2010 AnnuAl Service PlAn rePort - BC Assessment · 2016. 1. 12. · in 2010 and to acknowledge...

2 0 1 0 A n n u A l S e r v i c e P l A n r e P o r t

3Reliable, Accessible, Uniform and Respectful

table of contents

Message from the Board chair to the Minister responsible 4

2010 Highlights 6

organizational overview 8Vision, Mission and Values 8

Mandate 9

Our Customer Service Commitment 11

How We Collaborate 12

How We Ensure Fair and Accessible Assessment Information 12

How We Are Funded 13

Organizational Structure 13

corporate Governance 15Board of Directors 15

Governance Principles 17

Shareholder’s Letter of Expectations 17

Public Accountability and Reporting 17

Strategic context 18

report of the Auditor General of British columbia 20

2010 report on Performance 22Setting Performance Targets 24

Benchmarking 24

Data Source Reliability and Limitations 24

Strategic Risk Management 25

PERFORMANCE ON GOAL 1: PEOPLE AND CULTURE 29

Goal Statement 29Strategy 29Strategic Risks 29PM.1: Employee Engagement Survey Results 29

PERFORMANCE ON GOAL 2: CUSTOMERS 32

Goal Statement 32Strategy 32Strategic Risks 32PM.2: Residential/Non-Residential and Local Government/ First Nations Survey Results 33

PERFORMANCE ON GOAL 3: RELATIONSHIPS 35

Goal Statement 35Strategies 35Strategic Risks 35PM.3: Provincial Government Survey Results 35

PERFORMANCE ON GOAL 4: PRODUCTS AND SERVICES 37

Goal Statement 37 Strategies 37Strategic Risks 37

PM.4: Percentage of Assessments Accepted without Appeal 38PM.5: Assessment to Sales Ratio – Residential and Non-Residential 40PM.6: Coefficient of Dispersion – Urban and Rural 41

PERFORMANCE ON GOAL 5: EFFECTIVENESS 44

Goal Statement 44Strategy 44Strategic Risks 44PM.7: Roll Stability 45PM.8: Cost Per Property 46 PM 9: Greenhouse Gas Emissions 48

Financial review and Statements 50 Management’s Discussion and Analysis 50

Audited Financial Statements 55

British Columbia Assessment Authority Statement of Management Responsibility 56

Report from the Auditor General 57

Appendix A: Progress against the 2010 Shareholder’s Letter of Expectations 74

Appendix B: links to resources 76

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Message from the Board chair to the Minister responsible

The Honourable Ida ChongMinister of Community, Sport and Cultural DevelopmentGovernment of British Columbia

Dear Minister,

On behalf of the Board of Directors, management and employees of the British Columbia Assessment Authority (BC Assessment), I am pleased to present the 2010 Annual Service Plan Report. BC Assessment is proud to report that, in an ongoing effort to improve our performance reporting and the quality of our annual service plan report against the BC Reporting Principles, we have submitted our annual report for a voluntary audit to the Office of the Auditor General of B.C. The results of this audit are detailed in this Report.

The past year saw further slow recovery from the global recession of late 2008 and early 2009. In 2010, market values, which are the basis for the valuation of properties across the province by BC Assessment, continued the normalization trend as reported by the BC Real Estate Association. BC Assessment has now produced two assessment rolls since the government passed the Economic Incentive and Stabilization Statutes Amendment Act in late 2008. This Act applied only to the 2009 roll when it artificially adjusted property valuations

in an attempt to match the sudden drop in market values in late 2008. BC Assessment was able to manage the transition back to the normal assessment process for the past two years and we have exceeded all of our assessment roll quality performance levels on the 2011 assessment roll that was delivered to our customers in early January 2011.

The operation of BC Assessment is funded primarily through a property tax levy. Our cost per property performance measure reflects our ongoing commitment to keep the costs of providing assessment services for property owners as low as possible. In 2010, we successfully met our average cost per property performance measure with a result of $39.99, which was below our target of $40.49. As an example of our continued efforts to limit potential increases in the property tax levy rate, we kept our levy rates at the 2010 levels and did not increase them in 2011.

BC Assessment has seen annual increases year over year in the number of new properties that require assessment services. In 2010, we added a further 19,206 folios to the assessment roll, the equivalent of adding a city the size of Port Coquitlam or New Westminster to the assessment roll in one year. This ongoing growth presents a significant challenge for the organization to continually meet its mandate and commitment to quality products and

services. To help address this challenge, the Board has approved major investments to implement geospatial technology and new software to enhance our property re-inventory processes as well as develop the next generation of valueBC, our core valuation system. In addition, we are striving to build strategic partnerships with information technology service providers, the province and local governments to meet mutual business needs.

At BC Assessment, we are also committed to engaging our staff to ensure that we retain, attract and develop a highly skilled workforce. A skilled workforce is a critical asset for the highly specialized nature of BC Assessment’s core business and to also ensure quality customer service. While we were unable to meet our engagement performance measurement target in 2010, we are committed to continue efforts to support the objective of increased staff engagement results over time. The commitment to increase our performance in this area recognizes that People and Culture remains our number one corporate goal and primary area of risk.

Excellence in customer service is a key strategic goal for BC Assessment. We have consistently set stretch performance targets for our customer service to support our commitment to be reliable, accessible, uniform and respectful and to help define how we work with our


Message from the Board chair to the Minister responsible

customers. In 2010, we missed our customer service target for residential and non-residential property owners by less than 1%. For 2011, we are continuing with our ambitious customer service targets and are looking to continually improve the services and products we provide through enhancement projects such as evolving our popular e-valueBC application that enables customers to go online quickly to review their own property assessments and compare their properties with those of their neighbours.

BC Assessment was established to operate at arm’s length from taxing authorities and maintain uniform and reliable assessments that form the basis for determining property tax levels in communities throughout British Columbia. Trust in uniform and reliable assessments was one of the primary principles that was the catalyst for the establishment of BC Assessment as a Crown corporation

36 years ago. Our vision “to be trusted to value B.C.” drives us to uphold this founding principle. We are committed to work with our customers, stakeholders, partners and staff to continue to provide quality products and services, measure performance and demonstrate continuous improvement.

Looking forward, we will continue to pursue initiatives that support the achievement of our corporate goals to ensure effective responses to our challenges and opportunities. Some of our planned initiatives include increasing our investment in training for our employees, adding to the number of accredited appraisers in the organization and undertaking longer term strategic planning for our technology and information management systems. We will support and monitor these initiatives through an enhanced management information system and the ongoing implementation of business best

practices to ensure BC Assessment remains an effective and agile service delivery organization.

I would like to take this opportunity to thank my fellow Board members for their support and ongoing commitment to the organization as we plan and manage through these challenging, but also opportunistic times. In addition, I would like to thank the BC Assessment staff who dedicated themselves toward achieving our performance targets in 2010 and to acknowledge those staff who contributed to the success of the organization but who retired from the organization over the past year.

Anna NyaradyCHAIR, BOARD OF DIRECTORS

AccountABilitY StAteMent

BC Assessment’s 2010 Annual Service Plan Report was prepared by management under the Board’s direction in accordance with the Budget Transparency and Accountability Act and the BC Reporting Principles. The Board of Directors, through its direction to the President and CEO and its review of this report, is responsible for the contents of the annual report, including what is covered and how it has been reported.

The information presented reflects the actual performance of BC Assessment for the 12 months ended December 31, 2010 in relation to the 2010–2012 Service Plan (published in March 2010).

The Board is responsible for ensuring internal controls are in place to ensure information is measured and reported accurately and in a timely fashion.

All significant assumptions, policy decisions, events and identified risks, as of May 17, 2011, were considered in preparing the annual report. The report contains estimates and interpretive information that represent the best judgement of management. Any changes in mandate, direction, goals, strategies, measures or targets since the 2010–2012 Service Plan was released in March 2010 and any significant limitations on the reliability of the data are identified in the report.

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Our 2010–2012 Service Plan set out an ambitious framework of strategies, initiatives and projects. We increased our efforts to ensure our people, technology and processes are fully aligned with our strategic direction. In 2010, we successfully met five of our seven performance measure targets1; details of our performance measures are given on pages 22 to 49.

The highlights are presented using a balanced scorecard approach, showing both financial and non-financial accomplishments. For 2010, in spite of relatively constant staffing levels in the face of increases in the number of folios, BC Assessment achieved the following:

customer • Implemented a completely revamped and

improved public website

• Improved e-valueBC, an online tool for comparing assessments, by adding more search capabilities and a better user experience

• Worked with local governments to better understand their needs and explored opportunities for acquiring data from local governments

• Collaborated with the province and local governments to ensure more accurate assignment of boundaries for basic services

• Explored partnerships with local governments and utilities to share the cost of acquiring aerial photography

• Continued our extensive use of geospatial technology and our partnership with the Integrated Cadastral Information Society (ICIS)

Process • Initiated a significant refinement of the

enterprise risk management program

• Proceeded with investments to update the technology platform and functionality of valueBC, our core valuation system

• Introduced a computerized residential mass appraisal tool used by appraisers at their desktop (Desktop Review)

• Created greater efficiency and province-wide uniformity in property inventory adjustments by enforcing consistent valuation rules

• Implemented 2010 Farm Assessment Review Panel recommendations, as approved by the provincial Cabinet

• Continued to work with the Ministry of Community, Sport and Cultural Development to improve Property Assessment Review Panel (PARP) operations through business process improvements, incorporation of customer feedback and improved communications

2010 Highlights

1 BC Assessment has a total of nine performance measures. In 2010, we only reported on seven of them as two of our performance measures are biennial surveys and there was no survey in 2010. In 2011, we will be reporting on all nine performance measures.

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2010 Highlights

Financial • Met all financial and regulatory reporting

requirements to the province and other stakeholders

• Commenced execution of a new enterprise resource planning system (finance/human resources/payroll) to be implemented at the end of 2011

• Commenced conversion to Public Sector Accounting Board standards as required by government

• Designed a new activity-based management system to provide management with information on the effective use of resources

• Continued development on the forecasting and budget systems and processes

• Maintained strong financial results by realizing total gross revenue of $81.2 million, 0.19% over budget; and held the total operating expenditures to $80.1 million, 1.14% lower than budget. For more information, please see the Audited Financial Statements section.

learning and Growth• Concluded a new collective agreement

within our mandate that features an agreement with the union to explore flexible workplace options

• Formed a Senior Leadership Team consisting of Head Office support department directors and field operations assessors to support employee engagement, be more involved in the strategic planning process, and become responsible for the development and implementation of the annual corporate business plan

• Introduced a formal apprenticeship program for appraisal professionals

• Increased our emphasis on organizational development including leadership development, engagement strategies and succession planning

• Enhanced our learning strategy and invested additional funds for employee development

Facilities • Relocated our Head Office to a new

Leadership in Energy and Environmental Design (LEED) gold-standard facility to help reduce our carbon footprint. The facility was designed to increase the number of collaborative work areas to improve productivity and enable more efficient use of space.

• Consolidated the three offices in the Okanagan Region into one regional office in Kelowna to realize financial savings and to improve operating performance

Details on these highlights are interspersed throughout the document.

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organizational overview

Our organizational vision, mission, values and service commitment provide the strategic framework that acts as our guiding compass to ensure that we continue to meet our value proposition to our customers, our Shareholder and the citizens of B.C.

vAlueS

Our values are integral to guiding our everyday work. Our values guide our actions, attitudes and behaviour in our pursuit to fulfill our mission. BC Assessment staff is guided by the following corporate values:

inteGritY: We act in an ethical manner and we honour our commitments.

trAnSPArencY: We are fair and open in how we conduct our business.

iMPArtiAlitY: We are objective and unbiased. We do our work and make our decisions without favour or prejudice.

innovAtion: We provide creative business solutions and support a culture of continuous improvement.

cuStoMer Service coMMitMent

reliABle: We offer accurate products and professional service.

AcceSSiBle: We provide timely access to staff and information.

uniForM: We are consistent and fair in the way we serve you.

reSPectFul: We maintain positive relationships both internally and externally.

viSion

We are trusted to value B.C.

MiSSion

To create uniform assessments which are relied upon to build sustainable communities throughout B.C.


MandateBC Assessment is a provincial Crown corporation funded through a property tax levy with the legislated mandate to establish and maintain assessments that are uniform in the whole of British Columbia, in accordance with the Assessment Act. While BC Assessment has no direct role in property taxation, property assessments form the basis of distributing property tax for the taxing authorities that include 161 municipalities, 27 regional districts, 226 improvement districts and 57 First Nations.

BC Assessment’s mission is to create uniform assessments that are relied upon to build sustainable communities throughout B.C. We produce the assessment roll, which provides the foundation for a stable tax base for taxing authorities, raising approximately $6 billion in general property tax revenue in 2010. These funds allowed communities to sustain their public services such as transportation and utility infrastructure, schools, police and fire services, parks, and recreational and cultural services.

The provision of an annual assessment roll is central to our work (see Table 1). The assessment roll contains the legal description, ownership information, assessed value, use classification, tax exemption status and other details for every property in B.C. Each year, BC Assessment estimates the market value of properties as of July 1, and every December 31 provides an annual assessment roll to each taxing jurisdiction and sends a Property Assessment Notice to every designated

property owner. In December 2010, notices were sent to property owners for more than 1.9 million properties – an increase of 19,000 properties from the 2010 Assessment Roll, which is the equivalent of adding a city the size of New Westminster or Port Coquitlam. The taxable value of the 2011 Assessment Roll exceeded a trillion dollars for the first time at $1.04 trillion, an increase of almost $74 million over the 2010 Assessment Roll.


HiStorY

Prior to the formation of BC Assessment, local governments depended on their own separate assessment organizations. Assessment criteria and valuation methods varied, and assessments were frequently challenged and often difficult to defend. By 1973, with 140 independent assessment organizations in B.C., the situation had grown into a serious provincial crisis of trust. Alarmed with the rising incidence of equity grievances, and pressured by property owners and the public sector, the provincial government created the BC Assessment Authority in 1974. Six months later, the Authority created B.C.’s first impartial and independent assessment roll. When established in 1974, BC Assessment had 879,125 folios on the assessment roll, with a value of $42.2 billion, and was supported by 704 staff. In 2011, approximately 650 full-time staff manage a portfolio that has grown to more than 1.9 million folios, with a value of over $1 trillion.

For more information on BC Assessment’s history, see www.bcassessment.ca/about/Pages/History.aspx.

www.bcassessment.ca/about/Pages/History.aspx


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tABle 1: Bc ASSeSSMent’S core ProductS

Product detAil

Assessment roll completed roll – Annual assessment roll completed, approved by regional assessors by December 31 and used to calculate taxation in the following year.

revised roll – Includes amendments made by a Property Assessment Review Panel (PARP) during February to mid-March each year.

Supplementary roll – Contains changes and corrections, including decisions from the Property Assessment Appeal Board (PAAB). Supplementary rolls are issued between April and December.

Grant roll – Contains the assessed value of properties that are exempt from property taxation, such as government properties, schools and hospitals. A total of 10 grant rolls (e.g., BC Hydro, TransLink and BC Rail) are issued by March 31 each year. The roll that values these exempt properties serves as the foundation for payments in lieu of property taxes.

First nations Assessment roll BC Assessment completes an assessment roll on approximately the same schedule as above for 57 First Nations (55 under contract plus two treaty communities) that have authority to establish independent real property taxation systems.

Assessment notice An assessment notice details the assessed value of the land and any improvements on the property. Assessment notices are mailed by December 31 to every person designated on the assessment roll to receive one.

Statutory report Statutory reports are released with the completed and revised rolls, and give value summaries for specific taxation purposes such as funding for school districts, regional districts, local areas, and hospital and transit services.

cAlendAr YeAr vS. roll YeAr

Throughout the annual service plan report, we refer to both calendar years and roll years. The assessment roll production cycle means that the work completed each year supports the assessment roll released for the following year. Thus, the 2010 calendar year is the period in which we create the 2011 Assessment Roll. The 2010 performance measure results therefore reflect performance both in the period of roll production (2010 calendar year) and on roll quality (2011 Assessment Roll). In figures and tables, the 2010 roll year refers to the 2011 Assessment Roll.

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our customer Service commitmentLiving up to our values and our commitments is essential to maintaining the trust placed in us by the provincial government and the people of B.C. Our customer service commitment (see Table 2) to be reliable, accessible, uniform and respectful defines how we work with our customers. To be trusted and valued, we need to meet customer needs as fully as possible while operating within our given mandate. At BC Assessment, we are continually working to improve our customer service.

