presentations. In addition, the DMS is responsible for all preparations of the budget vs. actual analysis including commentary on each departments financial results. This results in less accountability for operating results for the individuals who are responsible for the department. A threshold as both a percentage and dollar value should be set annually based on the current year's budget. The dollar value and percentage changes between the actual and budget should be agreed upon with Council with the DH responsible for providing a written explanation of the over/under spending along with a forecast of spending to the end of the calendar year and a discussion as to whether there are any changes needed to the forecast for the remainder of the year. Requiring the DHs to report on the spending within the budget lines under their control will result in increased accountability and increased oversight completed by the DHs. Involving the DHs in the analysis of the departmental spending will allow the DMS to focus on the bigger picture items impacting the Township and analyzing the results for the Township as a whole. This will also allow for additional time to be spent on strategic and capital planning for the Township and will reduce the amount of time spent by the DMS at year end to explain the budget to actual variances. P1 44 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Budgeting Process (Operating and Capital) DMS utilizes the YTD actual information and budget from prior year as a starting point for the budget worksheet Staffing information relating to FT staffing (new positions) updated by DMS Analysis of all positions (FT and PT) completed by DMS All full time and part time staffing decisions made by Council Calculation of overall expenditure increase Costs analyzed within the budget template by DMS DMS meets with the DHs throughout the budget process (capital / operating items are prioritized) Accumulation of departmental budgets by the DMS Township budget input into the accounting system by the DMS Budget discussion with DMS Recommend for approval Not recommend for approved Various pieces of budget presented to Council through the budget preparation process Council approval of budget? DMS has the final budget included in the accounting system Approved Not approved P1 Note: The operating and capital budgets are prepared on a combined basis. There is no specific capital plan and budget at this point. The budgets are prepared in the spring for presentation to Council in June / July (historically). This is now moved up for the 2022 budget. The Council will see the overall approval of the budget and they will need to approve the various priorities that have been set for the budget. Operational budget based on the categories of the FIR (separate operating and water and sewer budget) and the capital is based on the projects. P1 45 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action The annual budget process is completed by the DMS with minimal involvement from other senior staff at the Township. As indicated within the monthly reporting process, there is currently no accountability outside of the DMS for the operating results of the Township. As indicated within the monthly reporting process, requiring the DHs to report on the spending within the budget lines under their control will result in increased accountability and increased oversight completed by the DHs. Involving the DHs in the analysis of the departmental spending will allow the DMS to focus on the bigger picture items impacting the Township and analyzing the results for the Township as a whole. This will also allow for additional time to be spent on strategic and capital planning for the Township and will reduce the amount of time spent by the DMS at year end to explain the budget to actual variances. Given the recommendation to have increased departmental involvement in the monthly budget vs. actual analysis it is appropriate to have the individuals involved in the development of the annual operating and capital budget to facilitate the reporting required throughout the year. P1 46 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Hiring Posting of the job externally (website/facebook) for a minimum of 2 weeks Conditional job offer prepared including probation Scoring of candidate completed (interview, resume and cover letter) DMS & DH completes preliminary assessment Candidate contacted for interview Interview panel established (3) (DH, DMS and a third within relevant department) Application package submitted by candidate (email or mail or drop off) Qualified candidate identified? No Yes Interview conducted by panel Start date determined for new employee New employee details set up in the system Salary information entered into HR system based on established labour rate and COLA Candidate accepts job? P2 To: Payroll Processing DH identifies the need for hiring to the DMS DMS brings staff report to Council including budget impact and financial values DMS updates/creates the job posting P1 Yes No 47 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Process Notes Potential Course of Action It was noted that there is no formal HR policy in place. There is currently one policy that includes certain HR related topics, however, this is grouped with various policies within one document and does not clearly outline the responsibilities of the Township, Council, and employees. Properly outlining roles, responsibilities, and the individual involved in certain processes will allow the Township to operate efficiently. A formal Human Resources policy should be formally documented and presented and approved by Council which includes the following: - Sick leave policy - Vacation Policy - Employee code of conduct - Succession planning It was noted that employment contracts are not available for the majority of employees (an offer letter only is available). Employment contracts are important as they lay out the terms and conditions of the employment and the Township. Having a contract signed can serve as a mutual agreement between the Township and employees. This can avoid any misunderstandings. The Township should consider ensuring templated employee contracts are drafted and align with the recommended HR policy in P1 above. Employee contracts will outline the responsibilities of the Township and the responsibilities of the Employee. P1 P2 48 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Payrol: Time Sheet Submission Employee manually completes time sheet bi- weekly on paper sheets Employee records hours and pre-approved OT worked, vacation, sick time taken by individual Employee manually submit time sheet to DMS in office Time sheet returned to employee/SPW for follow up DMS provides approved time sheets to AA for data input No AA prepares to enter payroll into iCity P1 Timesheet approved? Yes Payroll - Payroll Processing SPW manually completes time sheet bi-weekly on paper sheets for all PW employees 1 1 PW time sheets are broken out into sub categories for time spent on machine and equipment or on certain projects. Employee of PW Dept No Yes SPW records hours and pre-approved OT worked, vacation, sick time taken by individual SPW manually submit time sheets to the office DMS reviews time sheets for time in lieu, OT and vacation prior to delivering for processing P1 P2 P2 F1 P3 P4 49 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action Timesheets are prepared manually using paper copies which can result in timesheets being inaccurate (e.g. all hours not adding to 70 or 80 hours every pay period) or incomplete (e.g. description of the tasks and projects completed not being recorded (descriptions are required for PW staff only). All staff should complete timesheets electronically, restricting submission until all errors or discrepancies have been addressed. Formulas should be added to the timesheet template to the ensure the totals agree with the appropriate number of hours per pay period. Employees or the SPW need to bring hard copies of their timesheets to the Township's office. This can result in delays in submission of the timesheets given that they are manually delivered. At the end of the pay period, the employees or the SPW can email the scanned time sheets to the DMS for review. In addition, the excel timesheet template developed per P1 above should be stored electronically in the Township server for ease of access. SPW does not have access to the vacation, overtime and time in lieu balances when deciding to approve the leave request from employees. This information needs to be requested from the DMS. There is a risk that employees can take unearned paid leave or vacation. This will only be detected upon the DMS's review of the employee tracked vacation leave against her own manual tracking which occurs after the vacation/leave has already been taken. The monthly summaries of vacation / sick / overtime / and time in lieu entitlement should be stored electronically on the Township server, only able to be accessed by the Department Heads. The file should be password protected to allow for read only access for everyone except the DMS. Department Heads can use this information when approving the vacation/leave. This will also assist the Department Heads with recognizing which vacation/leave forms the Finance Department has on file and reduce the number of instances that DMS is required to follow up and request a missing vacation/leave form. P1 P2 F1 50 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action Time in lieu, overtime and vacation hours are tracked manually using Excel by the DMS before updating the system. While these carrying balances are reviewed by the DMS and are compared to the manual tracking sheet, the DMS's schedule does not always allow for timely review of these balances. This can create inconsistencies and result in hours taken in excess of allowable accrued time. The Township should consider implementing the use of an electronic timesheets that will enable automated tracking of time in lieu, overtime and vacation banks. This will create both efficiencies in the review process, but also allow for a more timely and accurate reporting of remaining banks. This will also reduce errors by manual tracking. There currently is no set request or approval form for vacation or sick time. Currently the DH is responsible for approving vacation or sick time. This can result in errors and use of vacation days which have not been accrued as no formal approval process is in place. The Township should consider the creation of a standardized request and approval form for the use of sick time or vacation days to ensure appropriate controls over the use of banked time and mitigate the risk of overdrawing banked time. These forms would be approved by the DH with the approved form stored on the server allowing access as required during payroll processing. P3 P4 51 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Payrol: Payrol Processing Follow up with employees and/or DH P1 Employee provides resolution to the AA AA prepares payroll calculation in iCity AA processes automatic bank file calculated in iCity From: Payroll: Time Sheet Submission AA enters time sheet data into iCity Time sheet is accurate and complete? No Yes AA runs payroll transaction register automatically generated by iCity DMS reviews payroll transaction register and payroll inputs included DMS approves payroll transaction register and returns to AA to process AA posts the payroll transaction journal AA submits bank file to the bank to process the pay run AA prints pay stubs for pick up at the office Printed payroll reports are filed in binders with copy of pay stubs and time sheets AA records remittance payable entries monthly or quarterly as required AA processes remittance payments via cheque/EFT (see AP: Payment process) 52 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action Manual data entry of employee time sheet submission into payroll module. Manual data entry can result in data entry errors and creates inefficiencies requiring additional review, recalculations and recording manual timesheets/tracking, as well as additional potential errors when transferring time from the timesheet to the payroll software. The Township should consider the use of a combined payroll system be used which would amalgamate scheduling, timesheets, banked time tracking and payroll processing into one consolidated platform in order to reduce the risk of error when transferring timesheets as well as allow for significant reduction of review and data entry time necessary to process payroll on a bi-weekly basis. Should the system change occur, there would be additional training required for the DHs. P1 53 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Township of Fauquier-Strickland Service Delivery Review Chapter III Non-finance Process Maps and Potential Courses of Action 54 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Agenda Preparation Council meeting held every second Tuesday of the month Once Mayor approves, agenda is finalized