The City of Thompson expects to meet its May 31, 2010 deadline to finish its analysis of tangible capital assets.
Local accountant Bob Wall started the job but pulled out, as he was "not in a position to continue the contact," according to a resolution put forward by Coun. Stella Locker and now deputy mayor Harold Smith last March 9.
Council accepted the withdrawal of Wall's "services" in a unanimous vote exactly one month after voting also unanimously to hire him. The contract was worth about $17,000 and was not publicly tendered.
Wall received a pro-rata payment for the portion of work he completed in that month and has been replaced by Marion Grogan, of Stonewall, who has considerable experience in the specific area. In southern Manitoba, Grogan worked earlier the year for the Rural Municipality of Cartier and worked on a similar project to the Thompson project a year ago for the Municipality of Grahamdale. She also did similar work several years ago for the Regional Municipality of Eriksdale
Normally, contracts of more than $10,000 are tendered. "In normal circumstances, formal public invitations to tender must be offered to prospective responsible tenders where the value of material or services is estimated or anticipated to be in excess of $10,000," said city communications officer Valdine Flaming, last March. "In special circumstances, (i.e. time constraints, specialized services) the City of Thompson may forgo the tender process."
The Canadian Institute of Chartered Accountants (CICA), through the Public Sector Accounting Board (PSAB), sets the standards for government accounting and financial reporting.
New accounting requirements for tangible assets, as they apply to municipalities, have been recommended by the PSAB says Carol Taylor, the city's chief financial officer.
Under PSAB all liabilities should be accrued in the municipality's financial statement. PSAB also requires that tangible capital assets be recorded in the financial statements at their net book value.
Beginning last Jan. 1, the CICA required all governments in Canada, including local governments, to adopt PSAB generally accepted accounting practices.
The Association of Manitoba Municipalities and the Department of Intergovernmental Affairs have undertaken a joint venture to help municipalities adopt the practices here in Manitoba.
In a report to city council earlier this month, the finance and administration committee said it has "reviewed the work to date on tangible capital assets as of Dec. 31, 2007, and is satisfied that the city will have this information for the deadline at the end of May. The committee will continue to update council on compliance of the PSAB requirements. It is important to note the city is playing catch-up in meeting its obligations so this undertaking remains a high priority for the committee."