The efforts of all staff, both in field operations and in the support divisions, are coordinated to meet BC Assessment’s mandate and goals. Whether they are collecting data, interacting with customers, building stakeholder and partner relationships, managing our facilities and resources, or developing and maintaining our systems and processes, all staff members contribute to the quality of our products and customer service.


tABle 2: Bc ASSeSSMent’S cuStoMerS And cuStoMer Service coMMitMent

Local Government• 161 municipalities• 27 regional districts• 226 improvement

districts

Non-Residential Folios• 167,043 market• 27,054 non-market

First Nations• 57 First Nations

Residential Folios• 337,179 rural• 1,372,302 urban

Customer Service Commitment

reliABle: We offer accurate products

and professional service

AcceSSiBle: We provide timely access to

staff and information

uniForM: We are consistent and fair in

the way we serve you

reSPectFul: We maintain positive

relationships both internally and externally

FolioS, PArcelS And ProPertieS

Folio (BC Assessment) – A collection of data, identified by a roll number, that consists of ownership, actual value and other information required for assessment purposes. The data in a folio usually describe one parcel and any improvements on it. A folio may describe multiple parcels and their improvements, or a portion of a parcel and/or the improvements on such a parcel. Folio is synonymous with (Assessment) Roll Number.

Parcel (Assessment Act) – A lot, block, or other area in which real property is held or into which real property is subdivided and includes the right or interest of an occupier of Crown land but does not include a highway or portion of a highway.

Property (Assessment Act) – Includes land and improvements.

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How We collaborateBC Assessment works closely with our Shareholder, the provincial government, to assist in the development of assessment policy and to ensure that the government is aware of emerging issues. Local government taxing jurisdictions are one of our primary customers and are represented by stakeholder organizations such as the Union of British Columbia Municipalities, the Local Government Management Association, the Municipal Information Systems Association, the First Nations Tax Commission and the Government Finance Officers Association of British Columbia. BC Assessment has enhanced consultation with taxing jurisdictions through the establishment of a Taxing Jurisdiction Advisory Committee (TJAC). For more information about the TJAC, please go to www.bcassessment.ca/govt/local-government/Pages/TJAC.aspx.

BC Assessment also consults with a variety of property owner groups. We work directly with a number of partner organizations such as the Appraisal Institute of Canada, the Real Estate Institute of British Columbia, the Sauder School of Business, University of British Columbia, the Integrated Cadastral Information Society (ICIS) and the International Association of Assessing Officers (IAAO) to continually improve the assessment system in B.C.

BC Assessment has continually evolved its use of the geographic information system and mapping technologies to enhance business

performance. We now have achieved 100% electronic assessment-mapping coverage of the province. This coverage will improve the consistency and uniformity of our valuation processes and enable us to use this information for the business benefit of staff and our external customers. As well, through ICIS we have contributed to the building of strong partnerships with the provincial government, local government and utilities in B.C. to establish a base cadastre (mapping fabric) for the province that a wide variety of organizations are using to improve their business. With the rapidly emerging use of a range of geospatial technologies, we believe BC Assessment (with ICIS) continues to play a leadership role in evolving stronger partnerships provincially that will be instrumental in creating a broader application of geospatial technologies and imageries for the greater public benefit in B.C.

How We ensure Fair and Accessible Assessment informationBC Assessment must deliver property assessments that are fair and accurate. Property owners have access to a range of options to ensure the accuracy or impartiality of their assessment. Property owners can go online and use e-valueBC to compare their assessments with those of their neighbours. They can also contact us in person, by phone or via email.

To facilitate the resolution of assessment complaints, local BC Assessment appraisers can often resolve issues with a property owner before the February to mid-March Property Assessment Review Panel (PARP) appeal period begins. In cases where informal resolution with the appraiser is not possible, the matter can be forwarded to a local PARP. Prior to April 30, property owners may appeal panel decisions to


“ How can I check that my assessment is accurate, compare assessments or view property sales?

Step 1: Go to www.bcassessment.ca

Step 2: Click on “e-valueBC – Compare Assessments Online”

Step 3: Select your property, and view other property values in your neighbourhood, or anywhere in B.C.

www.bcassessment.ca/govt/local-government/Pages/TJAC.aspx


www.bcassessment.ca



the Property Assessment Appeal Board (PAAB), which is independent from the PARP process, the provincial government and BC Assessment. PAAB decisions may be further appealed to higher courts that hear property appeals based only on points of law.

For more information on appeal processes and timelines, please visit www.cd.gov.bc.ca/parp/ or www.assessmentappeal.bc.ca/.

How We Are FundedBC Assessment receives the majority of its funding, approximately 93% ($75.8 million) in 2010, from tax levies applied against taxable properties in the province. Tax levy rates are set for each of the nine property classes in accordance with section 17(2) of the Assessment Authority Act. This tax levy is a component of the property taxes paid by property owners to the taxing jurisdictions, which in turn remit the tax levy to BC Assessment.

In addition, BC Assessment receives approximately 6% ($5 million) in revenue each year from a number of non-levy sources such as payments-in-lieu of tax levies, contracts with First Nations, investment income and data access services. The latter source includes the following services:

• Provision of bulk electronic assessment roll, sales and residential inventory data

• Custom reports

• Professional consulting services

• Enhanced data provision with BC OnLine and private sector data agents

In total, revenue from tax levy and non-levy sources provides sufficient funds for BC Assessment to maintain the annual operating budget.

The total amount of funding required from annual tax levies is determined by calculating the total revenue from non-levy sources and subtracting this figure from the total operating expenditure budget for the year, thus reducing the revenue requirement from property tax payers. BC Assessment is committed to limiting potential tax levy increases to property owners through these alternative revenue sources and tracks the cost per property for assessment services within our suite of corporate performance measures.

organizational StructureBC Assessment employs approximately 650 full-time staff in 17 offices throughout the province. The primary points of customer service are 16 field offices, which are geographically dispersed across B.C. Additional information on the location of our assessment regions and area offices can be found at www.bcassessment.ca/about/contact/Pages/default.aspx.

In 2010, we amalgamated the area offices in both Penticton and Vernon into the Okanagan Regional Office located in Kelowna. The

consolidation of these offices will increase operational effectiveness, reduce the space footprint, achieve cost savings through lower future lease costs and help reduce greenhouse gas emissions.

For details on the organizational and governance structure of BC Assessment, see Tables 3 and 4.

www.cd.gov.bc.ca/parp/

www.assessmentappeal.bc.ca/

www.bcassessment.ca/about/contact/Pages/default.aspx

www.bcassessment.ca/about/contact/Pages/default.aspx

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tABle 3: Bc ASSeSSMent’S orGAnizAtionAl Structure

Support divisions

• Provide support to the products, services, and Office of the President and CEO within BC Assessment

• Ensure that BC Assessment staff have the appropriate tools, training, information and resources to carry out the corporation’s core work in support of its legal mandate and corporate goals

Field operations

• Provide front-line customer service for assessment roll inquiries

• Create the annual assessment roll (core product)

• Administered by two separate field divisions with combined responsibility for 10 assessment regions

• Currently responsible for more than 1.9 million folios with an assessed value of $1.043 trillion

Financial and Management Services

Provides leadership, expertise and best practices in the areas of:

• Audit

• Risk management

• Strategic and business planning

• Performance management

• Facilities and fleet management

• Climate action

• Financial operations, policy and planning

• Business and financial analysis

• Regulatory and management reporting

Human resources

• Develops a workforce strategy that ensures BC Assessment can attract and retain a skilled and engaged workforce to meet its business needs, and provides effective human resource services that meets the needs of employees and managers

Business and customer Services

• Delivers assessment rolls and notices

• Develops business relationships

• Manages evolution of business systems

• Manages information and communications technology infrastructure operations

• Develops and supports software applications and database and management information reporting services

Policy and legal Services

• Serves as first point of contact for field staff seeking assistance on assessment or valuation issues

• Provides legal analysis and opinions, policy support and intergovernmental relations

• Leads quality assurance and business process improvements

office of the President and ceo


BC Assessment’s governance is defined in legislation applicable to all Crown corporations, as well as in the Assessment Authority Act and the Assessment Act.

Board of directorsBC Assessment is governed by a Board of Directors appointed by B.C.’s Lieutenant Governor in Council. The Board occupies a central role in the governance of BC Assessment. Under section 5(1) of the Assessment Authority Act, the Board must manage or supervise the affairs of BC Assessment. The Board has the general duty to guide the strategic direction of BC Assessment and provide oversight of management in the conduct of the organization’s business. In carrying out these duties, the Board has a role in policy-making, strategic planning processes and performance monitoring. The Board also has exclusive jurisdiction to regulate the valuation rates of certain properties in the province.

The Board of Directors of BC Assessment approved a new charter in 2010 that sets out details of the Board’s role and responsibilities. The charter is available at www.bcassessment.ca/forms/Publications/2010%2006%2001%20Approved%20%20Board%20Charter.pdf.

The Board is supported by four standing committees, ad hoc committees as required and the Executive Management Team. Responsibility for day-to-day management of BC Assessment is delegated to the President and CEO, who leads BC Assessment in achieving the corporate goals and priorities set by the Board, sets standards for organizational conduct and recommends new initiatives to the Board.

There were no changes in Board membership or committee structure in 2010. In 2011, the ad hoc Facilities Committee became a standing Facilities Committee to recognize the significant long-term impact our facilities have on our costs, staff effectiveness and customer service.

corporate Governance

www.bcassessment.ca/forms/Publications/2010%2006%2001%20Approved%20%20Board%20Charter.pdf



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tABle 4: Bc ASSeSSMent’S GovernAnce Structure1

Board of directors

• Sets strategic direction and oversees management‘s conduct of the corporation’s business

• Has a role in making policies, guiding the strategic planning process and monitoring performance

• Responsible for setting and regulating rates for certain properties (e.g., major industrial properties, electric power generation)

• Approves the annual operating and capital budget and three-year financial plan

• Approve levy rates

Shareholder – Province of British columbia

(represented by the Honourable Ida Chong,

Minister of Community, Sport and Cultural Development)

executive Management team

Board of directors

(Anna Nyarady – Chair)

President and ceo

(Connie Fair)

Audit and Finance committee

• Reviews BC Assessment’s operating and capital budget, financial operations and results

• Approves financial information provided to the corporation’s Shareholder and the public

• Monitors systems of internal controls and oversees the internal and external audit processes

Ad Hoc committees

• Facilities Committee to review all facility leases over five years in length

• Other committees established for a specific period to undertake a particular task, and then disbanded

Policy and Planning committee

• Reviews all service plans, annual reports, enterprise risk management reports, corporate performance reports and intergovernmental and community policies

Governance committee

• Reviews, monitors and reports on Board effectiveness

• Handles all issues related to corporate governance

Human resources and education committee

• Reviews, monitors and reports on issues related to human resources, including the training and education of the corporation’s employees

1 Governance structure as of December 31, 2010.


Governance PrinciplesThe Board of Directors has incorporated the guiding principles included in the provincial government’s Best Practice Guidelines: BC Governance and Disclosure Guidelines for Governing Boards of Public Sector Organizations. Board members are also guided by BC Assessment’s Code of Ethical Conduct, which establishes the minimum standards expected of Board members and senior staff. More generally, Board members are expected to demonstrate integrity, high ethical standards, sound judgement, an ability to question traditional assumptions, strong interpersonal skills, and a high level of commitment to BC Assessment and its success. All Board members are independent of the management of BC Assessment and have no material interest in the operations of the organization. The Board also retains an external ethics advisor to provide guidance to the directors on the Code of Ethical Conduct and potential conflict-of-interest issues, real or perceived.

Shareholder’s letter of expectationsThe corporate governance framework is also defined in the 2010 Shareholder’s Letter of Expectations between the Minister responsible for BC Assessment – the Honourable Ida Chong, Minister of Community, Sport and Cultural Development – acting as a representative of the Shareholder and the Board Chair. The letter specifies a common

understanding between the Shareholder and the Board of Directors on responsibilities, accountabilities, key governance issues, core services, public policy issues, strategic priorities and performance expectations for BC Assessment. Excerpts of the strategic priorities and performance expectations are provided in Appendix A.

Public Accountability and reportingAccountability to the Shareholder (the provincial government) and the public is demonstrated through both the three-year service plan and the annual service plan report, which include critical components of the annual Shareholder’s Letter of Expectations and identify BC Assessment’s response to the provincial government’s direction.

Please see Appendix B for links to resources on our governance principles, Board and Executive Management Team membership, and public documents.


www.bcassessment.ca/forms/Publications/2010Shareholders_letter_of_expectations.pdf

www.bcassessment.ca/forms/Publications/2010Shareholders_letter_of_expectations.pdf

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BC Assessment is influenced both externally and internally by a number of trends that can affect our success. Led by our Board and Executive, we conducted an environmental scan to identify key strategic issues in our operating environment. We also completed a strengths/weaknesses/opportunities/threats analysis along with a risk assessment to identify key factors that are important to achieving our objectives. The key strategic impacts and the corporate goals they affect include the following:

Strategic context

StrAteGic iMPAct GoAlS iMPActed

A provincial government confronted by substantial fiscal and budgetary pressures All

Higher customer expectations regarding the information and services provided by BC Assessment All

Continued year-over-year folio growth All

Increased dialogue between taxing jurisdictions and their taxpayers regarding the appropriateness of the proportion of tax burden allocated to each tax class Relationships

Rapid pace of change in, and costs of, technologyPeople and Culture, Relationships, Products and Services, and Effectiveness

A highly educated and technologically savvy workforce that values personal development and work-life balance People and Culture, and Effectiveness

Increased retirements and institutional knowledge loss resulting from demographic shifts All

Strategic context


In response to the identified strategic impacts, we have applied our strategic planning process and ongoing risk management program to develop strategies to mitigate risks or take advantage of opportunities. We have made significant progress within the organization by implementing the following initiatives:

StrAteGic reSPonSe GoAlS iMPActed

An extensive employee engagement program People and Culture, and Effectiveness

A project management community of practice Products and Services, and Effectiveness

Development of fully integrated intranet and Internet websites All

The completion of a market segmentation analysis for residential property owners and local governments Customers and Products, and Services

Installation of an enterprise-wide telecom system People and Culture, and Effectiveness

Initial steps to develop the next generation of valueBC, our core valuation system, to extend its useful operational life and ensure it continues to meet our evolving business needs All

Pilot projects for the computerized residential mass appraisal tool used by appraisers at their desktop (Desktop Review) in three urban jurisdictions

People and Culture, Products and Services, and Effectiveness

Investment in an enterprise resource planning system All

Several province-wide assessment programs to improve quality on specific property types Customers, Products and Services, and Effectiveness

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INDEPENDENT AUDITOR'S REPORTTo the Board of Directors of the British Columbia Assessment Authority, and To the Minister of Community, Sport and Cultural Development, Government of British Columbia

Report on the Annual Service Plan Report

I have been engaged to report whether The 2010 Annual Service Plan Report (the annual report) of the British Columbia Assessment Authority (BC Assessment) for the year ended December 31, 2010, fulfills the requirements of the BC Reporting Principles. The eight BC Reporting Principles outline the characteristics of good performance reporting, and were endorsed by the Legislative Assembly’s Select Standing Committee on Public Accounts for use by public sector organizations in British Columbia. The principles are detailed in the appendix of this report. This annual report is the responsibility of BC Assessment. My responsibility is to assess whether this annual report has met the requirements of the BC Reporting Principles.

Management’s Responsibility for the Annual Service Plan Report

As called for by the BC Reporting Principles, the annual report contains a number of representations from management concerning the appropriateness of the goals, objectives, and targets established by BC Assessment, explanations of the adequacy of planned and actual performance, and expectations for the future. Such representations are the opinions of management and inherently cannot be subject to independent verification. As discussed below, I did not test the reliability of the performance information in the annual report. Therefore, my examination was limited to ensuring the report contains those representations called for by the BC Reporting Principles and that they are consistent with both unaudited performance information and audited financial statements.

Auditor’s Responsibility

I conducted my examination in accordance with Canadian standards for assurance engagements and accordingly included such tests and procedures as I considered necessary in the circumstances. The conclusion in my report is based on procedures that I determined to be necessary for the collection of sufficient, appropriate evidence in order to obtain a high, though not absolute, level of assurance as to BC Assessment’s achievement of the requirements of the BC Reporting Principles.

Readers are cautioned that, as a transitional approach to providing assurance, I did not test the reliability of the performance information (principle 7) in the annual report, except for that contained in BC Assessment’s 2010 financial statements set out on pages 55 to 73. Consequently, I do not offer assurance on the reliability of the information reported except for that presented in BC Assessment’s 2010 financial statements, for which I provide a separate audit opinion on pages 57 to 58.

Opinion

In my opinion, except for the effect of adjustments, if any, which I might have determined to be necessary had I performed a more extensive audit of reliability as referred to in the paragraph above, this annual report fulfills the requirements of the BC Reporting Principles, in all significant respects. The following appendix contains details supporting my conclusions for each of the BC Reporting Principles, and is an integral part of my opinion.

