Oro-Medonte’s chief financial officer (CFO) has issued a warning to council that a lack of labour “could potentially hinder the township’s ability to adequately serve stakeholders and meet the growing demands of our community.”
Additionally, the CFO identified six other major concerns the township’s finance department has encountered that require additional support.
Nelly Morrow, chief financial officer for Oro-Medonte Township, is asking council today (May 22) to approve spending up to $75,000 from the budget contingency reserve to complete the municipality’s financial services review. She's recommending KPMG be hired to complete the work.
“The financial services portfolio provides core services and systems which are critical to the health and success of the organization,” Morrow wrote in her report to council. “Despite the continued hard work and commitment of the finance team, the increasing complexities of the operations and demands necessitate additional support to continue to excel.
“A review of the township’s provision of financial services will support the finance department in meeting current and future needs effectively,” she added.
According to Morrow, the financial services portfolio is the backbone of the township and plays a critical role in providing legislated and core financial management relating to more than a dozen areas, including budget and management, revenue collection, financial reporting and compliance, expenditure oversight, asset and capital management, debt management, grant management, investment management, risk management, procurement and customer service.
The finance department, she said, has encountered several challenges that require additional support, specifically:
- Succession and turnover in human resources in key positions along with challenges in filling vacancies in a timely manner.
- The need to standardize and modernize key financial processes as the township evolves from a small to mid-size municipality and adopts new enterprise technology.
- The need to enhance centralized procurement and enterprise risk management due to evolving service needs and changes in the external environment.
- Increased legislative requirements for asset management and financial reporting.
- An increasingly more complex operating environment requiring strategic focus.
- The implementation of the township’s new Enterprise Resource Planning (ERP) software system.
- The challenge of addressing these issues adequately while maintaining current service levels.
“In the 2024-2027 strategic plan, council identified strengthening organizational capacity as a key priority area which included objectives pertaining to the ERP implementation and organizational service review ,” Morrow said. “To further support the finance department in addressing current and future needs, a holistic review and strategy is recommended.
“Given current resource limitations and the need to address an action plan quickly, staff are recommending the engagement of an external consultant to conduct a financial services review,” she added.
Morrow recommended the township hire KPMG due to its extensive experience and comprehensive understanding of the township.
“They have successfully conducted other service reviews and a financial plan for drinking water and communal tile, and are currently completing the required updates to the township’s asset management plan,” she said in her report. “Their familiarity with the township’s operations and needs ensures a thorough and effective review.”