and ready for agenda package DMS builds agenda on iCompass Draft agenda goes to Mayor for review After the meeting, DMS prepares the minutes and any actions are identified + plus standing items Action items requiring attention are sent to appropriate staff by the DMS Staff reports are prepared by the DMS by end of day on the following Thursday prior to Council meeting Council has access to iCompass and they can download the agenda package Agenda is then made available by Friday at 4pm - automatically uploads to the municipal website 55 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Customer Service/Resident Inquiries Resident has an issue - physical visit/phone call/email Reception takes call and determines who is responsible for follow up/ actions If the inquiry is more department specific, reception will forward the matter to DMS If the inquiry is commonly asked, reception will try to answer Resident can visit municipal office with an inquiry Email is sent to generic town email address or website ("Contact us") DMS will forward to appropriate department if necessary Department will investigate AA will take contact information and nature of a call Department reports back to the DMS with what action will be taken Work takes place or not - dependent Follow up with resident about the issue P1 P3 P2 56 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Potential Courses of Action Issue Potential Course of Action The Township does not appear to currently have a formal customer service policy which would include items such as the timeframe by which Township staff acknowledge an inquiry as well as other customer service related matters. The establishment of a customer service policy is considered to be a municipal leading/common practice. The Township may want to consider the development and implementation of a customer service policy which sets out how the Township would like to engage with the public. The Township does not appear to have a process work step where all inquiries are logged and therefore, can be tracked from its receipt up until when the matter is resolved. The Township may wish to create a template that allows for the Township to track an inquiry and potentially reduce the risk of resident inquiries being "lost." The Township does not appear to provide Council with an update on regular basis as to the nature/volume of resident inquiries. The Township may want to update Council on the resident inquiries. Based on the current volume of inquiries and consistent with municipal leading/common practices, a quarterly update may be sufficient to inform Council about resident matters. This practice may also assist the Township in potentially addressing recurring issues. P1 P2 P3 57 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Township of Fauquier-Strickland Service Delivery Review Chapter IV Financial Analysis 58 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Historical Financial Analysis The historical financial information was provided for the Township for the 2014 to 2020 to complete financial analysis. The financial results were included in the audited financial statements for each of the years. Year ending December 31, 2014 Year ending December 31, 2015 Year ending December 31, 2016 Year ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Taxation revenue $914,002 $951,141 $993,394 $1,043,278 $1,089,743 $1,162,920 $1,187,871 Government grants 1 496,217 516,678 2,232,875 597,058 524,966 865,936 736,329 User fees 119,670 121,371 127,890 133,889 143,879 152,670 154,746 Other 75,225 79,151 91,868 69,941 169,916 120,450 127,398 Total Revenue $1,605,114 $1,668,341 $3,446,027 $1,844,166 $1,928,504 $2,301,976 $2,206,344 Salaries and wages 454,806 471,333 413,371 442,932 527,119 540,270 481,948 Materials and supplies 261,786 285,141 284,645 756,629 830,093 837,163 796,840 Contracted services 346,440 366,055 337,223 174,930 192,908 358,862 245,801 Rental and financial expenses 27,159 21,533 16,888 83,799 38,625 36,217 55,353 External transfers 214,802 226,613 242,258 34,904 3,389 1,160 425 Amortization 236,437 248,112 272,154 298,402 317,640 306,821 330,673 Total Expenses $1,541,430 $1,618,787 $1,566,539 $1,791,596 $1,909,774 $2,080,493 $1,911,040 Annual Surplus $63,684 $49,554 $1,879,488 $52,570 $18,730 $221,483 $295,304 1 Government grants include significant capital funding which is not included within operating expenses. The capital additions are included within the Tangible Capital Assets on the statement of financial position which results in a surplus which is utilized to fund capital 59 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Historical Financial Analysis The analysis below is a reconciliation of the surplus within the financial statements for accounting purposes and budgeting purposes. In accordance with the requirements of the public sector accounting standards, capital asset purchases are reflected with "Tangible Capital Assets" on the balance sheet while any capital grants associated with the capital purchases are reflected within the current year surplus. Year ending December 31, 2014 Year ending December 31, 2015 Year ending December 31, 2016 Year ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Annual Surplus $63,684 $49,554 $1,879,488 $52,570 $18,730 $221,483 $295,304 Add: Amortization expense 236,437 248,112 272,154 298,402 317,640 306,821 330,673 Less: Capital asset purchases (156,665) (160,697) (1,840,242) (837,613) (232,493) (207,311) (766,271) Less: Debt repayments (131,898) (136,554) (141,375) (186,012) (53,486) (85,610) (89,446) Adjusted surplus (deficit) $11,567 $415 $170,025 ($672,649) $47,391 $235,383 ($229,740) When summarizing the adjusted surplus (deficit) for the seven year period there is a net deficit of $437,608. The shortfall has been funded by new long- term debt in the 2017 year end to assist with the funding of capital projects within the 2016 and 2017 year end with the remaining shortfall reflected within the Township's accumulated deficit, which is reflected on the subsequent pages. At the end of December 2020 the accumulated deficit has increased to approximately $987,000. As will be shown on the subsequent pages, the increase in the accumulated deficit and the requirement to take on debt to fund capital purchases has occurred as the growth in revenues has not kept pace with the growth in expenses and capital requirements. Taxation revenue has remained relatively flat over the seven year period while the operating expenses and capital purchases have increased. The increase in spending will be particularly evident on a go forward basis as current inflation levels are ranging in the 4-5% range based on current estimates. Should taxation revenue and user charges remain flat, the Township will experience a further increase in the accumulated deficit along with a draw down of reserves set aside by Council. 60 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Historical Financial Analysis Operating Analysis As indicated below, taxation revenue has been flat throughout the seven year period. As taxation revenue has not kept pace with the growth in expenses, in years where there is an increase in operating expenses, shortfalls have been noted resulting in an increase in the accumulated deficit or a draw on the reserves set aside by Council. In addition, given the minimal amount of reserves available to the Township, new long-term debt was obtained in years of significant capital spending when the Township had a portion of the capital purchases to fund based on the terms of the funding agreements. The minimal growth in taxation revenue noted below cannot be continued going forward as the Township will be in a position requiring a catch up to fund the over spending occurring in the last number of years that will result in a taxation rate increase that is not sustainable for residents. Smoothing the taxation revenue over a period of time. The Township should ensure in years where there is reduced capital and operating spending, small increases in taxation revenue and user fees continue to allow these funds to be allocated against the accumulated deficit and within reserves where possible (fire, recreation, water, roads, community hall etc.) -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 2015 2016 2017 2018 2019 2020 Taxation Revenue Operating Expenses Reserves Deficit 61 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Historical Financial Analysis Year ending December 31, 2014 Year ending December 31, 2015 Year ending December 31, 2016 Year ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Investment in Tangible Capital Assets $4,090,118 $4,139,527 $5,848,990 $5,959,149 $5,971,907 $5,958,007 $6,483,051 General Deficit (467,640) (475,342) (404,153) (633,837) (751,162) (701,480) (987,467) Unfunded reserves (320,923) (321,692) (292,662) (85,773) (94,544) (104,062) (124,683) Reserves set aside by Council 867,449 876,335 945,871 911,077 1,042,145 1,238,364 1,315,232 Accumulated Surplus $4,169,004 $4,218,828 $6,098,046 $6,150,616 $6,168,346 $6,390,829 $6,686,133 Within the historical financial analysis completed below, when combining both the general deficit and the unfunded reserves (which relate to the obligations for employee future benefits and the landfill obligation) there has been a 41% increase in this deficit balance over the seven year period. As of the end of December 2020, the combined deficit position is $1.11 million which is required to be funded from future revenue sources in order to reduce the deficit and settle the cash outflows associated with the payment of the employee future benefits and the landfill costs. The growth in the reserves set aside by Council is mainly as a result of unused capital or project specific funding such as unused OCIF funds or modernization funding. The general reserve grew 32% over the seven year period and the other miscellaneous reserves (which is made up of approximately 15 reserve accounts) grew 19% over the same period. Year ending December 31, 2014 Year ending December 31, 2015 Year ending December 31, 2016 Year ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 General reserves $605,755 $574,137 $574,137 $579,049 $758,418 $936,278 $801,103 Other miscellaneous 261,694 302,198 371,734 332,028 283,727 302,086 312,147 One time capital / project - - - - - - 201,892 Reserves set aside by Council $867,449 $876,335 $945,871 $911,077 $1,042,145 $1,238,694 $1,315,232 62 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Historical Financial Analysis Year ending December 31, 2014 Year ending December 31, 2015 Year ending December 31, 2016 Year ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 General Deficit (467,640) (475,342) (404,153) (633,837) (751,162) (701,480) (987,467) Unfunded reserves (320,923) (321,692) (292,662) (85,773) (94,544) (104,062) (124,683) Reserves set aside by Council 867,449 876,335 945,871 911,077 1,042,145 1,238,364 1,315,232 Accumulated Surplus $78,886 $79,301 $249,056 $191,467 $196,439 $432,822 $203,082 As indicated on the previous page, there has been an investment in capital assets over the last seven years with the capital funded by the Township increasing from $4.0 million in 2014 to $6.4 million in 2020. Amounts not funded by grants were funded by the Township, mainly within the surplus dollars in the year the capital expenditures took place or by debt which has remained at a consistent level over the seven year period. The analysis below excludes the spending on capital and indicates on a net basis total reserves available after considering the general deficit are minimal, starting at approximately $79,000 in 2014 and growing to $203,000 in 2020. 63 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Comparative Financial Analysis As indicated below, residential taxation revenue per household for Fauquier-Strickland is the lowest in comparison to the peer group at just over $1,000 per household has been flat throughout the seven year period. A 3% increase in taxation revenue overall would result in an increase on average of $32 per household while a 5% increase in taxation revenue overall would result in an additional $53 per household annually. As a percentage of the taxable assessment, the same increases would result in an increase of 0.07% and 0.12% respectively which is in line with the average of the comparator group. $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 Fauquier Strickland Mattice Val Cote Charlton and Dack Dubreuilville Larder Lake Val Rita Harty 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Fauquier Strickland Mattice Val Cote Charlton and Dack Dubreuilville Larder Lake Val Rita Harty Total Taxation Revenue as a percentage of Taxable Assessment Residential Taxation Revenue per Household 64 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Comparative Financial Analysis From an operating expense perspective, the operating expenses as a percentage of the taxable assessment reflects the fact that Fauquier is below the average for the comparator group. There is a minimal staffing compliment along with minimal operating spending at the Township resulting in difficulty in the reduction of costs. As indicated at the start of the financial analysis, operating expenses have fluctuated over the seven year period for the Township however taxation revenue has remained relatively consistent on a year over year basis. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Fauquier Strickland Mattice Val Cote Charlton and Dack Dubreuilville Larder Lake Val Rita Harty Total Operating Expenses as a percentage of Taxable Assessment 65 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Library Current State Analysis Throughout the 2020 year end, there were certain vacancies noted within the staffing positions in the library along with certain board members missing a number of meetings resulting in quorum not being achieved. There were no meetings held by the Board during the fall of 2021. As result of the lack of quorum there were significant delays in various decisions that were required for the library which as impacted the ability for the library to hire appropriate staff and approve certain decisions. The Township Council has reinstated a new board in January of 2021 to govern the library operations. Previously, the library board had passed a resolution requiring all purchases to be approved by the board in advance of the purchase occurring in order for the payment of the invoice to be approved. This process has been discontinued by the current Township council to ensure all payments are made on a timely basis to suppliers. Currently there is a part time staff member working at the library to allow for the library to be opened three times weekly (two evenings from 6-8 pm and Thursday mornings from 9 am to noon). It is estimated there are approximately 15-20 individuals utilizing the services of the library on a weekly basis with additional individuals throughout the summer months as cottagers vacation within the area. The current part time staff member is responsible for applying for all grants for the library while working at the library along with other administrative tasks associated with the role. At the current time, invoices are paid on behalf of the library by the Township (with an invoice charged back to the library for the amount of the invoices paid). It will need to be determined who will be responsible for the financial reporting and accounting tasks. From a governance perspective there is currently no memorandum of understanding that has been developed between the Township and the library with respect to the overall responsibilities of each organization. In addition, there are no by-laws or policies developed for the library. Over 95% of the funding on an annual basis is received from the Township. Below is a summary of the revenues and reserves held by the library from 2014 to 2020: Year ending December 31, 2014 Year ending December 31, 2015 Year ending December 31, 2016 Year ending December 31, 2017 Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Taxation revenue $42,000 $42,000 $42,000 $42,000 $42,000 $45,000 $45,000 Government grants and other 14,529 32,091 16,749 38,266 18,324 12,423 5,838 Total Revenue $56,529 $74,091 $58,749 $80,266 $60,324 $57,423 $50,838 Reserves (excluding investment in tangible capital assets) $27,268 $33,372 $33,958 $48,088 $45,395 $44,284 $57,488 66 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Library Next Steps The establishment of the new Board for the library provides the opportunity for additional training to occur, including an orientation session to new Board members along with the development of new policies and by-laws pertaining to the library to ensure alignment with the Township. Issue Identified Potential Course of Action There is a lack of policy and by-law development in place for the library which has resulted in inconsistent processes followed for the library in comparison to the Township. Properly outlining roles, responsibilities, and the individual involved in certain processes will allow the Township to operate efficiently. A formal Human Resources policy should be formally documented and presented and approved by Council which includes the following: - Sick leave policy - Vacation Policy - Employee code of conduct - Succession planning There are a number of tasks performed by Township staff such as accounting and finance functions where there is no formal agreement for the division of responsibilities. In addition, the Township provides the facility for the library operations and covers costs including utilities, janitorial services (including staff) and office supplies. The Township may want to consider the development of the following: - The development of a Memorandum of Understanding with the Public Library Board - Through the review process, it was identified that the Township and the Public Library Board do not have a formal MOU which sets out the roles and the responsibilities of the two parties in the operation of public libraries as well as formally defines any cost sharing/cost allocation for services provided. The adoption of a MOU is considered to be a best practice. - Update the Township policies and by-laws as appropriate to include the library operations. This will ensure the policies and procedures are consistently followed between the two organizations. - Outline the library tasks which will be completed by Township staff, such as janitorial services and accounting support. Calculate a cost per hour for the support provided to the library and establish agreed upon service levels and timelines for the completion of the tasks - Provide staff and Council with a refresher of the Township's procedural bylaw so all are aware of its contents; 67 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Library Next Steps Issue Identified Potential Course of Action Recently, there has been a new board established for the library. A formal orientation and review of the governance responsibilities of the library board has not been completed for some time. A formal orientation should be delivered for the new library board prior to the end of February 2022. The orientation should include the following topics: - The role of the library board members - Areas the Board members are responsible for - Integration with the Township - Responsibilities of management, the Board, the Township and Council Based on our understanding of library services in Ontario, Ontario Library Services ('OLS') would be the appropriate body to deliver training and education to the incoming library board. The Township may want to contact OLS as to potential timing for an orientation session recognizing that 2022 is a municipal election review. 68 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Township of Fauquier-Strickland Service Delivery Review Chapter V Service Based Opportunities 69 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Service Based Opportunities This section presents the opportunities identified during the course of the service delivery review. The opportunities contained within the report are considered to described at a high level and as such, the potential financial and non-financial benefits were determined on an incremental basis. KPMG suggests that the potential benefits from these opportunities could be in the form of either capacity benefits or financial benefits: - Capacity benefits result from workload reductions achieved through efficiency gains, allowing Township personnel to focus on other activities. Given that this results in a redirection of staff, as opposed to a reduction in staff, capacity benefits do not result in direct cost savings. - Financial benefits refer to efficiency gains that provide incremental cost savings to the Township through reductions in operating costs as well any opportunities that may provide Township increases in other revenue sources (e.g. user fees). The opportunities presented in the following table are not presented in a prioritized order. 70 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Service Based Opportunities Nature of the Opportunity Opportunity Rationale Anticipated Benefit Operating Efficiency Explore the development of a recreation master plan Based on our observations as part of the review, it appears the Township has invested in its recreational/cultural infrastructure in the past decade with the addition of the Sports Complex building in 2012. Additionally, the facility has remained under- utilized over the past ten years. Beyond the infrastructure, the Township appears to have had challenges in its overall approach to how and what it delivers in terms of recreational and cultural services - both strategically and operationally. In order to better guide the Township, the Township may wish to seek out the development of a recreation master plan. A recreation master plan would examine the following areas: - Vision. - Capacity analysis. - Needs assessment. - Goals. - Overall strategy. - Financial plan. - Roles and responsibilities. - Action steps and timeline. Enhanced decision- making and/or service delivery 71 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Service Based Opportunities Nature of the Opportunity Opportunity Rationale Anticipated Benefit Operating Efficiency Explore the rationalization of municipal playgrounds and outdoor recreational grounds The Township owns playgrounds and parks. There exists the question as to what extent potentially required inspections are taking place as well as the level of general maintenance being provided (i.e. municipal tennis courts). While these assets could be part of an overall recreation master plan noted on the previous page, the Township may wish to consider the following: - Ensure municipal playgrounds are compliant with any legislation and/or regulations to potentially mitigate risks; and - Explore the potential of converting municipal playgrounds and outdoor facilities to more passive use to potentially reduce costs for maintenance and/or subsequent replacement and potentially manage risk associated with playgrounds and active outdoor facilities. Risk Management 72 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Service Based Opportunities Nature of the Opportunity Opportunity Rationale Anticipated Benefit Revenue Generation Establish a municipal permit for use of the municipal boat launch Currently, the Township owns and maintains a municipal boat launch and as a result of construction activity in its location, a new dock has been installed. At the time of the review, the Township does not maintain statistics in relation to its usage but provided anecdotal information that it would appear the boat launch is highly utilized. Given the current state, the Township may wish to consider the establishment of a municipal permit for the use of the municipal boat launch including potential fines for non-compliance. Potential operating revenues cannot be reasonably determined Revenue Generation Review the Township's approach to user fees During the course of the review, municipal staff indicated that the Township's user fees are not consistently reviewed and/or adjusted on an annual basis. Given the current state, the Township may wish to consider the following going forward: - The development of a process by which departmental user fees and service charges may be subject to pre-determined timed review and determine whether or not those fees and charges should increase each year; - Ensure that the current level of user fees and service charges reflect a level of cost recovery that the Township deems to be suitable; - Where applicable, ensure that the user fees and service charges contain a component for capital replacement Enhanced decision- making and service delivery 73 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Service Based Opportunities Nature of the Opportunity Opportunity Rationale Anticipated Benefit Operating Efficiency/Alternate service delivery Explore the Township's approach to by-law enforcement At the time of the review, the responsibilities of by-law enforcement appear to be unassigned. In addition to the apparent absence of by-law enforcement capacity, the Township's by-laws which require enforcement may require a review. To potentially provide by-law enforcement services, the Township may wish to consider the following: - Review and refresh municipal by-laws which have enforcement contained within. This is considered to be a common/leading practice to ensure that the intended outcomes of those by-laws are consistent with the currents needs/wants of the community as a whole. - Explore the potential of a shared service arrangement for the provision of by-law enforcement from neighbouring municipality - the Township currently delivers building control services using this service delivery model; and - To the extent a suitable municipal partner cannot be identified, the Township may want to consider issuing a tender for by-law enforcement services from other third party service providers. Enhanced decision- making and service delivery 74 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Service