RFP-Asset Retirement Obligations Valuation-2023 - Asset Retirement Obligation Valuation Services

This RFP is issued to solicit proposals from qualified, experienced, responsible firms to provide ARO evaluation services for Thorhild County.
PS 3280 is a new accounting standard covering asset retirement obligations that applies to all public sector entities who prepare their financial statements under PSAB (Public Sector Accounting Board), including all Canadian municipalities. The standard must be implemented for the 2023 December 31 fiscal year end.
ARO refers to the legal or contractual obligation a municipality will have to retire or decommission a long-lived asset at the end of its useful life. It typically applies to assets that have significant restoration, dismantling, or environmental obligations associated with them, such as environmental impacts of asbestos, lead, or landfills.
AROs arise from laws and regulations that require municipalities to mitigate the environmental impact of their operations and restore the site to its original condition or an acceptable alternative state.
The municipality must estimate the expected cost of retiring or decommissioning the asset.
Consulting Services Requirements:
• Determine in-scope County assets to be reviewed under PS 3280;
• Document known sources of legal obligations to be reviewed under PS 3280;
• Identify and document the inventory of assets with a possible ARO;
• Develop and proposed recommendations on estimated cost and date of asset retirement;
• Provide recommendations on remediation activities required;
• Assess transition options and recommend which methodology is most appropriate (Retrospective, Modified Retrospective, or Prospective) for the County;
• Document key assumptions and develop the methodology for ARO measurement (ie: which costs to include, estimate technique, discount rate, financial statement impact);
• Develop related ARO accounting entries; and
• Develop annual procedures to maintain ARO reporting – objective to perform yearly review of TCAs/sites maintained on the inventory listing and assess any changes, update measurements and related entries/reporting etc.