fvrl board - Fraser Valley Regional Library

Transcription

AGENDA
OF THE
FVRL BOARD
REGULAR MEETING OF THE FRASER VALLEY REGIONAL LIBRARY BOARD
Wednesday, June 24, 2015 – 9:00 a.m.
FVRL Administrative Centre
34589 DeLair Road, Abbotsford, BC V2S 5Y1
1.00
CALL TO ORDER
Mayor John Van Laerhoven, Chair
2.00
APPROVAL OF CONSENT
AGENDA
THAT the Consent Agenda be approved as circulated.
2.011
Enclosure:
♦ March 25, 2015 Meeting Minutes
♦ Summary: Board Planning Days April 22 & 23, 2015
Motion
p. 5
Minutes
p. 59 2.012 Quarterly Statistics
p. 61
Enclosure:
♦ Quarterly Statistics Report
2.013 2014 Provincial Library Enclosure:
Grants Report
♦ 2014 Provincial Library Grants Report
p. 73 2.014 Library Reports
Enclosure:
♦ Library Reports
p. 89 2.015 Correspondence
Enclosure:
♦ Letter from City of Langley
♦ Letter from Corporation of Delta
3.00
APPROVAL OF AGENDA
4.00
PRESENTATIONS
Motion
4.01
THAT the Agenda be approved as circulated.
Fraser Valley Cultural
Dr. Sarwan Singh Randhawa, Community Librarian,
Diversity Awards: Champion Muriel Arnason Library
of Diversity
Information
FVRL…Connecting people to the world of information and ideas
REGULAR MEETING OF THE FVRL BOARD: Agenda
June 24, 2015
Page 2
4.02
FVRL Auditor’s Report
Motions
Auditor Bill Cox, BDO Canada
THAT the 2014 auditor’s report be received.
THAT the 2014 audit be approved.
Enclosure:
♦ Audited Results and Communications Report to the
Members of the Board for the Fiscal Year Ended
December 31, 2014
♦ Financial Statements for the Year Ended December
31, 2014
p. 91
p. 123
4.03
FVRL Financial Update
Motion
p. 141
5.00
Nancy Gomerich, Director of Finance
THAT the 2014 Financial Statements be approved.
Enclosure:
♦ 2014 Financial Statements
BUSINESS ARISING FROM THE MINUTES
5.01
FVRL Strategic Directions
and Annual Plan
Motions
Scott Hargrove, Chief Executive Officer
THAT the 2016–2018 Strategic Directions be approved.
THAT the Annual Plan be approved.
p. 159
5.02
p. 163
5.03
Enclosure:
♦ Draft 2016–2018 Strategic Directions
♦ Draft 2016 Annual Plan
EBooks Advocacy
Information
Workshop: Social Trends
That Impact Communities
p. 165 Information
Enclosure:
♦ EBooks Advocacy Underway
Enclosure:
♦ Workshop: Social Trends That Impact Communities
♦ About Scott Hargrove
June 24, 2015
Page 3
NEW BUSINESS
6.00
6.01
2014 FVRL Surplus
Allocations
Motions
Nancy Gomerich, Director of Finance
THAT $137,904 be transferred from the Asset
Replacement Reserve to the Municipal Surplus
Reserve, as the funding source for the 2014 Salary
and Benefit Surplus Allocation.
THAT the 2014 Salary and Benefit Surplus
Allocation, calculated in accordance with Board
policy and totaling $137,904, be attributed to each
member as listed:. Abbotsford $0; Chilliwack
$20,457; Delta $16,350; Fraser Valley Regional
District $0; Hope $5,395; Kent $0; Langley City
$8,975; Langley Township $29,406; Maple Ridge
$17,123; Mission $16,171; Pitt Meadows $10,012; Port
Coquitlam $14,017; White Rock $0.
p. 169
6.02
Enclosure:
♦ 2014 FVRL Surplus Allocation Report
Fines Amnesty Day Terms of Scott Hargrove, Chief Executive Officer
Reference
THAT the Fines Amnesty Day Terms of Reference be
Motion
approved.
Enclosure:
♦ Draft Amnesty Day Terms of Reference
p. 171
6.03
p. 172
AUTOMATION RESERVE
DRAWDOWN
Motion
Dean Kelly, Acting Director of Information Technology
and Support Services
THAT the use of $202,083 in the Automation Reserve
to replace and upgrade FVRL’s virtual infrastructure be
approved.
Enclosure:
♦ Automation Reserve Drawdown
June 24, 2015
Page 4
6.04 For Your Calendar
The FVRL Board will host:
FVRL’s Annual Employee Recognition Celebration
Wednesday, September 30, 2015 – 6:30 pm
Ramada Plaza Inn and Conference Centre
36035 North Parallel Road, Abbotsford, BC V3G 2C6
(by invitation only)
Workshop: Social Trends That Impact Communities
Thursday, November 26, 2015 – 9:00-4:00 pm
Ramada Plaza Inn and Conference Centre
(for FVRL member councils and local government
administration)
7.00
OTHER BUSINESS
8.00
AROUND THE TABLE
9.00
QUESTIONS
10.00
NEXT MEETING
11.00
ADJOURNMENT
Motion
The FVRL Board will meet next:
Wednesday, July 22, 2015 – 9:00 a.m.
THAT the meeting of FVRL Board be adjourned.
MINUTES
OF THE
FVRL BOARD
DRAFT
REGULAR MEETING OF THE FRASER VALLEY REGIONAL LIBRARY BOARD
Wednesday, March 25, 2015
Attendees from the Board
Councillor Helen Fathers, City of White Rock
(Acting Chair)
Councillor Petrina Arnason, Township of Langley
Councillor Les Barkman, City of Abbotsford
Councillor Corisa Bell, City of Maple Ridge
Director Bill Dickey, Fraser Valley Regional District
Councillor Laura Dupont, City of Port Coquitlam
Councillor Heather King, Corporation of Delta
(alternate)
Councillor Gayle Martin, City of Langley
Councillor Chuck Stam, City of Chilliwack
Councillor Jenny Stevens, District of Mission
Mayor Wilf Vicktor, District of Hope
Regrets
Councillor Bill Dingwall, City of Pitt Meadows
Director Maria Harris, Metro Vancouver
Councillor Sonja Reyerse, Village of Harrison Hot
Springs
Mayor John Van Laerhoven, District of Kent
(Chair)
Attendees from Staff
Cathy Wurtz, Director of Human Resources &
Business Transformation
Dean Kelly, Acting Director of Information
Technology & Support Services
Irene Geng, Donor Relations Manager (Recorder)
Gillian McLeod, Acting Senior Finance Manager &
Library Manager—Delta
Brad Fenrick, Manager of Information Technology
Nicole Glentworth, Library Manager—Chilliwack &
Upper Fraser Valley
Anthea Goffe, Acting Deputy Manager—Mission
Library & Outreach Services
Mary Kierans, Manager of Support Services
Hilary Russell, Library Manager—Abbotsford
David Thiessen, Library Manager—Township of
Langley & White Rock
CUPE Local 1698
Dennis Neumann
FVRL Staff Guests
Connie Chapman, Customer Services Specialist
Agnes Hamm, Customer Accounts
John Wiebe, Shipping & Receiving
Alisha Yau, Customer Accounts
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REGULAR MEETING OF THE FVRL BOARD OF DIRECTORS
Page 2
1.00
CALL TO ORDER
Councillor Helen Fathers, Board vice chair and acting chair, called the regular meeting of the
Fraser Valley Regional Library Board to order at 9:00 am.
2.00
APPROVAL OF CONSENT AGENDA
It was MOVED Councillor Barkman, SECONDED Mayor Vicktor, THAT the consent agenda
be approved as circulated.
CARRIED
15.03.25/01
Consent Agenda Approved
3.00
APPROVAL OF AGENDA
It was MOVED Councillor Stevens, SECONDED Councillor King, THAT the agenda be
approved as circulated.
CARRIED
15.03.25/03
Agenda Approved
4.00
PRESENTATION
John Wiebe, a delivery driver for FVRL’s Shipping and Receiving department, gave a
PowerPoint presentation that provided an overview of the Shipping and Receiving operation.
He described the department’s purpose, the trucks used, the libraries served, staff roles, and
the department’s extensive functions. (PowerPoint presentation attached.)
Board members expressed their appreciation for the interesting overview of behind-thescenes operations.
5.00
BUSINESS ARISING FROM THE MINUTES
5.01
FVRL’s InterLINK Representative
Councillor Fathers called for nominations for Public Library InterLINK Representative
to fill the vacancy created because Councillor Kanakos’ council duties conflicted with
the InterLINK meeting schedule.
Councillor Laura Dupont volunteered to serve as FVRL’s Public Library InterLINK
Representative.
Councillor Fathers called twice more for further nominations. There were no other
nominations.
 Councillor Dupont was declared
Representative by acclamation.
elected
Public
Library
InterLINK
6
Page 3
6.00
NEW BUSINESS
6.01
Overview of FVRL Fines and Fees
Scott Hargrove, Chief Executive Officer, introduced Alisha Yau and Agnes Hamm,
Customer Accounts staff who engage FVRL customers owing fines and fees.
He referenced the Overview of FVRL Fines and Fees report and responded to Board
members’ questions about FVRL’s approach and procedures.
6.02
Board Planning Days
Scott Hargrove, Chief Executive Officer, provided an overview of plans for the twoday FVRL Board Planning Days to be held Wednesday and Thursday, April 22 and 23,
2015.
7.00
OTHER BUSINESS
Scott Hargrove, Chief Executive Officer, reported that Mayor John Van Laerhoven, FVRL’s
Board chair, was injured in a motorcycle crash on March 13 and that, until he is able to resume
duties as chair, Councillor Helen Fathers, FVRL’s Vice Chair, will serve as FVRL’s Board chair.
8.00
AROUND THE TABLE
Councillor Stevens announced that Mission Library will have a change in library manager
because the current manager accepted a position with another library system.
Councillor Arnason was pleased to report that, at the 12th Annual Fraser Valley Cultural
Diversity Awards, Dr. Sarwan Randhawa, Community Librarian at Muriel Arnason Library, was
awarded the prestigious individual award Champion of Diversity.
Councillor Martin stated that the City of Langley Library was closed for several days as staff
prepare to move into the library’s renovated space, which is part of the redevelopment of the
City’s community centre currently under construction.
Mayor Vicktor shared the news of a tragic car crash that took the lives of three young men
from Hope.
Councillor King reported that Delta libraries are constantly thriving.
Councillor Stam expressed thanks and many compliments to library staff for the Absolute
Beginners computer training program, which introduces seniors to computers.
9.00
QUESTIONS
There were no questions.
7
Page 4
10.00 MOVE TO IN CAMERA SESSION
It was MOVED Councillor Stam, SECONDED Councillor Dupont, THAT the Board move to In
Camera session.
CARRIED
15.03.25/04
Move to In Camera Session
11.00
NEXT MEETING
The FVRL Board will meet next for Planning Days:
Wednesday and Thursday, April 22 and 23, 2015
8:00 am – 4:30 pm
Ramada Plaza Conference Centre
Mount Baker Room
36035 North Parallel Road
(Highway 1, Exit 95 Whatcom Rd)
Abbotsford, BC V3G 2C6
12.00
ADJOURNMENT
It was MOVED Councillor Stevens, SECONDED Councillor Barkman, THAT the meeting of
the FVRL Board be adjourned.
CARRIED
15.03.25/05
Adjournment
The meeting adjourned at 11:20 a.m.
8
Shipping and Receiving
Shipping and Receiving
The Can Do People
•
•
•
•
•
Purpose
Trucks
Libraries
Staff
Job Functions
Presented by John Wiebe, FVRL Driver
Purpose
To ship and receive material and equipment
efficiently, effectively, and economically for:
1. FVRL member libraries;
2. FVRL’s
FVRL’ Administrative
Ad i i t ti Centre;
C t
3. InterLINK libraries;
4. BC OneCard borrowers.
Trucks
 All trucks have:
• custom shelving
• automated lifts
 Maximum
M i
capacity
it
is 216 boxes
Trucks
FVRL leases 4 delivery trucks:
1. 3 trucks have an 18’ box
2. New Outreach Services truck coming
soon will have a 14
14’ box.
box
The all-inclusive leases are through Ryder
Canada.
Libraries: Our System
FVRL currently serves
more than 700,000
people
over 13,000
13 000 square
kilometers
25 libraries from
Boston Bar to Delta
9
1
Libraries: Types of Facilities
Libraries: Delivery Frequency
1.
2.
3.
4
4.
5.
6.
 From 1 to 5 days a week
 13 delivery routes per week
• 3 on Monday, Wednesday, Friday
• 2 on Tuesday, Thursday
Stand alone
In shopping malls
In public schools
In community halls
In city/municipal halls
In recreation centres
 1 on Tuesday, Thursday for Outreach
Libraries: Delivery Frequency
Libraries: Types of Materials Moved
Factors affecting frequency of deliveries:
1. The bigger the library, the more
deliveries and pick ups per week.
2. Libraries with little storage
g need more
frequent service.
3. Municipality’s decision to pay for
additional deliveries.
•
•
•
•
•
Staff
Staff
• 1 supervisor
• 3 full time drivers
• 1 part time Outreach
Services driver
• On–call drivers for Shipping and
Receiving as well as Outreach Services
Drivers require no special licence but
must have their air brake endorsement.
All new drivers:
• mustt submit
b it a driver
d i ’s abstract;
b t t
• are subject to a driver evaluation by a
qualified driving school.
Gerald
Walter
New books
New audio/visual
Material with holds
Internal and external mail
AV and system equipment, displays, and
banners stored at AC are delivered to
libraries upon request.
10
2
Staff
Staff
 Staff work Monday to Friday
7:00 am to 2:30 pm
 The 3-week cycle
allows every driver to
spend 2 days working
inside.
 Regular drivers work a 3-week cycle
so they drive all delivery routes once
every 3 weeks
All staff are cross-trained
in S/R duties and tasks.
Staff: Supervisor Tasks
Job Functions: Packing/Unpacking
 Staff scheduling
and supervision
 Training and
orientation
 Vehicle repair
and maintenance
Coordinate
system–wide
shared library
equipment
Maintain log
sheets and
inventories
Materials labelled for AC are unpacked and
distributed to the various departments.
Boxes for libraries are
stored on garage dock
for next day’s delivery
Most library material
sent to AC from
f
the
h
libraries is pre-sorted
by library staff
• All library outgoing
material is placed on
a holding shelf.
• Materials on the
holding shelves are
packed and labeled
by inside staff
11
3
Every library has
one bay of
shelves at AC
for outgoing
materials
This material includes:
1. new books
2. holds
3. redistribution
4 Inter-library
4.
I t lib
lloans
5. promotional material for
system–wide programs
6. freebie newspapers.
Job Functions: InterLINK
 Public Library InterLINK
is a cooperative federation of
18 member public libraries in BC.
 FVRL customers can use 81 InterLINK library
locations without charge.
 Customers of these libraries can borrow
from/return to other member libraries.
InterLINK’s own delivery service picks
up library materials from member libraries
and returns them to the member library from
which they were borrowed.
FVRL delivers to an InterLINK storage
unit in Port Coquitlam 3 times a week.
Library staff pre-sort material that
FVRL is returning to InterLINK member
libraries
Th then
They
h transfer
f allll
the material into colored
InterLINK boxes.
FVRL drivers drop off
InterLINK returns at the
InterLINK storage facility.
FVRL drivers also pick up
returns from InterLINK
member libraries for FVRL.
12
4
Job Functions: Inter-Library Loans
FVRL staff:
1. unpacks the boxes,
2. sorts returns,
according
g to a formula,,
3. repacks the material
into boxes for delivery
to designated libraries.
 The BC OneCard allows you to borrow
from any public library in BC if you are a
BC resident with a valid library card from
your home library
library.
 You can return these books to any
public library in BC.
Job Function: Inter-Library Loans
 Each public library is responsible for
returning books to the source library.
Library materials from FVRL are:
1. mailed from the source library to AC,
2. processed in the Inter-Library Loans
Department (ILL), then
3. delivered by Shipping and Receiving
to the customer’s community library.
The books qualify for Canada Post’s
book rate which is relatively inexpensive.
Job Functions: Interlibrary Loans
When a customer returns an ILL item,
Shipping and Receiving:
1. picks it up from FVRL’s receiving
library
lib
2. brings it to the ILL department at AC
to get packaged for mailing.
Once packaged, Shipping and Receiving:
1. determines postage with a mailing
machine;
2 generates
2.
a label with a
shipping tool.
13
5
Job Functions: Interlibrary Loans
Then ILL items are
delivered to a
Canada Post
sorting
g station to
be mailed back to
the source library.
FVRL Shipping and Receiving
We are the
CAN DO
people,
committed to
providing the
best service to
our libraries.
FVRL Shipping and Receiving
14
6
SUMMARY OF THE
2015 FVRL BOARD
PLANNING DAYS: DAY 1
DRAFT
ANNUAL PLANNING DAY OF THE FRASER VALLEY REGIONAL LIBRARY BOARD
Wednesday, April 22, 2015 — 8:00 am – 4:00 pm
Ramada Abbotsford Conference Centre – Mt. Baker Room
(Acting Chair)
Director Bill Dickey, Fraser Valley Regional
District
Councillor Jeannie Kanakos, Corporation of
Delta
(morning)
Cathy Wurtz, Director of Human Resources and
Heather Scoular, Acting Director of Client
Services
Technology and Support Services
Irene Geng, Office of the Chief Executive
Officer | Donor Relations (Recorder)
Guest
Michael Shoop, Ph.D., The Shoop Group
Alternates
Councillor Paul Albrecht, City of Langley
Director Ray Boucher, Fraser Valley Regional
District
Regrets
Councillor Sonja Reyerse, Village of Harrison
Hot Springs
(Chair)
ADMINISTRATIVE CENTRE: 34589 DeLair Road, Abbotsford, BC Canada V2S 5Y1
Tel: 604-859-7141 or 1-888-668-4141 Confidential Fax: 604-859-4788 Web Site: www.fvrl.bc.ca
15
ANNUAL PLANNING DAY OF THE FVRL BOARD: DAY 1
Wednesday, April 22, 2015
Page 2
A.
WELCOME AND INTRODUCTIONS
Councillor Helen Fathers, Acting Board Chair, called to order the 2015 Annual Planning Days
of the Fraser Valley Regional Library Board.
B.
BOARD GOVERNANCE FOR FVRL’S EXCEPTIONAL CUSTOMER EXPERIENCE
Scott Hargrove, Chief Executive Officer, introduced consultant Dr. Michael Shoop to lead the
Board in its learning and deliberations about Board governance matters.
Dr. Shoop’s session with the Board provided an overview of the types of libraries in British
Columbia; the requirements of BC’s Library Act; the responsibilities of a regional library board;
discussion about the decision making roles of Board members, staff, and other entities; and
identification of areas for Board development. (See attached PowerPoint presentation.)
Responsibilities of FVRL Board Versus Local Government Council
Dr. Shoop pointed out the responsibilities of Board members, including some that are
distinctly separate from their responsibilities on council:
• FVRL Board members’ entire fiduciary responsibility is to Fraser Valley Regional Library,
and its best interests.
• Board members’ decisions need to be made based on what is right for FVRL, not for their
own individual local governments.
• Board members are absolutely unfettered and cannot be bound by their councils. They
have no obligation to take council direction to the FVRL Board.
• Realizing that all taxpayers are interested in keeping costs down, Board members fulfill
their duty by making decisions in FVRL’s best interests while keeping costs down for
everyone.
In Camera Meetings
The question of who is eligible to attend in camera meetings arose. A legal opinion and further
discussion will lead to an answer suited to FVRL’s Board.
Electronic Votes
FVRL’s current approach to handling electronic votes was affirmed.
Decision Matrix
The Board broke into small groups to work on the Decision Matrix, then reassembled as one
group to discuss their conclusions.
C.
RIGHT HERE, RIGHT NOW!
To introduce the rapidly changing digital world and information technology (IT) evolution as
well as the changes in society that are dramatically impacting municipalities and libraries, Chief
Executive Officer Scott Hargrove showed the video titled Did You Know?/Shift Happens.
16
Page 3
Then he focused on occupational trends, the workforce of the future, knowledge
management, the realities of FVRL’s changing operating environment, and FVRL’s
contribution to support the development of our workforce and communities.
D.
CUSTOMER EXPERIENCE TRANSFORMATION
Heather Scoular, Acting Director of Client Services, described the essentials of customer
experience and how FVRL is in the midst of a transformational new business model that
refocuses on the customer experience by moving from transactions to interactions.
She highlighted the return on investment of those companies who improved their customers’
experience, the competitive advantages, and the trends that aid companies in making
important changes.
She summarized key insights of FVRL’s recent study of our customers: (1) the changing nature
of information questions customers ask our staff; (2) recognition that FVRL has been
organized around transaction involving our customers, rather than interaction with them; (3)
multi-desk libraries pose challenges to a positive customer experience; (4) the increased
demand for one-to-one digital assistance from FVRL’s staff.
As a result, FVRL’s new business model currently being implemented is addressing these
insights by (1) refocusing on the customer experience so that our customers also become our
ambassadors; (2) cross-training staff; (3) integrating services so they become seamless; (4)
moving from customer transactions to customer interactions.
FVRL has created a new business model as one part of its Customer Experience
Transformation. Many public libraries in the world today are experimenting with various pieces
of reinventing themselves in the Age of the Customer. However, ONLY FVRL is embracing
every facet of Customer Experience Transformation and that is why the phone is ringing off
the hook with libraries all over BC wanting to come visit with us to find out what we are doing.
E.
A CULTURE OF AGILITY
Cathy Wurtz, Director of Human Resources and Business Transformation
Cathy Wurtz, Director of Human Resources and Business Transformation, described FVRL’s
pursuit of a culture of agility to thrive in the changing marketplace. She defined agility as
FVRL’s ability to: (a) anticipate and readily adapt to changing priorities; (b) maintain resilience
in times of uncertainty; and (c) work efficiently in a changing environment. Three priorities are
FVRL’s focus in developing that agility: (a) employee engagement (b) building capability; and
(c) innovation and integration.
Employee engagement is driven by leadership, brand, performance, as well as the work and
company practices. During times of change, engaged employees want to be involved in
decision making, understand their career path, to see co-workers make personal sacrifices to
help the organization, as well as to have the company provide a two-way dialogue and
encouragement for development.
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Page 4
With change there is a period of transition and people adopt change in their own way—some
quickly, some not so much. There is always resistance. The early adopters will help the
organization move forward and, in time, will bring with them those who are unsure of the
change. Some may never accept the change – it’s a reality – and every company does well to
recognize and reward those who do move forward.
Engagement drives performance, productivity, and creativity. It also helps FVRL attract new
talent, develop talent, and retain top performers.
By building capability, FVRL is able to respond with greater agility to change. Building
capacity also drives efficiency because employees are able to look at things differently and
identify areas of duplication.
FVRL deals with the characteristics of multi-generational workforces experienced by all
organizations. Not only are they important to understand from a work perspective, but also
from a customer perspective. She identified them as: (a) Veterans—The Silent Generation; (b)
Baby Boomers; (c) Generation X—the Lost Generation; (d) Generation Y—the Millennials; (e)
Generation Z—the Globals. From an agility perspective, FVRL needs engaged employees and
must be effective in making the best use of each generation’s priorities. Thus, learning about
what makes people engaged is critical to be successful.
Leadership in organizations has become more complex because of the need to handle
multigenerational workforce, to articulate a vision with specific goals and measures, as well as
to provide autonomy, challenge, feedback, recognition, flexibility, encouragement, and
mentoring.
F.
ADJOURNMENT
The 2014 Annual Planning Day of the Fraser Valley Regional Library Board adjourned at 4:30
pm.
18
FVRL BOARD PLANNING DAYS
April 22-23, 2015
Shift Happens
• https://www.youtube.com/watch?v=PcZg51Il9
no
Right Here
Here, Right Now
Scott Hargrove
Chief Executive Officer
A Time of Transformation
Analysis
• We are in a time of great transformation
• Change is happening at an exponentially
increasing rate
• Traditional systems that we rely upon are
being re-imagined to meet new needs
Analysis of Occupational Trends
“…about 47 percent of total US
employment is at risk”
The Future of Employment: How susceptible are jobs to computerization? (2013)
C. Frey and M. Osborne
• “65% of grade schoolers will hold jobs that
don’t yet exist”
• What percentage of jobs won’t exist ten
years from now?
“…wages and educational attainment exhibit a
strong negative relationship with an
occupation’ss probability of computerization.
occupation
computerization.”
19
1
April 22-23, 2015
“Over the next ten years, new job openings due
to economic growth are projected to be mainly
in high
high-skilled
skilled positions.
positions.”
“…low-skill workers will reallocate to tasks that
are non-susceptible to computerization – i.e.,
tasks requiring creative and social intelligence.
intelligence.”
Canadian Occupational Projection System, 2011-2020
(http://www23.hrsdc.gc.ca/[email protected]?cid=39)
Analysis
Information Management
“A weeks worth of the New York Times contains
more information than a person was likely to
come across in a lifetime in the 18th century.
century.”
“90% of the world’s data has been generated in
the past two years
years.”
Knowledge Management
INFORMATION MANAGEMENT VS.
KNOWLEDGE MANAGEMENT
“The process of capturing, developing, sharing
and effectively using organizational knowledge”
Wikipedia
20
2
Year
Human Knowledge
Doubles Every:
Rate of knowledge acquisition
1900
100 years
2014
13 months
13 months
N/A
1 1% of the time required in 1900
1.1% of the time required in 1900
2020
12 hours
.12% of the time required in 2014
If this prediction is correct, in five years our
rate of knowledge development will be 1000
times what it was last year.
Analysis
April 22-23, 2015
Put another way, in the course of 114 years, the
rate of human knowledge acquisition increased
at a rate of almost 100 times the previous rate.
“Some estimates claim that as many of 70% of
working librarians are working for an employer
that is not a library.”
Changing Workforce
“10-14 jobs by the age of 38”
• Every piece of evidence we have show that
workforce of the future will be:
“1in 5 workers have been with their current
employer for less than a year”
year
• Mobile
• Capable
p
of learning
g new skills and acquiring
q
g
useful knowledge quickly
• Socially skilled
• Creative
“1 in 2 for less than five years”
21
3
April 22-23, 2015
Changing Environment
We know that…
The environment FVRL operates in is:
• Ongoing learning, often self-directed, will
characterize much of the future workforce
• Creativity and social skills will drive new
employment for many workers with currently
low skill levels
• Customer needs will be highly dynamic
• Fiscally constrained
• Dependent on long-term employees from
multiple generations
• Technologically rich…for most…
• Subject to rapidly changing customer needs and
dynamics
Why am I talking about all this?
What we are talking about over the next two
days is far larger than FVRL and the library
industry
Our goal:
Today and tomorrow we will be presenting to
you with a detailed overview of trends that
describe the new challenges our communities
face, and some strategies
g we could take to
address them.
We are committed to:
• Looking outward, not inward
• Developing a complex business strategy
closely integrating all arms of our operation
• Creating analytics to provide better business
intelligence
• Reimagining our business model on a
ongoing basis
22
4
Our focus for 2015-16
April 22-23, 2015
The “Shift Happens” Challenge
• We propose to concentrate on:
• Creating outstanding customer experiences
• Developing an engaged, agile workforce
• Identifying and initiating new metrics, and the
analytics to make them meaningful
• Building a sustainable five year planning process
for every aspect of our organizational investment
“We are currently preparing students for jobs
that don’t yet exist, using technologies that
haven’tt been invented, in order to solve
haven
problems we don’t even know are problems
yet.”
Our Challenge
“We are needed to support the ongoing
development of our workforce and our
communities, and to ensure that not just
students have the capacity to sustain the
necessary learning and skill development
required for success in life.”
23
5
April 22-23, 2015
In the Age of the Customer:
CX is the New Black
Customer Experience
Transformation
Heather Scoular
Acting Director of Client Services
CX Strategy Visionary
CXT Presentation Overview
•
•
•
•
•
•
•
What is Customer Experience?
Customer Experience Matters
CX Trends
Public Sector Case Studies
FVRL Customer Experience Project
FVRL New Business Model
Branding
Organizational Purpose
How does Customer Experience
differ from Customer Service?
24
1
Customer Experience Management
April 22-23, 2015
Global Business Leaders Priorities
•
•
•
•
•
The ROI of Customer Experience
6 Year Stock Performance Returns:
Customer Experience Leaders 43%
S&P 500
14.5%
C t
Customer
Experience
E
i
L
Laggards
d -33.9%
