Consolidated Financial Statements & Independent Auditor's Report
Auditor's unmodified opinion and the four primary consolidated financial statements (Position, Operations, Net Financial Assets, and Cash Flows) for 2023.
Town of View Royal
Consolidated Financial Statements
Year ended December 31, 2023
MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING
The consolidated financial statements have been prepared by management in accordance with Canadian public sector accounting standards for British Columbia local governments and the integrity and objectivity of these statements are management's responsibility. Management is also responsible for all the statements and schedules, and for ensuring that this information is consistent, where appropriate, with the information contained in the consolidated financial statements.
Management is also responsible for implementing and maintaining a system of internal controls to provide reasonable assurance that reliable financial information is produced.
View Royal's Mayor and Council are responsible for ensuring that management fulfils its responsibilities for financial reporting and internal control and exercises this responsibility by meeting with management and the external auditors to review the consolidated financial statements and to discuss any significant financial reporting or internal control matters prior to their acceptance of the consolidated financial statements.
The external auditors, MNP LLP, conduct an independent examination, in accordance with generally accepted auditing standards, and express their opinion on the consolidated financial statements. Their examination includes a review and evaluation of the Town of View Royal's system of internal controls and appropriate tests and procedures to provide reasonable assurance that the consolidated financial statements are presented fairly. The external auditors have full and free access to the Mayor and Council.
Chief Administrative Officer
Director of Finance
Independent Auditor's Report
To the Mayor and Council of the Town of View Royal:
Opinion
We have audited the consolidated financial statements of the Town of View Royal (the "Town"), which comprise the consolidated statement of financial position as at December 31, 2023, and the consolidated statements of operations, changes in net financial assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Town as at December 31, 2023, and the results of its operations, changes in its net financial assets and cash flows for the year then ended in accordance with Canadian public sector accounting standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Town in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Information
Management is responsible for the other information. The other information comprises the annual report, which is expected to be made available to us after the date of this auditor's report.
Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Canadian public sector accounting standards, 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.
In preparing the consolidated financial statements, management is responsible for assessing the Town’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Town or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Town’s financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit 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 Town’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Town’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Town to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Town to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Nanaimo, British Columbia May 14, 2024
Chartered Professional Accountants
Statement A
Town of View Royal
Consolidated Statement of Financial Position
as at December 31, 2023
| 2023 | 2022 | |
|---|---|---|
| Financial assets | ||
| Cash and cash equivalents (Note 3) | $ 49,147,682 | $ 37,253,511 |
| Property taxes receivable | 122,881 | 143,284 |
| Accounts receivable (Note 4) | 1,975,958 | 1,918,353 |
| Inventory held for sale | 12,851 | 15,845 |
| 51,259,372 | 39,330,993 | |
| Liabilities | ||
| Accounts payable and accrued liabilities (Note 5) | 5,045,005 | 4,520,651 |
| Deposits | 2,245,898 | 2,148,916 |
| Deferred revenue (Note 6) | 10,946,269 | 7,301,961 |
| Prepaid property taxes | 694,100 | 595,492 |
| Long-term debt (Note 7) | 4,146,384 | 4,587,651 |
| Employee benefits and retirement obligations (Note 8) | 309,584 | 293,140 |
| 23,387,240 | 19,447,811 | |
| Net financial assets | 27,872,132 | 19,883,182 |
| Non-financial assets | ||
| Tangible capital assets (Note 9) (Schedule 3) | 122,183,649 | 122,831,577 |
| Inventory of supplies | 14,598 | 15,858 |
| Prepaid expenses | 132,690 | 115,923 |
| 122,330,937 | 122,963,358 | |
| Commitments and contingencies (Note 16) | ||
| Accumulated surplus (Note 10) | $ 150,203,069 | $ 142,846,540 |
Dawn Christenson, BAccS, CPA, CGA Officer responsible for financial administration Pursuant to Section 149 of the Community Charter (SBC 2003)
The accompanying notes and schedules are an integral part of these consolidated financial statements.
