Municipal Finance - Frequently Asked Questions
Special Assistance Grants
- Who can apply for funding?
- Are Special Assistance Grants paid 100 percent by the Provincial Government?
- What are cost-sharing ratios?
- What types of projects are eligible under special assistance program?
- How much funding can my organization receive?
- Are operational and maintenance costs eligible under the special assistance grant program?
- Where do I send my Special Assistance Grant request?
- Are applicants for Special Assistance Grants still required to follow the public tendering act and obtain proper regulatory approvals/permits?
- How will I be notified of the outcome?
- What happens after the application is approved for funding?
Approvals to Borrow
- What do I have to send in to apply for an Approval to Borrow?
Financial Statements
- What is the deadline to submit the audit report to Council and the Minister?
- What is the deadline for Council to adopt the financial statements?
- When should Council appoint an auditor?
Municipal Operating Grants
- How often are Municipal Operating Grants issued?
- Does the amount vary per municipality?
- Can Municipal Operating Grants be withheld and/or intercepted?
- Are the Municipal Operating Grants conditional?
- Whom should I contact if I have not received my MOG or have other questions?
- When and why were MOG payments changed from quarter to semi-annual?
- Will the MOG payment amount remain the same with this change?
- Where can I find out more information?
Special Assistance Grants
1. Who can apply for funding?
Special assistance funding is provided to municipal councils and local service district committees. Applications from other entities may also be considered.
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2. Are Special Assistance Grants paid 100 percent by the Provincial Government?
No.
All Special Assistance Grants are subject to the applicable cost-sharing ratio.
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3. What are cost-sharing ratios?
On April 25, 2008, Government established new and uniform ratios based on the population of municipalities to provide a streamlined and simplified approach to accessing municipal funding, as follows:
- 90/10 Provincial/Municipal cost sharing ratio for populations less than 3,000
- 80/20 Provincial/Municipal cost sharing ratio for populations between 3,000 and 7,000
- 70/30 Provincial/Municipal cost sharing ratio for populations greater than 7,000
- Local Service Districts in the province also qualify for funding supports on approved projects.
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4. What types of projects are eligible under special assistance program?
The Special Assistance Fund provides financial aid to support municipalities and related organizations for: emergencies related to health and/or life safety nature; assistance to municipalities experiencing financial difficulties; general assistance to municipalities beyond the municipal budgetary process and special projects or initiatives involving municipalities, local service district committees or other entities.
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5. How much funding can my organization receive?
The Department will only consider requests of a low dollar value (i.e. less than $20,000) and established cost sharing ratios will apply.
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6. Are operational and maintenance costs eligible under the special assistance grant program?
No.
These costs are expected to be paid from the general municipal budget.
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7. Where do I send my Special Assistance Grant request?
All applications must be sent to the Director of Regional Operations, Department of Municipal Affairs.
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8. Are applicants for Special Assistance Grants still required to follow the public tendering act and obtain proper regulatory approvals/permits?
Yes.
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9. How will I be notified of the outcome?
A letter signed by the Minister of Municipal Affairs, or designate, will be sent to the applicant detailing whether the application has been approved.
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10. What happens after the application is approved for funding?
The applicant will receive a letter outlining the terms of the funding, detailing the maximum Provincial contribution (less the GST rebate, if applicable). A copy of the approval will be forwarded to the appropriate Regional Office and the district MHA.
The Regional Office will monitor project and/or provide assistance, if necessary (e.g., guidance with tendering, material list, etc.)
All projects must be completed and all invoices be submitted to the Department by the deadline outlined on the approval letter. Failure to submit invoices by this deadline will result in the cancellation of funding.
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Approvals to Borrow
11. What do I have to send in to apply for an Approval to Borrow?
A letter of request, a letter from financial institute, and a motion of council.
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Financial Statements
12. What is the deadline to submit the audit report to Council and the Minister?
The auditor shall complete and submit the report on his or her audit to the council before June 1 of the year immediately following the financial year that he or she is auditing and, not more than 30 days later, the auditor shall submit a copy of that report to the minister.
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13. What is the deadline for Council to adopt the financial statements?
A council shall prepare and adopt before June 1 of each year a financial statement showing a full and detailed balance sheet and a statement of the revenue and expenditure of the council for the preceding financial year.
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14. When should Council appoint an auditor?
A council shall appoint an auditor before August 1 in the year preceding the year in which the audit is required to be reported on under section 92 to audit the accounts of the council and report on the financial statement prepared by the council.
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Municipal Operating Grants
15. How often are Municipal Operating Grants issued?
As of 2009, they are issued semi-annually in April and October.
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16. Does the amount vary per municipality?
Yes.
Originally the allocation of the Municipal Operating Grants was formula driven with four program components: Equalization, Local Revenue Incentive, Household, and Road Subsidy. Since 2006, however, the entitlements have been frozen at the current level and will remain unchanged until the new fiscal arrangements are developed.
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17. Can Municipal Operating Grants be withheld and/or intercepted?
Yes.
They can be withheld due to non-compliance with the Municipalities Act (i.e., timely submission of Annual Budgets and Financial Statements).
They can also be intercepted for the following:
- Industrial water consumption arrears
- Snow clearing arrears
- NMFC Arrears
- Audit fees outstanding
- Amounts owing to other provincial Departments and Financial Agencies
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18. Are the Municipal Operating Grants conditional?
No.
MOGs are unconditional, since the money can be utilized by the municipalities as they see fit.
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19. Whom should I contact if I have not received my MOG or have other questions?
Contact one of the Department of Municipal Affairs Financial Officers at (709) 729-3057.
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20. When and why were MOG payments changed from quarter to semi-annual?
The change from quarterly to bi-annual payments was implemented in 2009. The change provides municipalities’ access to their MOGs earlier and the Department also benefits through a reduction in processing time.
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21. Will the MOG payment amount remain the same with this change?
Yes.
There is currently no change in the Municipal Operating Grant amounts.
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22. Where can I find out more information?
Department of Municipal Affairs
Municipal Finance Division
Tel: (709) 729-3057
Or
Department of Municipal Affairs
Regional Offices
Eastern Regional Office: (709) 729-0259
Central Regional Office: (709) 256-1050
Western Regional Office: (709) 637-2332
Labrador Regional Office: (709) 896-2941
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