Corporate Services Statement of Operations - Quarter 2 Financial Update (2016)
| Year to Date | Annual | |||||||
|---|---|---|---|---|---|---|---|---|
| Budget | Actual | Budget vs. Actual Variance Favourable/(Unfavourable) | Budget | Forecast | Budget vs. Forecast Variance Favourable/(Unfavourable) | |||
| Expenses | ||||||||
| Compensation | $8,012,518 | $8,043,989 | $(31,470) | (0.4%) | $15,629,194 | $15,974,857 | $(345,663) | (2.2%) |
| Administrative | 2,549,817 | 1,896,344 | 653,474 | 34.5% | 5,099,635 | 5,349,561 | (249,926) | (4.9%) |
| Operational & Supply | 30,700 | 25,916 | 4,784 | 18.5% | 61,400 | 54,914 | 6,486 | 10.6% |
| Occupancy & Infrastructure | 2,987,016 | 2,497,195 | 489,821 | 19.6% | 5,959,494 | 5,728,223 | 231,271 | 3.9% |
| Equipment, Vehicles, Technology | 1,029,663 | 1,094,411 | (64,748) | (5.9%) | 2,059,327 | 2,056,742 | 2,585 | 0.1% |
| Financial Expenditures | 87,209 | 61,080 | 26,129 | 42.8% | 174,419 | 162,569 | 11,850 | 6.8% |
| Total Expenses | 14,696,924 | 13,618,935 | 1,077,989 | 7.9% | 28,983,468 | 29,326,865 | (343,397) | (1.2%) |
| Revenues | ||||||||
| Federal & Provincial Grants | (30,101) | (29,765) | (336) | 1.1% | (60,202) | (59,866) | (336) | 0.6% |
| By-Law Charges & Sales | (127,695) | (107,843) | (19,851) | 18.4% | (255,389) | (230,038) | (25,351) | 9.9% |
| Other Revenue | (227,024) | 2,301 | (229,325) | (9968.3%) | (454,048) | (418,604) | (35,444) | 7.8% |
| Total Revenues | (384,820) | (135,308) | (249,511) | 184.4% | (769,639) | (708,509) | (61,130) | 7.9% |
| Intercompany Charges | ||||||||
| Intercompany Charges | (180,953) | 2,666 | (183,619) | (6886.5%) | (361,911) | (172,593) | (189,318) | 52.3% |
| Total Intercompany Charges | (180,953) | 2,666 | (183,619) | (6886.5%) | (361,911) | (172,593) | (189,318) | 52.3% |
| Net Expenditure (Revenue) Before Transfers & Indirect Allocations | 14,131,152 | 13,486,293 | 644,859 | 4.8% | 27,851,918 | 28,445,764 | (593,846) | (2.1%) |
| Transfers | ||||||||
| Transfers from Funds | (320,796) | (320,207) | (589) | 0.2% | (641,592) | (641,003) | (589) | 0.1% |
| Expense Allocations to Capital | (1,250) | - | (1,250) | (0.0%) | (2,500) | (1,250) | (1,250) | 50.0% |
| Total Transfers | (322,046) | (320,207) | (1,839) | (0.6%) | (644,092) | (642,253) | (1,839) | 0.3% |
| Indirect Allocations & Debt | ||||||||
| Indirect Allocation | (13,809,105) | (13,166,086) | (643,019) | 4.9% | (27,207,826) | (27,803,510) | 595,684 | (2.2%) |
| Total Indirect Allocations & Debt | (13,809,105) | (13,166,086) | (643,019) | 4.9% | (27,207,826) | (27,803,510) | 595,684 | (2.2%) |
| Net Expenditure (Revenue) After Transfers & Indirect Allocation | $- | $- | $- | 0.0% | $- | $- | $- | (0.0%) |
Variance Analysis
Compensation
The unfavourable forecasted variance of $345,663 is driven mainly by sustainment costs related to the Enhanced Financial Management System (EFMS) which will be offset by savings throughout the Region.
Administrative
The favourable year-to-date variance of $653,474 is primarily due to the timing of consulting expenses and self insurance claim payouts, as well as EFMS contracted professional services not being required as services were delivered with in house resources. Self insurance claim payouts are anticipated to be greater than budget resulting in an unfavourable forecasted variance of $249,926.
Occupancy & Infrastructure
The favourable year-to-date and forecasted variances of $489,821 and $231,271 are a result of utilities and maintenance costs being less than budgeted due to the delay of occupancy at the new Niagara Regional Police Service (NRPS) headquarters facility. The move is now anticipated for September 2016, versus April.
Equipment, Vehicles, Technology
The unfavourable year-to-date variance of $64,748 is primarily due to unplanned compressor and generator repairs at Niagara Region headquarters due to equipment failure.
Financial Expenditures
The favourable year-to-date and forecasted variances of $26,129 and $11,850 are a result of lower than anticipated principal payments on printer/photocopiers.
By-Law Charges & Sales
The unfavourable year-to-date and forecasted variances of $19,851 and $25,351 are a result of lower than anticipated rental revenue related to other occupants in regional facilities and less legal work for external clients who now have their own in-house lawyers.
Other Revenue
The unfavourable year-to-date variance of $229,325 is a result of a clerical error ($136,507) that will be rectified in Q3, as well as the timing of revenues from the MicroFIT project. The unfavourable forecasted variance of $25,351 is a result of not filling a funded full-time contract position, offset by anticipated MicroFIT project revenues being greater than budgeted. The unfavourable variance for the funded position is offset by a favourable variance in Compensation.
Community Impacts & Achievements
Construction, Energy and Facilities Management
- Ground-breaking commenced on the new Provincial Offenses Court Facility in June.
- The NRPS headquarters and 2 District building is almost complete, with move in planned for the third quarter of 2016.
- Eleven MicroFIT project installations completed and anticipated to become active in the third quarter of 2016.
Financial Mangement and Planning
- The new financial management system went live in February providing enhanced information and consistency. The budget module was also rolled out with enhanced capital and treasury solutions for users.
- The Development Charge background study project is in progress with review of by-laws and stakeholder engagement to maximize revenue generating opportunities and minimize impact of growth cost on Regional taxpayers.
- Issued asset management plan RFP with 11 responses being evaluated.
- Completed airport engagement and analysis with recommendation for Council consideration to align with Council's Strategic Priorities.
IT Solutions
- Worked with the federal and provincial governments on funding to bring ultra-high speed internet to Niagara and southwestern Ontario under the Southwestern Integrated Fibre Technology initiative. This initiative will expand access to broadband by delivering fibre optic coverage to more than 300 Ontario communities and 3.5 million people.
- New remote access solution for regional laptop users successfully launched in July. The new technology allows for seamless access to email, network drives, programs and applications.
Legal Services
- Working in conjunction with staff from Procurement and EFMS on the creation of newly structured procurement documents which will: enhance the public and vendor's understanding of Niagara Region's procurement processes, be compliant with the Accessibility for Ontarians with Disabilities Act, integrate with the new EFMS system and enhance Niagara Region's financial security.
- Successfully supported the local municipalities and a significant public movement at an Ontario Municipal Board hearing by opposing the introduction of a bio-solids/non-agricultural source material storage facility on agricultural lands.
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