Victoria, British Columbia John Doyle, MAcc, CAMay 18, 2011 Auditor General

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Appendix to the Independent Auditor’s Report on the 2010 Annual Service Plan Report of the British Columbia Assessment Authority

Detailed Observations

Principle 1 – Explain the Public Purpose Served

The report explains BC Assessment’s public purpose, enabling legislation, and mission. Core business areas, services, customers, and stakeholders are described, as is the role of partners. The report explains BC Assessment’s governance structure and external accountabilities. The report outlines BC Assessment’s values that guide its service delivery (guiding principles and premises).

Principle 2 – Link Goals and Results

The report explains the chain of events from mission to goals and strategies through to performance measures. The relevance of these measures is explained in the context of BC Assessment’s goals and objectives, and in relation to issues of concern to an external audience (the public and legislators). Performance measurement focuses on outcomes in the short and long term, explaining how short-term achievements impact long-term results. Variances between planned and actual results are explained and related to expectations and plans for the future.

Principle 3 – Focus on the Few Critical Aspects of Performance

The report states why goals, objectives, and the nine performance measures are important to BC Assessment and to an external reader. The performance information provides a clear and concise performance story. Key results are clear and readily apparent.

Principle 4 – Relate Results to Risk and Capacity

The report summarizes key risks and capacity issues in relation to each performance measure, their impact on results, and strategies for dealing with them in the future. Issues related to organization-wide financial, infrastructure, and technology risks and capacity are discussed separately.

Principle 5 – Link Resources, Strategies and Results

Revenue and expense variances are described as part of management’s commentary on the financial statements. Costs are related to key business activities and goals. Planned and actual costs are provided for key revenue and expense items, and trend information is provided for revenues and expenses. A critical measure of efficiency is identified — average cost per property for assessment services — and reported.

Principle 6 – Provide Comparative Information

Actual performance is clearly reported in relation to the service plan. Current performance is related to historic trends, and some industry benchmarkshave been provided. Most inconsistencies in trend data are fully explained, and future performance targets are explained in the context of current performance.

Principle 7 – Present Credible Information, Fairly Interpreted

I am not providing assurance that the data supporting the nine performance measures is reliable, nor am I providing assurance on the effectiveness of BC Assessment’s control environment. The report is reasonably concise and specialized terminology has been largely avoided. The report has been issued in accordance with statutory reporting deadlines.

Principle 8 – Disclose the Basis for Key Reporting Judgments

The report provides explanations for how performance measures are derived and the period to which data relates. BC Assessment’s Board of Directors’ Chair has affirmed the Board’s ownership of the report, and responsibility for ensuring the accuracy and timeliness of performance information. The report explains the importance and relevance of goals and objectives, and it discusses how targets are selected.

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The service plan and the Shareholder’s Letter of Expectations establish the public reporting performance expectations for BC Assessment as determined by the Board of Directors. The 2010–2012 Service Plan is our plan of action and clearly sets the conditions that define our success. It identifies our five goals, the supporting strategies, and the performance measures and associated performance targets (see Table 5). There were no changes in the vision, mission, values and goals in 2010 from the 2009–2011 Service Plan. There were minor adjustments to the cost per property performance targets based on projected new property construction and development, as well as assumptions regarding changes in revenues and expenditures. For 2010, a new performance measure was added to track our greenhouse gas emissions in support of government’s Climate Action initiative.

2010 report on Performance


StrAteGic direction

viSion – We are trusted to value B.C.

MiSSion – To create uniform assessments which are relied upon to build sustainable communities throughout B.C.

vAlueS

INTeGRITy: We act in an ethical manner and we honour our commitments.

TRANSpAReNCy: We are fair and open in how we conduct our business.

ImpARTIALITy: We are objective and unbiased. We do our work and make our decisions without favour or prejudice.

INNOvATION: We provide creative business solutions and support a culture of continuous improvement.

cuStoMer Service coMMitMent

ReLIABLe: We offer accurate products and professional service.

ACCeSSIBLe: We provide timely access to staff and information.

UNIFORm: We are consistent and fair in the way we serve you.

ReSpeCTFUL: We maintain positive relationships both internally and externally.

PerForMAnce MeASureS

pm.1: Level of employee engagement

pm.2: percentage of customers satisfied or very satisfied with service:

– Residential/ Non-residential

– Local government/ First Nations

PM.3: Percentage of customers satisfied or very satisfied with service:

– provincial government

PM.4: Percentage of assessments accepted without appeal

PM.5: Assessment to sales ratio (ASR):

– Residential

– Non-residential

PM.6: Coefficient of dispersion (COD)

– Urban

– Rural

PM.7: Assessment roll stability

pm.8: Average cost per property for assessment services

PM.9: Greenhouse gas emissions (tonnes of CO2 equivalent)

StrAteGieS

Retain, attract, and develop a highly skilled workforce.

Evolve service levels to meet or exceed the expressed needs of our customers.

Build on, improve and reinforce our relationship with our Shareholder (the provincial government) by being proactive in sharing and exchanging information that will support provincial goals.

Develop and enhance strong partnerships and alliances with our key stakeholders and partners that promote trust and mutual business benefits.

Ensure uniformity and quality in assessment rolls.

Provide convenient, innovative ways to access and exchange assessment information.

Develop innovative, risk-based and efficient practices to increase business operating performance in a financially sustainable manner.

GoAlS

GOAL 1: peOpLe AND CULTURe Inspire a culture of skilled and engaged people committed to superior levels of customer service.

GOAL 2: CUSTOmeRS Strengthen public trust and confidence by serving our customers with care and professionalism while anticipating their needs and expectations.

GOAL 3: ReLATIONShIpS Engage and collaborate with our Shareholder, key stakeholders and partners to support assessment solutions.

GOAL 4: pRODUCTS AND SeRvICeS Provide timely, accurate, and reliable products and services for our customers, key stakeholders, and partners.

GOAL 5: eFFeCTIveNeSS Conduct our business effectively and efficiently.

tABle 5: Bc ASSeSSMent’S StrAteGic FrAMeWork

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Setting Performance targetsBC Assessment establishes performance targets in consideration of historical performance, industry standards, desired levels of service and operational constraints. The targets are reviewed annually by the Board to ensure they are meaningful for evaluating our performance on behalf of our customers, stakeholders and Shareholder. Internal planning processes and management decision-making throughout the year are designed to align resources with the achievement of our corporate performance targets. While the targets challenge and, in some cases, stretch the organization, we have every expectation that they can be achieved. BC Assessment also uses an extensive system of internal measures to help monitor performance throughout the organization.

BenchmarkingTo improve the comparability and quality of our performance measures, we use benchmarks as a key part of our performance management program. Benchmarking permits comparisons from other jurisdictions that give us confidence that our property assessment process provides high-quality, uniform assessments and that we are a well-run Crown corporation. In support of our benchmarking objectives, we are a founding member and continue to support the Canadian Property Assessment Benchmarking Network. This benchmarking network shares assessment and other management information between assessment jurisdictions

across the country. Results from some of our benchmarking activities can be found in our appraisal practice and policy development. The results also support our key performance indicators, customer service and surveys, staff training and development opportunities, competencies for staff and our legislative framework.

The most comparable performance measures between assessment jurisdictions are the assessment to sales ratio (ASR) and the coefficient of dispersion (COD), which relate to roll quality and uniformity. These measures are used by most assessment jurisdictions, and as a result, international standards are in place to gauge performance.

Table 6 reflects the most recent benchmarking information for the 2010 roll year for single-family residential properties. The challenge in comparisons with other jurisdictions is that most jurisdictions are not on an annual assessment cycle like BC Assessment, so the benchmarking lacks some consistency year-to-year depending on how many jurisdictions produce an assessment roll. Further, BC Assessment is the only jurisdiction that calculates separate CODs for urban and rural properties; other jurisdictions report a single combined COD for their urban and rural properties.

For residential ASRs, BC Assessment has selected a much more stringent target range of 97% to 100% rather than the International Association of Assessing Officers (IAAO) target

of 90% to 110%. BC Assessment was successful in meeting the ASR performance measure for 2010 with an ASR of 97.6%. Details about our ASR performance measure are on page 40.

As with the target for ASRs, BC Assessment has selected more difficult COD targets than those recommended by the IAAO. We have set our COD target for urban properties at less than 10% rather than the IAAO’s standard of less than 15%; for rural properties, our COD target is set at less than 15% rather than the IAAO’s standard of less than 20%. Unlike other jurisdictions, BC Assessment does not have a combined COD target as we separate our COD for urban and rural properties. However, to facilitate comparisons, we are able to calculate a combined COD. As shown on Table 6, BC Assessment’s combined COD of 6.7% is significantly better than the 9.7% average for other participating Canadian jurisdictions.

data Source reliability and limitationsBC Assessment’s public reporting is guided by the eight BC Reporting Principles endorsed by the Legislative Assembly’s Select Standing Committee on Public Accounts that outline the characteristics of good performance reporting by public sector organizations. In 2010, we continued to work with the Office of the Auditor General (OAG) to audit our performance against the eight principles. The reliability attribute of principle seven, however,


tABle 6: BencHMArkS

PerForMAnce MeASure

internAtionAl ASSociAtion oF

ASSeSSinG oFFicerS (iAAo) StAndArdS1

Bc ASSeSSMent 2009 tArGet

(2010 roll YeAr)

Bc ASSeSSMent 2009 ActuAl

(2010 roll YeAr)

AverAGe reSult oF cAnAdiAn JuriSdictionS

PArticiPAtinG in BencHMArkinG StudY2

Assessment to Sales Ratio (Roll Quality) 90-110% for residential properties 97%-100% 97.6% 99.2%

Coefficient of Dispersion (Uniformity)3

<15% for urban properties

<20% for rural properties

Combined urban and rural

<10%

<15%

n/a

6.5%

8.0%

6.7%

n/a

n/a

9.7%

1 For information on the standards set by the International Association of Assessing Officers (IAAO), please see the link in Appendix A.2 The number of jurisdictions providing results to be averaged for the ASR score was 12, and for the COD score was 10. 3 Other Canadian jurisdictions combine urban and rural CODs into a single blended measure while BC Assessment has refined this measure to differentiate between urban and rural properties.

While BC Assessment does not have a combined COD target, it can calculate its actual combined measure for comparison purposes with other jurisdictions.


was not audited in 2010, as the OAG must first document an understanding of the systems underlying the disclosures and the auditability of these disclosures. The OAG is expected to provide an audit opinion on the performance portion of the annual service plan report that includes the reliability attribute or principle seven in 2011.

Much of the information used in our performance measures is collected by professional appraisal staff. BC Assessment also relies on outside sources of data, including municipalities, regional districts, real estate boards, the Land Title and Survey Authority (LTSA) of British Columbia and individual

property owners. BC Assessment conducts regular and extensive surveys with our customer groups, using third-party commercial survey companies with established professional standards. We undertake periodic reviews to improve the comparability and quality of our performance measures.

Data source reliability and limitations are discussed in more detail for each performance measure later in this document. In addition, our internal audit program undertakes periodic audits of our internal controls of the systems that produce the key performance indicator measures and results.

Strategic risk ManagementBC Assessment is in the process of redefining and enhancing its enterprise risk management program. We are in the process of reviewing the risk management policy, reassessing both our critical risks and reporting processes. We have also initiated a process to redevelop the corporate risk register to ensure that it adequately identifies, explains, ranks, evaluates and tracks a broader, more relevant and more detailed set of significant risks and opportunities for the organization.

The risk identification and tracking carried out in creating the corporate risk register feeds

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directly into BC Assessment’s strategic and business planning process, explicitly linking actions and associated resources to areas of uncertainty and concern. Many of the initiatives listed in our corporate business plan, from the business transformation initiatives to individual divisional projects, have been initiated through

corporate recognition of the need for change as our strategic context evolves. In 2011, through our Internal Audit Department, we expect to audit the enterprise risk management program for the first time and then every three years after that.

Table 7 represents our key risks in priority order, based on the likelihood and consequence to the organization, and our associated responses.


tABle 7: Bc ASSeSSMent’S keY riSkS And reSPonSeS

riSk riSk reSPonSe linkS to GoAl(S)

Knowledge transfer and succession planning risk

• Prepared a human resources succession plan and continued to work on effective and timely recruitment of skilled staff

• Developed and implemented training resources targeting specific skills and positions

• Implemented an appraisal apprenticeship program to increase the number of accredited appraisers in the organization

People and Culture

The risk that BC Assessment has difficulty competing in the job market for recruiting staff in specific positions and locations

• Implemented aggressive marketing to create brand awareness with business schools (e.g., the University of Guelph and B.C. universities)

• Implemented new recruiting initiatives using social media and job fairs

• Initiated a pilot project with the union on “telework” to increase employee engagement, increase employee retention and improve operational effectiveness

People and Culture

The sustainability of valueBC, our core valuation system

• Continued remediation of known errors and priority enhancements approved through a Valuation System Governance Committee

• Continued data review for inconsistencies and remedied as appropriate

• Approved the initiation of the development of the next generation of valueBC

Customers, and Products and Services



tABle 7: Bc ASSeSSMent’S keY riSkS And reSPonSeS

riSk riSk reSPonSe linkS to GoAl(S)

The risk that external stakeholders and customers do not have the capacity or desire to shift technologies with BC Assessment, resulting in the inability to maintain services or relationships, or leverage new opportunities

• Continued to work with the LTSA on streamlining and integrating data feed systems

• Developed strategies to improve the provision of service and receipt of information with these stakeholders and customers

• Continue to work closely with the Taxing Jurisdiction Advisory Committee to meet mutual business needs

• Worked to capture requirements for bulk electronic data transfers to external customers such as local governments

Relationships, and Products and Services

The risk that outdated inventory will create inequities and result in a loss of confidence in BC Assessment’s valuations

• Completed several projects in the past few years to address inventory data issues with specific property types

• Completed pilots for the computerized residential mass appraisal tool that appraisers use at their desktop (Desktop Review)

• Initiated the risk-based re-inventory project, which is building a framework to objectively determine where to deploy our limited resources for the greatest positive impact

All

The risk that internal business processes and policies are outdated, inconsistent, labour intensive and inefficient, resulting in excessive workload and costs

• Purchased an enterprise resource planning system to be implemented at the end of 2011

• Continued business process review of all financial processes

• Initiated a project to revitalize our assessment business rules program

People and Culture, Products and Services, and Effectiveness

The risk that BC Assessment lacks financial resources to maintain key staffing levels and skills to create capacity

• Continued a focus on employee engagement

• Implemented improvements to the planning and budgeting process that clarified priorities, resource allocations and roles within the organization

• Continued investment in technology to improve efficiency

• Documented critical functions to reduce loss of knowledge

All

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tABle 8: SuMMArY oF PerForMAnce MeASureS, tArGetS And reSultS – 2008–2013

PerForMAnce MeASureS 2008 ActuAl

2009 ActuAl

2010 tArGet

2010 ActuAl

2011 tArGet

2012 tArGet

2013 tArGet

PM.1: Employee Engagement Survey Results 59 62 65 60 68 69 70

PM.2: Residential/Non-Residential Survey Results 85.7% 83.9% ≥84.5% 83.8% ≥85.0% ≥85.0% ≥85.0%

PM.21: Local Government/ First Nations Survey Results

Biennial survey 95.8% Biennial

survey Biennial survey ≥95.0% Biennial

survey ≥95.0%

PM.31: Provincial Government Survey Results


survey Biennial survey ≥95.0% Biennial

survey ≥95.0%

PM.4: Percentage of Assessments Accepted without Appeal 98.4% 98.5% ≥98.0% 98.4% ≥98.0% ≥98.0% ≥98.0%

PM.5: Assessment to Sales Ratio (ASR) – Residential 96.8% 96.9% 97-100% 97.6% 97-100% 97-100% 97-100%

PM.52: Assessment to Sales Ratio (ASR) – Non-Residential 94.2% 95.4% 95-100% 96.3% 95-100% 95-100% 95-100%

PM.6: Coefficient of Dispersion (COD) – Urban 7.5% 6.5% <10% 6.5% <10% <10% <10%

PM.62: Coefficient of Dispersion (COD) – Rural 10.9% 8.2% <15% 8.0% <15% <15% <15%

PM.7: Roll Stability 0.29 of 1% 0.35 of 1% ≤0.37 of 1% 0.32 of 1% ≤0.37 of 1% ≤0.37 of 1% ≤0.37 of 1%

PM.8: Cost Per Property $36.96 $39.11 $40.49 $39.99 $40.45 $40.95 $41.93

PM.93: Greenhouse Gas Emissions (tonnes of CO2 equivalent) n/a 694.3 664 610 651 638 625

1 Local government, First Nations and provincial government customers surveyed every two years at their request.2 The 2010 results reported in the 2011–2013 Service Plan for both the non-residential assessment to sales ratio (96.7%) and the coefficient of dispersion (8.2%) differ slightly from the results reported here due to recalculations based on updated appeal decisions.

