audit and finance committee agenda

Audit and Finance Committee Agenda

Thursday, October 7, 2021, 1:30 p.m. - 2:30 p.m.

Zoom Meeting

Public Viewing via YouTube

1. Opening

1.1 Quorum

Action: Confirmation Lead: Chair Doblanko

1.2 Call to Order

Action: Declaration Lead: Chair Doblanko

1.3 Chair’s Opening Remarks

Action: Information Lead: Chair Doblanko

2. Approval of Agenda Action: Approval Lead: Chair Doblanko Recommended Motion: Recommended Motion: That the Audit and Finance Committee approve the October 7, 2021 meeting agenda.

3. Approval of Minutes Action: Approval Lead: Chair Doblanko Recommended Motion: Recommended Motion: That the Audit and Finance Committee approve the July 8, 2021 meeting minutes.

July 8, 2021 Audit and Finance Committee Minutes Page 3 - 6

4. Finance 4.1 Q2 Quarterly Financial Report

Action: Information Lead: Chair Doblanko/CEO Wichuk Q2 Quarterly Financial Report

Page 7 - 9

4.2 Cash Flow Analysis

Action: Information Lead: Chair Doblanko/CEO Wichuk Cash Flow Analysis

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5. CEO Update Action: Information Lead: CEO Wichuk

Page 1 of 13

https://youtu.be/PCz0JKq4ALw

6. Next Meeting

• January 13, 2022, 1:30 p.m. - 3:30 p.m., format TBC

7. Adjournment Action: Declaration Lead: Chair Doblanko

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Audit and Finance CommitteeMeeting Minutes: Thursday, July 8, 2021

Audit and Finance Committee Meeting

Thursday, July 8, 20211:30 p.m. – 3:30 p.m.

Virtual Meeting via ZoomPublic Viewing via YouTube

Members:Mayor Tanni Doblanko, Leduc County (Chair)Councillor Wes Brodhead, Leduc County (ViceChair)Mayor John Stewart, City of BeaumontMayor Ray Ralph, Town of DevonCouncillor Michael Walters, City of Edmonton

EMRB Staff:Karen Wichuk, CEOCindie LeBlanc, Director, Corporate andStakeholder RelationsSharon Shuya, Director, Regional Growth PlanningCharlene Chauvette, Office ManagerChelsea Levesque, Administrative Assistant

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1. Opening

1.1 Quorum

Quorum achieved; five of five voting members present.

1.2 Call to Order

Chair Doblanko called the meeting to order at 1:31 p.m.

1.3 Chair’s Opening Remarks

Chair Doblanko welcomed everyone and shared the items to be discussed in themeeting today. She acknowledged that the EMRB convenes on the traditional landsof Treaty 6, which is also the home of members of the Métis Nation of Alberta (Zone4 and Zone 2), Inuit, and non-status Indigenous peoples and that we acknowledgethat we are all Treaty People, bound to one another by the spirit and intent of Treaty“as long as the sun shines, the grass grows and the river flows.”

Chair Doblanko reminded members that the meeting is convened via YouTube andprovided Zoom meeting processes and shared the items to be discussed in themeeting today.

2. Approval of Agenda

AFC2021-13 Motion: Recommended Motion: That the Audit and Finance Committee approvethe July 8, 2021 meeting agenda.Moved by: Mayor StewartAccepted by: ChairDecision: Carried unanimously

3. Approval of Minutes

AFC2021-14 Motion: Recommended Motion: That the Audit and Finance Committee approvethe May 13, 2021 meeting minutes.Moved by: Mayor RalphAccepted by: ChairDecision: Carried unanimously

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4. Finance

4.1 Revised 2021/22 – 2023/24 Budget

CEO Wichuk provided background on the revisions to of the 2021/22 – 2023/24Budget. There was an error identified on the first column title, "2020/21 Approved",which should read "2021/22 Approved". CEO Wichuk confirmed this will be updatedand a revised version sent out to the Committee.

AFC2021-15 Motion: That the Audit and Finance Committee endorse and recommend theRevised 2021/22 – 2023/24 Budget to the Edmonton Metropolitan Region Board forapproval.Moved by: Mayor RalphAccepted by: ChairDecision: Carried unanimously

4.2 Q1 Quarterly Financial Report

CEO Wichuk provided an overview of the Q1 Quarterly Financial Report. She notedthat Government of Alberta officials confirmed the ACP operating grant had goneforward to the Minister for approval but that it had not yet been received as of July 5.In terms of member municipality contributions, EMRB Administration had receivedapproximately $1.7 million of the expected $1.9 million in. CEO Wichuk confirmedlate payments of member contributions is not a systemic issue as EMRB policyrequires payment within 60 days.

