Staff Report: 2nd QUARTER BUDGET VARIANCE AND CAPITAL PROJECT UPDATE REPORT
A report from the Director of Finance summarizing the town's financial operations and capital project progress to the end of Q2 2017.
TOWN OF VIEW ROYAL Finance & Administration Report
TO: Committee of the Whole DATE: July 5, 2017 FROM: Dawn Christenson, Director of Finance MEETING DATE: July 11, 2017
2ND QUARTER BUDGET VARIANCE AND CAPITAL PROJECT UPDATE REPORT
RECOMMENDATION:
THAT the Committee receive the 2nd Quarter Budget Variance and Capital Project Update Report for information.
CHIEF ADMINISTRATIVE OFFICER COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To provide Council with information regarding the financial results of operations and progress of capital projects to the end of second quarter 2017.
BACKGROUND:
In May, 2017 Council adopted a five-year financial plan (Bylaw 967) that identifies revenue and expense targets and authorizes capital projects to further its strategic objectives. The attached Appendix A – Consolidated Budget Variance and Appendix B – Capital Project Update are provided to inform Council of the financial results of delivering services and capital projects to the end of the second quarter this year.
DISCUSSION:
Analysis shows that revenues and expenses to date are within expected variances at the mid-point in the fiscal year with few exceptions, as noted below:
| Category | Variance amount | Explanation |
|---|---|---|
| Sales of services and other revenue | $695,908 | Proceeds from sale of property; corresponding recognition of costs and transfers to reserves in accordance with new policy not yet completed |
| General capital | $765,500 | Projects deferred |
| General capital | $73,936 | 2016 projects not completed by year end; 2017 financial plan amendment pending |
Staff will continue to monitor financial results to ensure delivery of services and capital projects within the allocated budgets. Should corrective measures be necessary, staff will inform Council of the effect, if any, on service levels or project completion timelines.
RECOMMENDATION:
THAT the Committee receive the 2nd Quarter Budget Variance and Capital Project Update Report for information.
SUBMITTED BY:
Dawn Christenson, BAccS, CPA, CGA Director of Finance
REVIEWED BY:
Kim Anema, Chief Administrative Officer
Attachments: Appendix A: 2nd Quarter Consolidated Budget Variance Appendix B: Capital Project Update
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