Meet the PSAB GAAP Project Manager

Michel St. Amant, CA is the full time Project Manager for the implementation of PSAB GAAP. Michel is from the Office of the Auditor General (OAG) of Manitoba and brings extensive experience with PSAB. Michel was the OAG representative on the PSAB Advisory Committee for moving school divisions towards PSAB GAAP.

As Project Manager, Michel will work with all stakeholder groups to ensure that project timelines and deliverables for the implementation of PSAB are met. Michel is also available for questions and advice on the implementation of PSAB.

Michel can be reached at:

Michel.St.Amant@gov.mb.ca
Phone: (204) 945-4864
Fax: (204) 948-2780

Attention All Chief Administrative Officers:

The implementation of PSAB by municipalities in Manitoba is in its final phase. Most municipalities have completed their tangible capital assets and are getting ready to prepare their 2009 financial statements in accordance with PSAB GAAP.

2009 Training Sessions - PSAB Reporting Model

2009 training sessions will be announced shortly. In conjunction with the reference manual, CAOs and their finance staff will learn:

• What are the key reporting changes occurring in 2009?
• In-depth look at the four main statements:

  (i) Consolidated Financial Position
  (ii) Consolidated Operations
  (iii) Net Debt
  (iv) Cash Flows

• “Accumulated Surplus”, the net book value of your municipality. What does it include, and how will you report or present it?
• Budgeting and reporting – what is the “Budget Disconnect” and what are the causes. How do I change my cash budget for PSAB presentation?
• Notes to the Financial Statements – how will these change? What additional reporting will be expected?
• Which schedules will have to be prepared?
• Issues related to the Public Utilities Board?

Background:

The Canadian Institute of Chartered Accountants (CICA) through the Public Sector Accounting Board (PSAB) sets the standards for government accounting and financial reporting. Beginning on January 1, 2009 the CICA is requiring that all governments in Canada, including local governments, adopt PSAB generally accepted accounting practices (PSAB GAAP).

The Association of Manitoba Municipalities and the Department of Intergovernmental Affairs have undertaken a joint venture to help municipalities adopt PSAB GAAP.

Phase one of the project is now complete and a detailed action plan is in place, outlining the steps and timeframes necessary to reach PSAB GAAP by 2009.

To oversee implementation of the plan a Steering Committee has been formed comprised of representatives from the AMM, the Manitoba Municipal Administrators Association (MMAA) and the Department. The Committee will provide leadership and direction to the project, working to ensure that timeframes are met and that municipal issues are addressed and resolved.

The project team, resourced by both the AMM and the Department, will develop and provide a practical set of reference manuals, in conjunction with training, advice and one on one assistance, to help CAO’s and finance staff address the technical issues created by the move to PSAB.

What do municipalities have to do for groups to which they belong, such as planning districts?

PSAB requires that municipal financial statements include all the organizations controlled by the municipality. Depending on the circumstances, a municipality may have to consolidate all or their proportionate share of each entity. A working group on this issue will be formed and comprised of stakeholders such as CAOs and municipal auditors. The working group will develop guidance to help municipalities determine if they have to consolidate entities and instructions on how to do so.

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Will the changes possibly result in some municipalities showing a deficit?

It is possible for a municipality with a surplus under the current accounting practices to show a deficit under PSAB. Under PSAB all liabilities should be accrued in the financial statements. PSAB also requires that tangible capital assets be recorded in the financial statements at their net book value. A municipality could show a deficit if its unrecorded liabilities exceed the net book value of its tangible capital assets. This issue is under further study.

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Will the committee be recommending standard software?

No. The Department of Intergovernmental Affairs and the AMM will not be recommending standard software. PSAB is still about debits and credits. If your current system can accept adjusting journal entries, then your system can generate accounting information that can be used to prepare financial statements in compliance with PSAB.

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