2013

Gas Tax

Annual Expenditure Report

Information Package

For Municipalities/Inuit Community Governments and Auditors

Gas Tax Secretariat
Department of Municipal and Intergovernmental Affairs
ConfederationBuilding, West Block
P.O. Box 8700
St. John's, NL
A1B 4J6
/ Telephone: 1-877-729-4393
Facsimile: (709) 729-3605
E-mail:

Table of Contents

Disclaimer

Reporting by Municipalities and Inuit Community Governments

Purpose and Objective

Preparation of the AER

AER Audit

Compliance with the Agreement

Prior Year Adjustments

Confirmations of Receipts and Approved Projects for Auditors

Availability of Forms

Submissions

Prior to submission please ensure:

Review Process

Appendix A: Summary of Eligible Recipients Fund for Municipalities/Inuit Community Governments and Certification

Explanation for the completion of Summary of Eligible Recipients Fund for Municipalities/Inuit Community Governments

Appendix B: Eligible Recipient’s Project Expenditure Report for Municipalities/Inuit Community Governments

Explanation for the Completion of Summary of Eligible Recipients Project Expenditure Report for Municipalities/Inuit Community Governments

Table A: Other Sources of Funding to Date...... .10

Explanation for the Completion of Summary of Other Sources of Funding to Date

Disclaimer

The information contained in this document is intended to serve as a reference for Municipalities/Inuit Community Governmentsthat are required to complete Audited Annual Expenditure Reports in relation tothe Local Government Gas Tax Funding Agreement/Inuit Community Government Gas Tax Funding Agreement and associated amendments, as prescribed under the Canada – Newfoundland and Labrador Agreement on the Transfer of Federal Gas Tax Revenues 2006-2015.

This document should not serve as a substitute for the actual Local Government Gas Tax Funding Agreement/Inuit Community Government Gas Tax Funding Agreementand associated amendments. These agreements were referenced during the compilation of this document.

Reporting by Municipalities and Inuit Community Governments

All Municipalities and Inuit Community Governmentsthat receivedallocations of gas tax fundingunder the Canada – Newfoundland and Labrador Agreement on the Transfer of Federal Gas Tax Revenues 2006-2015between 2006 and 2013, must submit an Audited Annual Expenditure Report to the Department of Municipal and Intergovernmental Affairs no later than March 31, 2014.

Purpose and Objective

The primary purpose of the Annual Expenditure Report (AER) Information Package is to promote consistent and full compliance with the reporting and audit requirements of the Local Government Gas Tax Funding Agreement/Inuit Community Gas Tax Funding Agreement in terms of how toproperly complete an AER and the expectations surrounding the audit. All Municipalities/Inuit Community Governments are encouraged to use this information package in consultation with their auditors.

The secondary purpose of the guide is to minimize the Province’s compilation efforts and time when preparing its AER for the Federal Government. It is the intent that use of thisinformation package will achieve greater consistency across Municipalities/Inuit Community Governments, reduce the amount of time required to satisfy Municipalities/Inuit Community Governmentsreporting requirements and improve efficiencies of reporting to the Federal Government.

Preparation of the AER

For Gas Tax, it is the Municipality’s/Inuit Community Government’s responsibility to prepare the following:

  1. Summary of Eligible Recipient’s Fund for Municipalities/Inuit Community Governmentsand Certification (Appendix A);
  2. Eligible Recipient’s Project Expenditure Report for Municipalities/Inuit Community Governments(Appendix B); and
  3. Other Sources of Funding to Date (Table A).

AER Audit

The auditor should examine and report on the Annual Expenditure Report and should particularly direct his/her attention to:

  • whether the financial information contained in the Summary of Eligible Recipient’s Fund for Municipalities and Inuit Community Governments and Certification (Appendix A)is complete and accurate and supported by Eligible Recipient’s Project Expenditure Report for Municipalities/Inuit Community Governments (Appendix B); and Other Sources of Funding to Date (Table A);
  • whether the Municipality/Inuit Community Governmentis compliant with all material provisions of the Agreement;
  • other matters connected with the AER that the auditor may consider of sufficient interest or importance to mention.

Compliance with the Agreement

For Gas Tax, aMunicipality/Inuit Community Government must be compliant with Sections 4.3 and 5.2 of the Local Government Gas Tax Funding Agreement/Inuit Community Government Gas Tax Funding Agreement and the First Amending Agreement to the Local Government/Inuit Community Government Gas Tax Funding Agreement and associated amendments. Please note that Sections 4.3 and 5.2 refer to Schedules C, F and D. To be compliant, the Municipality/Inuit Community Government must be compliant with allschedules. Auditors may attach any notes, as appropriate.