Based Opportunities Nature of the Opportunity Opportunity Rationale Anticipated Benefit Operating Efficiency Economic development Within "Outlook 2025" - the Township's strategic plan - it was identified that the Township lacked the resources to effectively undertake economic development and in response, the document contains one pillar dedicated to the Township's approach to economic development. Based on information shared during the review, the Township was in the process of implementing the first step within "Outlook 2025" with the establishment of a committee tasked with economic development. Going forward, the Township may wish to consider the following: - Ensure the mandate/terms of reference of the committee is consistent with "Outlook 2025" including the expectations of Council; and - Establish potential "quick wins" for the committee to pursue. Enhanced decision- making and service delivery 75 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Township of Fauquier-Strickland Service Delivery Review Appendix A Comparative and Financial Indicator Analysis 76 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Comparative Analysis Service Indicator Fauquier- Strickland Comparator Municipalities Low High Average Corporate Wages and benefits per household $1,235.17 $1,453.75 $2,596.54 $2,131.94 Contracted services per household $902.89 $892.94 $2,561.80 $1,394.29 General Government Operating costs per household $639.71 $1,216.89 $1,806.30 $1,433.96 Wages and benefits as a % of department expenditures 50.6% 50.4% 61.2% 57.1% Protective Services Policing Services - Operating costs per household $293.80 $357.43 $421.41 $388.83 Fire Services - Operating costs per household $216.79 $68.35 $336.98 $224.91 Fire Services - Wages and benefits as a % of department expenditures 41.1% 29.8% 51.5% 38.6% Protective Services (Building Controls and By- law) - Operating costs per household - $3.75 $44.09 $31.57 Transportation Transportation Services - Operating costs per household $960.63 $599.81 $2,304.96 $1,340.88 Transportation Services - Wages and benefits as a % of department expenditures 50.6% 50.4% 62.3% 57.9% Environmental Water/Wastewater Services - Cost recovery achieved through non-taxation revenues 67.1% 75.3% 170.8% 112.9% Solid Waste Management Services - Operating operating costs per household $306.63 $43.05 $686.13 $359.82 77 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. © 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Comparative Analysis Service Indicator Fauquier- Strickland Comparator Municipalities Low High Average Recreation and Culture Recreational and Cultural Services - Net operating costs per household $437.19 $66.24 $749.82 $411.89 Library - Operating costs per household $106.99 $5.44 $224.51 $122.53 Planning and Development Operating costs per household $52.90 $17.37 $325.27 $193.12 78 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis In order to provide additional perspective on the Township's financial performance and position, we have included in this chapter an analysis of financial indicators for the Township and other comparative municipalities. In Canada, the development and maintenance of principles for financial reporting fall under the responsibility of the Accounting Standards Oversight Council ('AcSOC'), a volunteer body established by the Canadian Institute of Chartered Accountants in 2000. In this role, AcSOC provides input to and monitors and evaluates the performance of the two boards that are tasked with established accounting standards for the private and public sector: - The Public Sector Accounting Board ('PSAB') establishes accounting standards for the public sector, which includes municipal governments; and - The Accounting Standards Board ('AcSB'), which is responsible for the establishment of accounting standards for Canadian entities outside of the public sector. In May 2009, PSAB released a Statement of Recommended Practice that provided guidance on how public sector bodies should report on indicators of financial condition. As defined in the statement, financial condition is 'a government's financial health as assessed by its ability to meet its existing financial obligations both in respect of its service commitments to the public and financial commitments to creditors, employees and others'. In reporting on financial condition, PSAB also recommended that three factors, at a minimum, need to be considered: - Sustainability. Sustainability is the degree to which the Township can deliver services and meet its financial commitments without increasing its debt or tax burden relative to the economy in which it operates. To the extent that the level of debt or tax burden grows at a rate that exceeds the growth in the Township's assessment base, there is an increased risk that the Township's current spending levels (and by association, its services, service levels and ability to meet creditor obligations) cannot be maintained. - Flexibility. Flexibility reflects the Township's ability to increase its available sources of funding (debt, taxes or user fees) to meet increasing costs. Municipalities with relatively high flexibility have the potential to absorb cost increases without adversely impacting on affordability for local residents and other ratepayers. On the other hand, municipalities with low levels of flexibility have limited options with respect to generating new revenues, requiring an increased focus on expenditure reduction strategies. - Vulnerability. Vulnerability represents the extent to which the Township is dependent on sources of revenues, predominantly grants from senior levels of government, over which it has no discretion or control. The determination of vulnerability considers (i) unconditional operating grants such as OMPF; (ii) conditional operating grants such as Provincial Gas Tax for transit operations; and (iii) capital grant programs. Municipalities with relatively high indicators of vulnerability are at risk of expenditure reductions or taxation and user fee increases in the event that senior levels of funding are reduced. This is particularly relevant for municipalities that are vulnerable with respect to operating grants from senior levels of government, as the Municipal Act does not allow municipalities to issue long-term debt for operating purposes (Section 408(2.1)). 79 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis As a means of reporting the Township's financial condition, we have considered the following financial indicators (*denotes PSAB recommended financial indicator). Financial Condition Category Financial Indicators Sustainability 1. Financial assets to financial liabilities* 2. Total reserves and reserve funds per household 3. Total operating expenses as a percentage of taxable assessment* 4. Capital additions as a percentage of amortization expense Flexibility 5. Residential taxes per household 6. Total long-term debt per household 7. Residential taxation as a percentage of average household income 8. Total taxation as a percentage of total assessment* 9. Debt servicing costs (interest and principal) as a percentage of total revenues* 10. Net book value of tangible capital assets as a percentage of historical cost of tangible capital assets* Vulnerability 11. Operating grants as a percentage of total revenues* 12. Capital grants as a percentage of total capital expenditures* 80 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis Indicator Description Low Consistent High Financial assets to financial liabilities Assesses municipal solvency X Total reserves and reserve funds per household Assesses the Township's ability to absorb incremental expenses or revenue losses through reserves versus taxes, user fees or debt X Total operating expenses as a percentage of taxable assessment Assesses the Township to potential increase taxes X Capital additions as a percentage of amortization expense Assesses the Township's extent to which it can sustain tangible capital additions X Residential taxes per household Assesses the Township's ability to increase taxes as a means of funding incremental operating and capital expenditures X Total long-term debt per household Assesses the Township's ability to issue more debt by considering the existing debt loan on a per household basis X Residential taxation as a percentage of average household income Indication of potential affordability concerns X Total taxation as a percentage of total assessment Indication of potential affordability concerns X Debt servicing costs (interest and principal) as a percentage of total revenues Indication as to the Township's overall indebtedness X Net book value of tangible capital assets as a percentage of historical cost of tangible capital assets Indication as to the extent to which the Township is reinvesting in its capital assets as they reach the end of their useful lives X Operating grants as a percentage of total revenues Indication as to the Township's degree of reliance on senior government grants for the purposes of funding operating expenses X Capital grants as a percentage of total capital expenditures Indication as to the Township's degree of reliance on senior government grants for the purposes of funding capital expenditures X 81 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis FINANCIAL ASSETS TO FINANCIAL LIABILITIES This financial indicator provides an assessment of the Township's solvency by comparing financial assets (including cash, investments and accounts receivable) to financial liabilities (accounts payable, deferred revenue and long-term debt). Low levels of financial assets to financial liabilities are indicative of limited financial resources available to meet cost increases or revenue losses. FORMULA FIR Schedule 70, Line 9930, Column 1 divided by FIR Schedule 70, Line 9940, Column 1 TYPE OF INDICATOR Sustainability  Flexibility Vulnerability POTENTIAL LIMITATIONS - Financial assets may include investments in government business enterprises, which may not necessarily be converted to cash or yield cash dividends - Financial liabilities may include liabilities for employee future benefits and future landfill closure and post-closure costs, which may (i) not be realized for a number of years; and/or (ii) may not be realized at once but rather over a number of years 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 82 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis TOTAL RESERVES AND RESERVE FUNDS PER HOUSEHOLD This financial indicator provides an assessment of the Township's ability to absorb incremental expenses or revenue losses through the use of reserves and reserve funds as opposed to taxes, user fees or debt. Low reserve levels are indicative of limited capacity to deal with cost increases or revenue losses, requiring the Township to revert to taxation or user fee increases or the issuance of debt. FORMULA FIR Schedule 70, Line 6420, Column 1 divided by FIR Schedule 2, Line 40, Column 1 POTENTIAL LIMITATIONS - Reserves and reserve funds are often committed to specific projects or purposes and as such, may not necessarily be available to fund incremental costs or revenue losses - As reserves are not funded, the Township may not actually have access to financial assets to finance additional expenses or revenue losses TYPE OF INDICATOR Sustainability  Flexibility Vulnerability $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 83 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis TOTAL OPERATING EXPENSES AS A PERCENTAGE OF TAXABLE ASSESSMENT This financial indicator provides an assessment of the Township's solvency by determining the extent to which increases in operating expenses correspond with increases in taxable assessment. If increases correspond, the Township can fund any increases in operating costs without raising taxation rates. FORMULA FIR Schedule 40, Line 9910, Column 7 less FIR Schedule 40, Line 9910, Column 16 divided by FIR Schedule 26, Column 17, Lines 9199 and 9299 TYPE OF INDICATOR Sustainability  Flexibility Vulnerability POTENTIAL LIMITATIONS - As operating expenses are funded by a variety of sources, the Township's sustainability may be impacted by reductions in other funding sources that would not be identified by this indicator. 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 84 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis CAPITAL ADDITIONS AS A PERCENTAGE OF AMORTIZATION EXPENSE This financial indicator provides an assessment of the Township's solvency by assessing the extent to which it is sustaining its tangible capital assets. In the absence of meaningful reinvestment in tangible capital assets, the Township's ability to continue to deliver services at the current levels may be compromised. FORMULA FIR Schedule 51, Line 9910, Column 3 divided by FIR Schedule 40, Line 9910, Column 16 TYPE OF INDICATOR Sustainability  Flexibility Vulnerability POTENTIAL LIMITATIONS - This indicator considers amortization expense, which is based on historical as opposed to replacement cost. As a result, the Township's capital reinvestment requirement will be higher than its reported amortization expense due to the effects of inflation. - This indicator is calculated on a corporate-level basis and as such, will not identify potential concerns at the departmental level. 