3 The targets for 2011 to 2013 (777.4, 765.8 and 754.3 tonnes of CO2 equivalent, respectively) as reported in the 2011–2013 Service Plan have been revised to recognize an error in the data for the baseline year of 2009. Similarly, the 2010 target has also been revised from 777.4 to 664 tonnes of CO2 equivalent. Data received from third parties for electricity and natural gas consumption at two leased facilities were overstated by 113 tonnes of CO2 equivalent, resulting in a recalculation of future targets.



PerForMAnce on GoAl 1: PeoPle And culture

GoAl 1

GoAl StAteMent• Inspire a culture of skilled and engaged

people committed to superior levels of customer service

Strategy • Retain, attract and develop a highly

skilled workforce

Strategic risksBC Assessment continues to face the following strategic risks in relation to our people:

• Knowledge transfer and succession planning: Critical roles at BC Assessment are filled by specific, knowledgeable staff who have acquired expertise and skills during their careers. Insufficient knowledge transfer and succession planning processes for retirements and resignations of staff in specialized positions could result in lost business knowledge and inefficiencies.

• Job market competition: The potential for difficulty competing in the job market in specific positions and locations could result in critical services not being provided effectively.

PM.1: employee engagement Survey results

importanceEmployee engagement is the foundation for a workplace that enhances satisfaction and commitment, a workplace where people want to come to work. Engaged employees contribute to higher levels of customer satisfaction, trust and confidence in what an organization does. The survey results not only tell us what our level of engagement is, but also show us how well we are doing on key drivers such as the work environment, pay and benefits, hiring practices, leadership and teamwork.

tABle 9: GoAl 1 PerForMAnce MeASure

PerForMAnce MeASure 2008 ActuAl

2009 ActuAl

2010 tArGet

2010 ActuAl

2011 tArGet

2012 tArGet

2013 tArGet

PM.1: Employee Engagement Survey Results 59 62 65 60 68 69 70

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targetsBC Assessment set the engagement targets with the assistance of a consulting firm that specializes in the field of staff engagement. We have set targets that push the organization to achieve increases in employee engagement. The employee engagement score represents the combined responses of all participating BC Assessment employees, and the results may be affected by a variety of internal and external factors, such as economic stability, organizational change, negotiated union agreements and individual work relationships. Internal shifts in organizational structure, the economic slowdown and associated impacts on the assessment roll production process, and a general environment of fiscal restraint in the B.C. public sector could all have negatively impacted our engagement score.

data Sources and reliabilityBC Assessment contracted with BC Stats, part of the Ministry of Labour, Citizens’ Services and Open Government, to act as an independent third party to conduct our employee engagement survey. The survey gauges employee perceptions on motivation, work capacity and capability, leadership, and alignment with the vision, mission and goals. Only results that BC Stats deem to be statistically reliable are reported (i.e., with a confidence level of 95% or above).

BC Assessment uses the same Workplace Environment Survey as the provincial government. Using this same measurement tool gives us confidence that it is well tested and reliable and also enables future benchmarking with other public sector organizations.

discussionFor 2010, 90% of employees responded to the survey, which is the same participation rate as in 2009. The resulting corporate engagement score of 60 out of 100 is a composite score, based on employee perceptions of the work environment across all work areas in the organization. The corporate engagement score decreased two points, from 62 to 60, and did not meet the target set for 2010.

Of the three scoring categories that are combined (averaged) to arrive at our corporate engagement score, our greatest area of strength continues to be Job Satisfaction, which scored 63 out of 100. Organizational Commitment scored 59 and Organizational Satisfaction scored 58.

After analyzing our results, we concluded that the reason that BC Assessment did not meet the 2010 engagement score target of 65 was the significant drop in the ”Pay & Benefits” driver from the survey in 2009 to 2010. While all the other engagement drivers either increased or decreased by one or two points, Pay & Benefits decreased by six points, from 50 to 44. Furthermore, the Pay & Benefits question

concerning pay, “I am fairly paid for the work I do,” decreased from 45 to 36, a nine-point reduction. The question concerning benefits, “My benefits meet my (and my family’s) needs well,” dropped from 56 to 52 in the 2010 survey compared with the 2009 survey.

The key issue resulting from this survey is the staff perception regarding fair pay. In discussions with staff following the 2010 survey results, the issue of fairness related more to a lack of external competitiveness than to issues of internal equity. In large part, the wage restraint mandate of zero percent increases beginning in 2010 and also in 2011 has contributed to the staff perception that their pay is not competitive. BC Assessment is undertaking a market analysis in 2011 to determine an actual comparison of pay at BC Assessment with that of the relevant labour market.

BC Assessment will continue to focus on employee engagement to ensure we maintain a productive and customer-focused workforce.

2010 report on Performance GoAl 1


Major Programs and initiativesBC Assessment undertook significant activities in 2010 to enhance employee engagement:

• Formed a Senior Leadership Team consisting of Head Office support department directors and field operations assessors to support employee engagement, be more involved in the strategic planning process and become responsible for the development and implementation of the annual corporate business plan

• Concluded a new collective agreement that included a joint commitment with the Canadian Union of Public Employees Local 1767 to explore flexible workplace options

• Created our second Corporate Engagement Plan

• Implemented an Appraisal Apprenticeship Model to support appraisers in obtaining accreditation

looking AheadEmployee engagement remains the top strategic priority in the 2011–2013 Service Plan. Our goal is to continuously improve our workplace in order to make BC Assessment an even better place to work, and to ensure we are an organization whose high levels of performance meet our customers’ needs. Employee learning and development is a significant component of our strategy to retain, attract and develop a customer-focused and highly skilled workforce. We have set an engagement target of 68 for 2011 and will build on the work we have already begun in this key area of our business.


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PerForMAnce on GoAl 2: cuStoMerS

GoAl StAteMent• Strengthen public trust and confidence

by serving our customers with care and professionalism while anticipating their needs and expectations

Strategy• Evolve service levels to meet or exceed the

expressed needs of our customers

Strategic risksBC Assessment faces a number of strategic risks that impact our ability to meet customer satisfaction targets:

• Customer and stakeholder information technology integration: The risk is that external stakeholders and customers lack the capacity or desire to shift technologies with BC Assessment, resulting in an inability to maintain services and relationships, or to leverage new opportunities.

• External service commitment: The risk is that external service commitments to a wide range of customer and stakeholder groups do not align with BC Assessment’s ability to deliver, resulting in a reduced ability to be efficient and effective and meet service expectations.

• Consistency in communications: Our main customer service points are the area offices, located in all regions of B.C. It is important that the information and services provided through these offices are consistent across the province, to support our customer service commitments of reliability and uniformity.

GoAl 2



2009 ActuAl

2010 tArGet

2010 ActuAl

2011 tArGet

2012 tArGet

2013 tArGet

PM.2: Residential/Non-Residential Survey Results 85.7% 83.9% ≥84.5% 83.8% ≥85.0% ≥85.0% ≥85.0%

PM.2: Local Government/ First Nations Survey1 Results


surveyBiennial survey ≥95.0% Biennial

survey ≥95.0%

1 Local government, First Nations and provincial government customers surveyed every two years at their request.


PM.2: residential/non-residential and local Government/ First nations Survey results

importanceWe conduct regular surveys to obtain customer feedback and measure our progress toward our targets. We use the feedback to improve products and services.

targetsWe base our targets on past performance, an assessment of customer needs and our proposed improvement strategies. We have typically set targets high to encourage BC Assessment and our staff to continually seek ways to further improve customer service. The professional survey firm responsible for our customer market research recommended a target of 80% for residential/non-residential customer satisfaction, based on our past performance in this area and an average statistical result for similar government agencies. However, given the importance of customer satisfaction to our organization, the Board of Directors has continued to set “stretch” targets for these two customer groups. The target for residential/non-residential customer satisfaction was set at ≥84.5% for 2010 and 85.0% or higher for 2011 to 2012. Similarly, the target for local government and First Nations customers was changed from 95.0% ±5.0% to ≥95.0% for 2009

onward, to reflect the Board’s desire for a precise and ambitious customer satisfaction measure.

data Sources and reliabilityBC Assessment conducts regular customer surveys with our five key customer groups (residential property owners, non-residential property owners, local government, First Nations customers and the Province of British Columbia, as our Shareholder), using an independent market research firm hired in a competitive process. We evaluate the qualifications and experience of the selected firm through a request for proposal process, and are confident that the services received are reliable. The market research firm conforms to industry standards in the performance of the survey work with BC Assessment. In 2010, we continued to use the same customer survey method and used the same set of questions as in 2009 for the residential/non-residential groups to ensure the results were compiled on a consistent basis. The survey results were consistent when compared with historical trends.

BC Assessment uses two performance measures aligned to our customer groups of residential/non-residential property owners and local government/First Nations. For ease of presentation, we blend the results into one number for each of the two groupings, but for the purpose of internal

performance reporting, we continue to track the performance measures separately for the four individual customer groups.

discussionFor its residential/non-residential customers, BC Assessment nearly met our challenging target of 84.5%, with a score of 83.8%. This result was almost identical to our 2009 result of 83.9%. While we missed our target, it is worth noting that the independently recommended target for this type of measure is 80%. We purposely set a higher target to challenge the organization to deliver excellent customer service.

This target is particularly challenging, as the residential/non-residential group is our largest customer group. They are geographically dispersed and comprise a wide range of entities. They also have a variety of concerns and characteristics such as significant property assessment changes that may be possible in small geographic areas. In spite of these challenges, BC Assessment staff must be knowledgeable, flexible and attentive in meeting the diverse needs of these customers to realize a score of 83.8% satisfaction.


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In 2008, at the request of the local governments and First Nations, we implemented a biennial survey program to avoid survey fatigue with these customer groups and conducted the first biennial survey in 2009. As a result, there was no survey in 2010. The next survey will be in 2011.

Customer satisfaction comparisons can also be made with national surveys of public/business satisfaction with public sector programs and services through a Common Measurements Tool scoring system that is used in the performance measurement profession. According to the independent survey firm that BC Assessment employs, on our customer surveys, BC Assessment scores very well relative to other public sector agencies in customer satisfaction, and in fact, using this tool, we score significantly higher than many other public sector organizations.

Major Programs and initiativesWe continued to conduct customer surveys and consult with customer groups to identify what we are doing well and where we can make improvements. BC Assessment strives to strengthen customer relationships through a number of consultation forums with a range of property owner representatives, and in 2010 continued working with the Taxing Jurisdiction Advisory Committee (TJAC), both to improve the quality and timeliness of the data we provide and to streamline and enhance data access. In 2010, we also committed to a review

of the current Property Assessment Review Panel (PARP) process in collaboration with the Ministry of Community, Sport and Cultural Development, to identify and act on areas of improvement with our customers in the appeal process.

We initiated the development of a unified corporate customer service strategy that aligns resources to better respond to the needs of our five key customer groups (see Table 2). The focus in 2010 of this strategy was on the local government customer group. We also continued to provide customer service excellence training for staff and to invest in our ability to provide map-based information and better property search capabilities to our customers through e-valueBC, an online tool for comparing assessments.

looking AheadBC Assessment is committed to maintaining our focus on customers’ needs, and will undertake a range of initiatives to further enhance customer service:

• Complete residential, non-residential, local government, First Nations and provincial government surveys in 2011

• Continue investment in customer service training and other initiatives to strengthen our customer-first ethic

• Invest in new technologies and streamlined business processes to provide customers

with more convenient access to products and services, and improve our ability to meet specific customer needs

• Implement improvement strategies for all customer segments that reflect the results of our customer segmentation initiative

• Initiate the development of the next generation of valueBC, our core valuation system, to improve its customer-focused capabilities




PerForMAnce on GoAl 3: relAtionSHiPS

GoAl StAteMent• Engage and collaborate with our Shareholder,

key stakeholders and partners to support assessment solutions

Strategies• �Build on, improve and reinforce our

relationship with our Shareholder (the provincial government) by being proactive in sharing and exchanging information that will support provincial goals

• Develop and enhance strong partnerships and alliances with our key stakeholders and partners that promote trust and mutual business benefits

Strategic risk• Clear and timely communication:

To maintain a smooth, trusting and positive relationship with our Shareholder, and to adhere to our “no surprises” approach, BC Assessment must maintain regular two-way communication and be proactive in addressing emerging issues.

PM.3: Provincial Government Survey results

importanceThe provincial government is BC Assessment’s sole Shareholder and depends on our products and services to meet a range of needs. As part of this unique business relationship, we are required to implement the government’s

assessment policy, follow its strategic direction and provide proactive assessment solutions that support government objectives. Monitoring the quality of our service enables us to identify where we are doing well, and where we need to improve our performance and strengthen this relationship.

targetsBeginning in 2006, BC Assessment surveyed provincial government customers about their satisfaction with available products and services. We review the feedback and identify areas where we can make improvements. We base our targets on past performance, an assessment of customer needs and our proposed improvement strategies. We typically



2009 ActuAl

2010 tArGet

2010 ActuAl

2011 tArGet

2012 tArGet

2013 tArGet

PM.3: Provincial Government Survey Results


surveyBiennial survey ≥95.0% Biennial

survey ≥95.0%

3 6

set targets high, to focus our staff on customer service. For 2011-2013, the target for the provincial government survey was set at equal to or greater than 95.0%.

data Sources and reliabilityThe data sources and reliability are the same as the previous performance measure for the local government/First Nations surveys. We utilize the assistance of an independent market research firm selected through a request for proposal process, and are confident that the services received are reliable. The market research firm conforms to industry standards in the performance of the survey work with BC Assessment. There was no survey in 2010, but we will continue to follow the same customer survey method in 2011 by using the same set of questions as in 2009, to ensure the results were compiled on a consistent basis. We believe the 2009 survey results were reasonable when compared with historical trends.

discussionIn 2008, at the request of the provincial government, we implemented a biennial survey program to avoid survey fatigue with our Shareholder and conducted the first biennial survey in 2009. As a result, there was no survey in 2010. The next survey will be in 2011.

Historically, the survey results with the Shareholder have met the targets. We

achieved 97% in 2006, 95% in 2007 and 99.4% in 2009. The results seem to indicate that BC Assessment has been successful in meeting the needs and responding to the increasing number of requests for information from our Shareholder, as represented by various provincial government agencies. BC Assessment seems to have achieved the results as expected, detailed in the annual Shareholder’s Letter of Expectations (see Appendix A).

Major Programs and initiativesIn support of provincial government initiatives, BC Assessment collaborated with the Ministry of Community, Sport and Cultural Development (the ministry with the legislative responsibility for the property assessment function) on the following:

• Supported Bill 27, the Green Communities initiative, to implement policies and programs to help communities reduce their carbon footprint and save energy, fuel and money. BC Assessment was identified as a source of valuable information in support of local governments and this bill.

• Assisted with a number of assessment policy and legislative projects including the analysis and implementation of recommendations from the Farm Assessment Review Panel and changes to the classification of unused land with development potential. BC Assessment ensured that the ministry was advised of

any emerging issues and responded to ministry inquiries about assessment processes or practices.

BC Assessment has also collaborated with the Ministry of Finance on the following:

• Provided data to support the Financial Hardship Property Tax Deferment Program, a temporary program that provides low-interest loans to assist qualifying homeowners in British Columbia in paying the annual property taxes on their homes

• Provided support and advice to the Ministry of Finance with respect to property tax policy issues and to the Ministry of Aboriginal Relations and Reconciliation in relation to the First Nation tax treaty implementation process

looking AheadBC Assessment will continue to promote more effective consultation and collaboration with our Shareholder, partners and stakeholders to ensure emerging issues are identified early and actions taken to manage them. Strong and proactive relationships are key to our business success and continue as a strategic goal for BC Assessment.




PerForMAnce on GoAl 4: ProductS And ServiceS



2009 ActuAl

2010 tArGet

2010 ActuAl

2011 tArGet

2012 tArGet

2013 tArGet

PM.4: Percentage of Assessments Accepted without Appeal 98.4% 98.5% ≥98.0% 98.4 ≥98.0% ≥98.0% ≥98.0%

PM.5: Assessment to Sales Ratio (ASR) – Residential 96.8% 96.9% 97-100% 97.6% 97-100% 97-100% 97-100%

PM.5: Assessment to Sales Ratio (ASR) – Non-Residential 94.2% 95.4% 95-100% 96.3%1 95-100% 95-100% 95-100%

PM.6: Coefficient of Dispersion (COD) – Urban 7.5% 6.5% <10% 6.5% <10% <10% <10%

PM.6: Coefficient of Dispersion (COD) – Rural 10.9% 8.2% <15% 8.0%1 <15% <15% <15%

1 The 2010 results reported in the 2011–2013 Service Plan for both the non-residential assessment to sales ratio (96.7%) and the coefficient of dispersion (8.2%) differ slightly from the results reported here due to recalculations based on updated appeal decisions.

