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REPORT RAPPORT |
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REPORT RAPPORT |
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DATE: |
January 23, 2003 |
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TO: |
Executive Director, Ottawa Police Services Board |
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FROM: |
Chief of Police, Ottawa Police Service |
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SUBJECT: |
2002 THIRD QUARTER FINANCIAL REPORT |
RECOMMENDATION
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That the Ottawa
Police Services Board receive this report for information. |
BACKGROUND
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The adoption of the budget each year marks the beginning of the annual financial cycle. As the year progresses the operational groups begin to implement their work plans and generate the program revenues and expenses that were approved during the budget process. Financial Services staff and section managers monitor these transactions as they occur and each quarter prepare a financial report for the Board. The
quarterly financial reports summarize the current financial position of the
organization, outline the operational issues affecting the Services finances
and present the projected year-end financial position for OPS. The third quarter report presents a
revised projection of the Services year-end financial position and outlines
the significant variances that are known at this time. The accuracy of this projection improves
with each quarter as the Services' expense and revenue patterns become more
certain. |
DISCUSSION
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Projected Year-End Position Based on the trends and information available to date, staff are forecasting that the Police Service will end the year with a balanced budget. This projection is dependant on:
The significant factors influencing the Services finances are discussed below. They are set out by sector of the organization in ANNEX A. G8 World
Leaders Summit - Federal Compensation The security-related costs for the G8 World Leaders Summit are estimated to be about $2.6 million with costs still to be finalized. The Solicitor General of Canada issued a letter of commitment on June 20, 2002 for a reimbursement arrangement with the City of Ottawa for the extraordinary, justifiable and reasonable security related measures for the G8 summit. A claim for the costs has been submitted to the federal government through the Office of the Mayor. It is critical that OPS be compensated for all costs related to this event, as any shortfall in funding will create a deficit for the 2002 OPS budget. Staff will update the Board on the progress with these negotiations in the year-end financial report. Other
Factors Influencing Year-end Position As reported previously to the Board in the 2nd Quarter Financial Report, the Service has been faced with a number of significant budget pressures this year including overtime, court time and fleet operating costs. These items, if left unchecked, would have definitely resulted in a deficit position for the Service. Accordingly, the Service launched several initiatives in September with the goal of reaching a balanced financial position at year-end. Firstly, a discretionary spending freeze was put in place through a general order issued by the Chief. Secondly, additional controls on overtime were instituted including the requirement for senior officer approval for all overtime expenditures. These initiatives are proving to be very effective and have resulted in lower expenditures, and a levelling-off in overtime growth so that a balanced budget may be within reach at year-end. The estimates in Annex A include the expected benefit of these initiatives as well as the $1.1 million of savings that will occur as a result of the decision by the OMERS board to delay the phase-in of premium costs until 2003. Net savings of $0.6 million are also expected in other parts of the compensation budget primarily from staff being on some form of unpaid leave e.g. maternity, parental, long term disability, etc. These savings are also helping to bring the budget to a balanced position. Horizon Issues
Staff are analyzing the effects that the G8 World Leaders Summit and other large events will have on leave banks. The initial analysis shows an increase in the leave banks in the range of $400,000 with further analysis still required. Staff have flagged this issue with federal officials and will be negotiating for this item to be included in the claim for G8 funding. Reporting Requirements Section 3.8.3 of the Board’s Policy Manual requires the Chief to provide the Board with information on specific operational issues. With respect to financial reporting these requirements include: § ANNEX B provides a list of all contracts awarded by the Chief that exceed $10,000 (as required in sub-section a), § All actual and projected expenses related to the conduct of legal matters are reported in ANNEX C (as required in sub-section d). The pressures related to external and internal legal services have been factored into the overall financial position of the Service. PUBLIC CONSULTATION Public consultation is not required. FINANCIAL STATEMENT Not applicable. CONCLUSION Based on operating results to date, staff are forecasting that the Service will end the year with a balanced budget. Financial Services staff will continue to monitor transactions and activity levels and will report to the board in the Fourth Quarter Financial report on the Services' year-end financial position.
_________________________ Rob Kehoe Director of Financial Services & Materiel Management
_______________________ __________________________ I concur Vince Bevan Debra Frazer Chief of Police Director General |
