Financial Information and Statement of Financial Information Approval

INTRODUCTION

View Royal’s audited consolidated financial statements reflect the combined assets, liabilities, accumulated surplus, revenue and expense of all of its activities and funds, and include the proportionate share of the West Shore Parks and Recreation Society.

Council’s appointed auditors, MNP LLP, provided an unmodified opinion that the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Town as at December 31, 2021 and the results of its operations and cash flows for the year then ended in accordance with Canadian public sector accounting standards. This opinion is expressed in the Independent Auditor’s Report presented to the Mayor and Council of the Town of View Royal dated May 3, 2022.

For 2021, although the Town continued to face financial pressures due mainly to the closure of the View Royal Casino for the first half of the year, the Town’s financial position and results of operations continue to be positive. Here are some of the highlights:

• The Town is sustaining its positive financial position. Net financial assets, the difference between financial assets and financial liabilities increased $1.8 million in 2021 to $15.6 million. This represents the funds available to meet its financial obligations as they come due;
• Annual surplus, which is the difference between revenue and expense in the year totaled $633 thousand resulting in an accumulated surplus of over $146 million. Much of this balance reflects the Town’s prudent investment in long-lived tangible capital assets which include roads, parks, buildings, equipment, and sewer and drainage infrastructure the Town uses to deliver its key services. The net book value of these assets totals $130.4 million with related debt equaling $5 million resulting in net equity in tangible assets of $125.4 million;
• Total reserves and surplus at the end of 2021 was $20.6 million. Most of these funds are governed by agreement or bylaw, meaning they can only be spent for specific purposes such as capital renewal or park improvements. Unrestricted surplus, representing funds available for operational and contingency funding total $4.9 million.

Town of View Royal Statement of Financial Information Approval

As at December 31, 2021

The undersigned, as authorized by the Financial Information Regulation, Schedule 1, subsection 9(2), approves all the statements and schedules included in this Statement of Financial Information, produced under the Financial Information Act.

Dawn Christenson, BAccS, CPA, CGA Director of Finance June 22, 2022

On behalf of Council, David Screech, Mayor July 5, 2022