GoAl 4

GoAl StAteMent• Provide timely, accurate, and reliable

products and services for our customers, key stakeholders and partners

Strategies• �Ensure uniformity and quality in

assessment rolls

• Provide convenient, innovative ways to access and exchange assessment information

Strategic risks• Inventory reassessment: With more

than 1.9 million properties on the 2011 Assessment Roll and more added each year, BC Assessment must find more effective and efficient ways to maintain a timely reassessment schedule for all property types. We have started using a risk-based reassessment model to help identify how to best allocate our limited resources. We have also introduced a computerized residential mass appraisal tool used by appraisers at their desktop for reassessments.

• Limited human resources: The number of properties that require assessment services continues to grow, while the staff complement within BC Assessment has not. We are continually challenged to find new and more efficient ways of delivering our products and services without an investment in more human resources.

• Knowledge transfer and succession planning: Critical roles at BC Assessment are filled by specific, knowledgeable staff who have acquired expertise and skills over their careers. Insufficient knowledge transfer and succession planning processes for retirements and resignations of staff in specialized positions could result in lost knowledge and inefficiencies.

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PM.4: Percentage of Assessments Accepted without Appeal

importanceBC Assessment interprets high acceptance of assessments by residential and non-residential property owners as a validation of the quality, accuracy and acceptance of our work. Property owners who do not agree with the estimate of their property’s market value or exemption status, or who believe that their property was improperly classified, can challenge the assessment. If a change or correction is warranted, BC Assessment recommends changes to a local Property Assessment Review Panel (PARP), a three-member independent panel appointed by government. Property owners who continue to disagree with the assessment can request an independent review by a PARP. For this reason, an important measure of public acceptance of the annual assessment roll is the number of complaints (appeals) to PARPs. For more information on the appeal process, please see the link in Appendix B.

BC Assessment tracks annual statistics to determine the number of residential and non-residential property owners who apply in writing or online for an independent review of their assessment by a PARP (see Figure 1). Property Assessment Appeal Board (PAAB) appeal rates are not included in this measure, as these hearings can take a number of years to resolve and may skew the results for the annual performance measure program.

targetsTargets were chosen that reflect historical trends. For residential property owners, formal complaints (appeals) each year are usually submitted by fewer than 2% of all residential owners. For non-residential property owners, this number is usually below 5%. We believe consistently low rates of appeal

suggest that property owners largely accept the assessed values and that the assessment roll is of high quality. In our internal analysis, 98% assessments accepted without appeal represented a good balance between efficiency and accuracy in the assessment process under normal circumstances.

FiGure 1: PArP APPeAl rAteS* – 2002–2011

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

20,13722,670

21,533

27,209

38,388 37,210

28,966

19,239

27,598

31,296

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Roll Year

Com

pla

ints

(Num

ber

of P

rop

ertie

s)

* We believe the appeal rates in 2009 were reduced by Bill 45 (Economic Incentive and Stabilization Statutes Amendment Act), which provided for special valuation rules for the purpose of the 2009 tax year only. Properties were valued at either the lower of the 2007 or the 2008 valuation date.



data Sources and reliabilityProperty owners are requested to submit their concerns about their assessment in January of each year following receipt of their assessment notice. This leads to hearings that are held by independent panels in communities throughout the province. Following the hearings and prior to April 7 each year, BC Assessment is required to send Notices of Decision to property owners, indicating what the panel’s decision was and whether the complaint was successful or unsuccessful. Data quality is maintained throughout this important process by internal controls, including a review of the complaint data and comparison with historical trends and current market movement, to ensure the data’s accuracy.

Data integrity is a vital component of any information system. BC Assessment relies on our data not only in carrying out our mandate of producing accurate annual property assessments, but also in satisfying many customers’ property-related information needs. Both the Quality Assurance and Business Processes Department and the Internal Audit Department regularly review the quality and accuracy of data. The annual internal audit plan includes reviews of critical systems and processes that impact data integrity.

discussionAppeals and challenges to the accuracy of assessments produced in 2010 for the 2011 roll numbered 31,292, or 1.64% of all assessments

– a higher number than the 27,598 seen for the 2010 roll, but below the 2006 and 2007 appeal rates. We managed to achieve our 2010 (2011 Assessment Roll) target of equal to or greater than 98.0% acceptance for residential and non-residential property owners, with a result of 98.4%. This was achieved in spite of market volatility and the continued growth in both the total number of properties to be assessed and the overall roll value, which challenge our limited resources.

Major Programs and initiativesThe key to improving property owner acceptance of an assessment is to listen and respond to customer concerns, to improve customer service and access to information about how their assessment was determined, and to provide education and awareness about the assessment system.

BC Assessment meets every year with the Ministry of Community, Sport and Cultural Development to discuss improvements to the appeal process and ensure that those wanting to appeal their assessments have the information and the opportunity to fully participate. We continue to enhance the functionality of e-valueBC, our popular online tool for comparing assessments. Improvements have been made to the search capabilities and also the user experience by increasing the convenience and transparency of assessment information for property owners.

Other supporting programs and strategies include the following:

• Information technology: We implemented new technologies and improved the access to and convenience of information for our customers, including a complete revamp of our website and online services.

• Uniformity and quality of the assessment rolls: In 2010, our quality assurance program ran approximately 170 quality assurance reports to improve data quality by centrally monitoring accuracy, currency and completeness.

• Monitoring of market trends: On an ongoing basis, we analyze and communicate market trends internally to our staff and externally to our customers.

• Transparency of the appeal/complaint process: The annual Property Assessment Communications Campaign aims to raise public awareness of the process in various ways, including inserts mailed with all assessment notices, news releases and media information, select print and radio advertising in B.C. communities, and the public website.

looking AheadTo maintain low appeal rates, BC Assessment will promote public awareness of the assessment and complaint/appeal process. We will continue to improve the transparency of the process and access to assessment

GoAl 4

4 0


information. We will also review the range of programs and services to ensure continuous improvement in their quality and accuracy.

PM.5: Assessment to Sales ratio – residential and non-residential

importanceThe assessment to sales ratio (ASR) measures how closely assessments mirror a property’s actual selling price. BC Assessment measures the ASR for properties in accordance to internationally recognized standards set by the International Association of Assessing Officers (IAAO). The ASR is calculated by dividing the actual value (as determined by BC Assessment) of a property that has sold by its selling price, and expressing the result as a percentage.

targetsBC Assessment measures the ASR for properties according to internationally recognized standards. The IAAO has set the median ASR standard between 90% and 110%. However, BC Assessment has set more challenging targets: between 97% and 100% for the residential assessment roll and between 95% and 100% for the non-residential assessment roll. The completeness and accuracy of the ASR depends on consistent and rigorous review of property sales. Over the past few years, we have completed several

projects to analyze our performance in verifying and processing property sales. For more information on how BC Assessment ensures the integrity of the ASR (and also the COD) performance measure, please see the text box on page 43.

data Sources and reliabilityThe reliability of this roll quality performance measure is dependent on the records provided by the Land Title and Survey Authority of British Columbia (LTSA), the agency responsible for managing, operating and maintaining the province’s land title and land survey systems. The LTSA was established in January 2005 under the Land Title and Survey Authority Act as an independent organization and must meet obligations and targets that the provincial government has established for it in legislation and in an operating agreement between the LTSA and the Province of British Columbia.

The LTSA is responsible for the continued integrity of the province’s modified Torrens land title system for registering land titles. The system involves examining and registering applications for land transfers and establishing and releasing charges on titles. The land title registration system provides conclusive evidence of title, as mandated in the Land Title Act. The results for this performance measure compare the market value transactions as registered against the actual value as determined by BC Assessment’s appraisal staff.

discussionThe median ASR is one of BC Assessment’s two primary roll quality measures. The ASRs in this annual report are based on the 2011 Revised Roll, and the data are generated in our performance management information system and reported annually in an Assessment Roll Quality Report that is reviewed by the Board. The Assessment Roll Quality Report is a detailed statistical analysis of the accuracy and uniformity of the assessment roll. BC Assessment’s Internal Audit Department also conducts periodic audits on the key performance indicator information as part of the three-year audit plan that is approved by the Board.

The ASR is calculated by dividing the actual value (as determined by BC Assessment) of a property that has sold, by its selling price, and expressing the result as a percentage. For example, if a property is assessed with a value of $243,000 and it sold for $250,000, the ASR would be 97.2%. In short, the ASR measures how accurately BC Assessment appraises property at market value. Our statistics reflect all available single-family residential arm’s-length sales for the two quarters surrounding our valuation date of July 1 (i.e., April 1, 2010 to September 30, 2010). For non-residential sales, the data are based on sales occurring throughout the year.

GoAl 4


The residential property group ASR has incrementally increased over the past few years. Since 2006, it has gone from 96.5% to 96.8% in both 2007 and 2008, to 96.9% in 2009 and to 97.6% in 2010. For 2010, we successfully met the target of 97-100%, indicating greater accuracy for the assessment roll.

The 2010 result for the non-residential property group ASR of 96.3% met the target of 95-100%. Similar to the residential property group ASR, it has also incrementally improved over the past few years. It was 94.2% in both 2007 and 2008, 95.4% in 2009 and 96.3% in 2010.

We believe the improvements of the ASRs for both residential and non-residential properties over the past few years suggest our efforts are working. For more details on some of our activities to improve the ASR, please see the next section, Major Programs and Initiatives.

Major Programs and initiativesKey corporate strategies include measuring and ensuring the uniformity and quality of the assessment rolls, and developing best practices and business rules for improved efficiency. BC Assessment’s Quality Assurance and Business Processes Department regularly reviews the quality and accuracy of assessment information. Each year, an annual Assessment Roll Quality Report is produced that compares each roll quality measure against international standards. The report is reviewed by staff, the Executive Management Team and the

Board of Directors to determine if there are opportunities to improve data quality.

Sales are the basis of the assessment roll, and this area needs to be well executed and documented to provide auditable assurance of integrity in the performance measures such as ASRs and CODs that support roll quality. The Internal Audit Department continues to undertake audits in high-priority areas to provide further assurance that the organization has established sufficient processes and controls to help produce a high-quality assessment roll. As an example of our commitment to a verifiable and uniform assessment roll, we completed a two-year audit project to analyze our performance in undertaking sales editing and potentially inappropriate sales reassessment practices as part of the development of the assessment roll. We are working to implement the recommendations of this audit to enhance sales validation.

looking AheadHigh-quality assessments remain the foundation of BC Assessment’s mandate. BC Assessment will continue to promote uniformity and quality in the assessment rolls through the common application of statutes, policies, business rules and best practices throughout the province.

PM.6: coefficient of dispersion – urban and rural

importanceThe Coefficient of Dispersion (COD) measures the quality of assessments by calculating the dispersion, or spread, of all the ASRs around the median ASR. Less dispersion indicates higher quality assessment information, and is reflected by a lower COD. The COD is a measure of appraisal uniformity. This measure is important in public reporting on roll quality and is complementary to the ASR measures.

targetsThe target for rural properties is higher than for residential properties in urban areas because rural areas are typically less comparable to each other. The COD standard set by the IAAO for single-family residential properties is under 15% for urban regions and under 20% for rural regions. BC Assessment has set ongoing targets of under 10% and under 15%, respectively. Our statistics for the COD are based on all available single-family residential arm’s-length sales for the two quarters surrounding our valuation date of July 1 (i.e., April 1, 2010 to September 30, 2010). The dispersion results will be overstated when large swings in property values occur over the six-month period.


4 2

data Sources and reliabilityThe coefficient of dispersion (COD) is the second of BC Assessment’s two primary roll quality measures. The IAAO has set standards for each of these statistical measures. The COD in the annual report is based on the 2011 Revised Roll, and the data are generated by the performance management information system and reported annually in an Assessment Roll Quality Report.

As with the ASR, the reliability of this roll-quality performance measure is founded on the title records from the Land Title and Survey Authority of British Columbia.

BC Assessment measures the COD for properties located in both urban and rural areas, according to internationally recognized standards. To calculate the COD, the differences between each ASR in a group and the median ASR are added together. The average difference is the sum of these numbers divided by the median, and it is expressed as a percentage. An example of calculating a COD is provided in Table 13.

discussionIn 2010, BC Assessment achieved an urban COD of 6.5 %, which is considerably more favourable than the target of less than 10%. The COD for rural properties was 8.0%, also well below the 15% target limit. These values indicate considerable assessment accuracy for the 2011 roll.

The CODs for both urban and rural performance measures have been improving in the past few years (see Table 14). The improvements contribute to a more accurate assessment roll. For more details on how the COD target calculations and processes are an area of focus for BC Assessment, please see the text box on page 43.

Major Programs and initiativesBC Assessment’s internal Quality Assurance and Business Processes Department regularly reviews the quality and accuracy of assessment information. Each year, an annual Assessment Roll Quality Report compares each roll quality measure against international standards (IAAO). The Internal Audit Department and the Quality Assurance and Business Processes Department regularly perform reviews in high-priority areas to provide further assurance that BC Assessment is focused on establishing sufficient and appropriate processes and internal controls for us to consistently produce a high-quality assessment roll.

looking ForwardHigh-quality assessments remain the foundation of what BC Assessment does. BC Assessment will continue to promote uniformity and quality in the assessment rolls through the common application of statutes, policies, business rules and best practices throughout the province. Continued development of the quality assurance and internal audit programs should further enhance roll quality.


tABle 13: cod cAlculAtion exAMPle

uSinG 97.5% AS tHe MediAn:

ASSeSSMent to SAleS rAtio (ASr)

deviAtion FroM MediAn

95.5% 2.0

96.7% 0.8

97.5% 0.0

98.7% 1.2

99.2% 1.7

Total Deviation 5.7

Average Deviation 1.14

COD =1.14/97.5 or 1.17%

tABle 14: HiStoricAl cod reSultS


2009 ActuAl

2010 ActuAl

PM.6: Coefficient of Dispersion (COD) – Urban 7.5% 6.5% 6.5%

PM.6: Coefficient of Dispersion (COD) – Rural 10.9% 8.2% 8.0%



internAl Audit oF SAleS veriFicAtion And SAleS ProceSSinG ActivitieS

As part of our commitment to the development of a verifiable and uniform assessment roll, over the past few years, BC Assessment has completed several Internal Audit Department projects and Quality Assurance and Business Processes Department reviews, to analyze our performance in verifying and processing property sales. The verification and processing of these sales are an important step in determining the validity and accuracy of key performance measures over the assessment roll quality. Our goal is to be fully compliant with the sales verification and sales processing activities of both BC Assessment and international assessment standards (IAAO). We are undertaking sales valuation practices to help us provide sufficient and appropriate support for the integrity of the ASR and COD performance measures that support assessment roll quality.

The completeness and accuracy of the ASR and COD performance measures depend on consistent and rigorous review of property sales by BC Assessment staff. Property sales data are reviewed and verified and extraneous and non-qualifying sales, such as related party sales, are excluded to create a population of qualifying property sales, which form the basis for calculating the ASR and COD performance measures.

BC Assessment is aware that it must continue to be vigilant to prevent inappropriate sales reassessment by its appraisal staff. For example, a risk that exists and that many other assessing jurisdictions have found is where the sale of a property triggers a reappraisal, which then typically results in a revised assessment that is much closer to the actual sale value. This type of property reassessment activity, if significant, could affect the accuracy of calculation of the ASR and COD performance measures. If these appraisal adjustments are used in a ratio study and are significant, the practice could cause invalid uniformity results, unless similar unsold properties are reappraised by a method that produces an appraisal level for unsold properties that is equal to the appraised level of sold properties.

Over the past few years, BC Assessment took a number of steps to improve internal controls over sales validation, sales processing and sales reassessing practices. Some key activities were as follows:

• TheQualityAssuranceandBusinessProcessesDepartmentcreatedareport to quantify the impact of property reassessment practices for the 2009 Assessment Roll and for future assessment rolls. The 2009 impacts of excluding reassessed properties were determined to be insignificant to the calculation of the ASR and COD performance measures.

• TheQualityAssuranceandBusinessProcessesDepartmentalsoprepared two comprehensive reports to help enhance internal control over sales processing and sales reassessing practices (the Unsold Property Analysis Report and the Qualified Sales with Main Building Change Report). The Field Office Year-End Report was sent to each BC Assessment area office to highlight property valuation issues for their follow-up and explanation. The report also incorporated seven other field oversight reports in which assessors provided a detailed review and explanation of property folios that may have contained unusual sales reassessment or unexplained sales processing.