Statement B
Town of View Royal
Consolidated Statement of Operations
Year ended December 31, 2023
| Financial plan (Note 18) | 2023 | 2022 | |
|---|---|---|---|
| Revenue | |||
| Taxes for municipal purposes (Note 13) | $ 11,318,193 | $ 11,308,449 | $ 10,203,427 |
| User charges and sales of services | 4,829,587 | 5,130,968 | 5,047,620 |
| Investment income | 115,000 | 1,893,688 | 361,967 |
| Actuarial adjustments on debt | - | 134,316 | 118,083 |
| Penalties and fines | 76,000 | 89,522 | 109,361 |
| Development charges earned | 722,345 | 225,086 | 183,167 |
| Contributions from developers and others | 1,018,000 | 913,350 | 1,033,479 |
| Other revenue from own sources | 307,580 | 391,437 | 375,139 |
| Government grants and transfers (Notes 14, 15) | 8,237,209 | 7,943,027 | 3,309,008 |
| Gain (loss) on sale of tangible capital assets (Note 9) | - | (29,388) | (5,473,983) |
| 26,623,914 | 28,000,455 | 15,267,268 | |
| Expense | |||
| General government services | 3,022,735 | 2,895,314 | 2,827,319 |
| Protective services | 6,163,355 | 5,954,298 | 5,065,624 |
| Transportation services | 5,236,451 | 4,796,810 | 4,483,074 |
| Environmental health services | 2,784,814 | 2,686,647 | 2,544,182 |
| Development services | 753,608 | 527,180 | 561,941 |
| Recreation and cultural services | 3,703,442 | 3,783,677 | 3,755,728 |
| 21,664,405 | 20,643,926 | 19,237,868 | |
| Annual surplus (deficit) | 4,959,509 | 7,356,529 | (3,970,600) |
| Accumulated surplus, beginning | 142,846,540 | 142,846,540 | 146,817,140 |
| Accumulated surplus, ending | $ 147,806,049 | $ 150,203,069 | $ 142,846,540 |
The accompanying notes and schedules are an integral part of these consolidated financial statements.
Statement C
Town of View Royal
Consolidated Statement of Change in Net Financial Assets
Year ended December 31, 2023
| Financial plan (Note 18) | 2023 | 2022 | |
|---|---|---|---|
| Annual surplus (deficit) | $ 4,959,509 | $ 7,356,529 | $ (3,970,600) |
| Acquisition of tangible capital assets | (6,697,093) | (2,780,314) | (1,144,797) |
| Contributed tangible capital assets | - | - | (466,779) |
| Amortization of tangible capital assets | 3,223,099 | 3,164,434 | 3,151,045 |
| (Gain) loss on disposal and write-down of tangible capital assets | - | 29,388 | 5,473,983 |
| Proceeds on sale of tangible capital assets | - | 7,200 | 922,871 |
| Change in proportionate share of West Shore Parks and Recreation Society | - | 227,220 | 396,723 |
| Change in inventory of supplies | - | 1,260 | (911) |
| Change in prepaid expenses | - | (16,767) | (35,720) |
| Increase (decrease) in net financial assets | 1,485,515 | 7,988,950 | 4,325,815 |
| Net financial assets, beginning | 19,883,182 | 19,883,182 | 15,557,367 |
| Net financial assets, ending | $ 21,368,697 | $ 27,872,132 | $ 19,883,182 |
The accompanying notes and schedules are an integral part of these consolidated financial statements.
Statement D
Town of View Royal
Consolidated Statement of Cash Flows
Year ended December 31, 2023
| 2023 | 2022 | |
|---|---|---|
| Operating activities | ||
| Annual surplus | $ 7,356,529 | $ (3,970,600) |
| Items not affecting operating activities | ||
| Contributed tangible capital assets | - | (466,779) |
| Amortization of tangible capital assets | 3,164,434 | 3,151,045 |
| (Gain) loss on disposal and write-down of tangible capital assets | 29,388 | 5,473,983 |
| Change in inventory of supplies | 1,260 | (911) |
| Change in prepaid expenses | (16,767) | (35,720) |
| Actuarial adjustment on debt | (125,652) | (109,557) |
| Change in proportionate share of West Shore Parks and Recreation Society | 227,220 | 396,723 |
| Decrease (increase) in non-cash financial assets | ||
| Property taxes receivable | 20,403 | (42,896) |
| Accounts receivable | (57,605) | 889,904 |
| Inventory held for sale | 2,994 | (6,216) |
| Increase (decrease) in liabilities | ||
| Accounts payable and accrued liabilities | 524,354 | 716,941 |
| Deposits | 96,982 | (124,832) |
| Deferred revenue | 3,644,308 | 1,157,216 |
| Prepaid property taxes | 98,608 | 70,228 |
| Employee benefits and retirement obligations | 16,444 | 9,912 |
| 14,982,900 | 7,108,441 | |
| Capital activities | ||
| Acquisition of tangible capital assets | (2,780,314) | (1,144,797) |
| Proceeds on disposal of tangible capital assets | 7,200 | 922,871 |
| (2,773,114) | (221,926) | |
| Financing activities | ||
| Debt principal repaid | (315,615) | (315,615) |
| Increase in cash and cash equivalents | 11,894,171 | 6,570,900 |
| Cash and cash equivalents, beginning | 37,253,511 | 30,682,611 |
| Cash and cash equivalents, ending | $ 49,147,682 | $ 37,253,511 |
The accompanying notes and schedules are an integral part of these consolidated financial statements.
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