While the current surplus ensures there will not be any cash flow issues this year,members recommended EMRB Administration undertake a cash flow analysis tohave an idea of where the financials would be if there should there be no surplusand delays in receiving member contributions and grant funding at the beginning ofthe fiscal year. CEO Wichuk confirmed an analysis, including information onmitigation strategies such a establishing a line of credit and increasing the minimumamount of the Board Stabilization Fund, will be brought back to the Committee atthe next meeting.

4.3 Auditor Update

CEO Wichuk stated that the three-year contract with the Auditor will end in July2021. It is the responsibility of the Committee to appoint a new auditor. It wasproposed that Administration will bring back an RFP in January or March 2022 forthe Committee’s consideration before it is released.

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5. CEO Update

CEO Wichuk provided an update on work that has been underway since the lastCommittee meeting.

6. Next Meeting

The next scheduled meeting on September 9, 2021 will be rescheduled to October7, 2021 so that Administration can bring back the items discussed today andprovide a Q2 quarterly financial update.

7. Adjournment

Chair Doblanko adjourned the meeting at 2:22 p.m.

Committee Chair, Tanni Doblanko

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Item 4.1

Briefing Note

Meeting: Audit and Finance Committee - October 7, 2021 To: Audit and Finance Committee From: Administration Subject: Q2 Quarterly Financial Report

Background: On August 12, 2021, the Edmonton Metropolitan Region Board approved the Revised 2021/22 – 2023/24 Budget. This is the second quarterly financial report for the 2021/22 fiscal year. In an ongoing effort to improve on our reporting the quarterly financial statements include:

• Actuals as of September 29, 2021, any residual amounts will be reported in quarter three; • Estimated spending to the end of the 2021/22 fiscal year; and • Variances (percentage and dollar).

Q2 Highlights The highlights of note for this quarterly reporting period are:

• The Alberta Community Partnership Grant of $1.5M has not been received as of September 29, 2021.

• Membership contributions have been received in full. The results of this quarterly are on par with what we have seen in previous years at this time.

Attachments: 2021-22 Q2 Financial Report

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Revenue2021/22 Budget

Actuals - as of September 30,

2021

Variances %

Expensed/Received

Variances $ to be Expensed/Received

Estimated Spending 2021/22

GOA Operating Grant 1,500,000.00$ -$ 0.0% (1,500,000)$ 1,500,000.00$ GOA Planning Intern Grant -$ -$ 0.0% -$ -$ 13 Member Contribution 1,898,454.11$ 1,898,454.11$ 100% - 1,898,454.11$ Committed Deferred Revenue 2,755,315.00$ 2,755,315.00$ 100% -$ 2,755,315.00$ Deposit Interest -$ 5,413.99$ 100% -$ Carry Over -$ -$ -$ -$ Other Income -$ -$ -$ -$

Total Revenue 6,153,769.11$ 4,659,183.10$ 75.7% (1,500,000) 6,153,769.11$

ExpendituresBoard & Committees

Honoraria 56,000.00$ 12,600.00$ 22.5% 43,400 56,000.00$ Meetings 48,000.00$ 5,875.78$ 12.2% 42,124 48,000.00$ Travel 20,000.00$ 787.57$ 3.9% 19,212 20,000.00$ Chair Retainer 40,000.00$ 15,000.00$ 37.5% 25,000 40,000.00$

Total 164,000.00$ 34,263.35$ 20.9% 129,737 164,000.00$

Administration Human Resources

Salaries & Benefits 1,953,386.64$ 969,764.21$ 49.6% 983,622.43$ 1,953,386.64$ Planning Intern -$ -$ - -$ -$ Travel/Professional Development 20,000.00$ 7,252.11$ 36.3% 12,747.89$ 20,000.00$

Capital -$ - -$ -$ Office Lease 310,000.00$ 140,138.76$ 45.2% 169,861.25$ 310,000.00$ Office Furniture/Equipment 8,500.00$ 7,867.85$ 98.3% 632.15$ 8,500.00$

Supplies and Services -$ - -$ -$ Meetings - Non Board/Committee 20,000.00$ -$ 0.0% 20,000.00$ 20,000.00$ Information Technology 25,000.00$ 11,689.74$ 46.8% 13,310.26$ 25,000.00$ Office Communications 40,000.00$ 16,297.32$ 40.7% 23,702.68$ 40,000.00$ Office Supplies 35,000.00$ 12,390.89$ 35.4% 22,609.11$ 35,000.00$ COVID-19 Office Supplies 5,000.00$ -$ 0.0% 5,000.00$ 5,000.00$ Insurance 6,500.00$ -$ 0.0% 6,500.00$ 6,500.00$ GIS 15,000.00$ 2,763.13$ 18.4% 12,236.87$ 15,000.00$ Bank Charges & Interest 2,000.00$ 992.29$ 49.6% 1,007.71$ 2,000.00$ Other Expenses 8,000.00$ 40.50$ 0.5% 7,959.50$ 8,000.00$

