Presentation on theme: "PSAB Implementation in Newfoundland and Labrador Municipalities Lori Anne Companion, ADM Department of Municipal Affairs May 10, 2008."— Presentation transcript:
PSAB Implementation in Newfoundland and Labrador Municipalities Lori Anne Companion, ADM Department of Municipal Affairs May 10, 2008
Focus of presentation PSAB Overview Role of Municipalities Impact on Municipalities Departments plan to assist municipalities
PSAB Overview Public Sector Accounting Board of the Canadian Institute of Chartered Accountants (CICA) requires new rules for municipal government accounting Requires identification and accounting for what you own (assets and inventory), assessing useful life and planning for the fiscal capacity to replace these assets.
PSAB Overview The PSAB requirements are not new – what is new is the requirement for municipalities to start reporting under PSAB standards. Several requirements of the PSAB Standards – Tangible Capital Asset reporting (Phase 1); Accruals, Environment Liabilities and others (Phase 2). Both phases are required to be in progress before December 31, 2008.
Gas Tax Agreement The Federal/Provincial Gas Tax Agreements in all provinces require municipalities to comply with PSAB standards. Provincial/municipal GTA requires municipalities to report under PSAB standards by March 31, Means that all inventory must be accounted for and valued as of December 31, 2008 to provide opening balances of municipal assets.
Gas Tax Agreement Municipalities may use their Gas Tax funds for the following: - Hire professional consultants for inventory compilation and calculation of current book value - Development of policy for implementation of an asset management system.
Why is the new reporting important? Asset management is the goal. Will provide a link between fiscal responsibility and strategic infrastructure planning for municipalities. Indicator of sustainability and viability.
What Councils Need To Do Now Ensure your Administrator begins preparing inventory of capital assets. Engage your accountants/auditors. Support (both human and financial resources) your Administrator in this process. Ensure your Administrator participates in seminars and information sessions. Engage a representative of your Council attend the information sessions (eg. Finance Committee Member).
What does PSAB mean to Councils Your financial statements will look different – will reflect the value of assets and all expenditures will be reported in the period in which they occurred. Bottom line may look different – surplus or deficit different than may have been expected.
Departments Plan to assist Municipalities Develop guidelines and reference manuals Deliver seminars and information sessions (May 26 – July 29) Dedicated departmental staff resources PSAB direct and toll free number ( ) Information posted on Government web-site Regional office staff available to provide assistance
Departments Plan to assist Municipalities Provide matched funding for seminar/information sessions through MTDC Communicate and coordinate with stakeholders including municipalities, auditors and accountants, engineers, accounting associations and consultants Reviewing and amending legislation
Closing PSAB – New standards that are here to stay!! Requires effort by municipalities Municipalities need to become engaged now Municipal Affairs will assist municipalities