• Twopreviousinternalauditswerefolloweduptodetermineifrecommendations were implemented, and one internal audit on residential sales reassessment practices was completed:

– The Industrial, Commercial and Investment (IC&I) sales reassessment internal audit report contained seven recommendations to enhance sales reassessment practices for IC&I properties. Four of the seven recommendations have been completed, and the remaining three recommendations are expected to be completed by December 2011.

– The IC&I sales processing audit report contained six recommendations to enhance the controls around IC&I sales processing practices. All of the audit report recommendations have been implemented.

– The Residential Sales Validation Audit was issued in 2010, and contained 12 recommendations to improve residential sales reassessment and sales processing practices at BC Assessment. Two of the 12 audit recommendations have been implemented, one has been disagreed with by management and the others are in the process of being implemented.

– The Quality Assurance and Business Processes Department completed an analysis in July 2010 to quantify the impact of questionable sales reassessment and sales processing practices on reported ASR and COD results. The main finding was that the questionable sales reassessment and sales processing practices had a very nominal impact on the roll quality statistics, including the ASR and COD results.

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PerForMAnce on GoAl 5: eFFectiveneSS

GoAl StAteMent• Conduct our business effectively

and efficiently

Strategy• Develop innovative, risk-based and efficient

practices to increase business operating performance in a financially prudent manner

Strategic risks• Project management for multiple initiatives:

BC Assessment is undertaking a number of large-scale, transformative projects. These must be carefully planned, communicated and managed throughout their respective implementation phases, to ensure that we limit any adverse impacts on delivery of our core products and services.

• Enterprise-wide quality assurance plan: BC Assessment needs to define quality for a broader range of business processes in the context of our overall enterprise structure. The quality assurance program has been in place since 2003 and continues to be a critical part of ensuring confidence and trust in the data and processes used to create the roll.

• Information technology: Many benefits can be drawn from the use of new technologies, including increased effectiveness and efficiency in business processes. Transitions and upgrades in information technology often require additional financial and human resources, training, and ongoing maintenance and technical support for effective implementation.



2009 ActuAl

2010 tArGet

2010 ActuAl

2011 tArGet

2012 tArGet

2013 tArGet

PM.7: Roll Stability 0.29 of 1% 0.35 of 1% ≤0.37 of 1% 0.32 of 1% ≤0.37 of 1%

≤0.37 of 1%

≤0.37 of 1%

PM.8: Cost Per Property $36.96 $39.11 $40.49 $39.99 $40.45 $40.95 $41.93

PM.91: Greenhouse Gas Emissions (tonnes of CO2 equivalent) n/a 694.3 664 610 651 638 625

1 The targets for 2011 to 2013 (777.4, 765.8 and 754.3 tonnes of CO2 equivalent, respectively) as reported in the 2011–2013 Service Plan have been revised to recognize an error in the data for the baseline year of 2009. Data received from third parties for electricity and natural gas consumption at two leased facilities were overstated by 113 tonnes of CO2 equivalent, resulting in a recalculation of future targets.




PM.7: roll Stability

importanceA stable, dependable assessment roll is vital to taxing authorities and is a key element in our mission. In any given year, property status can change and new properties may be created while others are deleted. Just over 19,000 new properties were identified in the 2011 Assessment Roll. BC Assessment provides taxing jurisdictions with a complete roll that is used to determine tax rates and apply them to all property owners. Since the taxing jurisdictions use our assessments to provide the tax base that ultimately funds their public services, the performance measure of roll stability is accepted by all taxing jurisdictions as a critical measure of performance for BC Assessment.

targetsThis performance measure examines taxes refunded as a result of a number of supplementary rolls over a defined period of time. Annually, senior assessment and quality assurance staff consider past performance and new business processes and quality improvements under way when they set targets for future years, and have currently set our target at less than or equal to 0.37 of 1%. Targets are reviewed annually, but the prescribed three-year targets represent our historical roll stability levels.

data Sources and reliabilityBC Assessment annually measures the stability of the assessment roll by analyzing the number of additions or deletions made to the roll. The objective of this measure is to minimize tax losses to the taxing jurisdictions by creating a stable, dependable assessment roll. This performance measure examines taxes refunded as a result of a number of supplementary rolls, which are changes to the roll after the official close of the annual assessment roll. Supplementary changes are made to correct property information or to account for revised property values resulting from PAAB decisions. It may take up to 10 years to resolve individual cases. Although value changes to the roll can be negative or positive, only the refunds are considered in this measure, because refunds reduce the amount of money that municipalities have available to them.

The measure considers 19 months of information for one year in arrears. For example, the 2010 target year measures roll stability for the 2009 Assessment Roll by examining taxes refunded owing to supplementary rolls issued between May 1, 2009 and December 31, 2010.

discussionBC Assessment met the 2010 target (2009 roll) of less than or equal to 0.37 of 1%, with refunds amounting to 0.32 of 1% of general-purpose tax revenues. This percentage is less than the 0.35 of 1% refunded for the 2008 roll (see

Table 15). Our efforts to improve roll quality are directly linked to our activities supporting the three performance measures of percentage of assessments accepted without appeal, assessment to sales ratio (ASR) and coefficient of dispersion (COD). Our work on these three performance measures improves roll quality by enhancing transparency of the assessment process and improving data quality. More information on the three performance measures can be found on pages 37 to 42; specific details on our work to improve the ASR and COD can be found on page 43.

Major Programs and initiativesThe programs and strategies that contribute to roll stability encompass the process of assessment, the collection of data, the management of information and even the distribution of information. Each year, a range of projects is undertaken to improve the overall quality of the roll, which in turn contributes to roll stability. Improvement projects are also undertaken each year for specific property types. BC Assessment property data are being structured to improve access to our key performance indicators and to provide value-added services. Processes such as the production of the annual assessment roll are being further automated and data accessibility was enhanced in 2010 with the restructuring of our public website and also with the continued development of a data warehouse and performance management information system. Regular reviews conducted within the quality

4 6

assurance and internal audit programs assist us in our efforts to establish sound business processes and a high level of data quality.

looking AheadBC Assessment continues to strengthen its working relationships with taxing authorities through the Taxing Jurisdiction Advisory Committee, representing our local government customers, to ensure prompt identification of and action on issues that affect roll stability. Continued development of the quality assurance and internal audit programs will further enhance roll quality.

PM.8: cost Per Property

importanceThis performance measure reflects BC Assessment’s commitment to keeping assessment service costs for property owners as low as possible while continuing to meet growing service demands in an increasingly complex business environment. BC Assessment relies almost exclusively on property tax levies

for the largest part of its revenues, so efficiency and cost-effectiveness are required to minimize any potential increases to levies.

targetsThe targets for 2010 to 2013 are based on service plan forecasts, which take into consideration projected new property construction and development, as well as assumptions regarding changes in revenues and expenditures. The Board of Directors is committed to keeping the cost per property as low as possible while responding to the demands of its various stakeholders for improved services and information.

data Sources and reliabilityThe cost per property for assessment services funded from tax levies has been calculated by taking total expenditures for the year (less revenues that are not categorized as “tax levies,” “payments in lieu of taxes” or “First Nations revenue”), and dividing this total by the number of properties for the revised roll produced in the following year.

BC Assessment strives to maintain appropriate internal controls and reports regularly to the Audit and Finance Committee and the Board of Directors, and quarterly to the Office of the Comptroller General. We are subject to an annual external audit of our financial statements, currently performed by the Office of the Auditor General of British Columbia. These controls contribute to data quality and reliability.

The number of properties used in calculating this measure is drawn primarily from the title records of the Land Title and Survey Authority of British Columbia. In addition, BC Assessment undertakes its own data quality assurance reviews of all incoming data feeds prior to entry into our valueBC system.

discussionBC Assessment met the cost per property target for 2010, coming in below our target of $40.49 with an average actual cost per property of $39.99 (see Tables 15 and 16). This variance from the target resulted primarily from lower expenditures in 2010 compared with the

tABle 16: HiStoricAl coSt Per ProPertY reSultS


2007 ActuAl

2008 ActuAl

2009 ActuAl

2010 ActuAl

PM.8: Cost Per Property $35.27 $37.32 $36.96 $39.11 $39.99

GoAl 5



budget. Details on our financial performance for 2010 are outlined in the Management’s Discussion and Analysis section starting on page 50.

The cost of doing business continues to increase as evidenced by the increase in the cost per property. The principle drivers of increased costs are wages and benefits, lease costs of office facilities, and investments in information management and information technology. Investment in technology and business processes have been an essential enabler that has allowed BC Assessment to improve service levels while at the same time holding the line on employee growth as compared to folio growth over the past two decades (Figure 2).

Major Programs and initiativesBC Assessment is committed to its goal of fiscal responsibility. Maintaining the cost of assessment services is supported by the corporate strategy of developing innovative methods to increase efficiency. Key initiatives undertaken in 2010 include the following:

• Selected and purchased the enterprise resource planning system for implementation at the end of 2011

• Commenced an independent review of our business planning and budgeting processes in late 2010, with the consultant recommendations to be implemented in 2011

• Continued internal audit work to seek efficiencies in our vehicle fleet, workstation usage and cell-phone usage

• Continued work to develop the activity-based management feature of the new enterprise resource planning system

FiGure 2: Bc ASSeSSMent’S ProductivitY – 1991–2011

AnnuAl GroWtH* (1990 BASe YeAr)

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

60%

50%

40%

30%

20%

10%

0%

-10%

-20%

Folio Growth

Roll Year

Employee Growth

* The significant drops in staffing levels in 2002-2005 is due to the Core Services Review, which mandated BC Assessment to reduce its workforce by 20%.

4 8

• Achieved cost savings and operational productivity by consolidating the three offices in the Okanagan Region into one regional office in Kelowna

• Relocated our Head Office to a new LEED gold-standard facility. The space was designed to reduce the number of private offices and to increase the number of collaborative work areas to improve productivity and efficient use of space.

• Approved a long-term facilities strategy

looking AheadVolatility in the real estate market and continued folio growth will continue to challenge the organization in meeting its commitment to fiscal responsibility. In response, we will maintain the current programs aimed at providing efficiencies; the programs include working in specialized appraisal teams, ensuring the consistency of valuation policies, and developing best practices and business rules. We will improve performance by making investments in technology and tools to gain efficiencies, and by exploring partnership opportunities with other organizations (e.g., local governments) to cost-share on key initiatives critical to achieving our objectives.

PM.9: Greenhouse Gas emissions

importanceClimate Action is an ongoing initiative to reduce BC Assessment’s impact on the climate and to help the province meet its greenhouse gas (GHG) and sustainability objectives. As a public sector organization, BC Assessment is required by the provincial government to define, measure, report and verify GHG emissions, plan and implement internal actions to reduce GHG emissions and offset any remaining annual emissions by purchasing carbon offset credits from the Pacific Carbon Trust. The performance measures for GHGs have been defined by the provincial government in the Carbon Neutral Government Regulation, and the GHGs are measured through the use of the “SMARTTool,” a web-based GHG measurement and reporting tool administered by the Climate Action Secretariat for participating public sector organizations in B.C.

data Sources and reliabilityBC Assessment has worked with Shared Services BC to implement SMARTTool, which provides standardized tools for measuring and reporting on the production of GHGs for provincial government and broader public sector organizations.

BC Assessment has tracked and measured the 2008 and 2009 consumption data for facilities, fleet and paper usage as required by legislation

and retained professional advisory services from a national consulting firm to assist in providing the following:

• Observations on the accuracy and completeness of the SMARTTool data output for 2008 and 2009. The 2009 data are used as the baseline for calculating future targets and developing climate action plans

• A review of the 2009 Carbon Neutral Action Report prepared by BC Assessment staff

• Observations and recommendations on BC Assessment’s existing GHG monitoring systems and data collection processes

• A list of additional opportunities for GHG reductions with a timeline and cost estimate for implementation

• Recommendations for improvement in structure, communications and reporting protocol for the corporate Green Teams

• Recommendations on the corporate-level carbon key performance targets

discussionThe 2010 result of 610 tonnes of carbon dioxide equivalent emissions was successfully below the target. Significant activities in 2010 that helped achieve our target include the amalgamation of the Penticton and Vernon offices into the Kelowna regional office and the Head Office move into a LEED gold-standard building. Weather in many parts




of B.C. also played a role, as heating and cooling requirements for our offices were lower in 2010 than expected. Figure 3 shows BC Assessment’s GHG emissions for 2010.

Major Programs and initiativesBC Assessment has worked with a national consulting firm to develop GHG reduction plans. Three of the key initiatives implemented were:

• Building retrofits: Conducted a review of current technology used and potential improvements to lighting and HVAC and direct digital controls

• Printing strategy: Identified strategies to reduce paper, toner and energy use

• Reduced the number of vehicles in the corporate fleet

looking AheadBC Assessment will continue building on the foundation of work identified in our GHG reduction plans. We remain committed to reducing our emissions in support of government’s climate action initiative. Potential future GHG reduction opportunities under consideration include:

• Fleet vehicles: Replacing future retired vehicles with more fuel-efficient hybrid vehicles

• Building emissions: Making further reductions in the consumption of electricity and natural gas, along with reductions in the office space per employee

• Employing information technology power management systems

• Undertaking behaviour change programs to educate staff on opportunities and methods to reduce their personal impact on the environment

FiGure 3: ProFile oF Bc ASSeSSMent’S 2010 GHG eMMiSSionS

totAl oF 610 tonneS oF cArBon dioxide eQuivAlent

Natural Gas348 57%

Electricity98

16%Fleet13522%

Paper295%

5 0

MAnAGeMent’S diScuSSion And AnAlYSiSBC Assessment establishes and maintains independent and uniform property assessments on an annual basis for all property owners in the Province of British Columbia. Taxing jurisdictions use the property assessments in creating their tax rolls. BC Assessment’s primary source of revenue is from a tax levy placed on each taxable property. This tax levy is a component of the property taxes paid by property owners to the taxing jurisdictions, which in turn remit the tax levy collected to BC Assessment. Non-levy revenue sources include revenue from data access services, payments in lieu of taxes, contracts with First Nations and investment income.

The following discussion and analysis should be read in conjunction with BC Assessment’s audited financial statements and related notes for the fiscal year ended December 31, 2010. All financial information in Table 17, including forecast information, was prepared based on current Canadian Generally Accepted Accounting Principles.

Summary of Financial results for 2006–2010 and Financial Plan for 2011–2013 Table 17 summarizes BC Assessment’s financial results for the fiscal years 2006–2010 and the financial plan for the next three years as set out in BC Assessment’s 2011–2013 Service Plan. The table also compares the 2010 actual results to the 2009 actual results and the 2010 budget.

Financial review and Statements



tABle 17: SuMMArY oF FinAnciAl reSultS For 2006–2010 And FinAnciAl PlAn For 2011–2013

StAteMent oF oPerAtionS (in $000s) 2006 ActuAl

2007 ActuAl

2008 ActuAl

2009 ActuAl

2010 ActuAl

2010 BudGet

vAriAnce oF 2010 ActuAl FroM 2010 BudGet

coMPArSion oF 2010 ActuAl to 2009 ActuAl

2011 PlAn

2012 PlAn

2013 PlAn

revenue:

Tax levies 64,085 65,372 69,151 72,845 75,785 75,809 (24 ) 2,940 76,930 78,929 81,888

Other 6,972 5,585 5,292 5,085 5,178 5,060 118 93 5,165 5,118 5,182

Grant from the province 2,343 - - - - - - - - - -

Investment 752 904 775 152 202 170 32 50 205 400 438

Gain on disposal of capital assets 31 34 26 109 27 - 27 (82 ) - - -

74,183 71,895 75,244 78,191 81,192 81,039 153 3,001 82,300 84,447 87,508

expenses:

Salaries and benefits 49,315 49,333 49,425 51,211 52,403 52,287 116 1,192 53,453 54,952 57,010

Professional and special services 6,997 6,954 6,410 7,552 6,754 6,736 18 (798 ) 7,091 7,077 7,301

Office premises 4,569 4,613 5,083 5,461 7,392 7,579 (187 ) 1,931 6,504 6,584 6,766

Office 4,168 4,577 4,659 5,328 5,210 5,831 (621 ) (118 ) 6,177 6,306 6,497

Travel 1,635 1,574 1,510 1,231 1,442 1,357 85 211 1,467 1,436 1,490

Appeal costs 2,010 2,721 2,890 2,537 2,469 2,750 (281 ) (68 ) 2,900 2,987 3,077

Bad debts 1 28 5 - - - - - - - -

Interest 111 125 80 20 72 39 33 52 48 75 79

Amortization 3,069 3,351 3,361 3,991 4,376 4,460 (84 ) 385 4,660 5,030 5,288

71,875 73,276 73,423 77,331 80,118 81,039 (921 ) 2,787 82,300 84,447 87,508

Net Income (Loss) 2,308 (1,381 ) 1,821 860 1,074 - 1,074 214 - - -

5 2

comparison of 2010 Actual results and 2009 Actual resultsNet income for 2010 was $1.07 million compared with $0.86 million in 2009.