CX Trends and Why They Matter
Grow revenues 77%
Improve the experience of our customers 74%
Reduce costs 61%
Improve
p
differentiation in the market 50%
Better Regulatory compliance 39%
Establishing a New Competitive
Advantage
Four Market Imperatives:
•
•
•
•
Transform the Customer Experience
Turn Data into Business Insights
Embrace the Mobile Mind Shift
Accelerate your Digital Business
Customers First Culture
25
2
Top CX Trend #1:
Customer Journey Mapping
April 22-23, 2015
Empathy
• Identifying Customer Pain Points
• Developing Customer Focused Policies
UP Line: Union Pearson Train
Case Study #1
Creating Passenger Experience
• It’s all about the Passenger Experience
• Customer Journey Mapping Process
• Passenger Emotional Insights
•
•
•
•
Top CX Trend #2:
Turning Big Data into Insights
•
•
•
•
Wi-Fi
Wi
Fi
Plane Schedules
Luggage racks fit luggage
Experience Before and After Boarding
Operation Clean Sweep
City of Buffalo: Case Study #2
Voice of the Customer programs
Gathering Data is not enough
Working across organizational silos
T i D
Turning
Data
t into
i t Insights
I i ht
26
3
Case Study #2: City of Buffalo
Operation Clean Sweep
April 22-23, 2015
Why are You Here?
Combined 311 and 911 call data to provide
insights into Neighbourhood Revitalization
Operation Clean Sweep Trimmers
Big Data Helping Communities
Didn’t You Call 311?
FVRL’s Customer Experience
Project: Case Study #3
• Operation Clean Sweep Results:
•
•
•
•
•
•
24% Reduction in Crime
232 potholes filled
Mowed 499 overgrown lawns /removed trash
Rodent control to 855 properties
224 smoke detectors given to citizens
495 children seen by the Smile Team
27
4
April 22-23, 2015
26
FVRL Customer Experience Project
• Customer Observation study
• Data Collection
• Customer Journey Mapping
CEP Implementation Plan
Up to Today
Sept. 26 to p
Oct. 14
Oct. 14 to Nov. 16
Nov. 16 to Dec. 15
• Design of study
• Preparation of data collection instruments
• Scheduling
• Training staff
g
• Finalizing materials
• Data collection in libraries
• Enter data into Survey Monkey
• Analyze results
• Report of findings
28
Methodology
Overview of the Study
• Observation of Customers
• Research Questions
•
•
•
•
•
•
•
•
• Buddy Library
y X manyy forms= DATA
• 255 libraries X 3 days
• Exit Survey
• Data collection
Staff Involved in Data Collection
Who is asking questions?
What are the questions?
When are questions being asked?
Where are q
questions being
g asked
Why are questions being asked?
And finally… How are questions being asked?
What are the resolutions of the questions?
How do customers feel about their experience?
FVRL CEP Project: Key Insights
•
•
•
•
Changing nature of information questions
FVRL was organized around transactions
Multi-desk Libraries pose challenges
I
Increased
d demand
d
d for
f one to
t one digital
di it l
assistance
28
5
From CEP Project to Action
April 22-23, 2015
FVRL New Business Model
•
•
•
•
Refocus on the customer experience
Cross-train staff
I t
Integrate
t services
i
=S
Seamless
l
service
i
Move from Transactions to Interactions
FVRL Integrated Services
• Staff created a video to describe FVRL
Customer Journey Mapping as evidenced in
the CEP Project
The Whole Experience Matters
Staff Video: Integrated Service
Experience Training ( link will be
emailed to the Board)
29
6
Brand Experience=Customer
Experience
April 22-23, 2015
Cirque de Soleil: The Experience
• The experience is the Brand
• Unpack everything!
Cirque de Soleil
Power of Word of Mouth Referrals
• 92% of people trust recommendations from
their friends and families over all other forms
of marketing*
• 85% of fans of Brands on Facebook
recommend
d brands
b d to each
h other
h
• 43% of consumers are more likely to buy a
new product when learning about it on social
media
Burberry Digital Flagship Store:
An Omnichannel Experience
People Talk About Great
Experiences
• Turn your Customers into Ambassadors!
30
7
Redefining our Collective Purpose
April 22-23, 2015
Laying Bricks
Building a Cathedral
Thank You!
Connect with Heather about CXT:
Your Questions? Comments?
• [email protected]
• 604-309-5615
• LinkedIn
Li k dI
Thank You!
31
8
April 22-23, 2015
What Is It?
A Culture
C l
off Agility
A ili
• Ability to anticipate and readily adapt to
changing priorities; maintain resilient in times
of uncertainty and efficiently work in a
changing
g g environment.
Cathy Wurtz, Director of Human Resources and Business
Transformation
Building Agility
• Employee Engagement
• Building Capability
Building Employee Engagement
• Innovation and Integration
Level of Engagement Overall
Engagement
Talent
•Attraction
•Retention
•Absenteeism
Operational
•Productivity
•Safety
Customer
•Satisfaction
•Retention
Financial
•Growth
•Efficiency
32
1
April 22-23, 2015
Engagement During Times Of
Change
Rank
Order
1
2
3
Top 5 Drivers of Engagement During Times of Change vs. No Change
Change
No Change
Involved in decision making
Understand career path
Understand career path
Involved in decision making
Why Is Engagement Important?
Customer
Service
Experience
Attract
Develop
Co-worker make personal sacrifices to help Have the necessary resources to do the
the organization
job
4
Company provides encouragement for
development
Company provides encouragement for
development
5
Company provides a two-way dialogue
Provided proper training to do the job
Retain
Building Capability
Building Capability
Mobility and Models
Current Training
• Customer Service – Friendliest Library
• Talent mobility
• Integrated Service – Job Knowledge
• Staffing models
33
2
April 22-23, 2015
Process Supporting Engagement
Future Training
• Employee involvement
• Supervisory Skills – Soft Skills
Decision Making
Dialogue
• Specialized Skills training
C
Career
P
Path
th
• In a variety of ways
Development
Multi-generational workforce
Veterans – The Silent Generation
Born prior to 1945
• 5 Generations in the workforce at FVRL
• 5 Generations of customers
Silent Generation
Values & Characteristics
• Hard Work
• Frugal
• Dedication & sacrifice
• Honour
H
and
d respect for
f
rules
• Tradition
• Leadership
• Direct, command &
control
• Communication
• formal, one-on-one
The Baby Boomers
Born 1946 -1964
• Optimism
• Teams/Involvement
• Personal gratification
• Personal
P
l growth
h
• Hard work
• Accepts authority
• Leadership
• Consensus, collegial
• Communication
I person
• In
34
3
Baby Boomers
April 22-23, 2015
Generation X - The Lost Generation
Born 1965 - 1980
• Diversity
• Techno literacy
• Fun & informal
• Self
S lf reliant/automony
li /
• Pragmatism
• Independent
• Leadership
• Everyone is the same
• Challenges others
• C
Communication
i i
• Direct & immediate
Generation Y – The Millennials
Born 1981 - 1994
• Optimistic
• Civic minded
• Confident
• Embrace
E b
di
diversity
i
• Achievement oriented
• Social
• Tech savvy
Generation Y
• Leadership
• Entrepreneurial
• Communication
• Impatient
Generation Z – The Globals
Born 1995 - 2010
• Diversity
• Hard work
• Savviness
• Self
S lf reliance
li
&
responsibility
• Pragmatic
• Leadership
• To be determined
• Communication
• Collaborative
C ll b
i
35
4
April 22-23, 2015
Generation Z
• Emjoi
B.C. inventor Ann Makosinski
(Photo by Chad Hipolito)
Jack Andraka created a pancreas cancer
test (Ethan Hill/Redux)
Generation Z
FVRL’s Generational Profile
9% 1%
Silent Generation
23%
43%
Baby Boomer
Generation X
Generation
X
Generation Y
Generation Z
25%
Innovation And Integration
• Streamline processes and procedures
• Efficient
Innovation and Integration
• Analytics
36
5
April 22-23, 2015
The Future
37
6
38
SUMMARY OF THE
2015 FVRL BOARD
PLANNING DAYS: DAY 2
DRAFT
ANNUAL PLANNING DAY OF THE FRASER VALLEY REGIONAL LIBRARY BOARD
Thursday, April 23, 2015 — 8:00 am – 1:20 pm
Ramada Abbotsford Conference Centre – Mt. Baker Room
(Acting Chair)
Director Bill Dickey, Fraser Valley Regional
District
Councillor Jeannie Kanakos, Corporation of
Delta
(afternoon)
Cathy Wurtz, Director of Human Resources and
Heather Scoular, Acting Director of Client
Services
Technology and Support Services
Irene Geng, Office of the Chief Executive
Officer | Donor Relations (Recorder)
Guest
Michael Shoop, Ph.D., The Shoop Group
Alternates
Councillor Paul Albrecht, City of Langley
Director Ray Boucher, Fraser Valley Regional
District (morning)
Regrets
Councillor Sonja Reyerse, Village of Harrison
Hot Springs
(Chair)
ADMINISTRATIVE CENTRE: 34589 DeLair Road, Abbotsford, BC Canada V2S 5Y1
Tel: 604-859-7141 or 1-888-668-4141 Confidential Fax: 604-859-4788 Web Site: www.fvrl.bc.ca
39
Thursday, April 23, 2015
Page 2
A.
WELCOME AND INTRODUCTIONS
Councillor Helen Fathers, Acting Board Chair, called to order Day 2 of the 2015 Annual
Planning Days of the Fraser Valley Regional Library Board.
B.
SO FAR, SO GOOD
Scott Hargrove, Chief Executive Officer, summarized key points of presentations from Day 1 of
the Annual Planning Days.
C.
INTEGRATION AND FRAGMENTATION
Dean Kelly, Acting Director of Information Technology and Support Services
Dean Kelly, Acting Director of Information Technology and Support Services, gave a
presentation focusing on information technology and technology trends, book and publishing
trends, and how FVRL is integrating the fragmentation.
Of American adults, 90% own a cell phone and 67% check their phone for activity (message,
alert, call) even with no notification. For 10% of them the only way they connect is with a
smartphone and 35% “mostly” use phone to connect.
Wearable technology is expected to be $20 billion industry by 2020. In January 2015 a
Swedish high-tech firm began embedding microchips in the hands of staff. They can access
the building and soon can pay for food in the canteen and replace passwords on their
computers. The company has a “chief disruption officer” who maintains that everyone should
embrace being chipped and that any hesitation is comparable to a fear of vaccinations.
Inventor and futurist Ray Kurzweil predicts that by 2029 computers/phones implanted in our
eyes and ears. Boundaries are being pushed and moral debates on integrating humans and
technology are on the horizon.
All these influences require FVRL to think differently about customers. Expecting them to just
approach our service desks is no longer realistic. Now we must think about mobile users and
how they’re reaching us. Our processes are being designed with that in mind.
Cloud Computing: With mobile devices so dominant, cloud computing allows vast
applications on many devices and enables interactions anywhere and anytime. Synchronizing
content and applications across multiple devices means you can read an eBook on your
smartphone, continue on your laptop, and pick up where you left off on your tablet. Soon
games and applications will use multiple screens and exploit wearables and other devices to
deliver enhanced experience. The cloud opens up opportunities to use expertise you may not
have in your organization, such as server infrastructure, backing up data, scaling storage, and
updating software/firmware.
Analytics, Metrics, and Big Data: Like cloud computing, big data underlies much of what we
do. This data is collected, mined and refined. Integration of this data leads to context-specific
targeted results for a rich customer experience. It is increasingly crucial to know what data to
collect, to store it effectively, to know how to examine it, what can be discarded, how to
analyse it. Being creative with big questions allows the data to provide big answers. We
40
Page 3
produce vast quantities of data. Our library continually researches, analyzes and upgrades our
network infrastructure when needed to assure efficient handling of the volume of data passing
to customers, to staff, and with various vendors.
Smart Machines: Smart Machines are created as the result of deep analytics, understanding
of context and powerful computing. Smart machines understand their environment, can adapt
and even act anonymously, performing tasks previously only performed by people. This is the
47% of threatened jobs discussed yesterday.
“The end of the service desk” was a theme at the Consumer Electronics Show this year. What
will Smart Machines as service desk replacement look like in the next five years? Apple’s Siri
and Microsoft’s Cortana are first generation intelligent personal assistants. Self-driving cars
are also prime examples of Smart Machines. Gartner has called Smart Machines “the most
disruptive era in the history of IT.”
Risk-Based Security and Self-Protection: Network infrastructure and computing capabilities
have increased and security on which we relied is no longer fully applicable. A robust firewall is
not sufficient protection; security must be considered at every level and use a multifaceted
approach. We can no longer provide 100% secured environment. Planning and expertise are
needed to evolve equipment and methods of routing network traffic. We can try to do it on
our own or put sufficient trust in a cloud solution.
User authentication needs to increase in complexity. Passwords are getting longer and more
2/3-factor authentications are being used. How safe is your data? WikiLeaks is a household
name. The cloud can be a dangerous place! For example, Sony’s cyberattack by The Guardians
of Peace leaked unreleased movies and confidential information of 47,000 past and current
staff.
BYOD: Bring Your Own Device has fallen out of fashion because of security concerns.
BlackBerry devices are now preferred for email and sensitive information. The day after Sony’s
scandal, executives returned to their BlackBerries again. Hillary Clinton’s email scandal is as
much about security risks of not using her enterprise BlackBerry as it is about lack of public
scrutiny.
Because of investments FVRL made in our network infrastructure last year, we increased our
bandwidth and added redundancy, flexibility, and efficiency into our network traffic, also
further securing our Wi-Fi network, on which increasing demand is being placed.
Social Media: Facebook is still the largest social media site with 1.4 billion active users. 70% of
adults use Facebok; 52% use two or more social media sites; 50% of adults with postsecondary use LinkedIn. Like Big Data and the Cloud, social media is ubiquitous. FVRL has
seen great success connecting with customers, promoting our brand beyond, and enhancing
the customer experience through social media.
41
Page 4
Open Data: “Open” data means anyone is free to access, use, modify and share it. The BC
Government has reduced number of Freedom Of Information requests by making data
available. The federal government held a 48 hour “appathon” using Government of Canada’s
Open Data sets. The City of Vancouver has used open data to address inefficiencies in
garbage collection and respond to citizen inquiries, an important strategy in fulfilling its vision
“to help organizations reimagine services in ways that are citizen-centric.”
Book and Publishing Trends: Amazon is the world’s largest book retailer and controls 75% of
eBook sales. It mines customers’ data, offers drone and same day delivery services, and
acquired .book domain for $10 million. Over 154,000 staff and last year made $90 billion in
revenue. Who better to help Amazon with data valuing than Librarians?!
Amazon Web Service is used by Netflix, Pinterest, Instagram, Dropbox, Obama Campaign,
NASA,CIA. Their Cloud computing operation has become $5 billion business. Over 2 million
third party vendors use Amazon to help sell their wares and sold +1 billion items in 2014. It has
over 90 “fulfillment centres” – warehouses – across the globe. Some as big as 1.2 million sq ft –
28 football fields long, 1,500 workers (making <$25,000; average 1 year). “Have fun. Work hard.
Make history.” is the slogan on fulfillment centre walls.
Book Sellers: Independent, Big Box, and Amazon: The ‘80s and ‘90s saw the rise of big box
bookstores: browsing selection, cheaper prices, and cafes. Independent bookstores suffered.
However, Amazon has threatened big box stores (some to extinction). The physical location,
immediacy, friendly staff, hand-selected curation, local topics and authors, coffee, and ability
for customers to browse has led to a 20% increase in small and independent bookstores.
EBook Revolution: The explosion of interest, use, and adoption of eBooks made many in the
industry (and outsiders looking in) panic that sky is falling. They feared the end of the book
(it’s not); the death of the publishing industry (it hasn’t been); and that libraries are done (we’re
NOT!).
EBook Stability: The market is stabilizing with sales increases in 2013 +38% and in 2014 +12%.
The Canadian market has plateaued and readers returning to books. Reading books enables
the reader to make a mental map of content when reading (page and text layout) whereas
online reading typically involves skimming, skipping words, and multitasking. EBook reading
results in lack of retention. Only 4% of people read exclusively in eBook format; many read
both.
Print versus Digital among Publishers: EBooks are 15% of publisher sales; paperbacks are
42%; hardcover are 25. Peak sales for printed books are at the end of the year, compared to
the beginning of year for eBooks. Print books are given as gifts, but not eBooks. Publishers
charge less for eBooksbut make higher profit.
Publishing Industry Challenges: The publishing industry has been in turmoil in recent years
by the merger of Random House and Penguin; the rise of self-publishing; extreme
42
Page 5
competition. Even so, profits remained steady, with a 2.4% rise in sales in physical books and a
12-15% rise in children print book sales in 2014.
The Publishing Industry’s View of Libraries: Studies show libraries increase sales and, now
that Amazon is running the world, there are less physical book shelves to display content so
publishers need libraries for our shelf space!
EBooks Have Spooked Publishers: A shaken music industry has grappled with its own
massive transformation and, similarly, publishers are reticent to allow libraries to “lend”
eBooks. Consequently, libraries must contend with digital rights management issues, use
vendors to “house” content, plus work with fragmented content, lack of ownership, and
disadvantaged pricing models.
Audiobook volumes have increased from 3,000 in 2007 to 35,000 in 2014, with a 30% increase
in sales from 2013 to 2014 alone. Serial podcasts are downloaded almost 70 million times.
Digitization of Formats: When buying new books we now need to consider hard cover,
paperback, CD Book, MP3 book, PlayAway, ebook, and downloadable audiobook. Also world
languages! Not to mention the other resources: the traditional databases, digital magazines,
online car repair reference, downloadable sheet music. We’re following the industry and are
evaluating streaming video, streaming music, streaming audio, and whatever else is coming
available.
FVRL’s 2014 Circulation
29%
Adult books
29%
Children’s books
27%
DVDs
10%
Other
5%
EBooks
Metrics and Measurement: We need to measure our success. Our libraries are busy but our
traditional methods of statistics analysis are no longer the accurate tools on which we used to
rely. We need to accurately measure disparate realities:
• Change in fines structure may mean fewer renewals of items, which lowers are circulation
• We are projecting the gradual decline of our physical media formats (DVD, BRD, CD)
• Customers are shifting to electronic borrowing: eBooks, downloadable audiobooks, digital
magazines.
• As a second tier to Google (Dr. Google), the traditional “reference” questions we’re being
asked are changing and increasing in complexity
• Our staff performs more one-on-one instruction, which changes the pattern of number of
programs versus attendance.
• Customers are visiting the library from the comfort of their home, on their mobile devices,
using our physical space as sanctuary, at our programs – and we need to work towards
measuring all those types of visits.
43
Page 6
The proliferation of devices has meant that we’ve been continually investing in our bandwidth
and infrastructure and develop an increasingly robust Wi-Fi network. We must embrace the
mobile mindset.
Technology also allows the library to be mobile. We’re bringing the library more into your
communities. Library Live And On Tour (LiLi) was an innovative way to deliver library services
and we’re increasing that mobility by progressing our technology to allow what we call “popup libraries” in malls and community events/spaces.
Where unable to directly influence the technology our role is to keep abreast of what is out
there, keep our sights on what is coming, and effect change where we can and adapt. We
empower our staff, enable our customers and seek to provide the best customer experience
for our customers, for our staff, and for our board.
D.
EMBRACING DISRUPTION
Scott Hargrove, Chief Executive Officer, recapped the dramatic, disruptive changes
everywhere and outlined his and FVRL’s approach: embrace the change and integrate it into
our personal life, our business life, and our community life. He noted that there are no silver
bullets yet we can seize the opportunities and create the future.
He pledged that FVRL will do this while being transparent, fiscally responsible, efficient, agile,
and innovative. FVRL’s focus for 2015-16 will concentrate on creating outstanding customer
experiences; developing an engaged, agile workforce, indentifying and initiating new metrics
along with the analytics to make them meaningful; building a sustainable five year planning
process for every aspect of FVRL’s organizational investment.
E.
CREATING FVRL’S EXCEPTIONAL CUSTOMER EXPERIENCE: STRATEGIC
DIRECTIONS AND FIVE-YEAR PLANNING
Councillor Helen Fathers, Acting Board Chair
Councillor Helen Fathers, Acting Board Chair, facilitated the Board’s discussion around setting
strategic directions and five year planning.
Regarding strategic directions, the Board agreed that the existing Strategic Directions could
be improved with just a tweak to the Communications direction to place more emphasis on
increasing awareness among stakeholders and the public and to celebrate what we do.
Discussion and decisions regarding more comprehensive evaluation of strategic directions and
five year planning will be made at future Board meetings.
F.
ADJOURNMENT
The 2015 Annual Planning Days of the Fraser Valley Regional Library Board adjourned at 1:20
pm.
44
April 22-23, 2015
The Story So Far
• Four presentations:
So Far,
Far So Good
Scott Hargrove
1. Board Governance for FVRL’s Exceptional
Customer Experience
2. Right Here, Right Now
The Story So Far
FVRL Board Governance
• Four presentations:
• Reviewed
3. Transforming the Customer Experience
4. A Culture of Agility
•
•
•
•
BC Library Act and Library Culture
Responsibilities of an FVRL Board Director
Board Terms of Reference and Policies
Basic Strategic Planning Process
Right Here, Right Now
Transforming the Customer
Experience
• Reviewed:
• Reviewed:
• Exponential Increase in Change
• Radical Evolution of the workforce and job
market
• Information vs. Knowledge Management
• Constantly changing customer needs
• Customer Service vs. Customer Experience
• The Importance of Customer
ExperienceTransformation
• Interaction Instead of Transaction
• The Return on Investment of embracing a new
business model focused on customer obsession
45
1
April 22-23, 2015
A Culture of Agility
What’s Coming
• Reviewed:
• Dean Kelly will present on technology trends,
the publishing market, and collection
transformation
•
•
•
•
The Power of Employee Engagement
Models for Building Capability
Integrating Innovation into Practice
A comparison of inter-generational relationships
with implications for both staff and customers
• FVRL’s Board will decide on the 2016
Strategic Directions
46
2
April 22-23, 2015
Overview
Integration & Fragmentation
1. IT & Technology Trends
2. Book & Publishing Trends
3. Integrating the Fragmentation
Dean Kelly
Acting Director of IT & Support Services
Mobile & Computing Everywhere
• Of American adults:
IT & TECHNOLOGY TRENDS
• 90% own a cell phone
• 99% annual income > $50,000
• Wearable Technology
• Screen & Design Considerations
Head in the Cloud
•
•
•
•
Enhanced & Integrated Customer Experience
Interactions Anytime, Anyplace
Synchronization of Content
O t
Outsource
Technical
T h i l Requirements
R
i
t
Analytics, Metrics & Big Data
•
•
•
•
Colossal Quantities of Data
Right Information, Right Time, Right Person
Tailored & Precise Customer Experience
D t is
Data
i Valuable;
V l bl Stories
St i are E
Essential
ti l
47
1
April 22-23, 2015
Smart Machines
Risk-Based Security & Self-Protection
• Context, Intelligence, Massive Computing
• “Most disruptive era in the history of IT”
• Applications:
• Multiple Layers of Security
• Complex Passwords
• Picking BlackBerries
 Help Desk
 Apple’s Siri &
Microsoft’s Cortana
 Autonomous vehicles
Social Media
Open Data
• Facebook: 1.4B active users
• Broaden Customer Experience Net
“Open” = Anyone free to access, use, modify
and share it
• Available and Full Access
• Re-use
Re use and Redistribution
• Universal Participation
Open Data
Content Fragmentation & Format
Evolution
• Decline of the Physical
• Change of Viewing Patterns
• Fragmentation of Offerings
VANCOLLECT
48
2
April 22-23, 2015
IT & TECH QUESTIONS?
Amazon: The Force Awakens
•
•
•
•
•
Largest book retailer
Controls ~75% of ebook sales
Mines customers’ data
D
Drone
and
d same day
d d
delivery
li
services
i
Acquired .book domain ($10M)
All Owned by Amazon…
BOOK & PUBLISHING TRENDS
Amazon – How Good Are They?
•
•
•
•
Statistically Improbable Phrases
Amazon Web Services
Third Party Vendors under the Amazon Brand
“W k H
“Work
Hard.
d H
Have F
Fun. M
Make
k Hi
History.”
t ”
Book Sellers:
Independent, Big Box & Amazon
49
3
April 22-23, 2015
eBook rEvolution
eBook sTability
• Explosion of interest, use, adoption
•
•
•
•
Market is stabilizing
Sales increases: 2013 +38%; 2014 +12%
Canadian market has plateaued
Readers returning to books:
• Mental map of content when reading (page &
text layout)
• Online reading  skimming, skipping words
• Screen  multitasking
Print vs Digital
Print vs Digital
• eBook ~15% of publisher sales
• Sales Peak:
Print: Q4
eBook: Q1
Other,
10%
eBooks,
23%
Hardcover,
25%
Print vs Digital
Paperbacks
42%
• People
P
l Gift Printed
P i t d Books
B k
• eBooks: Lower Cost, Higher Profit
Publishing Industry
•
•
•
•
Random House & Penguin Merger
Rise of Self-Publishing
Extreme Competition
P fit St
Profits
Steady
d
50
4
April 22-23, 2015
Publishing Industry’s View of
Libraries
Convenience: eBooks in Libraries
• Digital Rights Management
• Libraries must use vendors to “house”
content
• Fragmented Content
• Lack of Ownership
• Pricing Models
• Studies show libraries increase sales
• Publishers fear music industry’s fate
• Running
R
i outt off shelf
h lf room – need
d us!!
Print vs eBook Price Comparison
Print
Title
List
The Girl On The Train
Paula Hawkins
$
24.95
Consumer
$
17.97
Library
$
14.97
Consumer
$
13.99
Library
$
74.85
Orphan Train
Christina Baker Kline
$
17.99
$
8.99
$
9.03
$
11.99
$
16.45
--> 26 checkouts ONLY
The Brain's Way Of Healing
Norman Doidge
$
34.95
$
21.91
$
17.98
$
18.99
$
23.99
-->12 months use ONLY
The Goldfinch
Donna Tartt
$
22.00
$
14.25
$
18.00
$
12.99
$ 113.99
All The Light We Cannot See
Anthony Doerr
$
19.99
$
14.19
$
16.26
$
11.99
$
David And Goliath
Malcolm Gladwell
$
20.00
$
20.06
$
17.48
$
11.99
$ 110.19
The Inconvenient Indian
Thomas King
$
21.00
$
15.16
$
20.98
$
13.99
$
63.00
Wild
Cheryl Strayed
$
18.95
$
13.68
$
9.78
$
12.99
$
56.85
$ 179.83
$ 126.21
Demographics: eBook / Libraries
eBook
$ 124.48
$ 108.92
15.99
-->12 months use ONLY
•
•
•
•
•
•
Millennials / Generation Y
$ 475.31
Audio in Volumes
Most interested in reading print books
Prefer browsing books: libraries, book stores
Highest print readership rates
88% read a book in past year (US)
>50%: “ebook never replace print for me”
>50% used public library past year
Digitization of Formats
Audiobooks
Podcasts
Number Titles Produced
• 2007:
3,000
• 2011:
12,000
• 2013:
20,000
• 2014:
35,000
2014 sales up 30% from 2013
Serial
• Fastest ever to reach 5M
downloads
• Downloaded almost 70M
times
•
•
•
•
•
Book
Audiobook
Music CD
DVD/ Bl
Blu-ray
Magazine
eBook
Downloadable Audiobook
Streaming Music
Subscribed Video on Demand
Digital Magazines
51
5
Fragmentation of Content
April 22-23, 2015
In Summary…
• Massive transformation
• Metrics
• Mobile, mobile, mobile
Massive Transformation
• Connected Society Disconnected
• Digital Literacy
• Multiple Collection Formats
FVRL ‐ 2014 Circulation
eBooks
5%
Other
10%
Adult Books
29%
DVDs
27%
Children Books
29%
Metrics & Measurements
Mobile Mobile Mobile
• Fragmentation of Reportable Data:
• Robust Network & Wi-Fi Infrastructure
• Mobile Library