Total 2,448,386.64$ 1,169,196.80$ 47.8% 1,279,189.85$ 2,448,386.64$

Corporate Services

Board Development and Strategic PlanningBoard Development & Strategic Planning 100,000.00$ 675.00$ 0.7% 99,325.00$ 100,000.00$ Board Succession Planning & Orientation 50,000.00$ -$ 0.0% 50,000.00$ 50,000.00$ Annual Report/Auditors 25,000.00$ 10,150.00$ 40.6% 14,850.00$ 25,000.00$

Policy and Legislative ServicesProfessional Fees - Legal/Advisory 70,000.00$ 23,158.35$ 33.1% 46,841.65$ 70,000.00$

Information and Risk ManagementCorporate Risk Mgmt & Implementation 15,000.00$ -$ 0.0% 15,000.00$ 15,000.00$ Records Management 20,000.00$ 6,240.00$ 31.2% 13,760.00$ 20,000.00$

Dispute Resolution and Appeal MechanismDispute Resolution& Appeal Mechanism 70,000.00$ -$ 0.0% 70,000.00$ 70,000.00$

Stakeholder Engagement & CommunicationsEngagement & Communications 102,500.00$ 17,550.90$ 17.1% 84,949.10$ 102,500.00$ Advocacy 45,000.00$ 18,511.75$ 41.1% 26,488.25$ 45,000.00$ Regional Symposium -$ -$ 0.0% -$ -$ Board & Committees Collaboration Events 20,000.00$ 12,095.20$ 60.5% 7,904.80$ 20,000.00$

Total 517,500.00$ 88,381.20$ 17.1% 429,118.80$ 517,500.00$

(continued on next page)

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2021/22 Budget

Actuals - as of September 30,

2021

Variances %

Expensed/Received

Variances $ to be Expensed/Received

Estimated Spending 2021/22

Operating Programs - Growth Plan Growth Plan Implementation

Growth Plan/ 5- year update 200,000.00$ -$ 0.0% 200,000.00$ 200,000.00$ Toolkit/Education/Interpretation 5,000.00$ -$ 0.0% 5,000.00$ 5,000.00$ KPI Dashboard 15,000.00$ -$ 0.0% 15,000.00$ 15,000.00$ KPI Targets for GP 5,000.00$ -$ 0.0% 5,000.00$ 5,000.00$ Monitoring & Reporting 10,000.00$ -$ 0.0% 10,000.00$ 10,000.00$

MRSPMRSP 200,000.00$ 23,796.34$ 11.9% 176,203.66$ 200,000.00$

REFREF 75,000.00$ 7,287.50$ 9.7% 67,712.50$ 75,000.00$

RAMPRAMP 125,000.00$ 90,096.74$ 72.7% 34,903.26$ 125,000.00$ RAMP Implementation 120,000.00$ -$ 0.0% 120,000.00$ 120,000.00$

IRTMPIRTMP Update 185,750.00$ 180,131.70$ 97.0% 5,618.30$ 185,750.00$ IRTMP Implementation 30,000.00$ -$ 0.0% 30,000.00$ 30,000.00$

Regional Energy Corridors Advocacy StrategyRegional Energy Corridors Advocacy Strategy -$ -$ - -$ -$

Total 970,750.00$ 301,312.28$ 31.0% 669,437.72$ 970,750.00$

Strategic Plan Initiatives SISB

Shared Investment Shared Benefit 45,000.00$ 41,071.48$ 91.3% 3,928.52$ 45,000.00$ SISB Implementation 100,000.00$ -$ 0.0% 100,000.00$ 100,000.00$ Environmental, Social &Governance (ESG) 100,000.00$ -$ 0.0% 100,000.00$ 100,000.00$ Unallocated Initiatives -$ -$ - -$ -$

Total 245,000.00$ 41,071.48$ 16.8% 203,928.52$ 245,000.00$

Board Stabilization FundBoard Stabilization Fund 100,000.00$ -$ 0.0% 100,000.00$ 100,000.00$

Total 100,000.00$ -$ 0.0% 100,000.00$ 100,000.00$ Total Expenditures 4,445,636.64$ 1,634,225.11$ 36.8% 2,811,412 4,445,636.64$

Unallocated FundsSurplus (Deficit) 1,708,132.47$ 3,024,957.99$ Accumulate Surplus Beginning of YearAccumulate Surplus End of Year

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Item 4.2

Briefing Note

Meeting: Audit and Finance Committee - October 7, 2021 To: Audit and Finance Committee From: Administration Subject: Cash Flow Analysis

Background: At the July 8, 2021 Audit and Finance Committee meeting, the Committee requested Administration undertake a cash flow analysis to better understand the financial situation of the Board. This is being done as the Board and Administration work to put in place mitigation strategies should there be limited budget surpluses in the future and/or delays in receiving member contributions and/or provincial grant funding at the beginning of the fiscal year. As part of its analysis, Administration looked at the past four years, as well as the current fiscal year to date, to better understand timing in revenue and expenses. Attached is a breakdown of revenues/expenses per fiscal quarter. As the summary below demonstrates, the EMRB has not yet faced the situation of having cash flow pressures. Historically, both the Government of Alberta's operating grant and member municipalities' contributions have been received in Q1, and in some cases in Q2.