Prior Year Adjustments

Should a prior year adjustment be required for any reason, a note from the auditor is required to explain the adjustment. If the adjustment includes a change to the project expenditures, a revised Eligible Recipient’s Project Expenditure Report for Municipalities/Inuit Community Governments (Appendix B) is required as well. Prior year adjustment includes addition errors, errors in the project expenditures; wrong carry forward amount, charging administrative expenses where there is no interest earned, under reported receipts, etc

Confirmations of Receipts and Approved Projects for Auditors

A confirmation of receipts and approved projects is available to auditors. Requests should be directed to:

Gas Tax Secretariat

Department of Municipal Affairs

4th Floor, ConfederationBuilding, West Block

P.O. Box 8700

St. John’s, NL A1B 4J6

Availability of Forms

Electronic copies of the AER forms contained in this information package are available:

  1. by emailing
  2. on Municipal Affairs website
  3. by calling 1-877-729-4393.

Submissions

Please forward:

  1. Appendix A: Summary of Eligible Recipients Fund for Municipalities/Inuit Community Governments;
  2. Appendix B: Eligible Recipients Project Expenditure Report for Municipalities/Inuit Community Governments;
  3. Table A: Other Sources of Funding to Date;
  4. the prescribed certification signed by the Mayor or AngajukKâk; and
  5. the audit report;

to the following address on or before March 31, 2014to:

Gas Tax Secretariat

Department of Municipal and Intergovernmental Affairs

4th Floor, ConfederationBuilding, West Block

P.O. Box 8700

St. John’s, NL A1B 4J6

Prior to submission please ensure:

  1. AER certification signed byMayor or the AngajukKâk;
  2. Appendix A, Appendix B and Table A are complete;
  3. All forms are in the prescribed format;
  4. The cumulative and annual figures are reported on Appendix A;
  5. The correct amount is carried forward from the previous year;
  6. All receipts are reported;
  7. Administrative expenses do not exceed interest earned;
  8. The cumulative amount spent on eligible projects from Appendix A matches the details on Appendix B;
  9. All projects received prior approval of the Gas Tax Committee;
  10. The expenditures on any project do not exceed the approved amount;
  11. Any interest spent on eligible projects is included on line 5 in Appendix A and in column L on Appendix B.

Review Process

Upon receipt of the AER, the Gas Tax Secretariat reviews the AER. The Municipality/ Inuit

Community Government will be notified of any discrepancies.

Appendix A:Summary of Eligible Recipients Fund for Municipalities/Inuit Community Governments and Certification

2013 Annual Expenditure Report

Municipality/Inuit Community Government______

For the Year Ended December 31, 2013

Annual / Cumulative
01/01/2013–
12/31/2013 / Date of signing –
12/31/2013
1. Opening balance of unspent funding / xx
2. Received from Government of Newfoundland & Labrador / xx / xx
3. Interest earned on gas tax funds / xx / xx
4. Administration costs / (xx) / (xx)
5. Interest spent on eligible projects / (xx) / (xx)
6. Net interest earned on gas tax funds / xx / xx
7. Gas Tax Funds spent on eligible projects / (xx) / (xx)
8. Closing balance of unspent funding / xx / xx

9.

Certification by Municipality/Inuit Community Government
I, ______, ______of the
(Name) (Mayor/ AngajukKâk)
Town/City/Inuit Community Government of ______
certify that the information reported is a true and accurate representation of the Municipality’s/Inuit Community Government’s position with respect to its federal gas tax revenues. I acknowledge and understand that any contravention of the terms and conditions of the Local Government Gas Tax Funding Agreement/Inuit Community Government Gas Tax Funding Agreementand associated amendments may result in funding being withheld.
Signature: ______Date: ______

10. Does therecipient have a separate bank account for Gas Tax funds? Yes No___Explanation for the completion of Summary of Eligible Recipients Fund for Municipalities/Inuit Community Governments

Please include values for all figures in Appendix A

  1. Opening Balance of Unspent Funding

This balance should be carried forward from the “Closing balance of unspent funding” of the previous year.

  1. Received from Government of Newfoundland & Labrador

This amount is the total Gas Tax Funds received in the calendar year from the Department of Municipal and Intergovernmental Affairs. This figure is reported on a cash basis.

  1. Interest Earned on Gas Tax Funds

This figure is the total interest earned on Gas Tax Funds in the calendar year.

  1. Administration Costs

This value equals any administration costs that can be applied against interest earned. Administration Costs cannot exceed“Interest Earned on Gas Tax Funds” less Interest Spent on Eligible Projects.

5. Interest Spent on Eligible Projects

Please include the total amount of interest spent on all projects for the year. This figure must match the total of Column L on Appendix B:Eligible Recipients Project Expenditure Report for Municipalities /Inuit Community Governmentsand cannot exceed “Interest Earned on Gas Tax Funds less Administrative Costs.”

6. Net Interest Earned on Gas Tax Funds

Net Interest Earned on Gas Tax Funds equals the Interest Earned on Gas Tax Funds “MINUS” the Administration Costs and “MINUS” Interest spent on eligible projects. Net Interest Earned on Gas Tax Funds cannot be negative.

7. Gas Tax Funds Spent on Eligible Projects

Please include the total gas tax funds spent on all projects for the year. This figure must match the total of Column K on Appendix B: Eligible Recipients Project Expenditure Report for Municipalities /Inuit Community Governments.

