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REPORT RAPPORT |
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REPORT RAPPORT |
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DATE:
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19 July 2011 |
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TO/DEST:
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Executive Director, Ottawa Police Services Board |
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FROM/EXP:
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Chief of Police, Ottawa Police Service |
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SUBJECT/OBJET:
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ASSET MANAGEMENT REPORT 2010
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RECOMMENDATION
Policy CR-4 of the Ottawa Police Services Board Policy Manual, Asset Management, requires that on a yearly basis, the Chief shall:
a. Value
b. Expected useful life
c. Annual maintenance cost
d. Replacement plan
e. Disposal options.
Additionally, the Chief is required under Policy CR-4 to monitor and report on unusual risk management trends related to assets.
This report provides the requested information with respect to the 2010 fiscal year. Building (Facility) assets were chosen as the category of real assets for the purpose of this report.
DISCUSSION
Municipalities are required to prepare financial statements in accordance with generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (PSAB) of the Canadian Institute of Chartered Accountants.
Prior to 2009, most municipalities in Canada, including the City of Ottawa, did not include fixed assets on their balance sheets, consistent with recommendations from the PSAB. Depreciation was neither calculated nor incorporated into calculations of net book value of assets.
In June 2006, the PSAB approved PS 3150, which required municipalities to report Tangible Capital Assets (TCA) on their Statement of Financial Position effective January 1, 2009. Additionally, the guideline required that tangible capital assets be amortized on the Statement of Operations.
Beginning in 2009, the City of Ottawa implemented Tangible Capital Assets Reports (TCAR) in order to identify assets and their net book value. This implementation yielded a list of assets assigned to the OPS and their associated net book values.
Net Book Value represents the original cost of the assets less depreciation.
Reporting Requirements
Total OPS Assets – 2010
Annex A summarizes the assets assigned to the OPS and the associated Net Book Value, according to information provided by the City of Ottawa. The assets are divided into five categories and have a total net book value of $60.0 million at December 31, 2010. Buildings are by far the most significant category, comprising $49.1 million of the total.
Category – Building Assets - 2010
Annex B provides a summary of Building Assets that are assigned to OPS. It includes the Net Book Value as provided by the City of Ottawa, expected useful life, and the annual maintenance cost. The replacement plan and disposal options will be outlined in the 20 Year Facility Plan, which is currently being developed and will be presented to the Board in Q3 2011. The Net Book Value of all Facilities assigned to the OPS is $49.1 million at December 31, 2010.
Annual Maintenance, as charged by the City to the OPS, includes such items as salaries of the City staff who maintain the facilities, utilities, janitorial services, service contracts such as snow removal and lawn care, and any minor maintenance expenses.
In order to address both current and future operational demands for suitable facilities, staff are working on developing a 20 Year Facility Plan with its City partners. Costly repairs required for the Greenbank facility are a contributing factor, as staff evaluate options in preparing a comprehensive facilities strategy. This Plan will be presented to the Board in Q3 2011.
Not applicable.
There are no financial implications.
CONCLUSION
This report satisfies the reporting requirements in accordance with OPSB Board Policy CR-4, Asset Management.
(Original signed by)
Gilles Larochelle
Acting Chief of Police
Attach. (2)
Annex A: Summary of 2010 Assets
Annex B: Facilities – Summary Report