Total revenue was $3.0 million higher in 2010 than in 2009. Approximately $2.9 million of this total resulted from a tax levy rate increase of 2.2% on January 1, 2010 and from growth in the number of new properties (folios) added to the assessment roll.

Total operating expenses were $2.8 million higher in 2010 than in 2009. This increase was driven by the following:

• $1.9 million increase in office premises costs. Approximately $0.9 million of the costs are one-time charges related to the relocation of BC Assessment’s Head Office in Victoria and the amalgamation of the three offices in the Okanagan Region into one regional office in Kelowna. The consolidation of the Okanagan offices will reduce the total space footprint by over 934 square metres and achieve annual cost savings of approximately $440,000 beginning in late 2011. The savings will be achieved through lower lease costs in the Okanagan Region, other operational efficiencies and reduced GHG emissions from our activities in the region. The resulting

savings in lease costs from this region are significantly lower than the lease cost increases incurred by BC Assessment in other regions where its operations have moved to more expensive LEED-designed and -built facilities as part of its Climate Action initiative.

• $1.2 million increase in salaries and benefits due to the negotiated wage increases in the previous collective agreement that expired December 31, 2009, employees progressing in their job wage-rate ranges and the full impact of permanent positions hired part-way through 2009, along with the resulting increase in employee benefits.


tABle 17: SuMMArY oF FinAnciAl reSultS For 2006–2010 And FinAnciAl PlAn For 2011–2013, continued

eQuitY BAlAnceS, end oF YeAr (in $000s) 2006 ActuAl

2007 ActuAl

2008 ActuAl

2009 ActuAl

2010 ActuAl

2010 BudGet

vAriAnce FroM 2010 BudGet

coMPArSion to 2009 ActuAl

2011 PlAn

2012 PlAn

2013 PlAn

Equity in capital assets 13,248 12,773 14,423 13,311 15,707 16,394 (687 ) 2,396 14,350 14,216 13,067

Equity from operations – appropriated

3,880 4,450 5,950 10,000 5,500 6,000 (500 ) (4,500 ) 6,000 6,500 7,000

Equity from operations – unappropriated

8,686 7,210 5,881 3,803 6,981 4,567 2,414 3,178 7,615 7,249 7,898

25,814 24,433 26,254 27,114 28,188 26,961 1,227 1,074 27,965 27,965 27,965

cAPitAl exPenditureS (in $000s) 2006 ActuAl

2007 ActuAl

2008 ActuAl

2009 ActuAl

2010 ActuAl

2010 BudGet

vAriAnce FroM 2010 BudGet

coMPArSion to 2009 ActuAl

2011 PlAn

2012 PlAn

2013 PlAn

2,755 2,876 5,040 2,998 6,773 7,557 (784 ) 3,775 3,430 4,896 4,139



• $385,000 increase in amortization resulting from a higher level of investment in capital assets in 2010 than in 2009.

These increases were partially offset by a net decrease in almost all other expenditures.

Investment in capital assets was $3.8 million higher in 2010 than in 2009. A higher level of capital investment was planned in 2010 to support the following:

• $2.5 million for leasehold improvements for the new Head Office in Victoria for improvements to the Kelowna office to accommodate the amalgamation of the three offices in the Okanagan Region and for minor alterations to the configuration of space in the Vancouver office. This investment in office premises will help to achieve operational efficiencies, reduce our carbon footprint, and contribute to a higher level of employee engagement.

• $1.2 million for furniture and equipment related to the new Head Office in Victoria

• $0.94 million investment to develop the next generation of valueBC, our core valuation system, to ensure continued improvements in our customer service and our products and services.

• $0.90 million in costs to begin the installation of a new enterprise resource planning system that, when fully implemented will contribute to our strategic goal of operational effectiveness by providing enhanced financial and human resources information, to support

more informed management decision-making on the effectiveness of resource deployment and to improve performance measurement and reporting.

The above investment increases were offset by one-time 2009 investments that did not occur in 2010 such as the $1.4 million for a new corporate telecom network and $0.3 million in new vehicles.

comparison of 2010 Actual results and 2010 BudgetThe 2010 total gross income of $81.2 million was 0.19% over budget and the total operating expenditures of $80.1 million were 1.14% lower than the budget. The resulting net income for 2010 was $1.07 million compared with a break-even budget.

Total revenues were $153,000 higher than the budget, mainly due to higher than anticipated payments in lieu of taxes and interest income.

Total operating expenses were $921,000 lower than the budget. The lower than expected expenditures occurred in most expense categories, detailed as follows:

• Salaries and benefit costs were $116,000 higher than the budget. The primary causes were higher than expected overtime costs of $132,000, an increased provision for the year-end salary liability of $83,000, and lower than planned reclassification of salaries from operating expense to capital for internally developed information technology enhancements of $95,000,

offset by a decrease on expected employee benefit costs. The actual full-time equivalent (FTE) utilization rate for 2010 was 668.70 (approximately 608.70 permanent and 60.00 temporary staff), compared with the budget of 653.33 (approximately 646.49 permanent and 6.84 temporary staff).

• Office premises expenses were $187,000 lower than planned, mainly due to cost savings in janitorial costs, the favourable results of negotiations for a termination of a lease, and funds received as a result of a delay in occupancy of the new Head Office Uptown location.

• Office and interest expenses for the year were $588,000 lower than planned in a number of areas including postage costs of $145,000, corporate telecomm and telephone savings of $196,000, reduced equipment operating and maintenance costs of $105,000, and savings in copying and office supply costs of $165,000.

• Professional and special services costs were $18,000 over budget due to a number of small variances.

• Travel costs were $85,000 higher than budget due to two vacant positions based in Head Office that were temporarily filled by staff from regional offices outside of Victoria.

• Amortization was $84,000 lower than planned resulting from lower actual capital expenditures for the year when compared with the budget.

5 4

• Appeal costs incurred by the Ministry of Community, Sport and Cultural Development were $281,200 lower than the budget provided by the ministry.

Expenditures for capital assets were $784,000 lower than planned due to price efficiencies of $300,000 for Head Office furniture acquisitions; lower than expected assessment system software enhancement costs of $206,000; the deferral of enterprise resource planning system costs of $371,000 into 2011; and reduced capitalized salaries on system installations and software enhancements of $132,000, offset by a net increase in office and computer equipment purchases and the cancellation and deferral of some computer equipment purchases of $194,000.

2011-2013 Financial Plan Assumptions1. Tax levy revenue includes estimated new

revenue from new construction and development.

2. Other revenue includes revenue from contracts with First Nations, payments in lieu of taxes, revenue from data access services and other miscellaneous revenue.

3. Expenditures include estimated inflationary impacts and funding for initiatives to support our strategic goals, including increased investment in appraisal and other job-related training for our employees, investment in technology enhancements to

ensure continued high levels of customer satisfaction in our products and services, and continued development of our information management systems to ensure effectiveness and efficiency of operations.

4. BC Assessment is required by legislation to cover the operating costs of the Property Assessment Review Panels (PARPs) and the Property Assessment Appeal Board (PAAB). The PARPs and the PAAB are administered by the Ministry of Community, Sport and Cultural Development and are independent of BC Assessment.

5. BC Assessment’s capital expenditures were much higher than average in 2010 due to investment in furniture and leasehold improvements for the new Head Office in Victoria and the amalgamation of the Okanagan Region offices. Capital expenditures for 2011 to 2013 revert to levels that correspond with sustainable investments and improvements in mission-critical software systems, computer equipment, facilities and vehicles.

6. BC Assessment’s Board of Directors has established that funding for significant non-recurring expenditures will be provided from accumulated equity from operations. In addition to amounts appropriated to fund significant non-recurring expenditures, since 2005 the Board has appropriated $1 million each year for future assessment system (valueBC) replacement. In 2010, the annual appropriation was reduced from

$1 million to $500,000 due to a Board-approved strategic plan to upgrade the technical architecture of valueBC, thereby extending its expected life. Appropriated amounts have been classified as a component of equity.

7. BC Assessment does not have any long-term debt for the planning period. The organization borrows funds to finance operating and capital expenditures during the first half of each fiscal year and repays the accumulated debt from the proceeds of property assessment tax levy revenues collected from taxing jurisdictions at the end of July. The Minister of Finance acts as BC Assessment’s fiscal agent.

8. The financial plan has been prepared in accordance with current Canadian Generally Accepted Accounting Principles. BC Assessment will follow Public Sector Accounting Board standards commencing January 1, 2011. At this time no material changes are anticipated in the financial plan due to the change in accounting standards.


Audited Financial Statements of

B R I T I S H C O L U M B I A A S S E S S M E N T A U T H O R I T Y

Year ended December 31, 2010

5 6

BRITISH COLUMBIA ASSESSMENT AUTHORITY STATEMENT OF MANAGEMENT RESPONSIBILITY

The financial statements of the British Columbia Assessment Authority (“BC Assessment”) for the year ended December 31, 2010 have been prepared by management in accordance with Canadian generally accepted accounting principles consistently applied and appropriate in the circumstances. The financial statements have, in management's opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized in the notes to financial statements.

Management is responsible for the preparation of the financial statements and has established a system of internal controls to provide reasonable assurance that assets are safeguarded, transactions are properly authorized, and financial records provide reliable information for preparation of financial statements.

The Board of Directors carries out its responsibility for the review of the financial statements. The Board meets with management and the external auditor to discuss the results of audit examinations and financial reporting matters. The external auditor has full access to the Board, with and without the presence of management.

The Auditor General of British Columbia, the external auditor of BC Assessment, has performed an independent audit of the financial statements of BC Assessment in accordance with generally accepted auditing standards. The Auditor's Report outlines the scope of this independent audit and his opinion on the financial statements of BC Assessment.

_____________________________________ _____________________________________ Connie Fair Andy Hoggarth President and Chief Executive Officer Vice President and Executive Financial Officer

Victoria, British Columbia

March 30, 2011

5 7

Report of the Auditor General of British Columbia

1

To the Board of Directors of British Columbia Assessment Authority, and To the Minister of Community, Sport and Cultural Development, Province of British Columbia

Report on the Financial StatementsI have audited the accompanying financial statements of British Columbia Assessment Authority (“the Entity”), which comprise the balance sheet as at December 31, 2010, and the statements of operations, equity 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 StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, 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 ResponsibilityMy responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I 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.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

5 8

2

OpinionIn my opinion, the financial statements present fairly, in all material respects, the financial position of British Columbia Assessment Authority as at December 31, 2010, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Victoria, British Columbia John Doyle, MBA, CAMarch 30, 2011 Auditor General

5 9

BRITISH COLUMBIA ASSESSMENT AUTHORITY Balance Sheet (in $000s) December 31

2010 2009

AssetsCurrent assets: Cash and cash equivalents 26,818 25,979 Accounts receivable 1,996 1,458 Prepaid expenses 771 671

29,585 28,108Capital assets (note 3): Property, plant and equipment 8,852 6,635 Intangible assets 6,855 6,676

15,707 13,31145,292 41,419

Liabilities Current liabilities: Accounts payable and accrued liabilities 10,377 10,772 Current portion of long-term liabilities 429 309

10,806 11,081Long-term liabilities (note 5): Employees’ past and future benefits 2,394 2,223 Lease inducements 3,481 1,001 Other 423 -

6,298 3,224Equity Equity in capital assets 15,707 13,311 Director Equity from operations - appropriated 5,500 10,000 Equity from operations - unappropriated 6,981 3,803

28,188 27,11445,292 41,419

DirectorCommitments (note 8)

On behalf of the Board

The accompanying notes are an integral part of these financial statements.

6 0

BRITISH COLUMBIA ASSESSMENT AUTHORITY Statement of Operations(in $000s) Year ended December 31

2010 2009

Revenues: Tax levies 75,785 72,845 Other (note 9) 5,178 5,085 Investment 202 152 Gain on disposal of capital assets 27 109

81,192 78,191

Expenses: Salaries and benefits 52,403 51,211 Professional and special services 6,754 7,552 Office premises 7,392 5,461 Office 5,210 5,328 Travel 1,442 1,231 Appeal costs (note 10) 2,469 2,537 Bad debts - - Interest (note 11) 72 20 Amortization 4,376 3,991

80,118 77,331

Net income 1,074 860


6 1

BRITISH COLUMBIA ASSESSMENT AUTHORITY Statement of Equity(in $000s) Year ended December 31

Capital assets Appropriated Unappropriated 2010 2009 (note 12)

Equity, beginning of year 13,311 10,000 3,803 27,114 26,254

Net income (loss) for the year (4,348) - 5,422 1,074 860

Transfers to capital assets 6,744 - (6,744) - -

Transfer during year - (4,500) 4,500 - -

Equity, end of the year 15,707 5,500 6,981 28,188 27,114


6 2

BRITISH COLUMBIA ASSESSMENT AUTHORITY Statement of Cash Flows(in $000s) Year ended December 31

2010 2009

Cash provided by (used in):

Operations:Net income for the year * 1,074 860Items not involving cash:

Amortization 4,376 3,991Gain on disposal of capital assets (27) (109)(Decrease) increase in employees’ past and future benefits (1) (161)(Decrease) increase in lease inducements 2,695 (124)(Decrease) increase in other long-term liabilities 499 (367)

Changes in non-cash operating working capital (note 13) (1,033) 1,0517,583 5,141

Investing:Acquisition of capital assets (6,773) (2,998)Proceeds on disposal of capital assets 29 228

(6,744) (2,770)

Increase in cash 839 2,371

Cash and cash equivalents, beginning of year 25,979 23,608

Cash and cash equivalents, end of year (note 13) 26,818 25,979

* Includes interest paid of $52,941 (2009: $3,406)


6 3

BRITISH COLUMBIA ASSESSMENT AUTHORITY Notes to Financial Statements


Nature of Business

The British Columbia Assessment Authority (“BC Assessment”) was established in 1974 as an independent Crown corporation by the Province of British Columbia by enactment of the Assessment Authority Act. The purpose of BC Assessment is to establish and maintain assessments that are uniform in the whole of the province in accordance with the Assessment Act.

1. Significant accounting policies:

The financial statements of BC Assessment have been prepared by management in accordance with Canadian generally accepted accounting principles. The following is a summary of the significant accounting policies used in the preparation of these financial statements.

(a) Future Accounting Framework – Public Sector Accounting Standards:

The Public Sector Accounting Board sets out the applicable source of Generally Accepted Accounting Principles to be applied by Canadian government organizations.

The Province of British Columbia issued a directive pursuant to section 23(1) of the Budget Transparency and Accountability Act requiring BC Assessment to adopt Public Sector Accounting Standards, without not-for-profit provisions, effective January 1, 2011.

(b) Financial instruments:

The CICA requires that all financial instruments be classified as one of the following: held-to-maturity, loans and receivables, held-for-trading, available-for-sale or other financial liabilities. BC Assessment has designated its financial instruments as follows:

Cash and cash equivalents include deposits in banks and short-term money market instruments. They are classified as held-for-trading and measured at fair value and all gains and losses are included in the Statement of Operations in the period in which they occur. Fair value is an estimate of the amount of consideration that would be agreed upon in an arm’s length transaction between knowledgeable, willing parties under no compulsion to act. BC Assessment invests funds with the British Columbia Investment Management Corporationand has funds in a pooled investment portfolio: ST2 – Canadian money market investments maturing within 15 months.

Accounts receivable are classified as loans and receivables and are measured at amortized cost. Accounts payable and accrued liabilities and other long-term liabilities are classified as other financial liabilities and are also measured at amortized cost. The carrying values of cash and cash equivalents, accounts receivable and accounts payable and accrued liabilities approximate their fair valuebecause of the short-term maturity of these financial instruments.

6 4



1. Significant accounting policies (continued):

(c) Capital assets:

Capital assets are carried at cost less accumulated amortization (refer to note 3). Amortization is determined at rates which will reduce original cost to estimated residual value over the useful life of the asset. The annual rates used to compute amortization on a straight-line basis are as follows:

Property, plant and equipment Rate

Buildings 5%Furniture and equipment, including computer equipment 20-33% Motor vehicles 20%Leasehold improvements Over the term of the lease Leased equipment Over the term of the lease Intangible assets Rate

Assessment system software * 10%Other software 20 -100%

* Customization and additions to assessment system software are amortized over the estimated remaining useful life of the system.