physical circulation declining
electronic usage increasing
Customer questions changing [complexity]
Library as Space
52
6
April 22-23, 2015
Final Thought(s)
QUESTIONS?
53
7
April 22-23, 2015
Drones!
Embracing Disruption
Scott Hargrove
Self-driving Cars!
Robots!
54
1
April 22-23, 2015
Disruption is EVERYWHERE!
What are we going to do?
Three choices…
55
2
April 22-23, 2015
Learning from the Globals
• Embrace the change, don’t be scared of it!
Learning from the Globals
RECOGNIZE THAT THERE ARE
NO SILVER BULLETS…
• Embrace the change, don’t be scared of it!
• IIntegrate
t
t change
h
iinto
t your lif
life…your
business…your community…
AND THAT WE CAN SEIZE THE
OPPORTUNITIES…
…AND
AND CREATE THE FUTURE!
56
3
April 22-23, 2015
We will do this while being…
• Transparent
• Transparent
• Fiscally responsible
• Transparent
• Fiscally responsible
• Efficient
•
•
•
•
•
•
•
•
•
Transparent
Fiscally responsible
Efficient
A il
Agile
WE WANTED FLYING CARS,
Transparent
Fiscally responsible
Efficient
A il
Agile
Innovative
57
4
April 22-23, 2015
WE WANTED FLYING CARS,
Strategic Planning Framework
WHAT WE GOT WAS 140
CHARACTERS.
CHARACTERS
Peter Thiel
©The Shoop Group Consulting Ltd.
Our focus for 2015-16
• We propose to concentrate on:
• Creating outstanding customer experiences
• Developing an engaged, agile workforce
• Identifying and initiating new metrics, and the
analytics to make them meaningful
• Building a sustainable five year planning process
for every aspect of our organizational investment
58
5
FRASER VALLEY REGIONAL LIBRARY
LIBRARY ACTIVITY SUMMARY REPORT as of end of Q1 2015
CIRCULATION OF MATERIALS
2015
1,068,685
492,953
513,275
62,457
570,594
43,907
479,620
47,067
1,639,279
YEAR TO DATE
2014
1,118,085
534,753
515,964
67,368
605,518
47,077
505,765
52,676
1,723,603
% Change
-4.4%
-7.8%
-0.5%
-7.3%
-5.8%
-6.7%
-5.2%
-10.6%
-4.9%
Online Resources
eBooks & Downloadable Audiobooks
Electronic Databases
2015
140,979
114,422
26,557
YEAR TO DATE
2014
138,126
102,735
35,391
% Change
2.1%
11.4%
-25.0%
ALL CIRCULATION
1,780,258
1,861,729
-4.4%
2015
375,921
YEAR TO DATE
2014
363,384
% Change
3.5%
2,312
2,063
12.1%
51,972
46,938
10.7%
Print Circulation
Adult Books
Children & Teen Books
Magazines
Audio/Video Circulation
Audiobooks
DVDs
Music CDs
Total Physical Circulation
USE OF ELECTRONIC RESOURCES
CUSTOMER ACTIVITIES
Holds
Programs (Number of)
Program Attendance
Notes
• Drop in circulation of physical materials partly due to our decreased buying power and increased processing costs. We anticipate this
downward trend will continue through the remaining quarters of this year and into 2016.
• Continue to see a steady but muted increase in eBook and downloadable audiobook interest and usage, with a decrease in databases
and other online resources.
• Increase in the number and attendance of programs throughout the system.We continue to investigate popularity trends for optimal
success.
• Shift from staff-placed holds to customer-placed holds via the online catalogue.
59
FRASER VALLEY REGIONAL LIBRARY
LIBRARY YEAR-TO-DATE USAGE as of end of Q1 2015
MEMBER
City of Abbotsford
City of Chilliwack
Corporation of Delta
LIBRARY
Abbotsford
Clearbrook
Mount Lehman
Chilliwack
Sardis
Yarrow
George Mackie
Ladner Pioneer
Tsawwassen
CIRCULATION
78,290
201,044
3,868
137,387
78,239
7,562
66,765
48,324
52,922
283,202
223,188
168,011
2015
vs 2014
-8.7%
-6.0%
12.2%
-2.2%
-8.0%
-5.1%
-2.2%
-9.6%
1.5%
-6.6%
-4.4%
-3.3%
2015
vs 2014
HOLDS
2,309
5,996
184
4,396
2,556
347
2,263
1,833
2,753
8,489
7,299
6,849
-19.6%
4.2%
-23.0%
-4.1%
10.0%
-7.0%
-9.7%
-3.0%
-1.9%
-4.3%
0.3%
-4.9%
District of Hope
Hope
19,321
3.7%
1,423
24.3%
District of Kent
Agassiz
23,524
7.7%
1,308
-18.1%
City of Langley
Langley City
42,047
-31.8%
1,686
-35.1%
Township of Langley
Aldergrove
Brookswood
Fort Langley
Murrayville
Walnut Grove
Muriel Arnason
City of Maple Ridge
Maple Ridge
107,817
-3.3%
3,562
-15.8%
District of Mission
Mission
81,424
-7.5%
2,769
-25.8%
City of Pitt Meadows
Pitt Meadows
33,545
-8.5%
1,761
-24.1%
City of Port Coquitlam
Terry Fox
88,121
-2.6%
3,208
-1.3%
City of White Rock
White Rock
53,759
-2.3%
3,084
6.6%
Fraser Valley R. D.
Boston Bar
Yale
Outreach Services
Administrative Centre
Website Customer Self Service
34,358
18,173
11,256
43,065
64,097
52,949
223,898
2,560
4,766
2,206
17,473
8,805
260,378
1,639,279
0.1%
9.2%
12.9%
7.9%
4.3%
6.0%
5.5%
12.5%
0.3%
1,369
689
513
1,528
2,403
2,017
-42.5%
3.0%
-4.9%
318
220
4,226
3,742
317,458
-4.9%
375,921
6.5%
8,519
538
-6.5%
-8.6%
10.1%
-6.1%
-2.6%
15.8%
0.0%
17.8%
-26.7%
-5.6%
-24.0%
-4.6%
5.9%
3.5%
60
F RASER VALLEY R EGIONAL LIBRARY
2014 Provincial Library Grants Report
Each year since 2011 FVRL has been required to submit a Provincial Library Grants Report as
part of the overall accountability framework for public libraries and federations who receive
public funds. The information in these grant reports is used in part to demonstrate the value of
public funds in relation to the priorities of the provincial government. These reports also show
the measurable positive impacts that public libraries have upon communities across BC.
INTRODUCTION
ABOUT FRASER VALLEY REGIONAL LIBRARY
Fraser Valley Regional Library (FVRL), with 25 libraries and a central administrative centre,
serves over 700,000 residents spread over 13,000 square kilometers that are governed by 15
municipalities and regional districts. In each of our communities, the local library is a trusted
partner and is recognized as a vital community destination and resource for literacy,
recreation, and informed decision making.
The communities and local governments we serve grapple with the same long list of huge
challenges that impact our province and our nation: globalization, socio-economic change,
sustainability, big data and smart technology, lifelong learning, aging demographics, and
financing the future.
Spread across our region are people groups that are reflective of past and continued
immigration to British Columbia, as well as industries that are both new and old – agriculture,
forestry, and fishing to tourism, entertainment, and technology. The communities are dense
and urban, as well as scattered and rural. Neighbourhoods are posh and upscale as well as
humble and neglected. Roads are occupied by pedestrians and cyclists, mini-cars and buses,
SUVs and pick-up trucks, delivery vehicles and semi-trailers. A snapshot of Fraser Valley
Regional Library is a picture of the splendor and complexity of British Columbia society today.
FVRL’S STRATEGIC DIRECTIONS FOR 2014
1. Customers: Plan for and provide services and facilities to enhance the customer
experience.
2. Staff: Create an agile, resilient organization by building capability with FVRL staff.
3. Technology: Plan for and provide innovative technologies to evolve library operations
and services.
4. Communication: Encourage customers to use and increase their engagement with library
services.
5. Collaboration: Work collaboratively with local government, community and other
partners.
Fraser Valley Regional Library
T 604-859-7141 W www.fvrl.ca
61
Page 1
FVRL’S VISION AND VALUES
Foundational to everything Fraser Valley Regional Library undertakes are our vision and
values, which also align with the provincial government’s priorities for BC’s public libraries.
FVRL Vision: To be an innovative organization that is recognized as a vital community
destination and resource for literacy, recreation, informed decision-making, and social
interaction.
FVRL Values
1. We value development that invests in the enjoyment, lifelong learning, literacy, and the
vibrant health of communities.
2. We value open access to library services and materials that remove barriers associated
with education, technology, culture, economics, and physical disadvantage.
3. We value and celebrate diversity as integral to an inclusive, vibrant community.
4. We value our responsive, courteous, and friendly staff as the foundation of FVRL’s service
and success.
5. We seek collaboration and partnerships to maximize our potential to serve our customers
and communities.
6. We value innovation as it gives us freedom to grow and take risks to find creative
solutions and better serve our public in a fiscally responsible manner.
GOVERNMENT PRIORITIES
Fraser Valley Regional Library’s report provides examples of how our libraries have fulfilled
the following three government priorities:
 Equitable Access: A focus on equitable access to library services for all British
Columbians, including efforts to extend library service, both physical and digital, to underrepresented populations (e.g. Aboriginal users and visually impaired);
 Collaboration and Cooperation: A focus on collaboration and cooperation between
libraries and other partners, as well as the development of shared service models and
resources which extend or improve seamless access.
 Community Engagement and Planning: Actively supporting community priorities and
initiatives, and building collaborative community partnerships.
GOALS, PROGRAMS/SERVICES, PARTNERSHIPS, OUTCOMES
The following examples demonstrate the truly valuable outcomes and great success Fraser
Valley Regional Library has achieved throughout our 25 libraries in meeting the provincial
government priorities during 2014.
62
Page 2
PRIORITY: EQUITABLE ACCESS
A. WORKING WITH LIONS TO SUPPORT VISUALLY IMPAIRED
Chilliwack and Sardis Libraries, Chilliwack
1.
HOW FVRL SUPPORTS PROVINCIAL PRIORITY
a. FVRL Value: We value open access to library services and materials that remove
barriers associated with education, technology, culture, economics, and physical
disadvantage.
b. FVRL Strategic Direction: Plan for and provide services and facilities to enhance
the customer experience.
c. FVRL Strategic Direction: Work collaboratively with local government,
community and other partners.
2. GOALS THAT SUPPORT EQUITABLE ACCESS
a. Increase library use by under-represented groups such as the visually impaired.
b. Work closely with community partners to reach audiences that we may have
otherwise not been able to attract.
c. Increase the awareness of resources for the visually impaired to those who are not
visually impaired.
3. PROGRAMS/ SERVICES THAT ALIGN WITH THE PROVINCIAL PRIORITY
Through a partnership with the Chilliwack Lions Club, the Chilliwack Library was able
to purchase four DAISY MP3 players with headphones and they are now housed in a
dedicated listening station area in the Chilliwack Library. This allows customers who
may not have the resources at home to listen to the library’s audio collection in a
comfortable and safe environment.
The Lions Club also worked closely with the Sardis Library to develop a print/Braille
collection for the visually impaired. The collection will be used not only as a resource
for the visually impaired but also to create awareness for those who may not have ever
been exposed to Braille books.
4. KEY PARTNERSHIPS THAT SUPPORT THE PROVINCIAL PRIORITY
The librarians from both the Chilliwack Library and Sardis Library worked closely with
the Chilliwack Lions Club to share expertise with serving the visually impaired
community of Chilliwack.
5. OUTCOMES
Heavy use of the listening station at the Chilliwack Library shows the value of the
devices to the community of Chilliwack.
63
Page 3
The print/Braille collection has been ordered but not received to date. Because the
collection is so specialized, it takes longer for items to arrive.
B. LIBRARY LIVE AND ON TOUR
Serving All FVRL Communities, based in FVRL Administrative Centre, Abbotsford
(Funded by Literacy Grant)
1.
a. FVRL Value: We value open access to library services and materials that remove
barriers associated with education, technology, culture, economics, and physical
disadvantage.
b. FVRL Value: We value development that invests in the enjoyment, lifelong
learning, literacy, and the vibrant health of communities.
c. FVRL Strategic Direction: Provide awareness of changing role of public libraries.
a. To raise awareness of library services and programs.
b. To connect with the marginalized and socially excluded individuals in our
communities.
c. To strengthen community partnerships.
Library and Live and On Tour (a.k.a. LiLi), FVRL’s mobile literacy initiative, takes the
library to the people wherever they are in all fifteen of our FVRL communities – to a
high school, a trade show, a parade, a homeless shelter, or a food bank. LiLi visits
community agencies and connects with marginalized and socially excluded in our
communities.
The surprise, attention-getting aspects of LiLi are invaluable in getting the word out
about the importance of reading. We often have challenges getting teens into our
libraries and, to address this, FVRL libraries have begun the Get Carded event. This
event links the Library Live and On Tour service with local high schools and the
combination has been dynamite! Tsawwassen Library staff, working with our LiLi Tour
Manager, distributed and updated almost 300 new library cards in one day! This was
done thanks to Library Live and On Tour technologies that allowed access to our
computers outside of the library.
Several other FVRL libraries are having similar success with our Get Carded events
and local library staff is experiencing a huge number of newly carded teens in their
libraries, illustrating the impact of the Library Live and On Tour to both introduce and
reconnect teens with their libraries.
64
Page 4
With a growing regularity to LiLi’s scheduled visits throughout the Fraser Valley,
combined with individual appearance opportunities that arise, Tour Manager Dave
Denault is achieving a major goal of this literacy initiative – to connect meaningfully
and provide a sense of community to the underserved. Library Live and On Tour fulfils
a need and desire for the library to be in the community in a more integrated way, and
on the very front lines of even the most marginalized locales.
Library Live and On Tour has developed scores of partnerships with community
agencies, regularly visiting 8 community food banks, soup kitchens in 4 communities,
mental health agencies in 5 communities, several literacy organizations, and high
schools in 2 communities (e.g., Mission Food Bank, Mission Literacy, Women’s
Resource Services, Ruth & Naomi’s Kitchen, Thunderbird Motel, Olive Branch,
Chilliwack Health Centre, Maple Ridge Community Services Rainbow Club, Gateway
of Hope, Chehalis Health and Wellness, Maple Ridge Caring Place, Abbotsford Food
Bank).
Library Live and On Tour also connected with the Kwantlen and Sto:lo First Nations
peoples and was present at numerous Aboriginal events, including a summertime
festival attended by a thousand people from various First Nations.
Invitations from communities to attend summer events (for example, Canada Day, May
Day) numbered 25 just from May through September, in addition to 10 parades in
various communities throughout FVRL.
5. OUTCOMES
a. Strengthened community partnerships.
b. Connected with the marginalized and socially excluded individuals in our
communities through regularly scheduled and one-off appearances/community
stops.
c. Issued new library cards or reactivated library cards for individuals.
d. Removed barriers to literacy with FVRL’s new “Intro” library card and by waiving
library fines.
e. Raised awareness of the library by participating in community events such as fairs,
festivals, and parades.
65
Page 5
C. KATZIE FIRST NATION PARENTS AS LITERACY SUPPORTERS
Pitt Meadows Library, Pitt Meadows
1.
a. FVRL Vision: To be an innovative organization that is recognized as a vital
community destination and resource for literacy, recreation, informed decisionmaking, and social interaction.
b. FVRL Value: We seek collaboration and partnerships to maximize our potential to
serve our customers and communities.
c. FVRL Strategic Direction: Work collaboratively with local government,
a. Strengthen the partnership between Katzie First Nation and Pitt Meadows Public
Library.
b. Increase the profile of the library and its services in the Katzie community.
c. Take an active role in early literacy role modeling for Katzie parents.
Parents as Literacy Supporters (PALS) is an interactive program offered to Katzie First
Nation parents and their 3, 4 and 5 year old children. Working together through a
number of literacy activities related to early reading and writing, Katzie parents learn
ways to support their child’s literacy development at home. Library staff brings books
and stories to share with the parents and children. Each child receives a gift bag that
includes a storybook and early-learning materials to continue to build skills at home.
4. KEY PARTNERSHIPS THAT SUPPORT THE PRIORITY
Katzie First Nation, School District 42 Aboriginal Education.
5. OUTCOMES
a. The Katzie First Nation children were eager to see the books the librarian brought.
b. The Pitt Meadows Library was recognized as a friendly place for Katzie First
Nation families.
c. Aboriginal Education staff commented about the library: “You are a very positive
community influence. If members of the community see a familiar friendly face,
then it is easier to make connections.”
d. Children were registered for library cards.
e. Katzie First Nation parents were introduced to books that support their child’s
literacy development.
f. The expertise and contribution of library staff has been recognized by community
partners.
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Page 6
PRIORITY: COLLABORATION AND COOPERATION
A. SUPPORT FOR FORMAL AND INFORMAL STUDENT LEARNING
Clearbrook and Abbotsford Community Libraries, Abbotsford
1.
a. FVRL Value: We value development that invests in the enjoyment, lifelong
b. FVRL Strategic Direction: Plan and provide services and facilities to enhance the
customer experience.
2. GOALS THAT SUPPORT COLLABORATION AND COOPERATION
a. To increase student usage of space in the Abbotsford Libraries.
b. To demonstrate the Clearbrook and Abbotsford Community Libraries’ role as an
integral support to formal learning.
c. To actively support individual educational goals for students.
d. To promote the Clearbrook and Abbotsford Community Libraries as key
destinations for informal and lifelong learning with resources for personal growth
and education for children and teens.
Two small meeting rooms in the Clearbrook Library were upgraded and converted to
reservable spaces for group or solo study. More tables were added to study spaces
in the Clearbrook Library and zones were designated “quiet” or “group study” to allow
for different needs.
Abbotsford Community Library committed and advertised their meeting room as quiet
study space on any evening when not in use for programming.
Clearbrook Library reviewed proctoring services in order to increase capability and
meet community demand because only a limited number of institutions in the Fraser
Valley offer this service. In 2014, over 50 exams were proctored for students from a
variety of schools, including from Pacific Coast Early Childhood Education to
Okanagan College and Thompson Rivers University. During the 2014 job action
involving elementary and secondary teachers, the Clearbrook Library was able to
support secondary school students writing exams.
Reading Buddies, a program to assist struggling readers in grades 1 to 4, supports
both formal education and personal enjoyment of reading. The program is a
collaborative effort between the Clearbrook and Abbotsford Community Libraries and
Abbotsford Literacy Matters. In spite of the school job action and the late start to the
67
Page 7
school year in 2014, elementary school teachers recommended students for the
program and there was a modest increase in numbers from about 75 to 80
reader/volunteer pairs.
The Teen Advisory Group created learning opportunities for teen participants
which supported both formal and informal learning. Teens helped to create, plan, and
run teen programs at the Clearbrook Library, learning valuable life skills and gaining
volunteer hours which counted toward high school completion.
4. KEY PARTNERSHIPS
Abbotsford Community Services, School District #34, City of Abbotsford, Abbotsford
Literacy Matters.
5. OUTCOMES
a. Reservable and drop-in space for study was increased at both Clearbrook and
Abbotsford Community Libraries.
b. Proctoring services at Clearbrook Library were reviewed and updated in order to
meet increased demand from students.
c. Reading Buddies, a support program for struggling readers, expanded.
d. Teen participants in Teen Advisory Group at Clearbrook Library connected with
the library and learned leadership and planning skills that benefited both formal
and informal educational goals.
B. STAFF BRINGS SMALL BUSINESS RESOURCES TO LIFE
Mission Library, Mission
1.
a. FVRL Value: We value development that invests in the enjoyment, lifelong
b. FVRL Value: We seek collaboration and partnerships to maximize our potential to
serve our customers and communities.
c. FVRL Strategic Direction: Create an agile organization by building capacity with
FVRL staff.
d. FVRL Strategic Direction: Work collaboratively with local government,
a. Support small business.
b. Provide staff with the tools to assist and improve services to small businesses.
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Page 8
Supporting small business in Mission was a priority for the Mission staff in 2014. To this
end, staff attended focused training on FVRL’s business and employment resources,
including a Serving Small Business Workshop and a Skilled Immigrant Workshop.
Empowered by their learning, the staff was able to better assist customers with their
employment, small business, and market research needs.
Staff met with business groups in the community to further learn of the specific needs
of small businesses, and then crafted an introductory letter to new businesses in
Mission outlining the services offered by the library. Services included business
resources (planning tools, market research, accelerator guides, company profiles, etc.);
bookable meeting rooms; free WiFi and other technology including Microsoft Office
products; and access to information experts via the Book A Librarian service.
Additionally, staff created a display of business resources with an accompanying list
for customers to take home or to use at work.
Mission Economic Development Office, Mission Downtown Business Association and
Mission Chamber of Commerce.
5. OUTCOMES
a. Increased awareness of library services to small businesses by:
(i) sending introductory letters to all new small businesses in the community.
(ii) partnering with the Mission Chamber of Commerce to increase local media
coverage ("Use our extensive knowledge for Business Resources", Mission
Record, Nov. 14, 2014.).
(iii) creating a display of business resources available in the library, including a list
of resources for library customers to take away.
b. Library staff attended targeted business information training, enabling them to
give improved services to small businesses.
C. BUILDING INTERFAITH BRIDGES
Maple Ridge Public Library, Maple Ridge
1.
a. FVRL Value: We value and celebrate diversity as integral to an inclusive, vibrant
community.
b. FVRL Strategic Direction: Plan and provide services and facilities to enhance the
customer experience.
69
Page 9
a. To attract sections of the public who may not already have a relationship with the
library.
b. To advance the library as a space where our diverse community can be explored
and celebrated.
c. To form community relationships and encourage new partnerships.
d. To promote awareness of related library collections.
The Many Candles: Interfaith Dialogue Series soon will begin its third season at the
Maple Ridge Public Library. The program brings together a changing panel of
community members from diverse religious and spiritual backgrounds to present on a
specific theme in the context of their beliefs. Examples of themes from 2014 are
Environment, Sacred Texts, Justice and the Concept of “The Soul.”
An opportunity for discussion and questions follows each presentation. In connection
with the program, the Building Interfaith Bridges Project organizes tours of local
places of worship. The Islamic Society of Ridge Meadows, which worships regularly in
one of the library’s meeting rooms, opened one of its services to the public, and this
attracted a great deal of interest among library customers.
Building Interfaith Bridges Project, Maple Ridge Family Education and Support
Centre.
5. OUTCOMES
a. The ongoing Many Candles: Interfaith Dialogue Series has consistently drawn a
substantial audience from various religious traditions and also from those who
identify as “non-religious” or “spiritual, but not religious.”
b. Feedback from attendees often cites the open, inclusive nature of the series as its
most enjoyable aspect, and routinely applauds the library for its willingness to host
a program of this kind.
c. Through its connection with the Building Interfaith Bridges Project, the library has
formed relationships with religious organizations and with people who are core
members of their religious communities. Partnerships also have developed
between the interfaith group and a number of the program’s guest speakers.
d. Each session highlights the library’s books and other materials related to the
program’s changing theme. These materials are often borrowed by customers at
the end of the program.
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PRIORITY: COMMUNITY ENGAGEMENT AND PLANNING
A. SETTLEMENT WORKERS IN OUR LIBRARIES: TELLING OUR STORIES PROGRAM
George Mackie, Ladner Pioneer, and Tsawwassen Libraries, Delta
1.
a. FVRL Value: We value and celebrate diversity as integral to an inclusive, vibrant
community.
b. FVRL Strategic Direction: Provide awareness of the changing role of public
libraries.
c. FVRL Strategic Direction: Work collaboratively with local government partners.
2. GOALS THAT SUPPORT COMMUNITY ENGAGEMENT AND PLANNING
a. To provide a supportive environment for Delta newcomers to visit, receive
settlement services, and learn language and life skills.
b. To provide increased awareness of library and community services and programs.
c. To promote the Delta libraries as a trusted partner agency in our community.
d. To provide opportunities for newcomers to meet and exchange cultural
information with resident Canadians.
FVRL’s Delta libraries partner with Progressive Intercultural Services (PICS), Options
Community Services, and DiverseCity Community Services to provide space and
support to settlement services at our libraries.
a. We provide a desk, advertising, and a cooperative atmosphere for workers who
speak Panjabi, Cantonese, and Korean to work two shifts a week at George Mackie
Library.
b. We also work directly with PICS to develop and provide a nine-week course for
newcomers wishing to improve their English in community settings.
c. Our own library staff also leads a weekly Conversation Circle for clients of the
other two programs to share English language learning in an informal environment
in order to improve a variety of literacies.
d. This service has been expanded to include a three-times-yearly evening program
based on the CBC program, The Flame. Telling Our Stories hosts six to eight
newcomers during an evening of storytelling, music, dance and, occasionally, food.
Held at the library, this program is well attended (up to fifty each time) by all
residents of Delta and provides an informal environment for mutual learning.
Progressive Intercultural Services (PICS), Options Community Services, and
DiverseCity Community Services; local banks and restaurants, coffee shops,
supermarkets, and employment agencies.
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5. OUTCOMES
a. Program participants share the news of their welcome and experiences at the
Delta libraries.
b. Agency staff experiences the services of the library, often for the first time!
c. Newcomers feel more connected to, and part of, their community.
d. The Delta libraries connect community agencies and strengthen these agencies’
ability to achieve their organizational goals.
e. The Delta libraries are seen a valued, trusted and sought after community partner.
f. Increased awareness of the resources and changing roles of the public library.
g. Cross-training for our staff with settlement staff to reduce a duplication of service
in Delta.
h. Long-time Delta residents are exposed to differences in culture, geography, and
expectation.
SUMMARY
Throughout 2014 Fraser Valley Regional Library kept rigorously focused on transformational
change – investigating trends, fostering learning, planning and implementing evolving
technologies, exploring and embracing new ways of service delivery. We were intent on being
leaders for the changing role of public libraries and we worked hard to raise awareness
among customers, communities, and stakeholders about how our libraries offer connections
to a world of information and ideas that can transform lives and communities. The challenges
are great, yet the opportunities abound, and the rewards of successful achievements are
immense and gratifying.
Fraser Valley Regional Library is making invaluable contributions to our communities by
taking leadership and serving as a catalyst for community partnerships. We bring support and
solutions to socio-economic issues as our communities adapt to the effects of immigration,
the changing make-up of families, the marginalized, and our aging populace. In countless ways
our libraries help residents and local governments deal with tremendous financial pressures,
offer resources and programs that enrich their quality of life, raise literacy levels, bring
economic health, promote culture and the arts, celebrate diversity, and extend a helping hand
and welcome to everyone.
We have learned that we must continue down this path with boldness. We will continue to
stand with our local and provincial governments, joining them in finding and implementing
solutions to the challenges that affect us all.
Respectfully Submitted On Behalf Of Fraser Valley Regional Library
By Irene Geng, Office of the Chief Executive Officer
[p] 604.859.7141 or 1.888.668.4141 (ext. 7005) or 604.557.4706 (direct) [e] [email protected]
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REPORT
TO THE
FVRL BOARD
Abbotsford Libraries
By Hilary Russell, Library Manager
Meeting of June 24, 2015
CLEARBROOK LIBRARY TO THE RESCUE!
FVRL envisions libraries as vital destinations and a resource for their communities. We seek
collaborations and partnerships and value development that invests in the enjoyment, lifelong
Clearbrook Library was able to showcase all these FVRL qualities in April by supporting the
Fraser Valley Heritage Fair. The fair is an annual event in which students in grades 3-7 display
projects based on some aspect of Canadian history and compete to enter the provincial fair.
Begun in 2003, the British Columbia Heritage Fairs Society is under the Distinguished
Patronage of the Honourable Judith Guichon, OBC, Lieutenant Governor of British Columbia.
This year the local coordinator was having serious trouble finding a venue for its 19th year due
to unusual circumstances wherein the usual grants had been put on hold. Over 80 students,
all winners at their local school fairs from throughout the Fraser Valley, would have been very
disappointed if there had been no regional fair.
Clearbrook Library to the rescue! On April 14-15, we were able to provide space in our
meeting rooms not only for displaying all the projects but also for the judges’ orientations.
Library staff assisted with set-up where they could and made sure that the Heritage Fair had
whatever it needed. Our neighbour, the REACH Gallery Museum, hosted the 2015 workshops
