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Short-term and Bridge FinancingThe NSMFC's reserve fund is used to provide short-term loans to clients who have completed their capital projects and are awaiting participation in the debenture issue. The term of these short-term loans is for a period of not greater than one year, and interest is charged at a rate of Bank of Montreal's prime lending rate less 1 per cent. In addition to the short-term financing program, the NSMFC also offers a bridge financing program specific to projects cost-shared under the Canada—Nova Scotia Infrastructure Works Program (CNSIWP). Under the terms of the CNSIWP agreement, financing costs are not an eligible expense for cost-sharing purposes. NSMFC offers financing at a rate of banker's acceptance plus 100 basis points to help offset some of the financing costs of these projects.
Financing under both of these programs is for completed projects only. The NSMFC does not normally provide financing for capital projects that are under construction. Interest is calculated on a daily basis, and payments are due every six months or when the project is financed long term through the NSMFC, whichever comes sooner. Administering the Federation of Canadian Municipalities (FCM) Green Municipal FundsThe NSMFC is partnering with the Federation of Canadian Municipalities (FCM) to administer Green Municipal Funds loans. Nova Scotia legislation restricts where municipalities can borrow; under the Municipal Finance Corporation Act (section 16) municipalities can borrow only from the NSMFC, the provincial government and its agencies, and the federal government and its agencies. In order to allow municipalities access to this source of low-cost funding, the NSMFC has agreed to administer FCM Green Municipal Funds loans on behalf of Nova Scotia municipalities.
Borrowings from the FCM Green Municipal Funds are subject to the same legislative and approval processes as all other debentures issued by the NSMFC. Promoting Financial Management in MunicipalitiesFinancial Management Capacity Building CommitteeThe NSMFC and the Association of Municipal Administrators of Nova Scotia (AMA) have formed a joint committee with the goal of developing financial management best practices for use by municipalities in Nova Scotia. The committee strives to be representative of all municipalities in the province. It includes finance professionals working in towns and regional and rural municipalities, as well as representatives from the Department of Service Nova Scotia and Municipal Relations. The committee uses recommended practices that have been developed by the Government Finance Officers Association (GFOA) and adapts them to fit to Nova Scotia legislation and practices. This is second year that the committee has been in place. Since 2003, the committee has developed 32 recommended best practices. These best practices have been categorized so any best practice can be easily found: Budgeting and Financial Reporting Statistical/Supplemental Section of the Budget *updated Adoption of Financial Policies *updated Performance Management: Using Performance Measurement for Decision Making *updated Relationship between Budgetary and Financial Statement Information *updated Setting of Government Charges and Fees *updated Management's Discussion and Analysis in Annual Reports and Financial Statements *updated Multi-Year Capital Planning *updated Debt Management Policy *updated Appropriate Level of Unreserved Operating Fund Balance *updated Use of Cash Flow Forecasting in Operations *updated Financial Forecasting in the Budget Preparation Process *updated Preparing Popular Reports *updated Providing a Concise Summary of the Budget *updated Sustainability *updated Need for Periodic Inventories of Capital Assets *updated Budgeting for Results and Outcomes *new Measuring the Cost of Government Services *coming soon Cash Management Bank Account Fraud Protection *updated Revenue Control and Management Policy: Accounts Receivable Controls *updated Revenue Control and Management Policy: Payment Controls *updated Acceptance of Credit Cards and Debit Cards *updated Electronic Commerce *updated Procurement of Banking Services *updated Purchasing Card Programs *updated Accounting / Auditing Audit Procurement *updated Auditor Association with Financial Statements Posted on Websites *updated Documentation of Accounting Policies and Procedures *updated Audit Committees *updated Enhancing Management Invovlement with Internal Control *updated Establishment of an Internal Audit Function *updated Information and Computer Technology Using a Website to Disclose Financial Information *updated Technology Disaster Recovery Planning *updated Electronic Signatures *coming soon Policy Guidelines Purchasing Policy *new Business Preparedness and Continuity Guidelines *coming soon For any questions or comments on the best practices or if you are interested in joining the FMCBC, please contact Melissa de Witt or at 902-424-3260. Municipal Finance Training and Capacity Building ProgramThe purpose of the Municipal Finance Training and Capacity Building Program is
The NSMFC, in partnership with the Department of Service Nova Scotia and Municipal Relations, sponsors two financial professionals working in municipal government in Nova Scotia to attend the annual GFOA Conference. This international conference is dedicated to the development of financial excellence in local government, through the use of best practices and benchmarking. Sponsorship is in the amount of $2,000, which represents approximately 70 to 80 percent of the total cost of attending the conference (depending on the conference location). Letters seeking interested candidates are mailed to all municipal units in late winter. One of the requirements of receiving funding to attend the GFOA conference is that the sponsored candidates make presentations to the Nova Scotia Association of Municipal Administrators' annual conference and/or other local government workshops and conferences. This sharing of experiences exposes municipal finance professionals across the province to the benefits of training that is focused on local government finance. It is anticipated that, over time, this will encourage the use best financial practices as well as efforts to maintain high standards in budgeting, capital planning, and financial reporting. 
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