If a Municipality/ Inuit Community Governmenthave received an approval to borrow against future Gas Tax allocations from the Department of Municipal Affairs, please make a footnote to this figure indicating the amount of money borrowed and the expected date that the loan will be repaid.

Please note, the Cumulative Gas Tax Funds Spent on an individual project cannot exceed the approved amount of the project.

8. Closing Balance of Unspent Funding

Closing balance of the unspent funds equals the Opening Balance of Unspent FundingPLUS “Received from Government of Newfoundland & Labrador”PLUS“NetInterest Earned on Gas Tax Funds”MINUS“Gas Tax Funds Spent on Eligible Projects

9. Certification by Eligible recipients

For Municipalities this section must be signed and dated by the Mayor or Deputy Mayor.

For Inuit Community Governments this section must be signed by the AngajukKâk or designate.

10. Please indicate whether the recipient has a gas tax bank account.

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AppendixB: Summary of Eligible Recipients Fund for Municipalities/Inuit Community Governments and Certification
2013 Annual Expenditure Report
Municipality/Inuit Community Government of ______
For the Year Ended December 31, 2013
A / B / C / D / E / F / G / H / I / J / K / L / M / N
Project Number / Amount Approved by the Gas Tax Committee / Project Title / Project Description / Investment /Project Category / Nature of Investment / Completion or Anticipated Completion Date / Expected Outcomes / Current Status / Total Project Cost / GTF spent in 2013 / Interest Spent in 2013 / Total Gas Tax Fund Spent / Estimated Cost to Complete
Example / $32,000 / Road Upgrading / Upgrades to Main Street / Active Transportation / Upgrade / August 2013 / Reduced GHG / In progress / $32,000 / $12,000 / $500 / $12,500 / $19,500
Total

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Explanation for the Completion of Summary of Eligible Recipients Project Expenditure Report for Municipalities/Inuit Community Governments

A - Project Number:

State project number as stated on your Gas Tax Approval Letter.

B - Amount Approved by the Gas Tax Committee:

State the amount approved by the Gas Tax Committee as stated on your Gas Tax Approval letter.

C - Project Title:

State project title as it appears on your Gas Tax Approval letter.

D - Project Description:

Briefly describe the main activities of the project.

E - Investment/Project Category:

Indicate one of the following: Water;Waste Water;Solid Waste;Community Energy Systems;Active Transportation; or CapacityBuilding. This should be consistent with the Project Category you selected on your CIP.

F - Nature of Investment:

Select New, Expansion or Upgrade/ Renewal.

  1. New: Being the first or earliest available infrastructure.
  2. Expansion: The increase in size or scope of an existing infrastructure, leading to the increase in capacity or quality of an existing service.
  3. Upgrade/ Renewal: The increase in size or scope of an existing infrastructure, that does not lead to an increase in capacity or quality of an existing service

G - Completion or Anticipated Completion Date:

Enter the completion date of the project. If the project is not yet completed, enter the anticipated completion date

H - Expected Outcomes:

Indicate one of the following: Cleaner Air; Cleaner Water; orReducedGreenhouseGases.

I - Current Status:

Indicate the status as of December 31, 2013by choosing one of the following: (a) completed, (b) in progress.

J –Total Project Cost:

Provide the total cost to complete the project from all sources of funding: Gas Tax, Municipal, Federal, Provincial and any other source of funding. All funding sources must be broken down in Table A.

K - GTF spent in 2013:

Include the total cost spent on the project from January 1, 2013to December 31, 2013.

L –Interest spent in 2013:

Include the total interest spent on the project from January 1, 2013 to December 31, 2013.

M - Total Gas Tax Fund Spent

This equals the amount spent on the project from gas tax in 2006, 2007, 2008, 2009, 2010, 2011, 2012 and 2013.

N– Estimated Cost to Complete

If your project was not complete at December 31, 2013, please indicate the remaining costs to complete the project.

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Table A: Other Sources of Funding to Date

2013Annual Expenditure Report

Municipality/Inuit Community Government

For the Year Ended December 31, 2013

A / B / C / D / E / F / G
Project Title / Municipal / Provincial / Federal / Other / Total Other Sources / Program (i.e. MRIF, MCW, etc.) and Project number
Total

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Explanation for the Completion of Summary of Other Sources of Funding to Date

This table should display the amount of additional funding for each project received from sources other than Gas Tax. Each project listed in Appendix B: Eligible Recipient’s Project Expenditure Report for Municipalities/Inuit Community Governmentswill also be listed in Table A.

Note: If a project has no additional sources of funding, input a zero into column F for that project.

A – Project Title:

State project title as it was labelled on Eligible Recipient’s Project Expenditure Report for Municipalities/Inuit Community Governments(Appendix B)

B – Municipal:

Indicate the amount of funding spent from municipal funds.

C – Provincial:

Indicate the amount of funding spent from provincial funding programs.

D – Federal:

Indicate the amount of funding spent from federal funding programs.

E – Other:

Indicate the amount of funding spent from other programs.

F – Total Other Sources:

Equals the total of columns B to E

G – Program (i.e. MRIF, MCW, etc.) and Project Number:

Indicate the name of the federal or provincial funding program and project number

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