and the awards ceremony on April 15. In recognition of our contribution, Clearbrook Library,
FVRL was recognized as a sponsor of the “Outstanding People and Events” award category
which was presented by library staff. The winners will go on to the Provincial Heritage Fair in
Victoria in July.
FVRL and the Abbotsford Libraries are an amazing resource in their communities – sometimes
in ways you would not have imagined! FVRL values innovation and creativity in order to better
serve our public, and Clearbrook Library was delighted to be able to collaborate with and
support the wonderful Fraser Valley Regional Heritage Fair in 2015.
73
REPORT
TO THE
FVRL BOARD
Agassiz Library
By Nicole Glentworth, Library Manager
BOOKS THAT KEEP ON GIVING
Libraries love to keep their shelves full, but eventually they fill up! Books and other materials
have to be removed from the FVRL collection in order to make room for shiny, new materials.
It takes constant attention to the collection and a connection to the community to make sure
the library collection “gives” as much use as possible for as long as possible.
Agassiz Library staff has had customers ask why what seems to be a new item can be seen on
the book sale shelf. This is a difficult subject to broach with customers, as people feel that
books have a “sacredness” and should be kept until they fall apart.
In Agassiz we pride ourselves on providing answers that leave the customer feeling good
about how we manage their books. We try to keep it short, simple and positive. We remind
them that libraries stay one size but there are thousands of new books that are added to the
collection so we have to cull some books – “out with the old, in with the new, just for you!” We
remind them that we aim to keep information current and we want them to have the newest
bestsellers for their reading pleasure. Staff is capable and able to carry on the discussion if
needed, saying that we offer the books back to the public, who actually own these books, at a
great price.
Aside from selling discarded books, Agassiz Library has taken creative action in sharing
discarded books with other community partners such as literacy workers, schools, preschools,
as well as in waiting rooms around town, with doctors’ offices and garages being the most
popular. We have Young Adult books in boxes at the local high school lounge that the teens
can take them home as keepers or return them for others to take home. The final stage for
discarded books in Agassiz Library, if they have not been bought or donated, is the “Freebie”
box. It is always emptied, thereby “re-homing” our collection.
One way or another, Fraser Valley Regional Library collections find value through many paths.
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REPORT
TO THE
FVRL BOARD
Chilliwack Libraries
FRIENDS FOR LIFE
The Friends of the Chilliwack Library are an integral part in the promotion of the library and
its services. The Friends over the years have conducted programs independently of the
library in order to raise funds to be spent on improvements of the library. Over their 25 years
of existence the Friends have raised money which has been used to purchase specialized
furniture, gift prizes and program fees. These programs include the Book Blitz, Puzzle Sales,
Quiz Nights and the Pet Parade. They use these events to recruit members who have an avid
interest in the library and literacy and are always looking at avenues for attracting new
members.
To celebrate their success over the last 25 years, they held a celebratory tea at a local tea
shop and invited staff from the library to attend. This gave them the opportunity to reflect on
their past successes and plan for future events while getting to know staff a little bit better.
The Friends’ passion for the library and the community is evident in their dedication to make
their programs a success and they have been approached for ideas by other Friends groups
across the Fraser Valley Regional Library system.
75
REPORT
TO THE
FVRL BOARD
Delta Libraries
By Gillian McLeod, Library Manager
WHAT IS RELEVANCE?
Library staff, boards and management talk frequently about "staying relevant" in our communities.
But what does this mean? A recent customer asked library staff this exact question to help
prepare for a job interview at a Calgary library. The Delta staff person said "Ask around—any of
our staff—see what they say." This story made the rounds this month, and here are some of the
answers that this information-seeker received from our own Delta staff!
Get Carded!
We have challenges getting teens into the libraries sometimes, so we went to them! With Library
Live and On Tour along, Tsawwassen Library staff distributed new and updated cards to almost
300 students at South Delta Senior Secondary in one day! This was done thanks to new
technologies that allowed access to our computers outside of the library. Technology is not a
threat to libraries, but supports our ability to meet information needs wherever the customer may
be.
Talk Delta!
Delta libraries participated in the 2015 Corporation of Delta Open House in April. It was an
excellent opportunity for library staff to show off our many formats and connect with Delta
residents. The best part of our work, unexpectedly, was the connections we made with
Corporation of Delta staff, learning about their work and sharing ours. We changed a few minds
and enlightened a few others as to how the Delta libraries can support their work, offer new ways
of doing tasks, and become partners in the delivery of excellent service to our residents. Stay
tuned for Summer Reading at the Animal Shelter, e-resource marketing for Burns Bog, and
Emergency Preparedness training programs for teens.
Delta Literacy Community Check-in!
Each year the Delta Literacy Committee meets with as many organizations, associations, schools,
city staff as possible to discuss the changing world of literacy needs and possible partnerships. In
a mere two hours we share what has happened in the past year and imagine what we can do in the
next year to prepare us for whatever is coming! This year library staff imagined maker/hacker
spaces with the school district for every age, providing space and computer training for a new
refugee group, and programming about invasive plant species in Delta.
Library staff are champions for every type of literacy and continue to evaluate what we are
offering, what we can stop offering and what we can update to meet the needs of our residents in
a constantly changing world. Our customer job-seeker walked away from her conversations
without a doubt that that libraries in general and the Delta libraries specifically will never be
irrelevant!
76
REPORT
TO THE
FVRL BOARD
Hope Library
BRINGING WILDLIFE TO THE LIBRARY
The Hope Library is always looking for new programs to deliver to the community and
residents of Hope. This month was no exception. There were two successful programs
delivered focusing on the outdoors of Hope.
On Earth Day the library hosted rockhound Ron Cole, who showed attendees how to
distinguish the different types of rocks in the area. It was aimed at families, giving them the
knowledge to go out and find the treasures in the area.
Hope Mountain Black Bear Committee delivered a session at the Seniors’ Coffee and
Conversation, focusing on coexisting with wildlife. Since Hope is surrounded by wildlife, it was
a great opportunity for customers to learn about bears, cougars, and coyotes and how we can
live together through community involvement, education, and cooperation. The founder of
Hope Mountain Black Bear Committee informed those who attended how we can live safely
with wildlife in the community.
With the knowledge of what is around us, we can appreciate the true beauty of Hope.
77
REPORT
TO THE
FVRL BOARD
City of Langley Library
By Pat Dawson, Library Manager
THE LIBRARY SERVING SENIORS
City of Langley staff is aware that our community is home to an increasing number of seniors
and retirees. Census data for 2011 reports almost 17% of the City’s population is over 65
compared to the national average of 14.8%. This represents an almost 8% increase over the
2006 census, the highest increase of all broad age groups in the City. 1 According to a report
by the United Way of the Lower Mainland (UWLM) 2, seniors comprise more than 30% of the
downtown City of Langley census tract. Moreover, 42% of seniors living in the City live alone,
the highest percentage in all Metro Vancouver communities.
Anecdotally and by observation, library staff would not be surprised by these numbers.
Seniors regularly visit the library to browse our collection, read newspapers, work on
crosswords and jigsaw puzzles, visit with friends, knit, use the computers, and get help with
their electronic devices. Staff is aware that, for some seniors, the library is not the “third
place” (home and work being first and second), but the library is indeed the “second place”,
after home. In fact, Langley Senior Resources Society (LSRS) staff regularly set up an
information table in the library because they recognize the high number of seniors who visit
the library.
In addition to providing assistance and social connection for seniors at the library, library staff
collaborates with community groups and organizations to bring word of the library to seniors
in a community setting. Library staff is invited by LSRS to promote library services and
resources at their centre. Also, library staff has developed a partnership with Langley’s Meals
on Wheels Food and Friends initiative. At Food and Friends, for a nominal cost, seniors meet
at a local restaurant for a social meal. Community representatives are invited to share
information with the seniors over lunch. The library has been a popular guest and staff is
invited to consecutive monthly meetings in May and June because of the warm reception
received.
Through continued collaboration with community groups and by understanding the kind of
library collection, library resources and library design that meet seniors’ needs, library staff
will continue to improve our service to the seniors in our community.
1
http://www12.statcan.gc.ca/census-recensement/2011/as-sa/fogs-spg/Facts-csd-eng.cfm?Lang=eng&GK=CSD&GC=5915002
Accessed May 6, 2015
http://www.uwlm.ca/sites/default/files/webfm/Our%20Work/Reports%20and%20Resources/CII%20Reports/Seniors-in-the-LowerMainland-Facts2013.pdf
78
REPORT
TO THE
FVRL BOARD
Township of Langley Libraries
By David Thiessen, Library Manager
Township of Langley Libraries Host Four Patient Rights Programs
On February 6, 2015 the Supreme Court issued a unanimous decision that people with
grievous and irremediable medical conditions should have the right to ask a doctor to help
them die. The court gave federal and provincial governments 12 months to craft legislation to
respond and, if the government didn’t write a new law, the court's exemption for physicians
would stand.
The ruling sparked a significant level of interest in questions about patient rights across the
country. In keeping with the FVRL’s vision to be an organization that is recognized as a
community destination for informed decision-making, FVRL hosted information programs on
Patient Rights from Dying with Dignity Canada at numerous libraries throughout FVRL,
including four libraries in the Township: Brookswood, Fort Langley, Murrayville, and Walnut
Grove.
Fifty-two people attended, many with significant questions related to planning for their future
medical needs and care. The Canadian Medical Association, a sponsor of the program,
recommends everyone develop a detailed advance care plan. Knowing your rights as a
patient, they point out, is an essential part of that process, a landscape that has been
potentially altered as a result of the Court’s decision.
As we continue to host programs like this, these numbers are bound to grow. Census data
indicates that, by 2026, the number of Township residents aged 65 and older will more than
double. Hosting programs like this will also assist Township council’s mandate to be
recognized as a WHO “age- friendly” community. The library is an integral partner in this as
well.
In helping residents remain current on the changing landscape of patient rights and the
making of informed choices, the library is supporting the FVRL Board’s vision, community
development, and key parts (health services) of the Township’s “age-friendly” strategic
objectives.
79
REPORT
TO THE
FVRL BOARD
Maple Ridge Library
By Shawna Kristin, Library Manager
SERVING OLDER ADULTS
Maple Ridge Public Library provides a range of services and programs to engage citizens of all
ages. One demographic group with whom staff connects is older adults. Similar to other
demographics, older adults are not a homogenous group. They have diverse interests and
information needs. In order to meet these preferences and needs, Maple Ridge Public Library
offers a variety of services and programs.
Lifelong learning is one information need that is integral to the everyday lives of older adults. In
order to meet this need, the library offers a large collection including multiple formats to suit an
array of reading preferences, including audiobooks and large print titles. Maple Ridge Public
Library also has “Reminisce Kits,” themed collections of books, music, videos and memorabilia
designed to stimulate recall and conversation. Additionally, the library offers diverse
programming that appeals to older adults, including health and wellness seminars, community
history talks, photographic presentations, tax assistance, puzzle tables, movies, and more.
As society becomes more and more reliant upon digital technologies, digital literacy is becoming
increasingly important. Maple Ridge Public Library offers many programs to help older adults
bridge the digital divide. One of these programs is It Won’t Byte. Offered monthly at the Ridge
Meadows Seniors Centre, It Won’t Byte connects technically gifted members of the library’s Teen
Advisory Group with older adults. Older adults are encouraged to bring gadgets that are causing
them grief, such as cellular phones, cameras, and GPS units. During the sessions, teens explain
how the devices work and what they do. Another program that assists the community with staying
up to speed with modern technologies is Drop-In Tech Help. Offered at a time friendly to older
adults, anyone can drop by the library to learn how to use their tablet, laptop, or eReaders.
Additionally, the library offers Book a Librarian appointments where anyone can sit down with a
librarian for a personal appointment to fulfill their information needs.
Maple Ridge Public Library is looking forward to celebrating Seniors Week in June. The library
has many special programs planned, including a Seniors Social with the Silvertones, a popular local
seniors choir. Staff also will be offering older adults behind-the-scenes looks at the library with
special seniors walking tours of the library. Another program being offered during Seniors Week
is Life without Driving, a program that aims to help older adults transition to a lifestyle that
includes alternate ways of transportation.
Maple Ridge Public Library is very much looking forward to continuing to meet the needs of this
growing demographic into the future.
80
REPORT
TO THE
FVRL BOARD
Mission Library
By Courtney Novotny, Acting Deputy Library Manager
CONNECTING WITH DIVERSE POPULATIONS IN DIVERSE WAYS
The District of Mission is home to a diverse community and the Mission Library strives to
connect with the range of customers it serves in meaningful ways.
A Creative Event for a Creative Community
The Mission Library serves a community of creative writers, artists, local authors, and more.
Drawing from the creative talents in the community and in celebration of National Poetry
Month (April), the Mission Library ran Poet’s Corner, a live poetry reading event, connecting
established and emerging poets alike and connecting people through poetry. Spurred on by
local Mission poet, David Pullen, the event brought together new and experienced poets for
an afternoon of sharing poems with the community. Big name and published writer, Tiffany
Stone, attended and read some of her lively poems for children. Another poet read her poems
out loud for the very first time. Customers enjoyed listening to the live poetry, which was a
new experience for many.
Public libraries are community spaces where people can make connections with others in their
community. The Poet’s Corner event allowed new and experienced poets to connect with
each other, the Mission Library, and the Mission community.
Removing Barriers Alongside Community Partners
Community organizations in Mission rallied together for Spring Connect, a large event that
brought together resources and services for the homeless and marginalized population in the
community. New clothes were handed out, free haircuts were provided, toiletries were
distributed, and community connections were made. Staff from the Mission Library attended
the event alongside FVRL’s Library Live and On Tour to reconnect people to the library. One
woman at the event spoke with the local Mission Library staff and the Library Live and On
Tour Tour Manager and told them how she relied on library services while she worked
through her addiction. She will continue to make use of the Mission Library.
Meeting the Needs of the Community
By analyzing the diversity of the population of Mission, the library was able to connect with
two distinct groups in two different, but meaningful ways, ultimately connecting the library
with the community it serves.
81
REPORT
TO THE
FVRL BOARD
Pitt Meadows Library
By Shawna Kristin, Library Manager
PAWS 4 STORIES
A community partnership between Pitt Meadows Public Library and the St. John’s Ambulance
Therapy Dog Program has helped the library to become a community resource for parents and
teachers who are looking for literacy support for early elementary students struggling with
reading. The cooperation between the library and St. John’s has created a synergy, the result of
which is a strong program that benefits the children, parents, teachers, and canines of Pitt
Meadows.
Paws 4 Stories is designed to help children who are reluctant readers. The program aims not only
to improve their reading skills but also to increase their enjoyment of reading. The children,
usually referred to the program through their teachers, are typically in grades two or three.
During the six-week program, the children read to a trained therapy dog for 20 minutes each
week. The dogs are non-judgmental, making them an ideal audience for young readers that are
building much needed confidence in their reading skills. One parent with two children involved in
the program said: “They won’t correct them, so it builds their confidence. Dogs are just content to
listen.” She went on to say: “Both of them come out of there so proud that they were able to finish
a couple of books. They feel like they’ve accomplished something.”
The experience of the children enrolled Paws 4 Stories reflects what research has shown. After
six, twenty-minute sessions of reading to the dogs, all of the parents of the participants have
reported that their children’s reading levels have increased. Feedback from parents also indicates
that their children’s enthusiasm for reading has improved. The same feedback has been received
from teachers who find that their students’ reading skills have risen dramatically. In one child’s
case, he also was able to overcome his fear of dogs, which resulted in the family getting a dog as a
pet.
Articles published in The Maple Ridge and Pitt Meadows Times resulted in increased demand for
the program. The library now has contacts in the majority of the local public schools who help to
promote the program. Offering this program has raised the profile of the library in the schools as
well as the community at large. Staff receives constant referrals from the schools and inquiries
during the year as to the availability of space in the program.
Paws 4 Stories is one way that Pitt Meadows Public Library collaborates with other organizations
in the community and aligns with FVRL’s vision “to be an innovative organization that is
recognized as a…resource for literacy.” Staff at Pitt Meadows Public Library continues to think of
innovative ways to inspire our young readers.
82
REPORT
TO THE
FVRL BOARD
Terry Fox Library
By Pat Dawson, Library Manager
THE LIBRARY AND AVENUES OF CHANGE
Terry Fox Library, with many local agencies, organizations and associations, believes that each
child should have the opportunity to reach his or her full potential. Yet, based on vulnerability
scores from the Early Development Instrument (EDI), in one Port Coquitlam neighbourhood,
Coquitlam River, 43% of young children are at risk of developmental vulnerabilities when they
enter kindergarten.1
In 2013 Terry Fox Library was invited to contribute to the United Way of the Lower Mainland
(UWLM) project, My Neighbourhood, My Future, a phased five-year initiative whose aim is to
ensure all children have the opportunities they need to start school with the skills necessary
for success. 2 My Neighbourhood, My Future in Coquitlam River (MNMF-CR) brought together
families, residents, service providers, government, schools, businesses, libraries, including
Terry Fox Library, and other local organizations to create a strategic business plan to meet
the specific needs of children in the Coquitlam River neighbourhood. 3
Phase two, the strategic action and implementation phase called Avenues of Change, will see
up to $400,000 invested in Coquitlam River through a collaborative partnership of host
agency Westcoast Family Centres, Ministry of Children and Family Development, School
District No. 43, Tri-Cities Early Childhood Development Committee, Fraser Health Authority,
the libraries and other agencies.
At the launch of Avenues of Changes for Coquitlam River in April, Terry Fox Library staff
presented literacy-based Storytimes, introducing exceptional children’s books and promoting
library services and resources to attendees.
Terry Fox Library will continue to contribute to Avenues of Change, and to other local
initiatives, as an authoritative, active and creative partner providing opportunities for the
development and future well-being of children in Port Coquitlam and bringing about change
in our community.
1
http://www.uwlm.ca/avenues-of-change , accessed May 6, 2015
My Neighbourhood, My Future – Coquitlam River Baseline Report of September 15, 2014. Tri-Cities Early
Childhood Development Committee and United Way of the Lower Mainland,
3
http://www.uwlm.ca/avenues-of-change
2
83
REPORT
TO THE
FVRL BOARD
White Rock Libraries
By David Thiessen, Library Manager
White Rock Library Joins City in Celebrating Irish Heritage Month
The Canadian experience has shown that multiculturalism encourages ethnic harmony and
cross-cultural understanding. Throughout the month of March, the White Rock Library joined
the City of White Rock in pursuing that mandate in its city-wide celebration of Irish Heritage
Month.
Throughout the month, everything in the library went “green,” from word puzzles promoting
Irish authors to book draws (with 66 entries) for David Slattery's How To Be Irish. A staff
member judged the Limerick Contest, and winning entries were published in the newspaper.
The Titles and Tea Afternoon Book Club read Tim Winton's The Riders and the White Rock
Book Club read Philomena by Martin Sixsmith. Children packed the meeting room for Norden
the Magician and a few days later for The Story Time Goes Green. Staff created a popular
book and media display. The Piece Arch Quilters provided a stunning display in the library of
handmade Irish themed quilts draped from the upper floor railing.
The city-wide enthusiasm for the celebration was mirrored in the collaboration it took to bring
it about: partnerships that included the White Rock Library, City of White Rock, Irish Club of
White Rock, Semiahmoo Arts, Tourism White Rock, the Now newspaper, Tapestry Music,
Chamber of Commerce, White Rock Business Improvement Association, and Super Natural
British Columbia.
Events and efforts like these shape communities and help develop a sense of pride and
ownership, not simply in the end product, but also in the process – the working together to
make the events happen, the forging of lasting partnerships.
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REPORT
TO THE
FVRL BOARD
Yale and Boston Bar Libraries
WI-FI IS HIGHLY COVETED IN THE LIBRARIES
With the recent addition of Wi-Fi to the list of services provided at the Yale and Boston Bar
libraries, staff is still finding residents benefiting from it on a regular basis. Customers are
using the service to apply for jobs, keep in touch with relatives far away, or simply just to
browse the Internet to find something interesting to talk about. Customers are spending
more time at the library, with potentially more time to browse the collection and take
something home with them.
85
REPORT
TO THE
FVRL BOARD
Library Live and On Tour
By Courtney Novotny, Acting Deputy Library Manager
Library Live and On Tour: The Important Library Link
Library Live and On Tour is the important link that allows FVRL to better understand how to
reach underserved populations across the Fraser Valley. Library Live and On Tour has been
successful in connecting with those not using the library due to circumstance, isolation, or just
not being aware of library resources. Library Live and On Tour is often booked by community
groups across the Fraser Valley, who see the value in connecting the underserved with their
local library and appreciate that the library can come to them.
Reaching out to High-Risk Mothers
Library Live and On Tour recently attended a Healthy Babies group in Port Coquitlam, which
is a health-unit supported program serving high-risk pregnant women, up to six months
postpartum, with counselling, support, and education around nutrition, lifestyle, pregnancy
and more. The high-risk participants include Aboriginal/Métis/Inuit mothers, immigrants,
those with low income, single parents, teen parents and isolated parents. Guest speakers are
often invited to join the group and FVRL was honored to be invited and happy to provide
community support through Library Live and On Tour.
The Library Connection
The library is an obvious connection to the Healthy Babies group because of the abundance
of resources available at every FVRL location that support the mandate of the Healthy Babies
program. Beyond library resources, all FVRL locations provide a welcome and free public
place for high-risk pregnant women and new moms to spend time. Beyond visiting the library,
new moms can attend early literacy programs at their local libraries to support their baby’s
development and further connect with other local parents. By taking the time to visit with the
Healthy Babies group, the library is able to connect with those who may need library
resources the most in a friendly and comfortable environment. By taking the first step to
connect with these groups, FVRL looks to gain lifelong library users. The Library Live and On
Tour Tour Manager was able to create library cards on the spot for the women and their
babies, which reduces one barrier to library use. The Tour Manager also answered questions
about how to use the library, described where the nearest library is, and aimed to promote
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the library as a safe space. When these people visit an FVRL library on their own, they are
already set-up and ready to borrow!
Welcome to the Library
Connecting with the Healthy Babies program in Port Coquitlam is just one of the ways that
FVRL is meeting the needs of the communities it serves. Library Live and On Tour brings the
Library to the underserved, reduces barriers, connects people with their local library, and
ultimately makes a powerful impact on people’s lives.
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May 5, 2015
Acting Chair Helen Fathers
Fraser Valley Regional Library Board
34589 DeLair Road
Abbotsford, BC V2S 5Y1
Dear Ms. Fathers,
Re: Request for Amnesty Day
At its regular meeting on April 27, 2015, the Council of the City of Langley resolved as
follows:
THAT a letter be sent to Fraser Valley Regional Library (FVRL) Acting Board
Chair, Helen Fathers to request that the FVRL Board add an item titled “Amnesty
Day or Days for City of Langley Library” to their May agenda for consideration.
Members of Council felt the Amnesty Day would be a fresh start for people in the
community and would tie in nicely with the recent renovations the City of Langley
Library has undergone.
Thank you for your consideration of this matter.
Please contact me at
[email protected] or at 604-514-4591 if you require additional information.
Yours truly,
CITY OF LANGLEY
Carolyn Mushata,
Corporate Officer
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Audit Results and Communications
Report to the Members of the Board
For the fiscal year ended December 31, 2014
91
Tel: 604 688 5421
Fax: 604 688 5132
[email protected]
www.bdo.ca
BDO Canada LLP
600 Cathedral Place
925 West Georgia Street
Vancouver BC V6C 3L2 Canada
Direct Line: 604-443-4716
E-mail: [email protected]
June 18, 2015
Members of the Board
34589 Delair Road
Dear Board Members:
We are pleased to present the results of our audit of the financial statements of the Fraser Valley
Regional Library (“FVRL”) for the year ended December 31, 2014. The purpose of our report is to
summarize certain aspects of the audit that we believe to be of interest to the Board and should
be read in conjunction with the draft financial statements.
Our audit and therefore this report will not necessarily identify all matters that may be of
interest to the Board in fulfilling its responsibilities.
This report has been prepared solely for the use of the Board and should not be distributed
without our prior consent. Consequently, we accept no responsibility to a third party that uses
this communication.
We wish to express our appreciation for the co-operation we received during the audit from
FVRL’s management and staff that assisted us in carrying out our work. We look forward to
discussing the contents of this report and any other matters that you consider appropriate.
Yours truly,
Bill Cox, CPA, FCA
Partner through a corporation
BDO Canada LLP
Chartered Accountants
BC/lcz
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BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by
guarantee, and forms part of the international BDO network of independent member firms.
TABLE OF CONTENTS
Executive Summary
4
Audit Findings
6
Fraud Discussion
8
Internal Control Matters
9
Appendix A – Other Required Communication
10
Appendix B – Audit Strategy
11
Appendix C – Draft Independent Auditor’s Report
12
Appendix D – Audit Adjustments
13
Appendix E – Unadjusted Differences
14
Appendix F – Management Letter
15
Appendix G – Representation Letter
20
Appendix H – Changes in Accounting Standards with Potential to Affect FVRL
24
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EXECUTIVE SUMMARY
Audit Results
Our audit of the financial statements was designed to obtain reasonable,
rather than absolute, assurance as to whether the financial statements
are free of material misstatement.
A detailed description of our audit results has been included on page 6.
Status of Audit
Audit Risks
As of the date of this final report, we have substantially completed our
audit of the December 31, 2014 financial statements pending the
completion of the items highlighted below. These items will need to be
completed prior to issuance of our audit report on the financial
statements:

Receipt of the signed management representation letter

Subsequent events review through to financial statement approval
date

Approval of financial statements by the Board
In accordance with our audit plan, our procedures focused on the
following areas that we identified as containing risks of material
misstatements:


Revenue recognition
Risk of management override
We have summarized the results of our audit procedures for each of these
risk areas, beginning on page 6 of this report.
Audit Strategy
Changes in auditing standards now require auditors to document all
significant manual and computer systems. We focus much of our review
of transaction streams and balances using combination of substantive
procedures, such as analysis of data and obtaining direct evidence as to
the validity of the items.
Refer to Appendix B for a high level overview of our audit strategy.
Internal Control
Over Financial
Reporting
We did not identify any significant deficiencies in internal controls over
financial reporting during the year ended December 31, 2014 that we
considered to be material weaknesses.
Fraud and Illegal
Activities
We developed procedures within our audit plan as recommended by CAS
240 – The Auditor’s Responsibilities Relating to Fraud in an Audit of
Financial Statements.
Based on these procedures, we have not
encountered any illegal activities or fraudulent events with respect to
FVRL.
Significant
Events
As of the date of this letter, we have not identified any significant events
which we believe should be brought to your attention.
Significant
Accounting
Policies
FVRL’s significant accounting policies are listed in the financial
statements. We believe management’s selection of accounting policies is
appropriate under Canadian public sector accounting standards.
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Estimates
Accounting estimates are an integral part of the financial statements and
are based on management’s current judgments. These judgments are
based on knowledge and experience about past and current events,
assumptions about future events and interpretations of the financial
reporting standards.
Our comments on the significant estimates included in the financial
statements are included on page 7 of this report.
Materiality, Audit
Adjustments and
Unadjusted
Differences
Our final materiality was $500,000 for the audit.
A summary of the year-end audit adjustments approved by management
are included in Appendix D.
The effect on annual surplus for unadjusted misstatements for the year
ended December 31, 2014 totaled $36,027 A summary of these items is
included in Appendix E.
Disclosures
There are no material omissions with respect to the disclosures in the
financial statements for the year ended December 31, 2014 that we have
noted.
Independence
We have developed appropriate safeguards and procedures to mitigate
threats to our independence. Canadian generally accepted auditing
standards (GAAS) no longer require that we communicate formally to you
in regard to independence matters; however, we consider it to be a good
practice. As such, we would report to you regarding all relationships
between FVRL and our firm that, in our professional judgment, may
reasonably be thought to bear on our independence. We confirm that we
are independent as of the date of this letter.
Representation
Letter
A signed copy of the management representation letter is included in
Appendix G.
Conclusion
We intend to issue an unmodified audit report on the financial statements
for the year ended December 31, 2014 once the outstanding items
referred to above are satisfactorily resolved and the financial statements
are approved the Board.
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AUDIT FINDINGS
Based on our knowledge of FVRL’s operations, our past experience in this area, and knowledge
gained from management and the Board, we identified the following significant risks; those risks
of material misstatement that, in our judgment, require special audit consideration.
Significant risks arise mainly because of the complexity of the accounting rules, the extent of
estimation and judgment involved in the valuation of these financial statement areas, and the
existence of new accounting pronouncements that affect them.
As part of our ongoing communications with you, we are required to have a discussion on our
views about significant qualitative aspects of FVRL’s accounting practices, including accounting
policies, accounting estimates and financial statement disclosures.
ACCOUNTING AND AUDIT MATTERS
Revenue Recognition
Risk
Accounting standards have
changed in this area and are
complex and open to
interpretation. There is a
risk that revenue may be
incorrectly deferred into
future periods.
Approach
Performed substantive
testing on municipal
assessment revenue and
branch revenue by tracing
to funds received.
Results
All audit testing in this area
was executed as planned.
Reviewed minutes to
determine whether any
contributions received
should be deferred and
whether any grants had not
yet been recorded.
Management Override of Controls
Risk
Approach
Results
Management is in a unique
position to perpetrate fraud
because of management’s
ability to directly or
indirectly manipulate
accounting records, and
prepare fraudulent financial
statements by overriding
controls that otherwise
appear to be operating
effectively.
We tested the
appropriateness of journal
entries recorded in the
general ledger and other
adjustments made in the
preparation of the financial
statements.
All audit testing in this area
was executed as planned and
no errors were noted.
This risk is required for all
audits pursuant to Canadian
audit standards.
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SIGNIFICANT ACCOUNTING ESTIMATES
Management is responsible for determining FVRL’s significant accounting policies. The choice
between accounting policy alternatives can have a significant effect on the financial position and
results of the organization. The application of those policies often involves significant estimates
and judgments by management. Based on the audit work that we have performed, it is our
opinion that the estimates in the financial statements are reasonable and the disclosures relating
to accounting estimates are in accordance with Canadian public sector accounting standards.
MANAGEMENT REPRESENTATIONS
During the course of our audit, management made certain representations to us. These
representations were verbal or written and therefore explicit, or they were implied through the
financial statements. Management provided representations in response to specific queries from
us, as well as unsolicited representations. Such representations were part of the evidence
gathered by us to be able to draw reasonable conclusions on which to base our audit opinion.
These representations were documented in our audit working papers through memoranda of
discussions with management, as well as by written representations received from management.
A copy of the representation letter we have requested from management is included in Appendix
G of this report.
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FRAUD DISCUSSION
Canadian auditing standards require us to discuss fraud risk with the Committee on an annual
basis. We have prepared the following comments:
Questions to the
Committee
Required Discussion
BDO Response
Details of existing
oversight processes
with regards to fraud.
Throughout our planning process and
during fieldwork, we have developed an
understanding of your oversight
processes including:
Knowledge of actual,
suspected or alleged
fraud.

Discussions at Board meetings and
our attendance at those meetings;

Consideration of tone at the top.
Are there any new
processes or changes
in existing processes
relating to fraud
since the date of our
previous discussions,
that we should be
aware of?
Currently, we are not aware of any
actual, suspected or alleged fraud.
Are you aware of any
instances of actual,
suspected or alleged
fraud affecting the
Society?
AUDITOR’S RESPONSIBILITIES FOR DETECTING FRAUD
We are responsible for planning and performing the audit to obtain reasonable assurance that the
financial statements are free of material misstatements, whether caused by error or fraud.
The likelihood of not detecting a material misstatement resulting from fraud is higher than the
likelihood of not detecting a material misstatement resulting from error, because fraud may
involve collusion as well as sophisticated and carefully organized schedules designed to conceal
it.
During our audit, we performed the following procedures in order to fulfill our responsibilities:

Inquire of management, Board, and others related to any knowledge of fraud, suspected
fraud or alleged fraud;

Perform disaggregated analytical procedures and
relationships indentified in the planning of our audit;

Incorporate an element of unpredictability in the selection of the nature, timing and extent
of our audit procedures; and

Perform additional required procedures to address the risk of management’s override of
controls including;
consider
unusual
or
unexpected
o
Testing internal controls designed to prevent and detect fraud;
o
Examine a sample of journal entries and other adjustments for evidence of the
possibility of material misstatement due to fraud;
o
Review accounting estimates for biases that could result in material misstatements
due to fraud, including a retrospective review of significant prior years’ estimates;
and
o
Evaluate FVRL’s rationale for significant unusual transactions.
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INTERNAL CONTROL MATTERS
During the course of our audit, we performed the following procedures with respect to FVRL’s
internal control environment:

Documented operating systems to assess the design and implementation of control activities
that were relevant to the audit.

Discussed and considered potential audit risks.
The results of these procedures were considered in determining the extent and nature of
substantive audit testing required.
We are required to report to you in writing, significant deficiencies in internal control that we
have identified during the audit. A significant deficiency is defined as a deficiency or
combination of deficiencies in internal control that, in the auditor's professional judgment, is of
sufficient importance to merit the attention of those charged with governance.
As the purpose of the audit is for us to express an opinion on FVRL’s financial statements, our
audit cannot be expected to disclose all matters that may be of interest to you and, as a result,
the matters reported may not be exclusive. As part of our work, we considered internal control
relevant to the preparation of the financial statements such that we were able to design
appropriate audit procedures. This work was not for the purpose of expressing an opinion on the
effectiveness of internal control.
DEFICIENCIES IN INTERNAL CONTROL
Deficiency
None noted.
Issue and Impact
None noted.
While there are no significant deficiencies in internal controls noted, we do take the opportunity
to comment on non-critical matters in our management letter that is included in Appendix F.
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APPENDIX A - Other Required Communication
Required Communication
1. Our responsibilities under Canadian
Auditing Standards (CAS)
Audit Results
Presentation

Auditor Comments
Included in our engagement
letter dated December 9,
2013.
See Appendix B.
Included on page 8 of this
final report.
None.
See Page 7.
See Appendix D.
See Appendix E.
None.
There were no disagreements
with management.
No external experts were
consulted during this
engagement.
None.
2. Our audit strategy
3. Fraud risk factors


4.
5.
6.
7.
8.
9.
Going concern matters
Significant estimates or judgments
Audit adjustments
Unadjusted differences
Omitted disclosures
Disagreements with management






10. Consultations with other accountants or
experts

11. Major issues discussed with management
in regards to retention
12. Significant difficulties encountered
during the audit

13. Significant deficiencies in internal
control
14. Material written communication between
BDO and management
15. Any relationships which may affect our
independence
16. Any illegal acts identified during the
audit
17. Any fraud or possible fraudulent acts
identified during the audit
18. Significant transactions with related
parties not consistent with ordinary
business operations
19. Non-compliance with laws or regulations
identified during the audit

20. Limitations of scope over our audit, if
any
21. Written representations made by
management
22. Any modifications to our opinion, if
required

No legal or regulatory noncompliance matters were
noted as part of our audit.
None.

See Appendix G.

Please see our draft auditor’s
report included in Appendix
C.







No significant difficulties
were encountered during our
audit.
No significant deficiencies
were noted.
No material written
communications were noted.
No independence issues
noted.
No illegal activities identified
through the audit process.
No fraud identified through
the audit process.
None noted.
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APPENDIX B – Audit Strategy
Our overall audit strategy involves extensive partner and manager involvement in all aspects of
the planning and execution of the audit and is based on our overall understanding of FVRL.
We will perform a risk-based audit which allows us to focus our audit effort on higher risk areas
and other areas of concern for management and The Board.
To assess risk accurately, we need
to gain a detailed understanding of
FVRL’s
operations
and
the
environment it operates in. This
allows us to identify, assess and
respond to the risks of material
misstatement.
To identify, assess and respond to
risk, we obtain an understanding of
the system of internal control in
place in order to consider the
adequacy of these controls as a
basis for the preparation of the
financial statements. We then
determine
whether
adequate
accounting records have been
maintained and assess the adequacy
of these controls and records as a
basis upon which to design and
undertake our audit testing.
Based on our risk assessment, we design an appropriate audit strategy to obtain sufficient
assurance to enable us to report on the financial statements.
We choose audit procedures that we believe are the most effective and efficient to reduce audit
risk to an acceptably low level. The procedures are a combination of testing the operating
effectiveness of internal controls, substantive analytical procedures and other tests of detailed
transactions.
Having planned our audit, we will perform audit procedures maintaining an appropriate degree of
professional skepticism, in order to collect evidence to support our audit opinion.
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APPENDIX C – Draft Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT
To the Library Board
Fraser Valley Regional Library District
We have audited the accompanying financial statements of Fraser Valley Regional Library
District, which comprise the Statement of Financial Position as at December 31, 2014 and the
Statement of Operations, Changes in Net Financial Assets and Cash Flows for the year then
ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with Canadian public sector accounting standards, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted the audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial
position of the Fraser Valley Regional Library District for the year ended December 31, 2014 and
its results of its operations, changes in net financial assets, and cash flows for the year then
ended in accordance with Canadian public sector accounting standards.
Vancouver, British Columbia
Date
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APPENDIX D – Audit Adjustments
SUMMARY OF AUDIT ADJUSTMENTS
The following is a summary of year end audit adjustments made during the course of our audit
engagement. All adjustments were approved by management before the issuance of our draft
independent auditor’s report.
Increase (Decrease)
Accumulated
Assets
To adjust for prepaid expense
recorded by not paid at year-end.
$
To adjust for GST portion of 2015
expense that was not adjusted for.
(51,035)
Liabilities
$
(8,382)
(51,035)
$
-
$
(7,685)
$
59,417
-
(8,382)
To adjust for 2012 unconditional grant
that was recorded into deferred
revenue.
Total Adjusted Differences
Annual
Surplus
Surplus
$
(67,102)
7,685
$
-
$
7,685
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APPENDIX E – Unadjusted Differences
SUMMARY OF UNADJUSTED DIFFERENCES
The following is a summary of uncorrected misstatements noted during the course of our audit
engagement:
Increase (Decrease)
Accumulated
Assets
To adjust for over-accrual in
superannuation expense in F2013.
$
-
$
Annual
Surplus
Surplus
Liabilities
-
$
(44,973)
$
(44,973)
Total
-
-
(44,973)
(44,973)
Effect of Prior Year’s Reversing Errors
-
-
81,000
81,000
Total Unadjusted Differences
$
-
$
-
$
36,027
$
36,027
SUMMARY OF DISCLOSURE OMISSIONS
The following is a summary of disclosures that have not been made within the financial
statements:
Disclosure Omission
None to note
Management’s Response
None to note
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APPENDIX F – Management Letter
Direct Line: 604-443-4716
E-mail: [email protected]
June 18, 2015
Scott Hargrove
34589 Delair Road
Dear Mr. Hargrove:
As your external auditors, we are engaged to provide an audit opinion on your year end financial
statements. An external audit requires testing of transactions and balances and review of those
internal control systems upon which we may place reliance. A positive opinion on the financial
statements does not necessarily mean that your internal control systems are all operating
effectively. This is because we review only those internal control systems where we feel that
failure in those systems could result in a material error on the financial statements. With those
systems that we do review, our focus is on the assertions necessary to meet our financial
statement audit objectives.
Our review of systems, transactions and balances as well as discussions with staff at various levels
gives us a unique insight into your operations. While conducting this work we make note of items
that come to our attention where we feel that improvement could be made or alternatives could
be considered. We are fortunate in that we work with a great number of clients and observe a
wide variety of processes. We see firsthand any procedures that are emerging as best practices.
As matters come to our attention, we make note of these for subsequent follow-up. For minor
matters we discuss directly with the staff involved. More important matters are brought forward
in this letter (known as a “management letter”).
It is worth noting that we have management letter comments for virtually all audits of all clients.
The existence of points does not mean that there are significant problems with your systems or
staff. They are just recommendations to make good systems better.
Status of Prior Year Recommendations
1. Review of Monthly Financial Statements and Other Reports
We had previously noted that monthly financial statements and variance reports were
prepared and reviewed before posting reports internally on the intranet. However, there
was no evidence (e.g. initials) that the review has occurred. It is not possible, in
retrospect, to guarantee that every reconciliation has been reviewed. It was also noted
that due to the system conversion, monthly reports generated after the implementation
were not sufficiently detailed or regularly completed in order to perform proper variance
analysis.
We observed that while bank reconciliations are prepared, they are not always reviewed
on a monthly basis. This could result in unaccounted differences not being investigated or
resolved.
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It was noted that journal entries were not reviewed in a timely manner. Entries are
posted by the preparer and then later provided to the Finance Manager for review. As
there is lack of sign-off as approval, inappropriate entries could be created and posted
without Finance Manager's review.
As part of payroll department’s processes, exceptions reports are run for internal review,
and discrepancies are investigated. However, no management review is done on the
exception reports. With no management review, the exception reports may not be
properly investigated to catch payroll errors.
To improve the documentation trail, we recommend that all reviews be evidenced by
initialing the item reviewed, either physically on printed reports, or electronically using
review stamps. The reviews should be done on a timely basis; for most of the reports,
this would mean monthly. Where follow-up occurs on unusual variances, this should be
documented in the respective package or report.
2014 update: We understand that various management personnel changes occurred in the
year, and therefore monthly reviews were not maintained. However, per discussion with
management, all of the above stated items are currently being reviewed in a timely
manner by either the Director of Finance or the Manager of Finance and Information
Systems with the review documented by signature and date thereof on the related
documents. The only exception is that there are currently no exception reports in place
for the new payroll systems, however, the compensating control is that the Manager of
Finance and Information Systems Services reviews the details of the payroll run for
overall reasonableness and accuracy doing “spot checks” to detailed information and
then signs and dates the Payroll Log Book to document the review
2. Approval of System Going Live
It was noted in prior year that even though FVRL has good controls over the system
implementation process, there was no formal evidence of management signoff or
approval for the system to move from testing to the production environment. This may
lead to unauthorized system changes to be introduced to the Regional Library’s
information system.
We recommended that for any future implementation of system changes, each stage of
the system development be signed off by management to ensure that management
understood the implications of the new system designs.
2014 update: We understand that although no changes occurred in the NAV system in the
fiscal 2014 year, different modules of the software have planned updates, so we present
this recommendation as a reminder for future module upgrades.
3. Receipt of Donations
It was noted in prior year that donations received by front desk are forwarded to the
Executive Assistant, who prepares the official donation receipts or thank you letters if
necessary, and then forwards the cheques to the Finance department. Donations received
at the branch level are tracked using the generic donor relations form, which does not
have a unique identification number or a date field. Without a system to ensure proper
tracking of donations received, cash could be misappropriated. We recommended that
the donation form include a date deposited filed, so that Finance can verify that the
donation was deposited in the bank and that the amount agrees.
2014 update: We are pleased to note that our prior year recommendation was
implemented.
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Current Year Observations
1. Foreign Exchange Setting in NAV
Observation
We noted that foreign exchange in NAV can be automatically converted, however the
system is set at $1 CDN to $1 USD, and the system is not updated regularly. Therefore,
purchases in USD are not recorded at an exchanged value. Although foreign exchange
differences are immaterial, this provides an inaccurate picture of foreign exchange gain
or loss.
Recommendation
We recommend that the foreign exchange rate is updated on a monthly basis within the
NAV system.
Management’s Comments
Currently, the impact of foreign exchange is manually entered into the system at the
point the invoice is paid (i.e. each cheque run).
Review of the option and
implementation thereof, for NAV to automatically determine the impact based on a
manual input of the exchange rate on a monthly or more frequent basis is under
consideration.
2. Review of Monthly Budgets and Project Reports with Managers
Observation
During discussion with management, it was noted that mangers had no overviews of their
monthly budgets, as reports generated after the implementation of the system
conversion were still not sufficiently detailed or regularly completed in order to perform
proper variance analysis discussions with managers. In addition, grant project reports,
which showcase variances between budget and actual, were also not completed in a
timely manner. Therefore, managers are unaware of where they are with the budget, and
could potentially lead to overspending, or whether the grant money is being spent
appropriately. As a result, the lack of communication with managers may be a cause for
the deficit in fiscal 2014.
Recommendation
We recommend that monthly budgets and project reports should be reviewed with
managers on a monthly basis. Explanations should be documented regarding the standing
of the budget and any large variances in the budget to ensure appropriate spending.
Detailed monthly Budget: Actual Variance and Project Reports are now provided (via the
Intranet) monthly to all Managers (starting for the month of May 2015), in the second
week of each month for the prior month. All Managers received training on these new
Reports and will be expected to sign and submit an Accountability Statement
documenting that they have reviewed these Reports for their department and that to the
best of their knowledge the transaction details are accurate and complete and it is
expected that the net expenditures will be within the approved budget.
The
requirement to sign and submit the Accountability Statement will likely be effective
starting in September as these Reports and the expectation that the Manager must
manage within the net budget are new to many of the Mangers.
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3. Supporting Documentation for Payments
Observation
During our audit work, it was noted that receipt for a monthly event was not included as
support for the cheque requisition, and approval of cheque requisition was not dated.
Due to similar nature of event in the month before and statistics recorded for the outdoor
event, there was evidence that the expense had occurred. However, the cheque
requisition approval by managers without supporting receipts and proper date
documentation creates opportunity for inappropriate expenses to be paid.
Recommendation
We recommend that supporting documentation and receipts are attached to cheque
requisitions before they are approved by managers, and cheque requisitions are dated on
a consistent basis.
Management agrees with our recommendation.
4. GST on Taxable Sales
Observation
It was identified that sale of used books exceeded $50,000 for the 2014 year. As the sale
of used books were books that were not donated, the sales are taxable, and therefore
FVRL is required to register for GST and remit tax on any taxable supplies (ie. sales of
used books) made after they no longer qualified as a small supplier.
Recommendation
As FVRL no longer qualified as a small supplier, FVRL should determine which quarter
they exceeded the $50,000 small supplier threshold by review of previous year’s sales in
2014, and register for GST collection of tax. We recommend communication with our
Commodity Tax Partner, Darren Taylor, to assist with the determining the date of GST
registration.
Management agrees with our recommendation.
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This communication is prepared solely for the information of management and those charged
with governance and is not intended for any other purposes. We accept no responsibility to a
third party who uses this communication.
We would like to express our appreciation for the co-operation and assistance which we received
from Nancy Gomerich and the rest of your staff during the course of the audit.
We shall be pleased to discuss with you further any matters mentioned in this letter at your
convenience.
Yours truly,
Bill Cox, CPA, FCA
Partner through a corporation
BDO Canada LLP
BC/lcz
cc: Board
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APPENDIX G - Representation Letter
June 24, 2015
BDO Canada LLP
600 Cathedral Place
925 West Georgia Street
Vancouver, BC V6C 3L2
Dear Sirs/Mesdames:
This representation letter is provided in connection with your audit of the Statement of Financial
Position as at December 31, 2014, and the Statement of Operations and Changes in Accumulated
Surplus, Change in Net Financial Assets and Cash Flows for the year then ended December 31,
2014 of Fraser Valley Regional Library (“FVRL”) for the purpose of expressing an opinion as to
whether the financial statements present fairly, in all material respects, the financial position as
at December 31, 2014 and the results of operations, changes in net financial assets,
remeasurement gains and losses, and cash flows for the year ended December 31, 2014 of FVRL in
accordance with Canadian public sector accounting standards.
We confirm that:
Financial Statements
1.
We have fulfilled our responsibilities, as set out in the terms of the audit engagement
dated December 9, 2013, for the preparation of the financial statements in
accordance with Canadian public sector accounting standards; in particular the
financial statements are fairly presented in accordance therewith.
2.
Significant assumptions used by us in making accounting estimates, including those
measured at fair value are reasonable.
3.
Related party relationships and transactions have been appropriately accounted for
and disclosed in accordance with the requirements of Canadian public sector
accounting standards.
4.
All events subsequent to the date of the financial statements and for which Canadian
public sector accounting standards require adjustment or disclosure have been
adjusted or disclosed.
5.
The financial statements of the organization use appropriate accounting policies that
have been properly disclosed and consistently applied.
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Information Provided
6.
We have provided you with:
access to all information of which we are aware that is relevant to the
preparation of the financial statements, such as records, documentation and
other matters;
additional information that you have requested from us for the purpose of the
audits; and
unrestricted access to persons within the entity from whom you determined it
necessary to obtain audit evidence.
7.
We are responsible for the design, implementation and maintenance of internal
controls to prevent, detect and correct fraud and error, and have communicated to
you all deficiencies in internal control of which we are aware.
8.
The minute books of the organization are a complete record of all meetings and
resolutions of Board of Directors throughout the year and to the present date.
9.
We have disclosed to you all significant matters contained in the minutes of all
meetings and resolutions of Board of Directors throughout the year and to the present
date.
10.
All transactions have been recorded in the accounting records and are reflected in
the financial statements.
11.
We have disclosed to you all known instances of non-compliance or suspected noncompliance with laws and regulations whose effects should be considered when
preparing financial statements.
12.
We have identified to you:
guarantees;
indemnifications against damages, liabilities, costs, charges or expenses
suffered or incurred by officers or directors as a result of their service,
and/or by any subsidiaries; and
non-monetary transactions and transactions for no consideration.
13.
We have disclosed to you the identity of the entity's related parties and the related
party relationships and transactions of which we are aware.
14.
We are aware of the environmental laws and regulations that impact our organization
and we are in compliance. There are no known environmental liabilities or
contingencies that have not been accrued for or disclosed in the financial statements.
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Fraud and Error
15.
We have disclosed to you the results of our assessment of the risk that the financial
statements may be materially misstated as a result of fraud, and have determined
such risk to be low.
16.
We have disclosed to you all information in relation to fraud or suspected fraud that
we are aware of and that affects the entity and involves:
management;
employees who have significant roles in internal control; or
others where the fraud could have a material effect on the financial
statements.
17.
We have disclosed to you all information in relation to allegations of fraud, or
suspected fraud, affecting the entity’s financial statements communicated by
employees, former employees, analysts, regulators, or others.
18.
The effects of unadjusted misstatements are immaterial, both individually and in the
aggregate, to the financial statements taken as a whole.
Existence, Completeness and Valuation of Specific Financial Statement Balances
19.
All assets, wherever located, to which the organization had satisfactory title at the
year end, have been fairly stated and recorded in the financial statements. There are
no liens or encumbrances on the organization's assets.
20.
All financial instruments have been appropriately recognized and measured in
accordance with Canadian public sector accounting standards. Significant assumptions
used in arriving at fair value of financial instruments are reasonable and appropriate
in the circumstances.
21.
Where the value of any asset has been impaired, an appropriate provision has been
made in the financial statements or has otherwise been disclosed to you.
General Representations
22.
The nature of all material uncertainties have been appropriately measured and
disclosed in the financial statements, including all estimates where it is reasonably
possible that the estimate will change in the near term and the effect of the change
could be material to the financial statements.
23.
We have provided you with significant assumptions that in our opinion are reasonable
and appropriately reflect our intent and ability to carry out specific courses of action
on behalf of the entity when relevant to the use of fair value measurements or
disclosures in the financial statements.
24.
There were no direct contingencies or provisions (including those associated with
guarantees or indemnification provisions), unusual contractual obligations nor any
substantial commitments, whether oral or written, other than in the ordinary course
of business, which would materially affect the financial statements or financial
position of the organization, except as disclosed in the financial statements.
25.
We have informed you of all outstanding and possible claims, whether or not they
have been discussed with legal counsel. Since there are no outstanding or possible
claims, no disclosure is required in the financial statements.
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26.
We confirm that there are no derivatives or off-balance sheet financial instruments
held at year end that have not been properly recorded or disclosed in the financial
statements.
27.
We have disclosed to you all significant customers and/or suppliers of the
organization who individually represent a significant volume of business with the
organization. We are of the opinion that the volume of business (sales, services,
purchases, borrowing and lending) done by the organization with any one party is not
of sufficient magnitude that discontinuance would have a material negative effect on
the ongoing operations of the organization.
28.
There have been no plans or intentions that may materially affect the carrying value
or classification of assets and liabilities.
29.
No significant matters, other than those disclosed in the financial statements, have
arisen that would require a restatement of the comparative financial statements.
Yours truly,
_________________________________
Signature
_________________________________
Position
_________________________________
Signature
_________________________________
Position
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APPENDIX H – Changes in Accounting Standards
with Potential to Affect FVRL
The following summarizes the status of new standards and the changes to existing standards as
of the fall of 2014. The Appendix also reviews Exposure Drafts, Consultation Papers, Invitations
to Comment, Issue Papers and Statements of Principles that provide information on the future
direction of CPA Public Sector Accounting Handbook.
NEW STANDARDS – PUBLIC SECTOR ACCOUNTING STANDARD (PSAS)
Section PS 3260 – Liability for Contaminated Sites
This new Section establishes recognition, measurement and disclosure standards for liabilities
relating to contaminated sites of governments and those organizations applying the CPA Public
Sector Accounting Handbook.
This section applies to government assets no longer in productive use and non-government assets
for which the government is responsible. It does not apply to tangible capital assets (however,
the PSAB GAAP hierarchy would require consideration of Asset Retirement Obligations in regard to
tangible capital assets).
The main features of the new Section are as follows:

A liability should be recognized when contamination exceeds an accepted environmental
standard and the entity is directly responsible, or accepts responsibility for, the damage;

A liability should be measured at the entity's best estimate of the costs directly
attributable to remediation of the contamination; and

Outstanding site assessments do not negate the requirement to assess whether a liability
exists.
This Section is effective for fiscal periods beginning on or after April 1, 2014. Earlier adoption is
encouraged. For entities with a December year end this means that 2015 is the first year that the
standard must be followed. An entity should begin to consider immediately how it will apply with
this standard. Organizations are to apply PS 2120 if adoption of PS3260 results in a change in
accounting policy. This means that there is a choice about whether to apply prospectively or
retrospectively.
NEW STANDARDS - PSAS (NOT YET EFFECTIVE)
Section PS 1201, Financial Statement Presentation
This Section revises and replaces FINANCIAL STATEMENT PRESENTATION, Section PS 1200. The
following changes have been made to the Section:

Remeasurement gains and losses are reported in a new statement;