(d) Lease inducements:

Lease inducements include cash payments, reduced rent and rent free periods. The lease inducement benefits are amortized on a straight-line basis over the occupancy period.

(e) Revenues:

Revenues are recorded on an accrual basis in the period in which the transactions or events occurred that gave rise to the revenues.

Tax levies: BC Assessment, by by-law and subject to the prior approval of the Lieutenant Governor in Council, each year imposes and levies a tax upon all taxable real property in the province, but excluding property that is taxable for school purposes only by special Act. A copy of this by-law is forwarded to the Tax Collector of every municipality in the province and to the Surveyor of Taxes in order that the taxes so levied will be placed on the tax rolls. The proceeds of the taxes so levied and collected by the municipalities or the Minister of Finance constitutes BC Assessment’s tax levies revenue.

6 5



1. Significant accounting policies (continued):

Other revenue: Other revenue includes revenue from data access services, payments in lieu of taxes, contracts with First Nations, and other miscellaneous revenue (refer to note 9).

Investment: Investment revenue includes interest on deposits in banks, earnings generated by short-term investments and changes in fair value during the year.

(f) Measurement uncertainty:

The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and commitments at the date of the financial statements and the reported amounts of revenue and expenditure during the year. Items requiring the use of significant estimates include employees’ future benefits, various other expenditure accruals and the commitments summarized in note 8. Actual results could differfrom these estimates.

2. Financial instruments:

BC Assessment is exposed to various risks related to its financial assets and liabilities. These risks are managed on an on-going basis and it is management’s opinion that BC Assessment is not exposed to significant market, credit or liquidity risk arising from these instruments.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange and interest rates, will affect BC Assessment’s income or the value of its financial instruments.

Foreign currency risk - BC Assessment’s exposure to currency risk is related only to the value of foreign exchange transactions in the normal course of operations. BC Assessment manages foreign currency risk by minimizing the amount of transactions in foreign funds. Foreigncurrency transactions valued in Canadian dollars totaled $1,181,234 in 2010 (2009: $535,686).

Interest rate and other price risk - BC Assessment is exposed to interest rate and other price risk through its investment in short-termCanadian money market investments through the British Columbia Investment Management Corporation and through borrowing of moneythrough the Provincial Government. Investments have a short-term maturity. Loans are at a variable rate of interest and are also short-term.

6 6



2. Financial instruments (continued):

The effect of a 1% increase in the interest rate will impact BC Assessment’s investment revenue by approximately $211,000 and interest expense by approximately $28,000 per annum.

BC Assessment does not engage in trading or other speculative activities with respect to derivative financial instruments.

Credit risk

BC Assessment is exposed to credit risk on accounts receivable due to inability of customers to pay for products and services as well as the potential failure of property owners to pay property taxes to taxing jurisdictions and the Province. BC Assessment relies on taxing jurisdictions and the Province to collect taxes and remit tax levies to BC Assessment. The collection of receivables from other customers is monitored and managed by BC Assessment. At December 31, 2010, accounts receivable totaled $1,996,366 (2009: $1,457,746). These figures are reported net of an allowance for doubtful accounts of $66,198 (2009: $66,198). The doubtful amounts are mainly due to tax levies not remitted to BC Assessment by municipalities as a result of property owners’ failure to pay their property taxes.

Liquidity risk

Liquidity risk is the risk that BC Assessment will not be able to meet its financial obligations as they fall due or will not be able to meet them at a reasonable cost. BC Assessment manages liquidity risk primarily by monitoring actual to forecast cash flows and by maintaining the ability to borrow funds through the Province.

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3. Capital assets:

2010 2009(in $000s) Cost Accumulated

amortization Net book

value Net book

valueProperty, plant and equipment

Land 354 - 354 354Buildings 2,519 1,722 797 923Furniture and equipment, including computer equipment 15,202 12,397 2,805 2,820Leased equipment 561 45 516 - Motor vehicles 2,100 1,728 372 605Leasehold improvements 5,060 1,052 4,008 1,933

25,796 16,944 8,852 6,635Intangible assets

Assessment system software 13,676 7,983 5,693 6,398Other software 987 745 242 278Finance/HR system in development 898 - 898 - Assessment system in development 22 - 22 -

15,583 8,728 6,855 6,67641,380 25,672 15,707 13,311

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4. Capital lease obligations:

In 2010 BC Assessment entered into agreements to lease Multi Function Devices. These leases are accounted for as capital leases with minimum lease payments for each of the five years of the lease term:

(in $000s)

2011 1442012 1442013 1442014 1442015 130Total minimum lease payments 706Less: Amounts representing interest at 13% per annum 207

499 Less: Current portion 76

423

5. Long-term liabilities:

Employees’ past and future benefits:

Employees’ past benefits:

At the time of the formation of the British Columbia Assessment Authority, BC Assessment negotiated an agreement with those designatedemployees whose previous working agreements contained clauses that called for payment of certain benefits upon death, retirement or termination of employment. The benefits under the agreement are recognized as a long-term liability, with an amount equal to payments due within the immediate twelve months following the statement date segregated and recognized as a current liability. Adjustments to the liability resulting from changes in salary rates are charged to the current year. Payments of benefits are treated as a reduction of the liability.

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5. Long-term liabilities (continued):

Employees’ future benefits:

Outside of the Public Service Pension Plan, BC Assessment annually accrues the future obligation under the defined retirement benefit plan as the employees render the services necessary to earn the benefit. Management, using an estimate of salary escalation and expected retirement ages, calculates the cost of the defined retirement benefit. The recorded liability represents these estimated future costs discounted to a present value using market interest rates applicable to BC Assessment.

6. Employee benefits plan:

BC Assessment and its employees contribute to the Public Service Pension Plan in accordance with the Public Sector Pension Plans Act.The British Columbia Pension Corporation administers the plan, including payment of pension benefits to employees to whom the act applies. The Public Service Pension Plan is a multi-employer, defined benefit plan. Under joint trusteeship, the risk and reward associated with the Plan’s unfunded liability or surplus is shared between the employers and the plan members and will be reflected in their future contributions. The most recent actuarial valuation (March 31, 2008) determined the Plan had a surplus. Despite the surplus, the Public Service Pension Board of Trustees was required to implement a contribution rate increase of 0.15% each, for plan members and employers to meet the funding requirements of the Pension Benefits Standards Act. The increase in rates went into effect April 1, 2009.

Contributions to the Plan by BC Assessment for 2010 were $3,726,654 (2009: $3,661,615).

2010 2009(in $000s) Total liability Current portion Net liability Net liability

Employees' past benefits 11 4 7 11Employees' future benefits 2,392 5 2,387 2,212

2,403 9 2,394 2,223Lease inducements 3,825 344 3,481 1,001Equipment lease 499 76 423 -

6,727 429 6,298 3,224

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7. Management of capital:

BC Assessment defines capital as equity (assets minus liabilities). BC Assessment manages its capital structure in accordance with its long-term view of investments in property, plant and equipment (refer to note 12) and the anticipated impacts to operations caused by changes in economic conditions necessary to meet its legislative mandate. There has been no change to BC Assessment’s approach to capital management during the period. BC Assessment is currently meeting all of its financial commitments. BC Assessment has no externally imposed capital requirements.

BC Assessment has received direction from the Ministry of Finance to forecast and achieve a balanced budget throughout the fiscal planning period 2009 to 2011. Treasury Board approval is required for BC Assessment to forecast any future deficit.

8. Commitments:

BC Assessment is committed to make payments under operating leases and contracts as follows:

(in $000s) Premises leases Other contracts

2011 6,252 3,8172012 6,336 2,0042013 6,703 1,5572014 6,929 1,4452015 7,156 452016 - 2025 27,537 -

60,913 8,868

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9. Other revenue:

(in $000s) 2010 2009

Data access services 3,592 3,498Payments in lieu of taxes 864 832First Nations contract revenue 540 571Other 182 184

5,178 5,085

10. Appeal costs:

BC Assessment is required to reimburse the Province of British Columbia for the operating costs of the Property Assessment Review Panel and the Property Assessment Appeal Board.

11 Financing:

Under subsection 20(5) of the Assessment Authority Act, BC Assessment may, “until receipt of the proceeds of the taxes…borrow an amount not exceeding the proceeds of the taxes…and the loan must be repaid from the proceeds of the taxes”.

The maximum borrowings by BC Assessment during 2010 were $23,594,290 (2009: $18,300,088).

12. Equity from operations - appropriated:

The Board of Directors has established that funding for significant non-recurring expenditures will be provided from accumulated equity from operations. The appropriated amount of $5,500,000 is set aside for future assessment system replacement (2009: $5,000,000 for futureassessment system replacement and $5,000,000 for other capital acquisitions planned in 2010).

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13. Supplemental cash flow information:

(a) Major components of cash and cash equivalents are as follows:

(in $000s) 2010 2009Cost Cost

Cash 539 599Short-term investments 26,279 25,400Cash and cash equivalents, end of year 26,818 25,999

Fair value Fair value

539 599

26,81825,38025,979

26,279

(b) Changes in non-cash working capital:

(in $000s) 2010 2009

Current assets: Accounts receivable (539) 94 Prepaid expenses (100) (18)Current liabilities: Accounts payable and accrued liabilities (394) 975

(1,033) 1,051

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14. Related party transactions:

BC Assessment is related through common ownership to all Province of British Columbia ministries, agencies and Crown corporations and all public sector organizations such as school districts, colleges, universities and health authorities that are included in the provincial government reporting entity. In addition, transactions with senior management, directors, immediate family members of senior management and directors and companies with which any of the above have a financial interest are also considered related parties. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

The Statement of Operations includes the following transactions with related parties of the Province of British Columbia:

(in $000s) 2010 2009

Other revenue 34 48Payments for:

Appeal costs 2,469 2,537Salaries and benefits 707 606Office 259 672Professional and special services 899 667Interest 8 4Office premises 455 131Travel 64 65

Assets (liabilities) at December 31 with related parties were:(in $000s) 2010 2009

Accounts receivable 25 29Accounts payable (732) (655)

BC Assessment contracted with the Province for the disposal of surplus property, plant and equipment with net proceeds of $28,512 (2009: $21,471). In 2010 BC Assessment did not contract with the Province for the acquisition of property, plant and equipment (2009: $311,041).

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Appendix A: Progress against the 2010 Shareholder’s letter of expectations

StrAteGic GoAl SHAreHolder’S letter oF exPectAtionS – keY GovernMent directionS Bc ASSeSSMent – keY ActionS

1. People and culture

Continue to inspire a culture of engaged and skilled people committed to superior levels of customer service

This direction includes ensuring a supply of qualified employees, developing an engaged workforce with consistently high levels of performance and establishing a learning culture.

The development of a multi-year human resource strategy is ongoing. In 2010, we focused on a key element of a people strategy, Employee Engagement.

2. customers

Continue to enhance the customer service focus of the property assessment system by undertaking initiatives to understand the specific requirements of stakeholders and measuring performance against BC Assessment’s customer service commitments.

Local Government Segmentation Project

2010 Residential Survey

2010 Non-Residential Survey

Taxing Jurisdiction Advisory Committee

3. relationships

Participate in the review of the recommendations of the Farm Assessment Review Panel (FARP), and assist in the analysis and implementation of any recommendations the government decides to adopt.

BC Assessment has been and continues to be an active participant in the discussions within government regarding the implementation of the FARP recommendations. Implementation of the recommendations that were enacted for the 2010 roll were undertaken through a corporate project in 2010 and applied to properties by way of supplementary assessments.


Appendix A: Progress against the 2010 Shareholder’s letter of expectations

StrAteGic GoAl SHAreHolder’S letter oF exPectAtionS – keY GovernMent directionS Bc ASSeSSMent – keY ActionS

4. Products and Services

Continue to work with the Ministry of Community, Sport and Cultural Development to improve Property Assessment Review Panel (PARP) operations through business process improvements, incorporation of customer feedback and improved communications

Initiate a pilot project to develop an alternate delivery model for the PARP process

System enhancements resulting from the “Notice of Hearing and Record of PARP Decision” project were completed in the fourth quarter of 2010, resulting in more efficient internal processing of:•AssessorRecommendations•NoticeofHearing•DecisionandChangeNotices

In addition, the PARP-related content on the public website was reviewed and updated based on feedback from the 2010 PARP customer survey.

5. effectiveness

Conduct the corporation’s business effectively and efficiently by improving the collection, maintenance and distribution of assessment information, and by operating in a financially prudent manner that maximizes existing revenue opportunities

The second Desktop Review Pilot Project (computerized residential mass appraisal tool) was completed at the Vancouver Sea to Sky office.

Desktop Review was approved as a standard procedure for mass appraisal.

The performance management information system and key indicators continued to improve with the most recent addition being Sales Snapshot information.

Comply with the Shareholder’s requirements to make the public sector carbon neutral by 2010, including accurately defining, measuring, reporting on and verifying greenhouse gas (GHG) emissions from the corporation’s operations; implementing aggressive measures to reduce the GHG emissions and reporting on these reduction measures and reduction plans; and offsetting any remaining GHG emissions through investments in the Pacific Carbon Trust.

In 2010, BC Assessment continued implementing specific actions to reduce GHG emissions from BC Assessment’s operations. Performance targets were approved for 2010-2014 GHG emissions measured in tonnes of carbon dioxide.

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Appendix B: links to resources

2011 Shareholder’s Letter of Expectations: www.bcassessment.ca/forms/Publications/2011%20Shareholder%27s%20Letter%20of%20Expectations.pdf

Assessment Appeal Processes and Timelines: www.cd.gov.bc.ca/parp or www.assessmentappeal.bc.ca

BC Assessment 2009 Annual Service Plan Report: www.bcassessment.ca/forms/Publications/10-062%20BC%20Assessment%202009%20Annual%20Report%20FINAL.pdf

BC Assessment 2010–2012 Service Plan: www.bcassessment.ca/forms/Publications/2010_2012_Service_Plan.pdf

BC Assessment Board of Directors: www.bcassessment.ca/about/Pages/BoardofDirectors.aspx

BC Assessment Carbon Neutral Action Report: www.livesmartbc.ca/attachments/carbon_neutral_action_reports/BC_Assessment_Authority.pdf

BC Assessment Executive Management Team: www.bcassessment.ca/about/Pages/ExecutiveManagementTeam.aspx

BC Assessment Governance Practices: www.bcassessment.ca/forms/Publications/Board_Governance%20v11-%20November%202010.pdf

BC Assessment’s History: www.bcassessment.ca/about/Pages/History.aspx

BC Governance and Disclosure Guidelines for Governing Boards of B.C. Public Sector Organizations: www.fin.gov.bc.ca/brdo/governance/

Customer Survey Results (2010): www.bcassessment.ca/about/Pages/Surveys.aspx

Details on the Taxing Jurisdiction Advisory Committee: www.bcassessment.ca/govt/local-government/Pages/TJAC.aspx

International Association of Assessing Officers Standard on Ratio Studies: www.iaao.org/uploads/Standard_on_Ratio_Studies.pdf

Performance Reporting Principles for the British Columbia Public Sector: www.llbc.leg.bc.ca/public/PubDocs/bcdocs/368657/Reporting_Principles_Nov2003.pdf

www.bcassessment.ca/forms/Publications/2011%20Shareholder%27s%20Letter%20of%20Expectations.pdf



www.cd.gov.bc.ca/parp

www.assessmentappeal.bc.ca

www.bcassessment.ca/forms/Publications/10-062%20BC%20Assessment%202009%20Annual%20Report%20FINAL.pdf



www.bcassessment.ca/forms/Publications/2010_2012_Service_Plan.pdf

www.bcassessment.ca/forms/Publications/2010_2012_Service_Plan.pdf

www.bcassessment.ca/about/Pages/BoardofDirectors.aspx

www.bcassessment.ca/about/Pages/BoardofDirectors.aspx

www.livesmartbc.ca/attachments/carbon_neutral_action_reports/BC_Assessment_Authority.pdf



www.bcassessment.ca/about/Pages/ExecutiveManagementTeam.aspx

www.bcassessment.ca/about/Pages/ExecutiveManagementTeam.aspx

www.bcassessment.ca/forms/Publications/Board_Governance%20v11-%20November%202010.pdf





www.fin.gov.bc.ca/brdo/governance/

www.bcassessment.ca/about/Pages/Surveys.aspx

www.bcassessment.ca/about/Pages/Surveys.aspx



www.iaao.org/uploads/Standard_on_Ratio_Studies.pdf

www.iaao.org/uploads/Standard_on_Ratio_Studies.pdf

www.llbc.leg.bc.ca/public/PubDocs/bcdocs/368657/Reporting_Principles_Nov2003.pdf



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