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 85 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis RESIDENTIAL TAXES PER HOUSEHOLD This financial indicator provides an assessment of the Township's ability to increase taxes as a means of funding incremental operating and capital expenditures. FORMULA FIR Schedule 26, Line 0010 and Line 1010, Column 4 divided by FIR Schedule 2, Line 0040, Column 1 TYPE OF INDICATOR Sustainability Flexibility  Vulnerability POTENTIAL LIMITATIONS - This indicator does not incorporate income levels for residents and as such, does not fully address affordability concerns. $0 $500 $1,000 $1,500 $2,000 $2,500 Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 86 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis RESIDENTIAL TAXATION AS A PERCENTAGE OF HOUSEHOLD INCOME This financial indicator provides an indication of potential affordability concerns by calculating the percentage of total household income used to pay municipal property taxes. FORMULA FIR Schedule 26, Line 0010 and Line 1010, Column 4 divided by FIR Schedule 2, Line 0040, Column 1 (to arrive at average residential tax per household). Average household income is derived from the National Housing Survey. POTENTIAL LIMITATIONS - This indicator considers residential affordability only and does not address commercial or industrial affordability concerns. - This indicator is calculated on an average household basis and does not provide an indication of affordability concerns for low income or fixed income households. TYPE OF INDICATOR Sustainability Flexibility  Vulnerability 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 87 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis TOTAL LONG-TERM DEBT PER HOUSEHOLD This financial indicator provides an assessment of the Township's ability to issue more debt by considering the existing debt loan on a per household basis. High debt levels per household may preclude the issuance of additional debt. FORMULA FIR Schedule 70, Line 2699, Column 1 divided by FIR Schedule 2, Line 0040, Column 1 TYPE OF INDICATOR Sustainability Flexibility  Vulnerability POTENTIAL LIMITATIONS - This indicator does not consider the Provincial limitations on debt servicing cost, which cannot exceed 25% of own-source revenues unless approved by the Ontario Municipal Board $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 88 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis TOTAL TAXATION AS A PERCENTAGE OF TOTAL ASSESSMENT This financial indicator provides an indication of potential affordability concerns by calculating the Township's overall rate of taxation. Relatively high tax rate percentages may limit the Township's ability to generate incremental revenues in the future. FORMULA FIR Schedule 26, Line 9199 and Line 9299, Column 4 divided by FIR Schedule 26, Line 9199 and 9299, Column 17. TYPE OF INDICATOR Sustainability Flexibility  Vulnerability POTENTIAL LIMITATIONS - This indicator considers the Township's overall tax rate and will not address affordability issues that may apply to individual property classes (e.g. commercial). 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 89 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. DEBT SERVICING COSTS (INTEREST AND PRINCIPAL) AS A PERCENTAGE OF TOTAL REVENUES This financial indicator provides an indication as to the Township's overall indebtedness by calculating the percentage of revenues used to fund long-term debt servicing costs. The Township's ability to issue additional debt may be limited if debt servicing costs on existing debt are excessively high. Financial Indicator Analysis FORMULA FIR Schedule 74C, Line 3099, Column 1 and Column 2 divided by FIR Schedule 10, Line 9910, Column 1. TYPE OF INDICATOR Sustainability Flexibility  Vulnerability POTENTIAL LIMITATIONS - No significant limitations have been identified in connection with this indicator 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 90 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis NET BOOK VALUE OF TANGIBLE CAPITAL ASSETS AS A PERCENTAGE OF HISTORICAL COST OF TANGIBLE CAPITAL ASSETS This financial indicator provides an indication as to the extent to which the Township is reinvesting in its capital assets as they reach the end of their useful lives. An indicator of 50% indicates that the Township is, on average, investing in capital assets as they reach the end of useful life, with indicators of less than 50% indicating that the Township's reinvestment is not keeping pace with the aging of its assets. FORMULA FIR Schedule 51A, Line 9910, Column 11 divided by FIR Schedule 51A, Line 9910, Column 6. TYPE OF INDICATOR Sustainability Flexibility  Vulnerability POTENTIAL LIMITATIONS - This indicator is based on the historical cost of the Township's tangible capital assets, as opposed to replacement cost. As a result, the Township's pace of reinvestment is likely lower than calculated by this indicator as replacement cost will exceed historical cost. - This indicator is calculated on a corporate-level basis and as such, will not identify potential concerns at the departmental level. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 91 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis OPERATING GRANTS AS A PERCENTAGE OF TOTAL REVENUES This financial indicator provides an indication as to the Township's degree of reliance on senior government grants for the purposes of funding operating expenses. The level of operating grants as a percentage of total revenues is directly proportionate with the severity of the impact of a decrease in operating grants. FORMULA FIR Schedule 10, Line 0699, Line 0810, Line 0820, Line 0830, Column 1 divided by FIR Schedule 10, Line 9910, Column 1. TYPE OF INDICATOR Sustainability Flexibility Vulnerability  POTENTIAL LIMITATIONS - To the extent possible, the Township should maximize its operating grant revenue. As such, there is arguably no maximum level associated with this financial indicator. 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Fauquier-Strickland Bruce Mines Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 92 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Financial Indicator Analysis CAPITAL GRANTS AS A PERCENTAGE OF TOTAL CAPITAL EXPENDITURES This financial indicator provides an indication as to the Township's degree of reliance on senior government grants for the purposes of funding capital expenditures. The level of capital grants as a percentage of total capital expenditures is directly proportionate with the severity of the impact of a decrease in capital grants. FORMULA FIR Schedule 10, Line 0815, Line 0825, Line 0831, Column 1 divided by FIR Schedule 51, Line 9910, Column 3. TYPE OF INDICATOR Sustainability Flexibility Vulnerability  POTENTIAL LIMITATIONS - To the extent possible, the Township should maximize its capital grant revenue. As such, there is arguably no maximum level associated with this financial indicator. 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% 180.0% 200.0% Fauquier-Strickland Bruce Mine Charlton and Dack Dubreuilville Mattice - Val Côté Val Rita-Harty Comparator Average Source: KPMG analysis of FIR Information (2020) 93 © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. Township of Fauquier-Strickland Service Delivery Review Appendix B Municipal Service Profiles Township of Fauquier-Strickland Municipal Service Profile General Government - Mayor and Council At Standard Above Standard Mandatory Essential Traditional Operating Costs 43 $ Revenues - $ Net Levy 43 $ FTE's - Basis for Delivery Mandatory - The position of Mayor, along with Elected officials, is a requirement under the Municipal Act. External Effective leadership of Council contributes towards the achievement of strategic goals, objectives and priorities. Budget (in thousands) Type of Service Service Value Proposed Key Performance Indicators and Benchmarking Mayor and Council For the purposes of potential key performance indicators, we suggest that the Township monitor outcomes in relation to the strategic plan (if applicable) and budgeted total levy for Mayor and Council (governance) compared to other municipalities Program Service Overview Service Level General Government The Mayor provides leadership to Council in fulfilling the requirements of government legislation, as well as the strategic goals and objectives identified by Council. The Mayor also represents the Township, both in the community and externally. The Township provides support to elected officials, allowing them to exercise their responsibilities as municipal councillors. Basis of Delivery Organizational Unit Discretionary Below Standard Township of Fauquier-Strickland Municipal Service Profile General Government - Mayor and Council    Not applicable (1) (2) (3) Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own resources - The function of Mayor and Council is provided through the Township's own resources Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Service Output The output of a service that fulfills a recognized client's need. Leadership of Council Advocacy and promotion of the Township Political representation, including resolution of constituency matters and issues Profile Component Definition Direct Client A party that receives a service output and a service value. Residents and organizations in the community Council Township of Fauquier-Strickland Municipal Service Profile General Government - Clerks At Standard Above Standard Mandatory Essential Traditional Operating Costs 212 $ Revenues - $ Net Levy 212 $ FTE's 2.0 Program Service Overview Service Level General Government The Township's Clerk's function fulfills the statutory requirements as outlined within the Municipal Act as well as the services necessary to support efficient and effective governance. This includes the preparation and distribution of meeting agendas and minutes and attendance in meetings to provide support for both Council and committees. The Clerk is also responsible for the oversight of municipal elections every four years. Below Standard Basis of Delivery Organizational Unit Clerks Discretionary Type of Service Service Value Proposed Key Performance Indicators and Benchmarking Internal and external The Clerks function is responsible for providing support to Council in the conducting of effective and efficient meetings in compliance with all related provincial legislation and by doing so, ensuring Council operates in an accountable and transparent manner. For the purposes of potential key performance indicators, we suggest that the Township monitor compliance with provincial legislation and budgeted total levy for administration compared to other municipalities. Budget (in thousands)* Basis for Delivery Mandatory - Section 228 of the Municipal Act requires all municipalities to appoint a clerk with the formal duties of the Clerk established within the legislation. * - Represents the conslidated Administration budget (includes both Clerks and Finance) Township of Fauquier-Strickland Municipal Service Profile General Government - Clerks      (1) (2) (3) Recording of all Council meetings (4) Records management (5) Municipal elections (6) MFIPPA Profile Component Definition Direct Client A party that receives a service output and a service value. Township Council Township employees Eligible voters and candidates every four years Residents of the Township Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own resources - The function of Clerk s provided through the Township's own resources Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Not applicable Service Output The output of a service that fulfills a recognized client's need. Clerical support for Council meetings Administrative support Township of Fauquier-Strickland Municipal Service Profile General Government - Clerks Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Mandatory 212,338 $ - $ 212,338 $ 2.