Other comprehensive income that can arise when a government includes results of
government business enterprises and government business partnerships in its summary
financial statements is reported in the statement of remeasurement gains and losses; and

The accumulated surplus or deficit is presented as the total of the accumulated operating
surplus or deficit and the accumulated remeasurement gains and losses.
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The new requirements are to be applied at the same time as PS 3450 - Financial Instruments and
PS 2601 - Foreign Currency Translation and for government organizations are effective for fiscal
years beginning on or after April 1, 2012. In the case of governments, the new requirements are
effective for fiscal years beginning on or after April 1, 2016. Earlier adoption is permitted.
Section PS 2601, Foreign Currency Translation
This Section revises and replaces PS 2600, FOREIGN CURRENCY TRANSLATION. The following
changes have been made to the Section:

The definition of currency risk is amended to conform to the definition in PS 3450 FINANCIAL INSTRUMENTS;

The exception to the measurement of items on initial recognition that applies when
synthetic instrument accounting is used is removed;

At each financial statement date subsequent to initial recognition, non-monetary items
denominated in a foreign currency that are included in the fair value category in
accordance with Section PS 3450 are adjusted to reflect the exchange rate at that date;

The deferral and amortization of foreign exchange gains and losses relating to long-term
foreign currency denominated monetary items is discontinued;

Until the period of settlement, exchange gains and losses are recognized in the statement
of remeasurement gains and losses rather than the statement of operations; and

Hedge accounting and the presentation of items as synthetic instruments are removed.
The new requirements are to be applied at the same time as PS 3450, FINANCIAL INSTRUMENTS
and PS 1201, FINANCIAL STATEMENT PRESENTATION and for government organizations are
effective for fiscal years beginning on or after April 1, 2012. In the case of governments, the new
requirements are effective for fiscal years beginning on or after April 1, 2016. Earlier adoption is
permitted.
Section PS 3041, Portfolio Investments
This Section revises and replaces Section PS 3040, PORTFOLIO INVESTMENTS. The following
changes have been made:

The scope is expanded to include interests in pooled investment funds;

Definitions are conformed to those in FINANCIAL INSTRUMENTS, Section PS 3450;

The requirement to apply the cost method is removed, as the recognition and
measurement requirements within Section PS 3450 apply, other than to the initial
recognition of an investment with significant concessionary terms; and

Other terms and requirements are conformed to Section PS 3450, including use of the
effective interest method.
This section is to be applied at the same time as PS 3450, FINANCIAL INSTRUMENTS, PS 2601
FOREIGN CURRENCY TRANSLATION and PS 1201, FINANCIAL STATEMENT PRESENTATION and for
government organizations are effective for fiscal years beginning on or after April 1, 2012. In the
case of governments, the new requirements are effective for fiscal years beginning on or after
April 1, 2016. Earlier adoption is permitted.
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Section PS 3450 – Financial Instruments
PSAB approved amendments to Section PS 3450, Financial Instruments, to align the reporting of
income on externally restricted assets that are financial instruments with the requirements in
Section PS 3100, Restricted Assets and Revenues. The amendments clarify the application of
Section PS 3100 (paragraphs PS 3100.11 - .12) when accounting for:

A change in the fair value of a financial asset in the fair value category that is
externally restricted;

Income attributable to a financial instrument that is externally restricted; or

A gain or loss associated with a financial instrument that is externally restricted.
These amendments recognize the importance of the nature of restrictions and the terms of
contractual agreements in reporting such transactions and events when externally restricted
assets and income are involved.
This new Section establishes standards for recognizing and measuring financial assets, financial
liabilities and non-financial derivatives.
The main features of the new Section are:

Items within the scope of the Section are assigned to one of two measurement
categories: fair value, or cost or amortized cost;

Almost all derivatives, including embedded derivatives that are not closely related to the
host contract, are measured at fair value;

Fair value measurement also applies to portfolio investments in equity instruments that
are quoted in an active market;

Other financial assets and financial liabilities are generally measured at cost or amortized
cost;

Until an item is derecognized, gains and losses arising due to fair value re-measurement
are reported in the statement of re-measurement gains and losses;

Budget-to-actual comparisons are not required within the statement of re-measurement
gains and losses;

When the reporting entity defines and implements a risk management or investment
strategy to manage and evaluate the performance of a group of financial assets, financial
liabilities or both on a fair value basis, the entity may elect to include these items in the
fair value category;

New requirements clarify when financial liabilities are derecognized;

The offsetting of a financial liability and a financial asset is prohibited in absence of a
legally enforceable right to set off the recognized amounts and an intention to settle on a
net basis, or to realize the asset and settle the liability simultaneously; and

New disclosure requirements of items reported on and the nature and extent of risks
arising from financial instruments.
The new requirements are to be applied at the same time as PS 2601, FOREIGN CURRENCY
TRANSLATION and PS 1201, FINANCIAL STATEMENT PRESENTATION and for government
organizations are effective for fiscal years beginning on or after April 1, 2012. In the case of
governments, the new requirements are effective for fiscal years beginning on or after April 1,
2016. Earlier adoption is permitted. This Standard should be adopted with prospective
application except for an accounting policy related to embedded derivatives within contracts,
which can be applied retroactively or prospectively.
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Note also the exposure draft “Financial Instruments: Transition” (discussed below) that proposed
clarification of some detailed aspects of the Financial Instruments standard.
EXPOSURE DRAFTS – PSAS
Amendments to the Introduction (Closed for Comment)
PSAB proposes to amend the introduction to Public Sector Accounting Standards to clarify the
applicability of the CPA PSA Handbook for various public sector entities.
Related Party transactions (Closed for Comment)
Exposure draft issued by the PSAB to propose the issue of two new sections, RELATED PARTY
DISCLOSURES and INTER-ENTITY TRANSACTIONS. The main features of the exposure draft are as
follows:
RELATED PARTY DISCLOSURES

A related party exists when one party has the ability to exercise control or shared control
over the other. Two or more parties are related when they are subject to common
control or shared control. Related parties also include individuals that are members of
key management personnel and close family members.

Disclosure of key management personnel compensation arrangements, expense
allowances and other similar payments routinely paid in exchange for services rendered is
not required.

Two entities that have a member of key management personnel in common may be
related depending upon that individual’s ability to affect the policies of both entities in
their mutual dealings.

Disclosure is only required when transactions and events between related parties have or
could have a material financial effect on the financial statements.

Determining which related party transactions to disclosure is a matter of judgment based
on the assessment of certain factors
INTER-ENTITY TRANSACTIONS

Inter-entity transactions involving the transfer of assets or liabilities should be recognized
by both a provider and a recipient at carrying amount, exchange amount or fair value
depending on the particular circumstances of each case.

Inter-entity transactions in the normal course of operations or under a policy of cost
allocation and recovery should be recognized on a gross basis at the exchange amount.

A recipient may recognize unallocated costs as a revenue and expense at carrying
amount, fair value or another amount based on existing policy, depending on the
particular circumstances of each case.

Information about inter-entity transactions would be disclosed in accordance with the
proposed new Section on related party disclosures.
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Restructurings (Closed for Comment)
Exposure draft issued by the PSAB to propose the issue of a new section, RESTRUCTURING
TRANSACTIONS. The main features of the exposure draft are as follows:

A restructuring transaction is defined separately from an acquisition. The key distinction
between the two is the absence of an exchange of consideration in a restructuring
transaction.

A restructuring transaction is defined as a transfer of an integrated set of assets and/or
liabilities, together with related program or operating responsibilities, that does not
involve an exchange of consideration.

Individual assets and liabilities transferred in a restructuring transaction are derecognized
by the transferor at their carrying amount and recognized by the recipient at their
carrying amount with applicable adjustments.

The increase in net assets or net liabilities resulting from recognition and derecognition
of individual assets and liabilities received from all transferors, and transferred to all
recipients in a restructuring transaction, is recognized as revenue or as an expense.

Restructuring-related costs are recognized as expenses when incurred.

Individual assets and liabilities received in a restructuring transaction are initially
classified based on the accounting policies and circumstances of the recipient at the
restructuring date.

The financial position and results of operations prior to the restructuring date are not
restated.

Disclosure of information about the transferred assets, liabilities and related operations
prior to the restructuring date by the recipient is encouraged but not required.
Assets, Contingent Assets and contractual rights (Closed for Comment)
Exposure draft issued by the PSAB to propose the issue of three new sections, ASSETS,
CONTINGENT ASSETS and CONTRACTUAL RIGHTS. The main features of the exposure draft are as
follows:
ASSETS

Additional guidance on the definition of assets is provided.

Disclosure of types of assets that are not recognized is required.
CONTINGENT ASSETS

Contingent assets are defined.

Disclosure of contingent assets is required when the occurrence of the confirming future
event is likely.
CONTRACTUAL RIGHTS

Contractual rights are defined.

Disclosure of contractual rights is required.
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Financial Instruments: Transition (Closed for Comment)
Exposure draft that deals technical details related to the standard by providing two amendments
and a few clarifications.
The first amendment proposed definitively states that unless a contractual right or contractual
obligation underlies a receivable or a payable, the Financial Instruments standard does not apply.
There must be a contract for there to be a financial instrument.
The second amendment removes a correct, but redundant, paragraph that notes the Financial
Instrument Standard does not apply to a receivable under a lease.
Clarifications are made in areas related to transfer of collateral pursuant to a credit risk
management mechanism in a derivative contract, treatment of unamortized discounts or
premiums related to debt buy-backs, associated unamortized discount or premium on initial
adoption, and derivatives not recognized or recorded at fair value on initial adoption.
These detailed technical changes will likely have most impact to senior governments and it is not
expected that many local governments will be affected.
CONSULTATION PAPERS - PSAB
Characteristics of Public Sector Entities (Consultation Paper 1) (Closed for Comment)
The objective of this project is to review and amend, if necessary, the conceptual framework in
PS 1000, FINANCIAL STATEMENT CONCEPTS, and PS 1100, FINANCIAL STATEMENT OBJECTIVES with
respect to measurement of financial performance. This review could also affect PS 1201,
FINANCIAL STATEMENT PRESENTATION.
Measuring Financial Performance in Public Sector Financial Statements (Consultation Paper
2) (Closed for Comment)
The objective of this project is to review and amend, if necessary, the concepts underlying
financial performance in the existing public sector conceptual framework in FINANCIAL
STATEMENT CONCEPTS, Section PS 1000, and FINANCIAL STATEMENT OBJECTIVES, Section PS
1100. This review could also affect FINANCIAL STATEMENT PRESENTATION, Section PS 1201.
STATEMENTS OF PRINCIPLES - PSAB
Asset Retirement Obligations (Closed for Comment)
The PSAB proposes in this statement of principles a new section on retirement obligations
associated with tangible capital assets controlled by a public sector entity. The statement
includes retirement obligations associated with tangible capital assets resulting from legal,
constructive and equitable obligations which include post-retirement operation, maintenance and
monitoring. Retirement costs would increase the carrying amount of the related tangible capital
asset or a component thereof and would be expensed in a rational and systematic manner. The
subsequent remeasurement of the liability can result in either a change in the carrying amount of
the related tangible assets or a component thereof, or an expense, depending on the nature of
the remeasurement or whether the asset remains in productive use. Often the best method with
which to estimate the liability is a present value technique.
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Revenue (Closed for Comment)
PSAB proposes in this statement of principles to focus on two areas of revenue which are
exchange and unilateral (non-exchange) transactions with the presence of performance
obligations being the distinguishing feature. Performance obligations are enforceable promises to
provide goods or services. Revenue from an exchange transaction is recognized as the
performance obligation is satisfied whereas unilateral transactions are recognized when there is
the authority and past event that gives rise to a claim of economic recourses.
STATUS OF CURRENT PROJECTS – PSAB
Article I.
Active Projects
Standards for public sector entities
Expected Release Date
2014/2015
Q4
Q1
Q2
Asset Retirement Obligations
Exposure Draft
Assets
Handbook
Release
Concepts Underlying Financial Performance
Consultation
Paper
Fiscal Sustainability (Research project)
No Set Date
Impairment of Non-Financial Assets
Project on Hold
Not-for-Profit Organizations
No Set Date
PSA Handbook Terminology
Handbook
Release
Related Party Transactions
Handbook
Release
Restructurings
Handbook
Release
Revenue
Exposure Draft
NEW STANDARDS - AUDITING AND ASSURANCE STANDARDS BOARD (AASB)
CSRS 4460, Reports on Supplementary Matters Arising from an Audit or Review Engagement
This new Related Services Standard establishes the various types of information reported to a
third party (for example, regulators or funding bodies). It is common in this sector for funders,
regulators, or other governments to require specific reporting from the auditor or accountant
(known as “derivative reports”). This standard requires the auditor or accountant to expand the
level of work required in many cases. Many of the existing types of reports requested by funders,
regulators or other governments would not be able to be signed under these new proposals.
Instead, a more fully explained report using standard wording would be issued in its place. This
standard will be effective for reports dated on or after April 1, 2016.
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EXPOSURE DRAFTs – AASB
Reporting on Audited Financial Statements (Closed for Comment)
The AASB issued an exposure draft proposing a new International Standard on Auditing (ISA) 701,
Communicating Key Audit Matters in the Independent Auditor’s Report; and revising ISA 260,
Communication with Those Charged with Governance; ISA 570, Going Concern; ISA 700, Forming
an Opinion and Reporting on Financial Statements; ISA 705, Modifications to the Opinion in the
Independent Auditor’s Report; ISA 706, Emphasis of Matter Paragraphs and Other Matter
Paragraphs in the Independent Auditor’s Report; and conforming amendments to other ISAs,
issued by the International Auditing and Assurance Standards Board (IAASB). The result would be
new and revised respective Canadian Auditing Standards (CASs).
Financial Statement Disclosures (Closed for Comment)
The AASB issued an exposure draft related to the audit of financial statement disclosures to
obtain clarification of the existing requirements. They are proposing to revise ISA 200, Overall
Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with
International Standards on Auditing; ISA 210, Agreeing the Terms of Audit Engagements; ISA 240,
The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements; ISA 260,
Communication with Those Charged with Governance; ISA 300, Planning an Audit of Financial
Statements; ISA 315, Identifying and Assessing the Risks of Material Misstatement through
Understanding the Entity and Its Environment; ISA 320, Materiality in Planning and Performing
and Audit; ISA 330, The Auditor’s Responses to Assessed Risks; ISA 450, Evaluation of
Misstatements Identified during the Audit; and ISA 700, Forming an Opinion and Reporting on
Financial Statements.
Responsibilities Relating to Other Information (Closed for Comment)
The AASB issued an exposure draft to revise ISA 720, The Auditor’s Responsibilities Relating to
Other Information in Documents Containing or Accompanying Audited Financial Statements and
the Auditor’s Report Thereon, including:


the proposed expansion of the auditor’s responsibilities beyond that necessary for the
audit of the financial statements; and
definitions of “other information” and “annual report”, which scope in information made
available to the auditor after the date of the auditor’s report.
Standards for Assurance Engagements (Closed for Comment)
The AASB issued an exposure draft proposing to adopt International Standard on Assurance
Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information as Canadian Standards on Assurance Engagements (CSAE) 3000, Attestation
Engagements Other than Audits or Reviews of Historical Financial Information, and to issue a
new CSAE 3001, Direct Engagements. CSAE 3001 will be based on CSAE 3000 but would be revised,
as necessary, to reflect the differences between attestation engagements and direct
engagements.
PROJECTS - AASB
The AASB will continue to discuss issues on this topic, with a goal of issuing an exposure draft in
early 2015.
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COMMUNICATIONS WITH LAW FIRMS
The AASB is conducting a project to revise the “Joint Policy Statement Concerning
Communications with Law Firms Regarding Claims and Possible Claims in Connection with the
Preparation and Audit of Financial Statements” appended to CAS 501, Audit Evidence — Specific
Considerations for Selected Items, including:



whether the revised Joint Policy Statement should include illustrations of how the
evaluation of claims and possible claims under different financial reporting frameworks
could be described in the inquiry letter or whether such illustrations should be issued
separately as non-authoritative guidance;
whether any consequential amendments would be necessary to CAS 501; and
what the effective date of the revised Joint Policy Statement should be and whether
early implementation should be permitted.
The AASB reviewed a draft revised Joint Policy Statement, with a goal of approving an exposure
draft at its September 2014 meeting.
Special Reports — Assurance on Compliance with Agreements, Statutes and Regulations
The AASB is conducting a review to revise Sections 5800, Special Reports — Introduction, 5815,
Special Reports — Audit Reports on Compliance with Agreements, Statutes and Regulations,
8100, General Review Standards, and 8600, Reviews of Compliance with Agreements and
Regulations, including:





