Chapters Centralized Banking and Revenue Collection Framework - PowerPoint PPT Presentation

Chapters Centralized Banking and Revenue Collection Framework COUNCILLOR GUY BOONE, P.ENG.

 Background  Decision  What does it mean for Chapter?  Next steps

Background: ‐ 2017 PEO’s audit identified control issues related to Chapter funds; ‐ 2018 PEO’s audit identified potential HST compliance issues related to Chapter activities; ‐ PEO’s Audit (AUC) and Finance (FIC) Committees recommended in March 2019 that PEO obtain an expert assessment on the identified potential HST implications related to the revenue generation through Chapter activities, and that PEO explore the option to centralize Chapter bank accounts; ‐ PEO obtained an HST expert/consultant opinion (third party) which confirmed that most Chapter activities have HST implications. The report was provided to the FIC, AUC, and Auditor in October 2019; Cont.

Background: Cont. ‐ After assessing the various risks to PEO and to avoid further HST compliance issues, the AUC at its October 17, 2019 meeting, made an unanimous recommendation to request Council to approve the centralization of Chapters bank accounts and cease with generation of revenue from Chapters; ‐ RCC was officially notified about the AUC decision and provided input on how best move forward; ‐ The Chapters Office held teleconference calls in order to capture Chapters’ concerns related to the proposed framework;

Decision:

What Does It Mean for Chapters? ‐ Chapters will no longer be able to have individual accounts; ‐ Chapters will have visibility of their respective accounts; ‐ Each Chapter will continue to receive allotment monies in accordance with their budget allocations; ‐ Effective January 1, 2020, all revenue from Chapter activities will be directed to their respective bank accounts at head‐office; ‐ Effective January 1, 2020, all Chapter expenses to be routed through the head‐ office;

Next Steps: ‐ Chapters will be requested to transfer any surplus from their bank account(s) to PEO head office by no later than December 31, 2019; ‐ Chapters will be requested to shut down their respective bank account(s) by no later than December 31, 2019; ‐ All amounts transferred by the Chapters will remain belonging to each respective Chapter; ‐ Management to ensure that all Chapters activities, including those generating revenues, are in full compliance with all GAAP reporting, tax remittance and other legal requirements by no later than December 31, 2019;