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 212,338 $ - $ 212,338 $ 2.0 Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2020 Budget) Administration Own Resources Total Township of Fauquier-Strickland Municipal Service Profile General Government - Finance At Standard Above Standard Mandatory Essential Traditional Operating Costs 212 $ Revenues - $ Net Levy 212 $ FTE's 2.0 Program Service Overview Service Level General Government Finance provides financial leadership, planning, advice, guidance (i.e. policies) and reporting to internal and external stakeholders as well as transactional services relating to accounts payable, accounts receivable, general ledger, banking, payroll and tangible capital assets. Below Standard Basis of Delivery Organizational Unit Finance Discretionary Type of Service Service Value Proposed Key Performance Indicators and Benchmarking Internal and external Finance contributes to financial sustainability and flexibility by undertaking financial planning and analysis in connection with municipal decisions and strategies. For the purposes of potential key performance indicators, we suggest that the Township monitor compliance with provincial legislation and budgeted total levy for administration compared to other municipalities. Budget (in thousands)* Basis for Delivery Mandatory - Pursuant to Section 286(1) of the Municipal Act, 2001, all Ontario municipalities are required to appoint a treasurer "who is responsible for the handling of all financial affairs of the municipality on behalf of and in a manner directed by the council of the municipality". * - Represents the conslidated Administration budget Township of Fauquier-Strickland Municipal Service Profile General Government - Finance       Other levels of government (1) (2) (3) Financial transaction processing (4) Financial reporting Profile Component Definition Direct Client A party that receives a service output and a service value. Township Council Township Employees Third parties involved in financial transactions with the Township Third parties receiving financial support from the Township Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own resources - The function of Treasurer is predominantly provided through the Township's own resources Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Service Output The output of a service that fulfills a recognized client's need. Financial planning & analysis includung budgeting Property taxation Residents who benefit from the financial decision-making Township of Fauquier-Strickland Municipal Service Profile General Government - Finance Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Mandatory 212,338 $ - $ 212,338 $ 2.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 212,338 $ - $ 212,338 $ 2.0 Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2020 Budget) Administration Own Resources Total Township of Fauquier-Strickland Municipal Service Profile Public Cemeteries At Standard Above Standard Mandatory Essential Traditional Operating Costs 6 $ Revenues (4) $ Net Levy 2 $ FTE's - Type of Service Service Value Proposed Key Performance Indicators and Benchmarking External The Township's cemetery operations provide residents with a variety of options by which residents can choose for their final resting place.. The potential performance and benchmarking indicators for this profile would be monitoring the level of cost recovery achieved by facility and/or by activity. Budget (in thousands) Basis for Delivery Traditional - The Funeral, Burial and Cremation Services Act, 2002 sets out the Township's responsibilities with respect to cemeteries. Program Service Overview Service Level Administration The Township cemetery oversees the care and maintenance of 2 active municipal cemeteries and 1 historical site. The Township's Administration manages the administrative side of cemeteries and Public Works manages the maintenance and burials. Below Standard Basis of Delivery Organizational Unit Public Cemeteries Discretionary Township of Fauquier-Strickland Municipal Service Profile Public Cemeteries    (1) (2) Care and maintenance Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own Resources - Cemetery services are provided with the Township's own resources. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Not applicable Service Output The output of a service that fulfills a recognized client's need. Cemetery operations Profile Component Definition Direct Client A party that receives a service output and a service value. Anyone who accesses or accessed cemetery services Visitors to municipal cemeteries Township of Fauquier-Strickland Municipal Service Profile Public Cemeteries Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Traditional 6,020 $ - $ 6,020 $ 0.0 Traditional - $ (4,000) $ (4,000) $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 6,020 $ (4,000) $ 2,020 $ - Total Public Cemetery Own Resources Cemetery Revenue Own Resources Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2021 Budget) Township of Fauquier-Strickland Municipal Service Profile Medical Centre At Standard Above Standard Mandatory Essential Traditional Operating Costs 35 $ Revenues (37) $ Net Levy (2) $ FTE's - Program Service Overview Service Level Administration The Township owns and operates a medical centre within the municipality. The Health Centre provides services to all residents of Fauquier-Strickland. A General Practitioner attends the Fauquier-Strickland Health Centre on a weekly basis. Other physicians on a "as required basis" hold pap test, breast examination clinics and Wellness Women clinics. A Registered Nurse (RN) staffs the Centre during the hours of operation. Below Standard Basis of Delivery Organizational Unit Medical Centre Discretionary Type of Service Service Value Proposed Key Performance Indicators and Benchmarking External The Fauquier-Strickland Health Centre provides primary health care to the residents of Fauquier and Strickland, as well as provides rapid assessment and basic stabilization of clients with life and limb threatening conditions. The focus is on community awareness and education, prevention of illness and promotion of healthy lifestyle. The potential performance and benchmarking indicators for this profile would be monitoring the level of cost recovery achieved by facility. Budget (in thousands) Basis for Delivery Traditional - Smaller municipalities in Northeastern Ontario may own and operate medical centres to provide for healthcare services within the municipalities. Township of Fauquier-Strickland Municipal Service Profile Medical Centre    (1) (2) Health maintenance (3) Responses to emergency situations Profile Component Definition Direct Client A party that receives a service output and a service value. Anyone who accesses healthcare services in the Township Healthcare providers who operate in the medical centre Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own Resources - The Township oversees the operation of the medical centre with its own resources. The healthcare providers are tenants of the facility. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Not applicable Service Output The output of a service that fulfills a recognized client's need. Health promotion Township of Fauquier-Strickland Municipal Service Profile Medical Centre Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Traditional 34,800 $ (36,801) $ (2,001) $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 34,800 $ (36,801) $ (2,001) $ - Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2021 Budget) Medical centre Own Resources Total Township of Fauquier-Strickland Municipal Service Profile Fire Services At Standard Above Standard Mandatory Essential Traditional Operating Costs 91 $ Revenues (12) $ Net Levy 79 $ FTE's - Program Service Overview Service Level Protection Services The Fire Department is responsible for ensureing the health and safety of residents through the provision of programs and services focusing on three areas: education, prevention and suppression. Fire Services are currently delivered through a volunteer fire service which operates out of two fire halls. Below Standard Basis of Delivery Organizational Unit Fire Discretionary Type of Service Service Value Proposed Key Performance Indicators and Benchmarking External The Fire Department seeks to promote a safe community through public education and prevention and the deployment of resources when required. The potential performance indicators for this profile would be monitoring compliance with legislation and operating costs per houeshold. Budget (in thousands) Basis for Delivery Mandatory - Section 2(1) of the Fire Prevention and Protection Act, 1997, S.O. 1997, c.4 (the 'FPPA') sets out that every municipality is required to establish a program in the municipality which must include public education with respect to fire safety and certain components of fire prevention and provide such other fire protection services as it determines may be necessary in accordance with its needs and circumstances. Township of Fauquier-Strickland Municipal Service Profile Fire Services     (1) (2) Fire education and prevention (3) Emergency management Profile Component Definition Direct Client A party that receives a service output and a service value. Residents of the Township who receive fire services Property owners that are subject to fire inspections Third parties (OFMEM) involved in fire and emergency service operations with the township Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own Resources - Fire services are provided by the Township through its volunteer Fire Department. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Service Output The output of a service that fulfills a recognized client's need. Fire incident response and operation Township residents and visitors Township of Fauquier-Strickland Municipal Service Profile Fire Services Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Mandatory 38,071 $ - $ 38,071 $ 0.0 Mandatory 38,563 $ - $ 38,563 $ 0.0 Mandatory 7,867 $ - $ 7,867 $ 0.0 Mandatory 4,006 $ - $ 4,006 $ 0.0 Mandatory 2,506 $ - $ 2,506 $ 0.0 Mandatory - $ (12,172) $ (12,172) $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 91,013 $ (12,172) $ 78,841 $ - Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2020 Budget) Pumper Cube Van Maintenance Own Resources Tankers Maintenance Own Resources Fee for Fire Services Own Resources Administration Fire Own Resources Other (Fire) Own Resources Strickland Fire Hall Maintenance Own Resources Total Township of Fauquier-Strickland Municipal Service Profile By-Law Enforcement At Standard Above Standard Mandatory Essential Traditional Operating Costs 5 $ Revenues - $ Net Levy 5 $ FTE's - Program Service Overview Service Level Protection Services By-law Enforcement is responsible for the investigation and enforcement of all our municipal bylaws The By-law Enforcement Officer is responsible for monitoring and enforcing resident complaints contained within the Township's bylaw complaint policy.. Below Standard Basis of Delivery Organizational Unit By-Law Enforcement Discretionary Type of Service Service Value Proposed Key Performance Indicators and Benchmarking Essential By-law Enforcement contributes towards health and safety, consumer protection, nuisance control and quality of life. All citizens benefit from the enforcement of by-laws as the result is an increased level of public safety, neighbourhood satisfaction, community pride and an overall positive impact on quality of life. For the purposes of potential key performance and benchmarking indicators, we suggest that the Township monitor time required to resolve an issue from time of receipt to resolution and level of cost recovery achieved through fees. Budget (in thousands) Basis for Delivery Essential - By-law enforcement and property standards contribute towards the health and safety of residents, as well as the protection of property. Township of Fauquier-Strickland Municipal Service Profile By-Law Enforcement   (1) Profile Component Definition Direct Client A party that receives a service output and a service value. Residents lodging complaints with respect to by-law non-compliance Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own Resources - By-law enforcement is provided through the Township's own resources Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Service Output The output of a service that fulfills a recognized client's need. Resolution of non-compliance with By-Laws Residents of, and visitors to, the community Township of Fauquier-Strickland Municipal Service Profile By-Law Enforcement Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Essential 5,000 $ 5,000 $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,000 $ - $ 5,000 $ - Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2020 Budget) By-Law Enforcement Own Resources Total Township of Fauquier-Strickland Municipal Service Profile Building At Standard Above Standard Mandatory Essential Traditional Operating Costs 6 $ Revenues (4) $ Net Levy 2 $ FTE's - Program Service Overview Service Level Protection Services Building Services provide an efficient system of building permit approvals which minimize hazards to persons and property by ensuring that all construction within the Township adheres to provincial and municipal regulations. This section issues building, plumbing, demolition, occupancy and other permits governed by the Ontario Building Code. The Township provides Building Services through a contract with the Town of Kapuskasing. Below Standard Basis of Delivery Organizational Unit Building Discretionary Type of Service Service Value Proposed Key Performance Indicators and Benchmarking External Through inspections, Building Services ensures that projects are designed and constructed in accordance with the terms and conditions of applicable municipal and legislative requirements. For the purposes of potential key performance and benchmarking indicators, we suggest that the Township monitor compliance to the legislation and level of cost recovery achieved through fees. Budget (in thousands) Basis for Delivery Mandatory - Pursuant to Section 3.1 of the Building Code Act ('BCA'), municipalities are mandated the responsibility to enforce the BCA and in doing so, are required to appoint a chief building officer and such inspectors under Section 3(2) of the BCA. Township of Fauquier-Strickland Municipal Service Profile Building    (1) (2) Inspections during construction (3) Final occupancy inspections Profile Component Definition Direct Client A party that receives a service output and a service value. Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Contracted Service - Building services are provided to the Township as part of a service contract with the Town of Kapuskasing. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Service Output The output of a service that fulfills a recognized client's need. Reviews of construction plans as part of the building permit issruance process Individuals or companies undertaking construction, renovation or other building-related projects that require permits Individuals purchasing homes on the resale market Development community Township of Fauquier-Strickland Municipal Service Profile Building Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Mandatory 6,452 $ (4,000) $ 2,452 $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 6,452 $ (4,000) $ 2,452 $ - Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2020 Budget) Building Contracted Service Total Township of Fauquier-Strickland Municipal Service Profile Emergency Management At Standard Above Standard Mandatory Essential Traditional Operating Costs 13 $ Revenues - $ Net Levy 13 $ FTE's - Basis for Delivery Mandatory - Section 2.1 of the Emergency Management and Civil Protection Act requires all municipalities to develop an emergency management program that involves an emergency plan, training programs, public education and other elements as required by the Province. Internal and external Emergency Management contributes towards the safety of residents of the community through prevention mitigation and response to community risks and emergencies. In addition, Emergency Management also works to ensure the continuity of municipal services in the event of a disruption, ensuring that physical locations, business practices and continuity of government is maintained during disruptions and emergency events. Budget (in thousands) Type of Service Service Value Proposed Key Performance Indicators and Benchmarking Emergency Management For the purposes of potential key performance indicators, we suggest that the Township monitor compliance with the legislation Program Service Overview Service Level Public Protection Emergency Management provides leadership, guidance and direction to ensure the safety of the community by engaging in mitigation, prevention and preparedness for an emergency. Emergency Management is a legislative service that focuses on (i) emergency operations and training (response plans, infrastructure, best practices, training); and (ii) business continuity, public education, awareness and notification. Basis of Delivery Organizational Unit Discretionary Below Standard Township of Fauquier-Strickland Municipal Service Profile Emergency Management      (1) (2) (3) Traning for municipal personnel and response partners (4) Public education and awareness for residents (5) Emergency operations centre Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own Resources - Emergency management is provided through a shared service agreement with the Town of Smooth Rock Falls whereas the function of CEMC is provided by the Town. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Service Output The output of a service that fulfills a recognized client's need. Emergency response planning Incident management system Residents of the Township Profile Component Definition Direct Client A party that receives a service output and a service value. Township employees Residents of the Township Mayor and Council Emergency management partners Township of Fauquier-Strickland Municipal Service Profile Emergency Management Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Mandatory 12,837 $ - $ 12,837 $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 12,837 $ - $ 12,837 $ - Total Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2020 Budget) Emergency Management Shared Service Township of Fauquier-Strickland Municipal Service Profile Police Services Below Standard At Standard Above Standard Mandatory Essential Traditional Operating Costs 119 $ Revenues - $ Net Levy 119 $ FTE's - Program Service Overview Service Level Protection Services The Township provides police services through a third party agreement with the Ontario Provincial Police ('OPP'). The OPP provides the Township with the adequate and effective level police services as outlined within the Police Services Act and in accordance with the needs of the Township. Basis of Delivery Type of Service Service Value Proposed Key Performance Indicators and Benchmarking Organizational Unit Police Services Discretionary External Police services contribute towards the safety of residents of the community through crime prevention, law enforcement, assistance to victims of crime, public order maintenance, education, and emergency response. For the purposes of potential key performance indicators, we suggest that the Township monitor compliance with provincial legislation. Budget (in thousands) Basis for Delivery Mandatory - Under Section 4 of the Police Services Act, "every municipality to which this subsection applies shall provide adequate and effective police services in accordance with its needs." Township of Fauquier-Strickland Municipal Service Profile Police Services   (1) Police services Profile Component Definition Direct Client A party that receives a service output and a service value. Residents and visitors of the Township Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Contracted Service - Police services are provided by the Ontario Provinical Police. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Residents and visitors of the Township Service Output The output of a service that fulfills a recognized client's need. Township of Fauquier-Strickland Municipal Service Profile Police Services Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Mandatory 118,789 $ - $ 118,789 $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 118,789 $ - $ 118,789 $ - Financial Information (2020 Budget) Police Contracted Service Sub-Service/Process Basis for Delivery Delivery Model Total Township of Fauquier-Strickland Municipal Service Profile Roads At Standard Above Standard Mandatory Essential Traditional Operating Costs 450 $ Revenues (2) $ Net Levy 448 $ FTE's 3.0 Basis for Delivery Mandatory - Section 44(1) of the Municipal Act establishes the Municipality's responsibility to keep highways or bridges under its jurisdiction "in a state of repair that is reasonable in the circumstances". Ontario Regulation 239/02: Minimum Maintenance Standards for Municipal Highways (which has been amended by Ontario Regulation 47/13) provides further clarification by establishing minimum maintenance standards for a range of road network maintenance activities. External The Public Works function contributes towards the overall delivery of public works functions, including transportation and environmental services in a manner that ensures public health and safety in the municipality. Budget (in thousands) Type of Service Service Value Proposed Key Performance Indicators and Benchmarking Roads The potential performance indicators for this profile would be monitoring performance against its internal service level standards in order to ensure compliance with the established service level standards and operating costs per lane kilometre. Program Service Overview Service Level Public Works Public Works constructs and maintains municipal roads and bridges, which involves grading, repairing and improving road and bridge structures, maintaining signs, culverts, ditches and shoulders, snow clearing and sanding in the winter months and dust control and grading during the rest of the year. Basis of Delivery Organizational Unit Discretionary Below Standard Township of Fauquier-Strickland Municipal Service Profile Roads   (1) Winter roads maintenance (2) Summer roads maintenance (3) Roadside maintenance (4) Bridge maintenance (5) Street lighting (6) Fleet maintenance Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own Resources - The Township's roads operations is delivered predominantly with the use of its own resources. . Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Service Output The output of a service that fulfills a recognized client's need. Residents and other parties that benefit from effective transportation (e.g. individuals requiring ambulance services) Profile Component Definition Direct Client A party that receives a service output and a service value. Users of the Township's road network Township of Fauquier-Strickland Municipal Service Profile Roads Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Mandatory 197,541 $ - $ 197,541 $ 3.0 Mandatory 14,227 $ - $ 14,227 $ 0.0 Mandatory 22,569 $ - $ 22,569 $ 0.0 Mandatory - $ - $ - $ 0.0 Mandatory 1,466 $ - $ 1,466 $ 0.0 Mandatory 7,143 $ - $ 7,143 $ 0.0 Mandatory 13,843 $ - $ 13,843 $ 0.0 Mandatory 6,082 $ - $ 6,082 $ 0.0 Mandatory 69,253 $ - $ 69,253 $ 0.0 Mandatory 31,803 $ - $ 31,803 $ 0.0 Mandatory 11,280 $ - $ 11,280 $ 0.0 Mandatory 1,539 $ - $ 1,539 $ 0.0 Mandatory 1,674 $ - $ 1,674 $ 0.0 Mandatory 1,430 $ - $ 1,430 $ 0.0 Mandatory 2,270 $ - $ 2,270 $ 0.0 Mandatory 62,361 $ - $ 62,361 $ 0.0 Mandatory 5,298 $ - $ 5,298 $ 0.0 Mandatory - $ (65) $ (65) $ 0.0 Mandatory - $ (2,000) $ (2,000) $ 0.0 - $ - $ - $ 449,779 $ (2,065) $ 447,714 $ 3.0 Total Street light maintenance Own Resources Public equipment revenue Own Resources Private road agreements Own Resources Sweeping Own Resources Patching/hardtop Own Resources Equipment (Grader, snow plough, loader, pickup, zamboni) Own Resources Sanding Own Resources Steaming culverts Own Resources Railway crossings and safety devices Own Resources Dust control Own Resources Gravelling Own Resources Snowplowing Own Resources Ditching Own Resources Grading Own Resources Road maintenance Own Resources Other Equipment Own Resources Bridges and culverts Own Resources Sidewalk maintenance Own Resources Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2021 Budget) Overhead Own Resources Township of Fauquier-Strickland Municipal Service Profile Solid Waste Management At Standard Above Standard Mandatory Essential Traditional Operating Costs 127 $ Revenues (7) $ Net Levy 120 $ FTE's - Type of Service Service Value Proposed Key Performance Indicators and Benchmarking External Solid waste management contributes towards the environmental health of the Township by ensuring the effective disposal of residential and non-residential waste/garbage. The potential performance indicators for this profile would be monitoring compliance with legislation, diversion rate and operating costs per houeshold. Budget (in thousands) Basis for Delivery Essential - The provision of effective solid waste management services is critical to ensuring the public health and safety of residents. Under the Municipal Act, there is no requirement for municipalities to maintain solid waste management systems. Where municipalities choose to maintain these systems. the provisions of the related environmental compliance and Provincial legislation, including but not limited to the Environmental Protection Act and Ontario Regulation 232/98: Landfilling Sites, dictate service level requirements for municipalities. Program Service Overview Service Level Environmental Services The Township provides for various solid waste management services including the operation of a landfill site and provide curbside collection of household waste and recycling. The landfill site is open Wednesdays, Thursdays and Saturdays for a total of fifteen hours each week. The Township also provides for an annual spring clean up. Below Standard Basis of Delivery Organizational Unit Solid Waste Management Discretionary Township of Fauquier-Strickland Municipal Service Profile Solid Waste Management    (1) (2) (3) Household garbage collection (4) Spring clean up Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own Resources - Township staff operate the landfill site and provide curbside garbage collection services. Recycling services are provided for through a contract with a third party service provider. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Residents, non-resident sectors and visitors to the Township that benefit from effective solid waste services Service Output The output of a service that fulfills a recognized client's need. Landfill site operations Recycling services Profile Component Definition Direct Client A party that receives a service output and a service value. Residents who use the landfill site Households who receive curbside garbage collection Township of Fauquier-Strickland Municipal Service Profile Solid Waste Management Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Essential 12,228 $ - $ 12,228 $ 0.0 Essential 40,183 $ - $ 40,183 $ 0.0 Essential 75,000 $ - $ 75,000 $ 0.0 Essential - $ (6,500) $ (6,500) $ 0.0 Essential - $ (500) $ (500) $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 127,411 $ (7,000) $ 120,411 $ - Total Recycling bins Own Resources Dump maintenance Own Resources Recycling Contracted Service Landfill site revenue Own Resources Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2021 Budget) Garbage collection/spring clean up Own Resources Township of Fauquier-Strickland Municipal Service Profile Water and wastewater Below Standard At Standard Above Standard Mandatory Essential Traditional Operating Costs 299 $ Revenues (323) $ Net Levy (24) $ FTE's - Program Service Overview Service Level Public Works The Fauquier water distribution system consists of approximately 4.5 kilometers of 6" iron ductile pipes with 153 service connections. The distribution system supplies residential and commercial users but no industrial facilities. The municipal sewage collection and treatment system, consisting of gravity sewers outletting to pumping stations and then to a single cell waste stabilization basin (sewage lagoon) serves a population of approximately 325 people. The sewage lagoon is located north of the village. Water and wastewater services are provided through the use of a third party service contract (operation of the water and wastewater plants). The Ontario Clean Water Authority ('OCWA') is the operating authority. Basis of Delivery Organizational Unit Water and wastewater services Discretionary Type of Service Service Value Performance and Benchmarking External The provision of safe, reliable potable water services contributes to the health of the residents, the protection of property through fire suppression activities and economic activity by ensuring sufficient water supply for commercial, industrial and institutional customers. Budget (in thousands) For the purposes of potential key performance indicators, we suggest that the Township monitor the level of cost recovery and compliance with provincial legislation. Basis for Delivery Essential - Under the Municipal Act, there is no requirement for municipalities to maintain drinking water systems. Where municipalities choose to maintain a drinking water system, the provisions of the Safe Drinking Water Act, 2002, S.O. 2002, c.32 ('SDWA') and related regulations apply.The provision of effective wastewater management is critical to ensuring the public health and safety of residents. Under the Municipal Act, there is no requirement for municipalities to maintain wastewater management systems. Where municipalities choose to maintain these systems, Provincial legislation and regulation dictate service level and operational requirements for municipalities. Township of Fauquier-Strickland Municipal Service Profile Water and wastewater    (1) Distribution of potable water (2) Water system maintenance (3) Water servicing connections (4) Distribution network repairs (5) Emergency response to network needs (6) Contract administration Profile Component Definition Direct Client A party that receives a service output and a service value. Residential and Industrial, Commercial and Industrial ('ICI') customers Ministry of the Environment (recipient of drinking water quality reporting) Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Residents and organizations who benefit from access to potable water and wastewater management activities Service Output The output of a service that fulfills a recognized client's need. Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Contracted Service - Water and wastewater services are provided thorugh a third party contract with the OCWA as the operating authority. Township of Fauquier-Strickland Municipal Service Profile Water and wastewater Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Essential 265,346 $ (275,103) $ (9,757) $ 0.0 Essential 33,681 $ (45,858) $ (12,177) $ 0.0 Essential - $ (2,000) $ (2,000) $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 299,027 $ (322,961) $ (23,934) $ - Sewer Operations Contracted Service Financial Information (2021 Budget) Water Operations Contracted Service Frozen services recovery Own Resources Sub-Service/Process Basis for Delivery Delivery Model Total Township of Fauquier-Strickland Municipal Service Profile Parks, Recreation and Culture At Standard Above Standard Mandatory Essential Traditional Operating Costs 164 $ Revenues - $ Net Levy 164 $ FTE's - Program Service Overview Service Level Parks, Recreation and Culture The Township provides a variety of recreation and cultural services. Those services are delivered through various mechanisms including the Sports Complex, the Community Centre, an outdoor skating rink, various outdoor sports fields, the Watersnake Lake Public Beach, Fauquier Park and Groundhog River Access. The Township also provides for recreational programming for its residents. Basis of Delivery Organizational Unit Discretionary Below Standard Basis for Delivery Traditional - The provision of recreational and cultural services are typical services offered by municipalities. External Community facilities provide accessible, inclusive, welcoming, quality spaces for community recreational programming, activities, rentals/events and neighbourhood gatherings. Budget (in thousands) Type of Service Service Value Proposed Key Performance Indicators and Benchmarking Parks, Recreation and Culture The potential performance and benchmarking indicators for this profile would be monitoring the level of cost recovery achieved by facility and/or by activity. Township of Fauquier-Strickland Municipal Service Profile Parks, Recreation and Culture    (1) (2) Recreational programming (3) Facility maintenance (indoor and outdoor) Profile Component Definition Direct Client A party that receives a service output and a service value. Residents and visitors who participate in community events and programs Residents and visitors of the Township who access community facilities Access to recreational facilities Residents and visitors Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own Resources - Recreational services are provided with the Township's own resources. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Service Output The output of a service that fulfills a recognized client's need. Township of Fauquier-Strickland Municipal Service Profile Parks, Recreation and Culture Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Traditional 30,858 $ - $ 30,858 $ 0.0 Traditional 77,318 $ - $ 77,318 $ 0.0 Traditional 1,400 $ - $ 1,400 $ 0.0 Playground maintenance Traditional - $ - $ - $ 0.0 Traditional 5,338 $ - $ 5,338 $ 0.0 Traditional 49,016 $ - $ 49,016 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 163,930 $ - $ 163,930 $ - Financial Information (2021 Budget) Old Sportsplex Own Resources Recreation Programs Own Resources Sportsplex Own Resources Sub-Service/Process Basis for Delivery Delivery Model Own Resources Canada summer jobs Own Resources Community Centre Own Resources Total Township of Fauquier-Strickland Municipal Service Profile Library At Standard Above Standard Mandatory Essential Traditional Operating Costs 45 $ Revenues - $ Net Levy 45 $ FTE's - Program Service Overview Service Level Recreation and Culture Public library services are provided by the Fauquier-Strickland Public Library. The library provides service to the community Monday to Friday. Beyond traditional library services to its customers, the library also offers internet access to its patrons, inter-library loans as well as a variety of programs for all ages. The Friends of the Library group is made up of people from the community who help the committee organize fundraisers throughout the year. Below Standard Basis of Delivery Organizational Unit Library Discretionary Type of Service Service Value Proposed Key Performance Indicators and Benchmarking External Public libraries offer an environment and space for residents to gather or pursue their interests and goals and offers programs and spaces for cultural activities as well as learning and personal development The potential performance and benchmarking indicators for this profile would be monitoring the level of cost recovery achieved by facility and/or by activity. Budget (in thousands) Basis for Delivery Traditional - The Public Libraries Act does not require a municipality to establish public library but many small municipalities do so. Township of Fauquier-Strickland Municipal Service Profile Library   (1) (2) Provision of programming (3) Internet and computer access Profile Component Definition Direct Client A party that receives a service output and a service value. Residents and visitors of the Township who access library services Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Own Resources - Libraryr services are provided with a financial contribution to the public library. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Residents and visitors Service Output The output of a service that fulfills a recognized client's need. Library operations Township of Fauquier-Strickland Municipal Service Profile Library Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Traditional 45,000 $ - $ 45,000 $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 45,000 $ - $ 45,000 $ - Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2021 Budget) Library Own Resources Total Township of Fauquier-Strickland Municipal Service Profile Planning & Economic Development At Standard Above Standard Mandatory Essential Traditional Operating Costs 53 $ Revenues (3) $ Net Levy 50 $ FTE's - Basis for Delivery Mandatory - The Planning Act establishes the responsibility for municipalities to make local planning decisions that will determine the future of their community. The Planning Act also requires municipalities to ensure planning decisions and planning documents are consistent with the Provincial Policy Statement. External Planning and economic development services promotes strategic growth and policy through land use planning. Through this process, the interests and objectives of individual property owners are balanced with the interests and objectives of the Township of Fauquier-Strickland in alignment with the Provincial Policy Statement. Budget (in thousands) Type of Service Service Value Proposed Key Performance Indicators and Benchmarking Planning & Economic Development For the purposes of potential key performance indicators, we suggest that the Township monitor cost recovery achieved through fees and operating costs per household. Program Service Overview Service Level Planning & Economic Development Planning involves the general design of the municipality through the land use planning process. Land use planning enables the municipality to establish goals and objectives for growth and development. The Township provides for economic development activities through the use of its own staff. Basis of Delivery Organizational Unit Discretionary Below Standard Planning Services Economic Development Township of Fauquier-Strickland Municipal Service Profile Planning & Economic Development    (1) (2) (3) Clarifications regarding zone categories and provisions in the Zoning By-Law (4) Economic development Primary Delivery Model How the service is predominantly delivered, recognizing that a combination of delivery models may be used. Shared Services - Planning and economic development are delivered through the Township's own resources. Indirect Client A set of parties that benefits from a service value without receiving the service output directly. Service Output The output of a service that fulfills a recognized client's need. Residents of the Township who benefit from a comprehensive and planned approach to growth in the community Management of applications under the Planning Act Clarifications regarding land use designations or policies in the Officla Plan Profile Component Definition Direct Client A party that receives a service output and a service value. Township departments affected by planning issues Residents and/or members of the development community Township of Fauquier-Strickland Municipal Service Profile Planning & Economic Development Operating Costs Non-Taxation Revenue Net Levy Requirement FTEs Mandatory 20,843 $ - $ 20,843 $ 0.0 Tradtional 32,421 $ - $ 32,421 $ 0.0 Mandatory - $ (3,000) $ (3,000) $ 0.0 - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 53,264 $ (3,000) $ 50,264 $ - Total Economic Development Own Resources Zoning Own Resources Sub-Service/Process Basis for Delivery Delivery Model Financial Information (2020 Budget) Planning Own Resources Detail Heading Detail Heading Detail Heading Detail Heading © 2022 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. 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