how the standard would interact with umbrella assurance standards;
how material non-compliance with specified provisions of an agreement, statute or
regulation should be defined and addressed in such engagements; and
how the practitioner would consider materiality when planning and performing the
engagement (in particular, in situations when the matter being reported on is qualitative
rather than quantitative in nature).
whether a standard, an Assurance and Related Services Guideline or some form of nonauthoritative guidance should be developed; and
if a standard is to be developed, the content of that standard and its relationship with
the umbrella assurance standards.
The AASB will continue to discuss issues on this topic, with a goal of approving an exposure draft
in the first half of 2015.
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For the year ended December 31, 2014
123
For the year ended December 31, 2014
Contents
Independent Auditor's Report
2
Statement of Financial Position
3
Statement of Operations
4
Statement of Changes in Net Financial Assets
5
Statement of Cash Flows
6
Notes to the Financial Statements
Schedule of Operating Expenses
7 - 16
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Independent Auditor's Report
To the Library Board
We have audited the accompanying financial statements of the Fraser Valley Regional Library
District, which comprise the Statement of Financial Position as at December 31, 2014 and the
Statements of Operations, Change in Net Financial Assets and Cash Flows for the year then ended,
and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with Canadian public sector accounting standards, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial
position of the Fraser Valley Regional Library District for the year ended December 31, 2014 and
its results of its operations, change in net financial assets, and cash flows for the year then ended
in accordance with Canadian public sector accounting standards.
Langley, British Columbia
June 24, 2015
2
125
2014
December 31
2013
Restated
(Note 10)
Financial Assets
Cash
Portfolio investments (Note 3)
Accounts receivable
$ 1,391,396
2,345,635
191,247
Liabilities
Accounts payable and accrued liabilities (Note 5)
Deferred revenues
Employee future benefits (Note 6)
Capital lease obligations (Note 7)
Net Financial Assets
Non-Financial Assets
Tangible capital assets (Note 4)
Prepaid expenses and deposits
Accumulated Surplus (Note 8)
$
1,630,805
2,201,440
1,002,363
3,928,278
4,834,608
1,398,002
418,061
627,566
548,784
1,770,541
404,966
558,505
475,000
2,992,413
3,209,012
935,865
1,625,596
9,890,544
123,950
9,840,996
98,227
10,014,494
9,939,223
$10,950,359
$ 11,564,819
Approved by the Board:
Director
Director
The accompanying summary of significant accounting policies and notes are an integral part of these financial statements.
3
126
For the year ended December 31
Budget
2014
2014
Restated
(Note 10)
(Note 12)
Revenue
Member assessments
Government transfers
Donations
Fines
Other library-based revenue
Return on investments
Expenses
Salaries and benefits
Library materials
Operating (Schedule)
Library interlink
Amortization
Annual deficit
Accumulated Surplus, beginning of year
Accumulated Surplus, end of year
2013
$22,687,202
1,405,698
151,457
677,620
217,935
11,000
$22,687,202
1,428,888
151,457
397,234
216,988
16,532
$ 22,249,498
1,413,054
232,229
480,356
248,557
62,153
25,150,912
24,898,301
24,685,847
17,800,316
954,443
3,186,396
120,000
3,502,660
17,697,851
988,592
3,210,867
112,791
3,502,660
17,507,248
858,361
2,896,025
111,842
3,334,384
25,563,815
25,512,761
24,707,860
(412,903)
(614,460)
(22,013)
11,564,819
11,564,819
11,586,832
$11,151,916
$10,950,359
$ 11,564,819
1274
For the year ended December 31
Statement of Changes in Net Financial Assets
Budget
2014
2014
2013
(Note 12)
Annual deficit
Acquisition of tangible capital assets
Amortization of tangible capital assets
$
Change in prepaid expenses and deposits
Change in net financial assets for the year
402,869
(49,548)
(421,867)
-
(25,723)
222,500
(689,731)
(221,380)
(10,034)
Net financial assets, beginning of year
Net financial assets, end of year
(412,903) $ (614,460) $
(22,013)
(3,099,791)
(3,552,208)
(3,756,251)
3,502,660
3,502,660
3,334,384
1,625,596
$
1,615,562
1,625,596
$
935,865
1,846,976
$
1,625,596
5
128
Statement of Cash Flows
December 31
Operating transactions
Annual deficit
Item not involving cash:
Amortization of tangible capital assets
Change in non-cash operating items
Accounts receivable
Prepaid expenses and deposits
Accounts payable and accrued liabilities
Deferred revenue
Employee future benefits
Capital transactions
Acquisition of tangible capital assets
Investing transactions
Change in portfolio investments
Financing transactions
Capital lease financing
Net increase/ (decrease) in cash for the year
Cash, beginning of year
Cash, end of year
2014
$
2013
(614,460) $
3,502,660
(22,013)
3,334,384
811,116
(25,723)
(372,539)
13,095
69,061
(623,566)
222,500
592,605
(34,849)
121,867
3,383,210
3,590,928
(3,552,208)
(3,756,251)
(144,195)
885,168
73,784
475,000
(239,409)
1,194,845
1,630,805
$ 1,391,396
435,960
$
1,630,805
6
129
Notes to Financial Statements
December 31, 2014
1.
Nature of Business
The Fraser Valley Regional Library District (the "Library") was established by an Order in
Council by the Lieutenant Governor of the Province of British Columbia. The Library's
principal activity is to provide library services, including operation of 25 public libraries and
centralized administrative services to member municipalities and unincorporated areas, in
the Fraser Valley and Greater Vancouver Regional Districts. The Library is a registered
charity under the Income Tax Act (Canada) and is not subject to income taxes.
2.
Significant Accounting Policies
(a)
Basis of Accounting
The Library prepares its financial statements in accordance with Canadian public
sector accounting standards as prescribed by the Public Sector Accounting Board.
(b)
Non-financial assets are not available to discharge existing liabilities and are held for
use in the provision of goods and services. They have useful lives extending beyond
the current year and are not intended for sale in the ordinary course of operations.
Tangible capital assets are recorded at cost which includes amounts that are directly
attributable to acquisition, construction, development or betterment of the asset.
The cost of the tangible capital assets are amortized on a straight line basis over
their estimated useful lives commencing when the asset is put into service, as
follows:
Buildings
Furniture and equipment
Library materials
Computer hardware
Computer software
Automated library system
Assets under capital lease
-
20 years
4 to 20 years
3 to 5 years
4 years
2 to 7 years
7 years
4 years
Tangible capital assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amounts of an asset may exceed its longterm services potential.
Tangible capital assets received as contributions are recorded at their fair value at
the date of receipt and also are recorded as revenue.
7
130
December 31, 2014
2.
Significant Accounting Policies (Continued)
(c)
Portfolio Investments
Portfolio investments, consisting of short-term and medium-term deposits held with
the Municipal Finance Authority, are carried at market value which approximates
amortized cost. If it is determined that there is a permanent impairment in the value
of an investment, it is written down to net realizable value.
(d)
Government Transfers
Government transfers are recognized as revenue when authorized and eligibility
criteria have been met unless the transfer contains stipulations that create a liability.
If the transfer contains stipulations that create a liability, the related revenue is
recognized over the period that the liability is extinguished.
(e)
Revenue Recognition
Unrestricted contributions are recognized as revenue in the year received or
receivable if the amount to be received can be reasonably estimated and collection is
reasonably assured.
Restricted contributions are recognized as revenue in the period in which the
conditions of the funding have been met.
(f)
Leases
Leases are classified as capital or operating depending upon the terms and conditions
of the contracts. Where the Library is the lessee, asset values recorded under capital
leases are amortized in the same manner and same rates as other capital assets.
(g)
Financial Instruments
The Library's financial instruments consist of cash, accounts receivable, portfolio
investments and accounts payable and accrued liabilities. Unless otherwise noted, it
is management's opinion that the Library is not exposed to significant interest,
currency or credit risks arising from these financial instruments. The fair values of
these financial instruments approximate their carrying values, unless otherwise
noted.
8
131
December 31, 2014
2.
Significant Accounting Policies (Continued)
(h)
Employee Future Benefits
The Library and its employees make contributions to the Municipal Pension Plan and
the employees accrue benefits under this plan based on service. The Library's
contributions are expensed as incurred (Note 6).
Retirement benefits are also available to the Library's employees. The costs of these
benefits are determined based on service and best estimates of retirement ages. The
liabilities under this plan are accrued based on projected benefits prorated as the
employees render services necessary to earn the future benefits (Note 6).
(i)
Use of Estimates
The preparation of financial statements in accordance with Canadian public sector
accounting standards requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the reporting
period. Significant items subject to such estimates and assumptions include the
useful lives of tangible capital assets and obligations related to employee future
benefits. Actual results could differ from those estimates. These estimates are
reviewed periodically and as adjustments become necessary, they are reported in the
statement of operations in the year in which they become know.
(j)
Expenses by Object and Segmented Information
The entity is a sole purpose organization and therefore does not report by function
and does not provide segmented information.
3.
Portfolio Investments
The balance consists of short- and medium-term deposits held with the Municipal Finance
Authority. The investments are carried at market value which approximates cost due to the
high degree of transactions within the fund.
9
132
December 31, 2014
4.
Tangible Capital Assets
Land
Cost, beginning of year
Additions
$
115,000 $ 1,502,735 $
Accumulated amortization,
beginning of year
Amortization expense
Disposals
Accumulated amortization,
end of year
Net carrying amount,
end of year
$
Computer
Equipment
Computer
Software
Automated
Library
System
Library
Materials
2014
Total
2013
Total
696,680 $ 1,891,740 $
851,553 $ 2,200,938 $14,315,602 $21,574,248 $ 20,090,652
30,580
223,065
26,836
121,865
-
3,149,862
3,552,208
3,756,250
-
-
-
-
-
(2,211,765)
(2,211,765)
(2,272,654)
115,000
1,533,315
919,745
1,918,576
973,418
2,200,938
15,253,699
22,914,691
21,574,248
-
1,116,808
358,163
1,743,670
428,861
1,337,417
6,748,333
11,733,252
10,671,523
-
35,133
68,518
87,240
82,225
203,824
3,025,720
3,502,660
3,334,383
-
-
-
-
-
-
(2,211,765)
(2,211,765)
(2,272,654)
-
1,151,941
426,681
1,830,910
511,086
1,541,241
7,562,288
13,024,147
11,733,252
Disposals
Cost, end of year
Buildings
Furniture
and
Equipment
115,000 $
381,374 $
493,064 $
87,666 $
462,332 $
659,697 $ 7,691,411 $ 9,890,544 $
9,840,996
10
133
December 31, 2014
5.
Accounts Payable and Accrued Liabilities
2014
Amounts due to suppliers
Salaries and benefits accruals
6.
$
2013
375,209
1,022,793
$
638,600
1,131,941
$ 1,398,002
$
1,770,541
Employee Future Benefits
The Library and its employees contribute to the Municipal Pension Plan (the "Plan"), a
jointly trusteed pension plan. The board of trustees, representing plan members and
employers, is responsible for overseeing the management of the Plan, including investment
of the assets and administration of benefits. The Plan is a multi-employer contributory
pension plan. Basic pension benefits provided are based on a formula. The Plan has about
182,000 active members and approximately 75,000 retired members. Active members
include approximately 36,000 contributors from local government.
The most recent actuarial valuation as at December 31, 2012 indicated a $1,370 million
funding deficit for basic pension benefits. The next valuation will be as at December 31,
2015 with results available in 2016.
Employers participating in the Plan record their pension expense as the amount of employer
contributions made during the fiscal year (defined contribution pension plan accounting).
This is because the Plan records accrued liabilities and accrued assets for the Plan in
aggregate with the result that there is no consistent and reliable basis for allocating the
obligation, assets and cost to individual entities participating in the Plan.
The Library paid $1,247,180 (2013 - $1,185,179) for employer contributions and employees
contributed $1,015,270 (2013 - $949,441) to the Plan in fiscal 2014.
The Library also provides employee future benefits in the form of retirement benefits to
qualifying employees. These benefits are not separately funded.
(a) Retiring Allowance
Employees retiring from the service of the Library shall be paid at the rate of two days'
pay for each year of service with the Library to a maximum of forty-eight working days.
A discount rate of 4% (2013 - 5.5%) was used in the actuarial calculation.
(b) Vacation Pay in year of Retirement
Employees with at least ten (10) years of service in the year of retirement are paid the
same vacation pay which they would have earned if they had continued in employment
to the end of the retirement calendar year. For known retirements, vacation that
would not otherwise have been payable if not for the employees retirement, has been
accrued and expensed.
11
134
December 31, 2014
7.
Obligation Under Capital Lease
The Library arranged capital lease funding in respect of a new computer ERP system at an
interest rate of 3.97%, and locker charge stations at an interest rate of 6.58%. The leases
mature May 27, 2019 and November 15, 2016 respectively.
The Library is obligated to make the following minimum lease payments under the lease
agreements as follows:
Year
ERP System
Total
2015 $
2016
2017
2018
2019
104,544 $
104,544
104,544
104,544
34,847
76,331 $
69,970
-
180,875
174,514
104,544
104,544
34,847
$
453,023 $
(37,456)
146,301 $
(13,084)
599,324
(50,540)
$
415,567 $
133,217 $
548,784
Less: imputed interest
8.
Charge Bar
Accumulated Surplus
Accumulated Surplus is categorized as follows:
2014
Unappropriated (Deficit)/Surplus
Reserves - General
Information systems
Asset replacement
Collection expansion
Future services
Specific programs
Subtotal (Unappropriated Surplus plus Reserves - General)
Reserves - Municipal Surplus
Subtotal (Unappropriated Surplus plus all Reserves)
Investment in non-financial assets
$
2013
(45,872) $
406,070
287,482
304,911
74,254
233,750
283,099
387,127
157,955
32,078
216,283
854,525
630,125
1,482,612
617,984
$ 1,484,650
$
2,100,596
9,465,709
9,464,223
$10,950,359
$ 11,564,819
12
135
December 31, 2014
8.
Accumulated Surplus (Continued)
The Unappropriated (Deficit)/Surplus is the amount of Accumulated Surplus remaining after
deducting the other appropriated surplus balances (see below). A surplus balance is
available to temporarily finance operations until planned revenues (i.e. member
assessments, fees, grants etc.) are received, or for other operating or capital purposes as
determined by the Board, to the extent that it is available as cash. A deficit balance will
be funded by either a transfer from one of the existing Reserves-General balances, or future
revenues.
The Reserves are Accumulated Surplus that have been set aside by decision of the Board for
a specified purpose. In the normal course of operations, these funds will be used to finance
the future services or capital works for which they have been appropriated. Following is an
explanation of the intended purpose of each Reserve:
(a) Information Systems Reserve
To fund capital expenditures for new or existing information systems assets (computer
hardware and software).
(b) Asset Replacement Reserve
To fund capital expenditures for new or existing assets, excluding information systems
and library materials assets. Provides funding for vehicles, office furniture, equipment,
parking area, and building capital expenditures for the FVRL Administration Office.
(c) Collection Development Reserve
To fund library material expenditures for new and expanding libraries.
(d) Future Services Reserve
To fund urgent requirements for non-budgeted salary expenditures and other
unanticipated expenditures as directed by the Board.
(e) Specific Programs
To fund various specific operating and capital expenditures for specific programs.
(f)
Municipal Surplus
This reserve is allocated to each member organization in accordance with Board policy.
The reserve balance is to fund library expenditures, or reduce member organization
levies, to the extent of the member organization reserve balance, as requested by the
member organization and approved by the Board.
Investment in Non-Financial Assets is equal to the book value of the tangible capital assets
and prepaids less related capital lease debt. In the normal course of operations the
tangible capital assets and prepaids will not be available to finance operations, but will be
consumed/used to provide services, and the debt will be repaid by future period revenues.
13
136
December 31, 2014
9.
Contingencies and Commitments
(a) Leases
The Library rents vehicles and computers under operating leases which expire at
various dates and whose lease payments in the current year totaled $107,940 (2013 $109,013). The total minimum lease payments over the next year is $1,799.
(b) Employee Loans
The Library obtains financing through their main commercial lending institution for the
purpose of providing personal computers for its employees. The employees repay the
loans by deduction from their payroll. At December 31, 2014, the Library was indebted
to the bank with respect to these loans in the amount of $13,363 (2013 - $15,392).
10. Comparative Figures
Certain figures from the prior year have been restated to conform to the current year's
presentation, as shown in table below.
2013
previously stated
Accounts payable and accrued liabilities
Employee future benefits
$
$
1,841,420
487,626
2013
restated
$
$
1,770,541
558,505
Difference
$
$
70,879
(70,879)
2013
previously stated
2013
restated
$ 22,289,498
118,138
262,665
64,136
$ 22,249,498
232,229
248,557
62,153
$
40,000
(114,091)
14,108
1,983
$ 22,734,437
$ 22,792,437
$
(58,000)
$
$
$
(58,000)
Revenue
Member assessments
Other donations and grants
Return on investments
Expenses
Operating - Municipal surplus reserve grants
Net effect
-
58,000
Difference
$
-
Note that the net effect is $nil, and there is no impact to accumulated surplus.
14
137
December 31, 2014
11. Economic Dependence
The Library is economically dependent on the member municipalities for its continued
operations.
12. Budget Amounts
Budget amounts shown in the financial statements reflect the 2014 annual budget approved
by the Board adjusted to include various revenues and expenses that did not impact the
determination of the member assessment either because they fully offset or because they
were non-cash items. This adjustment was done to improve the comparability of the
budget numbers with the actual numbers, given that the actuals include all offsetting
revenues and expenses separately, and include non-cash items.
In addition, the annual budget approved by the Board (the "Board Budget") was not
prepared or presented on a basis consistent with that used to report actual results (Public
Sector Accounting Standards, "PSAB Budget"). The Board Budget was prepared on a modified
accrual basis and included all planned sources and use of funds. The PSAB Budget required a
full accrual basis, and it only included those sources and uses of funds that are revenues or
expenses under the PSAB standards. The Board Budget resulted in a budget balance of $nil,
where total sources of funds equaled total uses of funds. The same budget, prepared and
presented on a basis consistent with PSAB standards (PSAB Budget), reports an annual
budget deficit of $412,903. Both budget perspectives are valid and useful, because each
perspective is intended for a different purpose, and has a different meaning. The approach
used to prepare and present the Board Budget is intended to demonstrate that sources of
funds equal uses of funds, or that sufficient cash will be available to pay all planned
expenditures. The PSAB Budget is intended to demonstrate the expected change in the
organization's net assets, or total accumulated surplus.
The following table identifies the four areas that have not historically been budgeted for
because they do not impact the determination of the annual member assessment, being:
donation and book sale revenue and expenses, reserve funded expenses, and amortization,
and the adjustments made for these items to the annual budget that was approved by the
Board. The following table also details the reconciliation from the annual deficit
determined under PSAB standards to the Board Budget balance of $nil, where sources of
funds equal uses of funds for both budgeted and actual results.
15
138
December 31, 2014
12. Budget Amounts (Continued)
Adjustments
2014 Board
Budget
Donations
Book Sales
Reserves
2014 Revised
Board Budget
Amortization
2014
Actual
Revenues
Member assessment
Donations
Fines
Return on investment
$
22,687,202
1,402,198
677,620
141,046
11,000
24,919,066
$
3,500
151,457
154,957
$
76,889
76,889
$
-
$
-
$
22,687,202
1,405,698
151,457
677,620
217,935
11,000
25,150,912
Expenses
Library materials
*Operating
Library interlink
Amortization
Annual surplus / (deficit)
Reconciliation from PSAB Deficit to Board Budget balance of $nil:
Annual surplus / (deficit)
Remove non-cash item included in the annual surplus / (deficit)
Amortization expense
Prepaid expenses
Add-in cash transactions that are not revenues
or expenses (and are not included in the annual surplus / (deficit))
Capital expenditures - materials
Capital expenditures - other
Prepaid expenditures
Capital lease principle payments
Capital lease proceeds
Transfers to reserves
Transfers from reserves
Transfers from unappropriated surplus
Balance
17,790,316
880,440
3,028,950
120,000
21,819,706
10,000
886
98,382
109,268
692
59,064
59,756
72,425
72,425
3,502,660
3,502,660
17,800,316
954,443
3,186,396
120,000
3,502,660
25,563,815
$
3,099,360
$
45,689
$
17,133
$
(72,425) $
(3,502,660) $
(412,903)
$
3,099,360
$
45,689
$
17,133
$
(72,425) $
(3,502,660) $
(412,903) $
-
$
-
(2,949,360)
(50,000)
(100,000)
$
-
(45,689)
$
-
(9,446)
(7,687)
$
3,502,660
-
(45,296)
117,721
-
$
-
3,502,660
-
$
(3,049,791)
(50,000)
(107,687)
117,721
$
(614,460)
3,502,660
98,227
(3,149,861)
(402,347)
(123,950)
(59,431)
133,216
(252,855)
416,859
451,942
-
*Operating
Library programs
Marketing
Office supplies
Other library based expenses
Professional fees
Subtotal
All other operating expenses
$
$
232,570
141,380
217,730
126,240
717,920
2,311,030
3,028,950
$
$
27,052
150
21,974
49,206
98,382
98,382
$
$
19,952
4,514
20,855
13,743
59,064
59,064
$
$
-
$
$
-
$
$
279,574
146,044
260,559
13,743
175,446
875,366
2,311,030
3,186,396
139
16
Schedule of Operating Expenses
December 31
Budget
2014
2014
2013
Restated
(Note 10)
Administrative and board expenses
Municipal surplus reserve grants
Interest on capital lease
Administration building
Information systems
Equipment repairs and maintenance
Human resources
Library programs
Marketing
Office supplies
Other library expenses
Postage and courier
Professional fees
Telephone and fax
Vehicle operations
$ 135,910
445,140
926,380
115,200
364,480
279,574
146,044
260,559
13,743
40,860
175,446
70,270
212,790
$ 143,185
64,000
20,796
395,168
1,013,314
86,567
336,300
230,336
154,640
234,423
13,743
53,550
191,939
99,578
173,328
$
122,575
58,000
410,825
873,518
88,411
230,999
248,839
103,415
287,074
16,907
35,185
181,455
64,886
173,936
$3,186,396
$3,210,867
$ 2,896,025
17
140
REPORT
TO THE
FVRL BOARD
2014 Financial Statements
By Nancy Gomerich, Director of Finance
DISCUSSION
Board approval of the 2014 FVRL Financial Statements is required.
This report provides an overview of the Financial Statements, which should be read in
conjunction with a review of the audited statements.
This report is divided into two main sections:
1. Section A: Introduction
Details the purpose, objectives, and limits of the financial statements and describes the
major components thereof.
2. Section B: Financial Review
a. B1 – Executive Summary: Provides a “one page” summary of the 2014 financial results
and closing financial position.
b. B2 – Statement of Financial Position: Provides an overview of FVRL assets, liabilities
and closing net assets (Accumulated Surplus).
c. B3 – Statement of Operations: Provides an overview, and explanation of budget to
actual variances, for revenues, expenses and the reported annual deficit.
d. B4 – Capital Expenditures: Details capital expenditures and funding sources.
RECOMMENDATION
THAT the 2014 Financial Statement be approved.
141
Page 2
SECTION A: INTRODUCTION
These Financial Statements are general purpose financial statements prepared in accordance
with recognized accounting standards (Public Sector Accounting Board). They provide highly
summarized financial information that gives primarily a historical perspective. They do not, nor
are they intended to, provide information on the organization’s operational efficiency,
effectiveness or its ability to sustain operations into the future, although they do provide
limited insights.
The key information provided in the financial statements is information about the
organization’s:
1. financial position, its assets, and liabilities at the end of the reporting period
(Dec/31/2014); and
2. changes in that financial position, its revenues and expenses in the year, and the extent to
which it managed operations within the Board-approved budget.
OVERVIEW OF THE FINANCIAL STATEMENT CONTENTS
The Financial Statements (“FS”) include four statements, with additional supporting
information provided in the notes and the schedules to the FS. The four statements and their
primary purpose are as follows:
1. Statement of Financial Position
This statement details the organization’s assets, liabilities, and resulting net assets (i.e.
assets less liabilities), referred to as Accumulated Surplus, at year end.
 Accumulated Surplus is simply what is “left over” as equity to the organization after its
liabilities are fully satisfied or paid off.
Assets are broken down into two categories: financial and non-financial assets.
 Financial Assets are cash or items that will be turned into cash and that will be used to
finance operations or pay down debt, in the normal course of operations.
 Non-Financial Assets are assets that will NOT be turned into cash in the normal course
of operations. Non-Financial Assets include tangible capital assets and prepaids, and
they will be used or consumed to provide the organization’s services.
2. Statement of Operations
This statement details the organization’s actual, budget, and prior year revenues and
expenses for the fiscal period.
The resulting annual surplus/(deficit) explains the change in the organization’s
Accumulated Surplus (as shown on the above Statement of Financial Position) over the
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prior year. The total of all past annual surpluses/(deficits) equals the total Accumulated
Surplus less any initial assets contributed when FVRL was first incorporated.
3. Statement of Changes in Net Financial Assets
This statement explains the change in the Statement of Financial Position’s net financial
assets.
 Net Financial Assets are the organization’s total Financial Assets less its Liabilities.
Net Financial Assets are the net assets (that are, or will be, cash) that the organization
has available to finance future operations. Net Financial Assets are funds in excess of
what would be required to satisfy all existing liabilities at year-end.
4. Statement of Cash Flows
This statement explains the change in the Statement of Financial Position’s cash and cash
equivalents (i.e. short term investments), detailing the sources and uses of the
organization’s cash.
The change is broken down into four categories:
1. operating,
2. capital,
3. investing, and
4. financing transactions.
5. Notes to the Financial Statements
Supporting the information provided in the above four statements are the Notes to the
Financial Statements, which provide:
1. additional information about specific numbers on the four statements,
2. a summary of significant accounting policies, and
3. details of any future financial commitments and/or contingencies, and other
information determined to be of material significance to the reader of the FS.
6. Schedule of Operating Expenses
The supporting Schedule of Operating Expenses provides a breakdown of the operating
expense lines on the Statement of Operations.
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SECTION B: FINANCIAL REVIEW
SECTION B1: EXECUTIVE SUMMARY
In a number of ways, fiscal 2014 has been a challenging year financially for FVRL. While the
2014 financial results certainly provide an impetus for FVRL to more closely examine its
financial situation and processes and make adjustments as required, the results should be
taken in context.
Firstly, it should be emphasized that the financial results are for a single fiscal year, and that
one of the most significant budget issues highlighted in this report—lower fine revenues—
already has been addressed in the 2015 budget.
As well, the FVRL model is a strong one that provides relatively secure and reliable funding
sources (member assessments and provincial grant) from known and financially sound
sources, as compared to an organization that relies on the receipt of voluntary revenues from
the general public.
 FVRL has no long term debt.
 FVRL’s short term debt is relatively low.
 FVRL’s size provides for economies of scale.
 Expenses for the most part are predictable, with the majority of expenses within the direct
control of FVRL to manage.
 The current management team is keenly aware of, and is currently acting on, these
financial results.
Results of Operations
2014 operations, as detailed in the Statement of Operations, resulted in an annual deficit of
($614,460), as compared to a budgeted annual deficit of ($412,903). The annual deficit of
($614,460) is 2.4% of 2014 total operating expenses.
The 2014 deficit is due to revenues raised in the year not being sufficient to fully provide for
the cost of the services provided in the year. The two primary “deficit drivers” are:
1. A significant short-fall in fine revenues as compared to budget ($280,000).
2. The anticipated budget deficit of ($412,903) resulting from revenues raised in the year not
being sufficient to fully provide for amortization expense.
 Amortization expense is a proxy for the use of tangible capital assets (i.e. library
materials, information systems hardware and software, building, equipment etc.) that
are consumed in the year to provide services.
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The combined impact of these two drivers of ($692,903) was reduced to the reported deficit
of ($614,903) due to a variety of smaller dollar value, positive variances in other revenues and
expenses.
The budgeted deficit and actual deficit results show that revenues raised were not expected
to be, nor were intended to be, sufficient to fully fund the year’s service costs. Such results
are not sustainable in the long-term and, accordingly, these results provided impetus for
FVRL to more closely examine its financial situation and make adjustments as required.
Indeed, some of this work has already been done as part of the 2015 budget process that
made adjustments to:
1. reflect the reality of lower fine revenues, and
2. include funding for the ERP capital lease repayment which was not provided in the 2014
budget.
Additionally, the work program for the 2016 budget process includes the development of a
longer-term financial plan with a focus on tangible capital asset (capital) expenditure
requirements.
Financial Position
FVRL net assets, referred to as Accumulated Surplus, at December 31, 2014 were $10,950,359
as compared to $11,564,819, the difference, of course, being the results of 2014 operations, the
($614,460) deficit.
Of the 10,950,359 only $854,525 (surplus and reserves, other than the Municipal S&B Surplus
Reserve) is, or will be, cash that can be used to finance future services and infrastructure, as
so determined by the Board.
Further, existing and near-future funding commitments (for which there is currently no other
funding source) will reduce this balance to about $480,000, which is 1.88% of the 2014 total
operating expenses.
 A comprehensive analysis has not yet been done but, based on my professional
experience, this balance is relatively low in comparison to the level of reserves and surplus
that would be considered sufficient to provide for contingency expenses and ensure
required capital investments are made in a timely manner without the need to increase
member assessment and/or incur debt.
Of course, the sufficiency of reserves and surplus can only determined in relation to the
future financial outlook and needs of the FVRL. Accordingly, as mentioned earlier, a focus of
the 2016 budget process is to complete a longer term financial plan.
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In any case, as the reserves and surplus are relatively low, staff has been directed to minimize
2015 expenses where reasonably possible, with the intent to drive a 2015 surplus. Actions
include:
1. holding vacant positions open for an extended period,
2. lower discretionary spending in areas like training, and
3. deferring lower priority maintenance work, etc.
Such actions are not sustainable in the long-term but are felt to be appropriate in the
circumstances.
Concluding Comments
As described, 2014 has been a difficult year financially for FVRL, with closing reserve and
surplus balances accessible to finance future operations at relatively low levels.
While the 2014 financial statements provide insight into the financial health and long term
sustainability of FVRL, the insights are basic and incomplete because the statements are
primarily historical looking, providing only a high level “snapshot” of the last year’s operations
and ending financial position. Clearly, more work is required in order to better assess and
ensure FVRL’s long term financial sustainability.
On the positive side, as stated earlier, the FVRL model is a strong one, with secure revenue
sources, relatively stable and controllable operating expenses, and low long term debt.
Equally importantly, management already has taken action to respond to the current financial
situation which will extend into the development of the 2016 budget and related longer term
financial plan.
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B2: STATEMENT OF FINANCIAL POSITION
Financial Assets
Financial Assets
Cash and cash equivalents
Portfolio investments
Accounts receivable
2014
1,391,396
2,345,635
191,247
3,928,278
2013
1,630,805
2,201,440
1,002,363
4,834,608
FVRL financial assets are primarily cash or cash in the short-term. This position combined
with quarterly billing and receipt of member assessments, FVRL primary funding source,
provide reliable and timely access to cash to fund on-going operations.
Liabilities
Liabilities
Accounts payable & accrued liabilities
Deferred revenue
Employee-future benefits
Capital lease obligations
2014
1,398,000
418,061
627,566
548,784
2,992,411
2013
1,770,541
404,966
558,505
475,000
3,209,012
About 47% (55% 2013) of Liabilities are typical short term payables (accounts payable and
accrued liabilities), with the most significant component being staff salaries and benefits
payable.
Deferred revenue represents received cash (held cash and investments) that is restricted in
use as it must be used for the purpose for which it was given to FVRL. The balance is
primarily made up of cash donations made to the library that must be used for a specified
purpose, before they are recorded as revenue.
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Following is a further breakdown of the deferred revenue balance:
Deferred Revenue
New Library Funding
Maple Ridge - Self Check-in
Chilliwack - Self Check-in
Donations - Maple Ridge
Donations - Other
2014
2013
11,927
82,790
5,125
99,842
199,390
118,829
418,061
27,075
42,790
5,125
74,990
213,260
116,716
404,966
Employee future benefits represent an estimate of the financial obligations of FVRL to its
employees based on services they have performed to date. All obligations are payable to the
employee upon retirement.
 Obligations are only an estimate, as the actual amount of the liability depends on future
events which are not known.
 The estimate is based on high-level assumptions made by management that are
consistent, but slightly more conservative, than prior years.
 Given the significance of this liability, the Board authorized an actuarial valuation in 2015,
which will increase the credibility and defensibility of this liability and the related annual
expense.
 This liability is “fully-funded,” which means that FVRL currently holds cash and
investments equivalent to the liability amount. To the extent that this liability remains at its
current level on an ongoing basis, the held cash and investments provide FVRL with
access to short term cash to aid in financing ongoing operations on a temporary basis (i.e.
between receipt of other revenue sources).
Capital lease obligations are leases where FVRL has assumed the risks and benefits of
ownership of the related assets and, accordingly, both the asset and the debt (capital lease
