2018 Financial Results Details
A report from the Director of Finance detailing the final financial performance of the Town for the 2018 fiscal year.
TOWN OF VIEW ROYAL COMMITTEE OF THE WHOLE REPORT
TO: Committee of the Whole
DATE: May 9, 2019
FROM: Dawn Christenson, Director of Finance
MEETING DATE: May 14, 2019
2018 Financial Results Details
RECOMMENDATION:
THAT the Committee receive the 2018 Financial Results Details report dated May 9, 2019 from the Director of Finance.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
PURPOSE OF REPORT:
To provide details of the results of operations for the 2018 fiscal year as a follow up to the presentation of the 2018 Financial Statements.
BACKGROUND DISCUSSION:
The presentation of the consolidated financial statements is different from quarterly variance reports as it includes elements not included in View Royal’s financial plan, like the results from West Shore Parks and Recreation (WSPR) operations. Additionally, the statements are compliant with Public Sector Accounting Board standards which excludes certain items from revenue and expense, such as interfund transfers and debt principal repayment, normally included in variance reports. This report provides details of the 2018 financial results for the operating funds in the context of the $4.376 million surplus on the Statement of Operations (Statement B) of the 2018 Financial Statements.
In the Notes to the Consolidated Financial Statements, Note 13 describes the composition of accumulated surplus, summarized here:
| Surplus and reserves: | 2018 | 2017 | Change |
|---|---|---|---|
| Equity in tangible capital assets | $126,575,962 | $ 124,210,880 | $2,365,082 |
| Appropriated surplus - casino revenue | 3,952,662 | 3,831,535 | 121,127 |
| Appropriated surplus - Community Works Fund | 559,213 | 362,312 | 196,901 |
| Appropriated surplus - other | 372,832 | 369,532 | 3,300 |
| Unrestricted accumulated surplus | 3,838,953 | 2,773,669 | 1,065,284 |
| Total of all reserve funds | 6,413,854 | 5,789,480 | 624,374 |
| Total | $141,713,476 | $137,337,408 | $4,376,068 |
The total change in accumulated surplus is $4,376,068 as shown on Statements B, C and D and Schedule 1 of the financial statements. However, only a small component of this is amount would be considered operational surplus, as some of the financial activities authorized by Council in the financial plan included acquiring assets and the use of or contributions to reserves, as follows:
| Fund | 2018 Surplus | |
|---|---|---|
| Capital funds | Change in equity in tangible capital assets | $2,365,082 |
| Capital funds | Change in capital funds (both general and sewer) | 1,271,232 |
| Operating funds | General operating surplus | 730,795 |
| Operating funds | Sewer operating deficit | (27,234) |
| Reserve funds | Interest earnings (both general and sewer reserves) | 104,433 |
| WSPR | Total deficit | (68,240) |
| Total | $4,376,068 |
The total operating surplus of $703,561 (general and sewer operating funds combined) is detailed by fund in Attachment A (within a rounding error). This export from our financial system has been modified to conform to PSAB standards to be comparable to the financial statements. Note that the budgeted deficit reflects the planned net use of reserves and surplus and the repayment of debt principal as identified in the financial plan.
RECOMMENDATION:
THAT the Committee receive the 2018 Financial Results Details report dated May 9, 2019 from the Director of Finance.
SUBMITTED BY: Dawn Christenson, Director of Finance
REVIEWED BY: K. Anema, Chief Administrative Officer
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