EMRB expenses during the same timeframe have remained fairly consistent between fiscal quarters, with Q4 expenses slightly higher as Administration works to ensure that in year expenses are paid out before the Board’s fiscal year end. Overall, maintaining EMRB operations at current levels would require a cash flow of between $275,000-$330,000 per month or $825,000-$1,000,000 per quarter. Of particular note are the expenses related to “Operations – Fixed”, which is a category of expenses that outlines EMRB’s operational fixed monthly costs. The “Category Legend” on page one of the attachment outlines what is included in this category as well as the others.

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Risk Assessment As mentioned by the CEO at the last Board meeting, the EMRB is vulnerable to cash flow variations as a result of significant delays in receiving one or both sources of revenue. In order to mitigate this vulnerability, EMRB Administration will be looking into, and reporting back to Audit and Finance Committee, on the following strategies:

• establishing a line of credit; • increasing the minimum amount of the Board Stabilization Fund; and • improved communication with members/government partners to optimize timing of

contributions to minimize cash flow pressures. Next Steps: Information on mitigation strategies such a establishing a line of credit and increasing the minimum amount of the Board Stabilization Fund, will be brought back to the Committee at the next meeting in the new year.

Attachments: Cash Flow Analysis

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Cash Flow Analysis by Quarter

2017/18 to 2021/22

Q1 Q2

Revenue

Total $1,751,379 $152,489

Expenses

Operations - Fixed (Total) $510,870 $624,875

Board Costs (Total) $10,946 $21,209

Consulting (Total) $233,429 $170,569

Professional Fees - Legal & Advisory (Total) $2,603 $10,933

Administration (Total) $19,396 $22,108

Regional Evaluation Framework (Total) $0 $7,288

Net Cash Flow $777,243 $856,982 817,112.56$

Q1 Q2 Q3 Q4

Revenue

Total $2,154,291 $1,395,333 $106,320 $9,506

Expenses

Operations - Fixed (Total) $535,983 $560,146 $561,503 $562,908

Board Costs (Total) $8,350 $20,685 $18,135 $26,251

Consulting (Total) $250,094 $251,750 $358,775 $351,911

Professional Fees - Legal & Advisory (Total) $9,339 $24,902 $20,667 $24,624

Administration (Total) $12,205 $15,959 $17,310 $27,874

Regional Evaluation Framework (Total) $6,961 $4,849 $21,924 $9,038

Net Cash Flow $822,932 $878,291 $998,313 $1,002,606

Q1 Q2 Q3 Q4

Revenue

Total $17,060 $1,505,976 $17,011 $14,680

Expenses




Professional Fees - Legal & Advisory (Total) $0 $4,219 $34,504 $76,167



Net Cash Flow $751,249 $833,423 $1,016,602 $1,358,437

2021-22

2020-21

2019-20

Category Legend

Revenue: Government of Alberta Grant, Municipal Intern Grant, Membership Contributions and Deposit Interest.

Expenses-- Operations - Fixed: Lease, Salaries & Benefits, Phones, Photocopier, Information Technology and Chair Retainer.-- Board Costs: Board and Committee Meetings, Honoria, Travel and Venue Costs.-- Consulting: Project and Initiative Consulting, Meeting, Travel and Venue Costs.-- Professional Fees - Legal & Advisory: Costs associated with Professional Fees and Legal & Advisory.-- Administration: DMS/Records Mgt, GIS, Website, Office Furniture & Equipment, Insurance, Office Supplies, Travel and Professional Development, Meetings - Non Board and Committee, Bank Charges & Interet and Other Expenses.-- Regional Evaluation Framework: Costs associated with consultants on REF.

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Q1 Q2 Q3 Q4

Revenue

Total $1,357,421 $2,010,057 $14,705 $2,056,585

Expenses






Regional Evaluation Framework (Total) $3,306 $13,292 $0 $23,003

Net Cash Flow $668,589 $733,334 $697,976 $868,777

Q1 Q2 Q3 Q4

Revenue

Total $3,051,198 $3,400 $6,264 $49,797

Expenses







Net Cash Flow $590,957 $587,027 $578,193 $924,005

2018-19

2017-18

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audit and finance committee agenda

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