obligation) are recorded. This debt was incurred to purchase tangible capital assets: the ERP
Information System and Charge Bar Units. Following is a further breakdown of the capital
lease obligation balance:
Capital Lease Obligations
ERP Information System
Charge Bar Units
2014
415,568
133,216
548,784
2013
475,000
0
475,000
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Tangible capital assets
Prepaid expenses & deposits
2014
9,890,544
123,950
10,014,494
2013
9,840,996
98,227
9,939,223
Non-financial assets, in the normal course of operations, will be used/consumed to provide
library services and are unlikely to be sold/converted to cash.
Tangible capital assets (“TCA”) are physical assets with a useful life greater than one year.
 TCA are depreciated or expensed over the useful life of the asset with the above table
value being the original historical cost of the asset (i.e. what FVRL originally paid for the
asset) less the depreciated amount, referred to as the Net Book Value (“NBV”).
 The most significant TCA investments, based on the NBV, are Library Materials and
Information Systems composing 78% and 12% of the NBV respectively.
 The nominal increase in the investment in TCA in 2014 over 2013 shows that FVRL
effectively maintained its level of investment in its TCA.
Accumulated Surplus is the summary financial position number, as it is the total of the
organization’s assets (financial and non-financial) less its liabilities (i.e., its net assets).
Accumulated Surplus is broken down into four categories of net assets that detail how the
organization intends to use them to finance future operations, as detailed below.
ACCUMULATED SURPLUS
CATEGORY
(1) Unappropriated (Deficit)/Surplus
(2) Reserves - General
Information Systems Reserve
Asset Replacement Reserve
Collections Expansion Reserve
Future Services Reserve
Specific Programs Reserve
Subtotal A:
(3) Reserves - Municipal Surplus
Subtotal B:
(4) Investment in Non-Financial Assets
Total
2014
ACTUAL
(45,872)
287,482
304,911
74,254
0
233,750
854,525
630,125
1,484,650
9,465,709
10,950,359
2013
406,070
2014
DEFICIT
(451,942)
283,099
387,127
157,955
32,078
216,283
1,482,612
617,984
2,100,596
9,464,223
11,564,819
4,383
(82,216)
(83,701)
(32,078)
17,467
(628,087)
12,141
(615,946)
1,486
(614,460)
ACTUAL (REVISED)
Refer to Note 8 to the Financial Statements for an explanation of each of these four
categories and their intended future use.
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The total decrease in accumulated surplus ($614,460) is equal to revenues less expenses in the
year, being the reported Annual Deficit on the Statement of Operations, and is explained in
the following section, Statement of Operations.
In summary, the key points conveyed in the breakdown of Accumulated Surplus are:
1. Of the $10,950,359 total, ONLY $1,484,650 is cash or will be cash in the normal course of
operations.
2. The $9,465,709 is the net assets that make up the non-financial assets, tangible capital
assets and prepaids less related debt (capital lease obligation). The tangible capital assets
and prepaids will be consumed to provide future services and the debt repaid by future
revenues.
3. Of the $1,484,650 of net assets that are cash or will be cash and, accordingly, can be used
to finance future operations, $630,125 (the Municipal Surplus Reserve), by Board policy, is
not available because it is held to be used to the benefit of the respective member, not
FVRL as a whole.
4. The remaining $854,525, therefore, is the total of the net assets that FVRL has available to
finance future operations at December 31, 2014.
While the $854,525 is categorized into an Unappropriated Deficit and five different Reserves,
the Board may choose to use these funds for any legal purpose.
Although $854,525 sounds like a lot of money, it is only about 3.50% of FVRL’s 2014 total
expenses ($854,525/$25,512,761).
Further, a significant amount of these funds are already “committed,” as shown in the
following table, leaving only an estimated $479,000 truly available to FVRL to finance future
operations, which represents only 1.88% of 2014 operating expenses.
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Accumulated Surplus - "Available R&S"
Unappropriated (Deficit)/Surplus
Reserves - General
A Subtotal
Existing Commitments & Transfers
2015 Expense Commitments to be Funded from "Available R&S"
-2014 S&B Municipal Surplus Allocation
-2015 IT Capital Expenditure
-2014 Board Resolution to use $ for Materials
-2010 Board Resolution to use $ for Materials
-2015 Actuarial expense
-2015 Charge Bar lease payment
2015 Transfer to Reserves-General (from operations)
Subtotal
2016 Expense Commitments to be Funded from "Available R&S"
-2015 Charge Bar lease payment
2016 Transfer to Reserves-General (from operations)
B Subtotal
=A+B ESTIMATED "Available" R&S" after known/likely events
% of 2014 Operating Expenses
(45,872)
900,397
854,525
(137,904)
(230,000)
(24,704)
(19,729)
(20,000)
(72,416)
100,000
(404,753)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(69,981) (6)
100,000 (7)
(374,734)
479,791
1.88%
Notes & Assumptions:
- No other uses of, or sources of, reserve or surplus funds in 2015 and 2016
- 2015 and 2016 capital expenditures, other than $230,000 IT expense, will equal 50,000
(1) Per Board Policy
(2) To be approved by Board
(3) May 21, 2014 Board Meeting Minutes
(4) June 23, 2010 Board Meeting Minutes
(5) Board approved 2015 Budget
(6) No other present, or planned source
(7) Assumes on all other capital expenses =$50,000
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Of course, the sufficiency of reserves and surplus can only determined in relation to the
future financial outlook and needs of the FVRL. Accordingly, as part of the 2016 Budget
process, it is management’s intent to complete a longer term financial plan, including
identification and consideration of risk factors and development of specific life-cycle plans for
FVRL’s major capital investments:
1. the FVRL Administrative Centre, and
2. its information systems.
In any case, as the reserves and surplus are relatively low, staff has been directed to minimize
2015 expenses where reasonably possible, with the intent to drive a 2015 surplus. Actions
include:
1. holding vacant positions open for an extended period,
2. lower discretionary spending in areas like training, and
3. deferring lower priority maintenance work, etc.
Such actions are not sustainable in the long term but are felt to be appropriate in the
circumstances.
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B3: STATEMENT OF OPERATIONS
Revenues
2014
Budget
Member assessments
Donations
Fines
Other library revenue
Return on investment
22,687,202
1,405,698
151,457
677,620
217,935
11,000
25,150,912
2014
Actual
22,687,202
1,428,888
151,457
397,234
216,988
16,532
24,898,301
2013
Actual
22,249,498
1,413,054
232,229
480,356
248,557
62,153
24,685,847
2014 Budget - 2014 Actual
$
%
0
23,190
0
(280,386)
(947)
5,532
(252,611)
0.00%
1.65%
0.00%
-41.38%
-0.43%
50.29%
-1.00%
Note: The 2014 Budget did not include a budget for donations or book sale revenue (included
in Other Library Revenue). In order to facilitate a direct comparison between the budget and
actuals, the 2014 budget was adjusted to include the 2014 actual values for these revenues.
Refer to Note 12 to the Financial Statements for details.
Overall, 2014 revenues were as expected based on the budget, with the exception of fine
revenues, which came in $280,000 or 41% under budget. As noted during the 2015 budget
deliberations, the fine revenue budget for 2014 was higher than it should have been given
historical fine revenues and changes by the Board to reduce fines in a variety of areas in 2013
(2013 and 2012 total fine revenue was $480,356 and $497,300 respectively). This budget
shortfall is the single largest contributor to the 2014 annual deficit (of $614,460).
Expenses
Library materials
Operating expenses
Public Library InterLINK
Amortization
2014
Budget
17,800,316
954,443
3,186,396
120,000
3,502,660
25,563,815
2014
2013
Actual
Actual
17,697,851 17,507,248
988,592
858,361
3,210,867 2,896,025
112,791
111,842
3,502,660
3,334,384
25,512,761 24,707,860
$
102,465
(34,149)
(24,471)
7,209
0
51,054
%
0.58%
-3.58%
-0.77%
6.01%
0.00%
0.20%
Note: The 2014 Budget did not include a budget for donations or book sale revenue and the
related expenses these revenues funded. In order to facilitate a direct comparison between
the budget and actuals, the 2014 budget was adjusted to include the 2014 actual values for
these expenses. Refer to Note 12 to the Financial Statements for details.
Overall, 2014 expenses were as expected based on the budget.
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In consideration of the staff changes within the Finance Department, the salary and benefit
surplus is somewhat unexpected. However, it is consistent with:
1. findings during the 2015 budget process that suggested that the salary and benefit
budget was “generous” (i.e. too high).
2. direction provided by the previous CEO for managers to take possible actions to reduce
the actual 2014 salary and benefit expenses in the later part of fiscal 2014.
3. determination of various salary and benefit expense accrual estimates for 2014 that
suggested that the 2013 estimates were over-stated. If the 2013 estimates were overstated it would result in the over-statement being reflected as a reduction in the actual
2014 salary and benefit expenses.
The table below provides a break-down of the operating expenses into its various categories.
2014
Budget
Operating expenses
Admin. & board
Municipal S&B grants
Capital lease interest
FVRL Admin. Centre
Information systems
Furniture & equipment
Human resources
Library programs
Marketing
Office supplies
Other library expenses
Postage and courier
Professional fees
Telephone & fax
Vehicle operations
135,910
0
0
445,140
926,380
115,200
364,480
279,574
146,044
260,559
13,743
40,860
175,446
70,270
212,790
3,186,396
2014
Actual
2013
Actual
143,185
64,000
20,796
395,168
1,013,314
86,567
336,300
230,336
154,640
234,423
13,743
53,550
191,939
99,578
173,328
3,210,867
122,575
58,000
0
410,825
873,518
88,411
230,999
248,839
103,415
287,074
16,907
35,185
181,455
64,886
173,936
2,896,025
$
(7,275)
(64,000)
(20,796)
49,972
(86,934)
28,633
28,180
49,238
(8,596)
26,136
0
(12,690)
(16,493)
(29,308)
39,462
(24,471)
%
-5.35%
n/a
n/a
11.23%
-9.38%
24.86%
7.73%
17.61%
-5.89%
10.03%
0.00%
-31.06%
-9.40%
-41.71%
18.55%
-0.77%
Although various components of the operating expenses are over/under budget, the total is
only over budget by .77% or $24,471, which is consistent with the budget principle that staff
should manage the operating budget expenses to ensure that overall net expenses are not
exceeded, as compared to a line-by-line approach.
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Explanations for the most significant (>10%) actual to budget differences are as follows:
 Municipal S&B Grants – The 2014 expense was not budgeted for. The 2014 actual
expense was specifically approved by the Board (grant to Pitt Meadows $30,000 and
Delta $34,000).
 Capital Lease Interest – The expense is the interest portion for the ERP Information
Systems lease. The related capital expenditure was approved by the Board. The capital
lease payment (principle and interest) was not budgeted for.
 FVRL Administrative Centre – The 2014 expense was under budget due to savings
resulting from changes in the primary building maintenance contractor.
 Information Systems – The 2014 expense is over budget for a variety of reasons,
including the addition of maintenance services for the new ERP Information system which
was not specifically budgeted for.
 Furniture & Equipment – Due to the nature of the expenses (individual purchases are
larger), actuals can vary significantly from budget. Lower 2014 actuals, in comparison to
budget, are consistent with recent years’ expense trends (actuals: 2013 - $88,411; 2012 $81,226; 2011 - $69,589) and direction by the previous CEO for managers to reduce
spending in the later part of fiscal 2014.
 Library Programs – Lower 2014 actuals, in comparison to budget, are consistent with
expectations for the impacts of the new/being implemented centralized program delivery
model and reduced spending direction by the CEO.
 Postage & Courier – 2014 actuals are greater than budget due to the realized impacts of
changes in how book hold notifications are delivered (by mail vs. telephone) combined
with about a 25% increase in postage rates in early 2014 that was not budgeted for.
 Telephone & Fax – 2014 actuals are greater than budget due to a change in the
classification of some communication (telephone based) expenses from Information
Systems to Telephone expenses in 2014 that was not reflected in the budget.
 Vehicle operations - Lower 2014 actuals, in comparison to budget, are consistent with
recent years’ expense trends (actuals: 2013 - $173,936; 2012 - $171,327; 2011 - $161,577) and a
budget reduction in 2015 of $16,000 (to $196,000).
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Annual Surplus/(Deficit)
2014
Budget
(412,903)
2014
Actual
(614,460)
2013
Actual
(22,013)
2014 budget to actual variences:
Fine revenue budget deficit
Total other revenue budget surplus
Total expense budget surplus
2014 Actual - 2014 Budget
$
%
(201,557)
-48.81%
(280,386)
27,775
51,054
(201,557)
The 2014 deficit of ($614,460), being 2.4% of 2014 total operating expenses, is composed of
the budgeted 2014 deficit of ($412,903) plus 2014 actual revenue and expense budget
variances ($201,557).
 The budgeted 2014 deficit is due to revenues raised in the year not being sufficient to
fully provide for amortization expense.
 Amortization expense is a proxy for the use of FVRL tangible capital assets.
The annual surplus/(deficit) measures the extent to which revenues for the year are sufficient
to fund the cost of the services provided in the year. The budgeted deficit and actual deficit
results show that revenues raised were not expected to be—nor were, in fact—sufficient to
fully fund the year’s service costs.
Such results are not sustainable in the long term and accordingly, these results provide an
impetus for FVRL to more closely examine its financial situation to make adjustments as
required.
Indeed, some of this work has already been done as part of the 2015 budget process that
made adjustments to reflect the reality of lower fine revenues, the most significant “deficit
driver” in fiscal 2014, as well as to include funding for the ERP capital lease repayment which
was not provided for in the 2014 budget. Additionally, the work program for the 2016 budget
includes the development of a longer term financial plan with a focus on tangible capital asset
(capital) expenditure requirements.
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Note: The 2014 budget, does not reflect an “unbalanced budget” as is implied, by the
reported budgeted deficit of ($412,903). It simply reflects the basis of measurement required
to be used to report financial results in the annual financial statements, being Public Sector
Accounting Standards. A more detailed explanation, and a reconciliation from the reported
budget and actual deficit to a “balanced budget” were total sources of funds equal total uses
of funds (i.e., that demonstrates that there were sufficient funds to pay all annual expenses), is
detailed in Note 12 to the financial statements.
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B4: CAPITAL EXPENDITURES
Capital Expenditures
Capital Expenditures - Materials
Capital Expenditures - Other
2014
Budget
3,049,791
50,000
3,099,791
2014
Actual
3,149,861
402,347
3,552,208
$
%
(100,070)
-3.28%
(352,347)
-704.69%
(452,417)
-14.60%
Because capital expenditures are not expensed until they are consumed, with the proxy for
the annual consumption thereof being amortization expense, details of the budgeted and
actual expenditures are not readily apparent in the financial statements. Information on
capital expenditures is contained in the Statement of Net Financial Assets and financial
statement Note 5.
Capital Expenditures – Other, are composed of the following expenditures.
Capital Expenditures – Other
Charge Bar Units
ERP Information system
Other Information systems
Furniture & equipment
FVRL Admin. Building
2014
Actual
167,211
94,619
54,081
55,854
30,582
402,347
The Charge Bar Units were funded via capital lease (debt) and the remaining items from the
Information Systems and the Asset Replacement Reserves.
158
DRAFT
2016-2018 FVRL
STRATEGIC
DIRECTIONS
FVRL Strategic Directions are developed for three to five years. The draft
Strategic Directions below provide direction for 2016-2018.
1.
Customers
Provide collection, services, and facilities to enhance the customer
experience and increase customer engagement.
2.
Staff
Create an agile organization by building capacity with FVRL staff.
3.
Technology
Plan for and provide innovative technologies to advance library
operations and services.
4.
Communication
Communicate and celebrate the achievements and intergenerational
value of libraries.
5.
Collaboration
Work collaboratively with local government, community and other
partners.
159
160
2016 FVRL ANNUAL PLAN DRAFT
Our
Mission
To connect people to the world of information and ideas
Our Vision
To be an innovative organization that is recognized as a vital community destination and resource for literacy, recreation, informed
decision-making, and social interaction.
Our
Directions
Our
Initiatives
DIRECTION ONE:
CUSTOMERS
DIRECTION TWO:
STAFF
DIRECTION THREE:
TECHNOLOGY
DIRECTION FOUR:
COMMUNICATION
DIRECTION FIVE:
COLLABORATION
Provide collections,
services and facilities
to enhance the
customer experience
and increase customer
engagement.
Create an agile
organization by
building capacity with
FVRL staff.
Plan for and provide
innovative technologies to
advance library operations
and services.
Communicate and
celebrate the
achievements and
intergenerational value
of libraries.
Work collaboratively with
local government,
community and other
partners.
Implement integrated
service experience in all
FVRL libraries.
Position FVRL as a
progressive learning
organization.
Transform customer-facing
technology to meet evolving
expectations.
Implement dynamic external
communication strategies that
resonate with FVRL
stakeholders and the public.
Identify local issues, needs
and priorities and explore
ways FVRL can participate.
Create exceptional FVRL
customer experiences.
Refine staffing models to
prepare FVRL for the
future.
Implement technologies that
support collaboration,
improved processes, and
increased staff efficiencies.
Identify and initiate new
metrics and meaningful
analytics.
Explore open data
opportunities that support
open governance.
Offer services, collections
and formats that align with
current trends.
Build a high-performing and
engaged workforce.
Invest in cloud-based
infrastructure and services.
Communicate global trends
that impact libraries for all of
our stakeholders.
Implement a customer
feedback program that
provides insights for
strategic improvements in
library services.
Position FVRL libraries as
marketers / providers of
valued services.
Build a sustainable, fiscally-responsible five-year planning process for every aspect of FVRL’s organizational investment.
Create and implement a customer-centric culture throughout the organization.
161
162
REPORT
TO THE
FVRL BOARD
EBook Advocacy
By Scott Hargrove, Chief Executive Officer
EXECUTIVE SUMMARY
Several organizations, both Canadian and international, are working towards reasonable
pricing models for eBooks from the major publishers.
HISTORICAL OVERVIEW
In The Beginning
Several years ago, libraries started loaning eBooks to their customers. There were many
challenges, ranging from copyright to technological. Of the “Big Five” publishers (Penguin
Random House, Macmillan, HarperCollins, Hachette and Simon & Schuster), initially only one
was even willing to sell eBooks to libraries, and only from a very small list of titles under
extremely stringent restrictions.
Current Status
Both then and now, all publishers are reinventing their business models to properly
incorporate eBooks into their list of products, and are extremely concerned about the radical
changes that have impacted their industry through self-publishing and alternative publishing
services such as Amazon. Similar events completely changed the music publishing industry in
the 1990s.
Early Initiatives
A number of initiatives were started at the international, federal, and provincial level to work
with the publishers to build business models that would work for both the publishers and
libraries. These initiatives resulted in deals with all of the “Big Five” publishers that allowed
libraries to purchase and loan eBooks through third-party providers, including Overdrive and
3M, who provided copyright and security controls.
The cost of eBooks purchased by libraries is significantly higher than the cost paid by the
average consumer, as noted in the 2015 Board Planning Days. Further advocacy efforts are
underway in an effort to bring these costs down to a more reasonable level from the
perspective of libraries.
163
EBook Advocacy
Page 2
FVRL Involved Internationally
At the international level, FVRL was one of the first libraries to sign on to the Readers First
initiative (www.readersfirst.org), a global partnership of libraries working to secure
unrestricted access to eBooks on behalf of library users worldwide.
FVRL Involved Nationally
At the federal level, the Canadian Library Association is working with local public libraries and
a lobbying firm (Impact Consulting). They are attempting to work directly with the publishers,
as well as with the federal government to develop legislative solutions. They have asked
libraries to meet with key federal contacts to ensure that the government is aware of the
issue. Additionally, the Canadian Urban Library Council, of which FVRL is an active member, is
working with its American counterpart, the American Library Association’s Digital Content
Working Group, in support of better access to eBooks for libraries at a more reasonable price
point.
FVRL Involved Provincially
At the provincial level, a variety of initiatives are ongoing, generally tied to provincial library
associations or key lead libraries. In British Columbia, the BC Library Association and
Vancouver Public Library were instrumental in the initial advocacy efforts, with the BC
Libraries Cooperative providing support, and they continue to participate in these initiatives
today. FVRL also has been an active participant in these efforts, with Scott Hargrove serving
as the inaugural Chair of the Licensing Business Function Group which helped to coordinate
these initial campaigns.
ADVOCACY ROLE FOR FVRL BOARD
At this time, given the initiatives currently underway, involvement by FVRL’s Board in eBook
advocacy efforts would be premature. When a role for Board advocacy is identified as an
effective strategy, FVRL’s Board will be invited to be on the forefront of these efforts.
164
REPORT
TO THE
FVRL BOARD
By Scott Hargrove, Chief Executive Officer
With our Board Executive Committee’s encouragement, we are making plans to host a daylong workshop with councils and municipal staff along the lines of Metro Vancouver’s
approach. This initiative is a direct response to Board members’ discussion at Board
Planning Days about FVRL’s compelling need to strengthen relationships, clear up
misconceptions, and increase awareness of all that FVRL contributes to member communities.
TOPICS
The workshop will present FVRL’s value proposition and impart the industry-recognized
expertise of our CEO and directors on topics such as:
1. information technology trends and their impact,
2. book publishing trends and their impact,
3. analytics, metrics, big data,
4. customer experience and demographic trends,
5. community impact of all these trends.
THE IMPORTANCE AND BENEFITS OF THIS WORKSHOP
For Our Municipal Stakeholders:
1. Access to important, dramatic information that impacts their municipalities
2. Deeper understanding of value of libraries in their communities
3. Heightened respect for, and confidence in, FVRL’s leadership
4. Face to face networking with FVRL leadership and presenters
For FVRL:
1. Proves our expertise:
a. CEO Scott Hargrove is a known and respected presenter in Canada and the US at
events designed for library leaders, boards, and government officials. His
presentations focus on Technology Trends, New Business Models for Libraries, and
New Competition for Libraries.
b. FVRL leadership offers comprehensive, relevant information about technology, trends,
and libraries about social trends that impact communities.
2. Communicates powerful, practical message to all municipalities—council members and
senior staff alike.
3. Establishes FVRL as a significant leader and contributing community partner.
4. Celebrates what FVRL is doing, as per Board Planning Days discussion.
165
Page 2
DETAILS
Date:
Time:
Place:
Cost:
Includes:
Thursday, November 26, 2015
9:00 am – 4:00 pm
Ramada Plaza Abbotsford
Funded by FVRL
Continental breakfast, breaks, lunch
ACTION FOR BOARD MEMBERS
1. Attend in person to demonstrate your personal support for FVRL.
2. Actively encourage your mayor, all council members, and senior administration to attend.
3. Profile Scott Hargrove’s influence among library leaders in North America to shape the
future of libraries (see About FVRL CEO Scott Hargrove, attached).
166
ABOUT
FVRL CEO
SCOTT HARGROVE
Scott Hargrove, Chief Executive Officer of Fraser Valley Regional Library, is
known and respected as a presenter in Canada and the US at events
designed for library leaders, boards, and government officials. His
presentations focus on Technology Trends, New Business Models for
Libraries, and New Competition for Libraries.
Past Audiences
• Called upon by North America’s two leading library consulting firms to speak at
conferences designed to shape the future of libraries in Canada and the US.
• Invited speaker at prestigious attendance-by-invitation-only Future of Libraries Summit at
Computers in Libraries conference in Washington, DC
• Chosen to speak at library professional conferences: Canadian Library Association, BC
Library Association, Ontario Library Association super conference.
• Presentations to Canadian Urban Library Council and Association of BC Public Library
Directors, professional associations of national and provincial library leaders.
Notable Associates
Scott Hargrove is increasingly well connected and has shared conference podiums with
notables such as:
• Susan Hildreth, Director of Institute of Museum and Library Services
o Appointed by President Obama and unanimously confirmed by the US Senate.
o Former city librarian of Seattle where she managed the Seattle Public Library, which
served more than 14 million visitors, and circulated nearly 12 million books and
materials in 2010.
o Hildreth was the former state librarian of California.
o IMLS advances innovation, lifelong learning, cultural and civic engagement, and
provides leadership through research, policy development, and grant making.
• Lee Rainie, Director of Internet, Science and Technology, Pew Research Centre
o Expertise: Internet and Technology, Libraries and e-Reading, Mobile Technology,
Politics and Elections, Science, Social Media
o He gives several dozen speeches a year to government officials, media leaders,
scholars and students, technology executives, librarians, and non-profit groups about
the changing media ecosystem.
o He is also regularly interviewed by major news organizations about technology trends.
• Mary Lee Kennedy, Chief Library Officer, New York Public Library
o NYPL is the world’s largest public library, serving more than 18 million people who
come through its doors annually and millions more around the globe who use its
resources at www.nypl.org.
167
ABOUT SCOTT HARGROVE
FVRL CEO
Page 2
•
•
•
•
•
o Her focus is to accelerate the Library’s digital initiatives and further strengthen
through cooperation both the research and circulating divisions of the Library.
o From Harvard University, where as Senior Associate Provost she was the central
administrative leader of one of the world’s greatest research library networks.
David Weinberger, Fellow at the Berkman Center for Internet and Society at
Harvard Law School
o David Weinberger writes about the effect of technology on ideas.
o Weinberger's work focuses on how the Internet is changing human relationships,
communication, and society
o He has been a philosophy professor, journalist, strategic marketing consultant to high
tech companies, Internet entrepreneur, advisor to several presidential campaigns, and
a Franklin Fellow at the US State Department.
o Former Co-Director of the Harvard Library Innovation Lab at Harvard Law School
Corinne Hill, Executive Director, Chattanooga Public Library
o CPL is one of the first libraries in the United States to offer free gig access to its
residents. In addition to providing faster downloads of ebooks and other materials, the
library’s gig access opens up partnering potential for the library and can help make it
the “creative hub for the community,”
o Transformed CPL, bringing video games, programming tutorials, 3-D printing, rock
music, and a new, up-to-date rendition of programs and services to citizens of all
ages—an innovative, ever-changing package to awaken a library long ready for a new
life. In less than two years, CPL has been reinvented.
Rebecca Jones, Partner, Dysart Jones & Associates
o Extensive experience as a project manager and facilitator working with a broad range
of organizations in academic, public, non-profit and corporate sectors, on long-term
and implementation planning, organizational design and staffing, decision-making,
problem-solving.
o Former director of continuing education at University of Toronto’s iSchool.
Moe Hosseini-Ara, Director of Culture, City of Markham
o Director of Culture with the City of Markham where he oversees the public art
portfolio for the City, the art gallery, museum and theatre.
o Formerly Director of Service Excellence at Markham Public Library where he led the
organization through numerous innovative and transformational changes
o Moe is a regular presenter at library conferences, speaking on RFID, customer service
metrics and MPL's award winning Customer Centered Classification system
Rebecca Raven, CEO of Brampton Public Library
o Passionate enthusiasm for the leadership and future of public libraries in Canada.
o Co-creator of the CULC/iSchool sponsored Public Library Leadership Fellowship
Programme
168
REPORT
TO THE
FVRL BOARD
2014 Municipal Surplus Reserve Allocations
By Nancy Gomerich, Director of Finance
BACKGROUND
Board policy states that 50% of the direct annual salary and benefit surplus for each member
(“S&B Allocation”) will be allocated to that member’s Municipal Surplus Reserve. The 2014
S&B Allocation totals $137,904, with the break-down by member detailed below.
Historically this allocation has been made from the respective year’s annual surplus attributed
to the Unappropriated Surplus component of FVRL’s Accumulated Surplus.
CURRENT STATUS
In fiscal 2014, the financial results were an annual deficit of ($614,460) and the amount
attributable to the Unappropriated Surplus was a deficit of ($451,942), leaving a deficit balance
in the Unappropriated Surplus account of ($45,872).
Table A below provides a summary of FVRL Accumulated Surplus and the various categories
that make up the balance.
TABLE A
ACCUMULATED SURPLUS
2014
Category
Actual
(1) Unappropriated (Deficit) Surplus
(2) Reserves—General
Information Systems Reserve
Asset Replacement Reserve
Collections Expansion Reserve
Future Services Reserve
Specific Programs Reserve
Subtotal A:
(3) Reserves—Municipal Surplus
Subtotal B:
(4) Investment in Non-Financial Assets
TOTAL
(45,872)
2013
Actual
(Revised)
406,070
287,482
304,911
74,254
0
233,750
854,525
630,125
1,484,650
9,465,709
10,950,359
283,099
387,127
157,955
32,078
216,283
1,482,612
617,984
2,100,596
9,464,223
11,564,819
2014
Deficit
(451,942)
4,383
(82,216)
(83,701)
(32,078)
17,467
(628,087)
12,141
(615,946)
1,486
(614,460)
169
2014 Municipal Surplus Reserve Allocations
Page 2
NEXT STEPS
1. It is recommended that the S&B Allocation to the Municipal Surplus Reserve be funded in
full from the Asset Replacement Reserve on the simple basis that this reserve has the
largest balance at this time and no funding requirements for 2015 currently are identified.
2. As part of the 2016 budget process, a review of the surplus and reserves will be
undertaken for all of FVRL’s reserves and surplus balances, with the objective to identify
the desired balances and related funding plans and supporting policy.
RECOMMENDATIONS
THAT $137,904 be transferred from the Asset Replacement Reserve to the Municipal Surplus
Reserve, as the funding source for the 2014 Salary and Benefit Surplus Allocation.
THAT the 2014 Salary and Benefit Surplus Allocation, calculated in accordance with Board
policy and totaling $137,904, be attributed to each member as listed:. Abbotsford $0;
Chilliwack $20,457; Delta $16,350; Fraser Valley Regional District $0; Hope $5,395; Kent $0;
Langley City $8,975; Langley Township $29,406; Maple Ridge $17,123; Mission $16,171; Pitt
Meadows $10,012; Port Coquitlam $14,017; White Rock $0.
MUNICIPAL SURPLUS RESERVE ALLOCATIONS
Local Government
Abbotsford
Chilliwack
Delta
Fraser Valley Regional District
Hope
Kent
Langley City
Langley Township
Maple Ridge
Mission
Pitt Meadows
Port Coquitlam
White Rock
Total
2015 Allocation
0
20,457
16,350
0
5,395
0
8,975
29,406
17,123
16,171
10,012
14,017
0
$ 137,904
170
DRAFT
FINES
AMNESTY
TERMS OF REFERENCE
The member local governments of Fraser Valley Regional Library may request the FVRL
Board’s approval of a Fines Amnesty Day for their libraries.
Amnesty for library fines is defined as forgiveness of fines on overdue library materials that
are returned on Fines Amnesty Day to the FVRL library hosting Fines Amnesty Day.
The intent of a Fines Amnesty Day is to provide an opportunity for a fresh start for customers
who may have stayed away from the library and to celebrate the library as a vital community
destination and resource for literacy, recreation, informed decision-making, and social
interaction.
In recognition of the shared costs of FVRL library services, approval of a Fines Amnesty Day
is the sole purview and responsibility of the FVRL Board.
A Fines Amnesty Day will be used only to enhance library services of Fraser Valley Regional
Library as per the Board-approved Procedure.
Each library may hold one Fines Amnesty Day every year.
PROCEDURE
1.
The member local government wishing to hold a Fines Amnesty Day in its library(ies)
will submit a formal request not less than three months in advance to the Board of
Fraser Valley Regional Library for its consideration.
2.
The Board of Fraser Valley Regional Library will determine by a majority vote whether
or not the Fines Amnesty Day is approved.
3.
With Board approval, the library manager of the library(ies) hosting Fines Amnesty
Day will implement the Fines Amnesty Day in consultation and cooperation with the
Director of Client Services and other FVRL staff.
171
REPORT
TO THE
BOARD
Automation Reserve Drawdown
By Dean Kelly, Acting Director of Information Technology and Support Services
ISSUE
FVRL’s current network infrastructure equipment is at the end of its useful life and no longer
will be supported by the vendor as of July 2015. Thereafter, any failed parts will be unable to
be replaced.
 Given the critical nature of this equipment to FVRL’s operation, a failure of this magnitude
would result in major network downtime across the entire system as well as significant
additional costs.
 The end of life date was anticipated and this work was originally planned for fiscal 2014
but was deferred due to fiscal concerns.
BACKGROUND
FVRL’s network infrastructure environment is composed of:
1. a Storage Area Network (SAN) that stores and backs up all data;
2. virtual computing, which provides a cloud-based environment to efficiently manage our
many access points; and
3. the computing power to effectively run 26 locations.
The useful life of the majority of the virtual infrastructure (VI) assets is three years.
RECOMMENDED APPROACH
We will replace each of these separate tiers of infrastructure with a single VI, a process
known as hyperconvergence, which is the recommended approach for this type of
infrastructure replacement. At this time only one hyperconverged solution meets our needs.
This further evolution of our VI will introduce gains in both operating efficiency and overall
service level, allowing staff to continue to manage service growth and new technology
services within existing resources.
KEY CONSIDERATIONS
1. At December 31, 2014 the Automation Reserve Balance was $287,482.
2. The 2015 budget included an addition to this reserve of $50,000, bringing the total
balance to $337,482.
3. For fiscal 2015, it is anticipated that further use of the Automation Reserve will not be
required.
172
Automation Reserve Drawdown
Page 2
4. Additional information systems capital expenditures for 2015 will be managed within the
existing capital expenditure budget of $37,500 and information systems operating budget.
5. As part of the 2016 budget process, a long term capital plan will be developed for FVRL
information systems assets, including identifying related funding requirements.
COSTS
Automation Reserve Drawdown Summary
Virtual Network Infrastructure Equipment & Services
15% contingency
Total
Cost
$ 181,547
$ 27,232
$ 208,779
NEXT STEPS
Once purchase approval is received, the equipment will be ordered and installed as soon as
possible in order to minimize related risks.
RECOMMENDATION
THAT the Board approve use of $208,779 in the Automation Reserve to replace and upgrade
FVRL’s virtual infrastructure.
173
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fvrl board - Fraser Valley Regional Library

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