TOWN OF VIEW ROYAL COUNCIL REPORT: 2022 Consolidated Financial Statements and Audit Results

TOWN OF VIEW ROYAL COUNCIL REPORT

TO: Council
DATE: May 1, 2023
FROM: D. Christenson, Director of Finance
MEETING DATE: May 9, 2023
2022 Consolidated Financial Statements and Audit Results

RECOMMENDATION:

THAT Council accept the 2022 audited consolidated financial statements.

PURPOSE:

To present the draft 2022 Consolidated Financial Statements and auditor’s report prepared by MNP LLP relating to the audit of the Town of View Royal’s consolidated financial statements for the year ended December 31, 2022.

TIME CRITICAL:

The Community Charter (Section 167) requires the Town of View Royal to prepare and submit to the Inspector of Municipalities its audited consolidated financial statements for the preceding year by May 15 of each year. The consolidated financial statements must be presented to Council for its acceptance prior to submission to the inspector.

EXECUTIVE SUMMARY:

The 2022 Consolidated Financial Statements, attached to this report, present View Royal’s financial position on December 31, 2022 and the results of operations for the year ended on that date. Also attached to this report are the results of the audit performed by MNP LLP, who indicate that the 2022 Consolidated Financial Statements present fairly the Town’s financial position in all material respects. As independent auditors, MNP LLP has full and free access to Council, and Council may convene a restricted, closed meeting with the auditors if they wish to discuss the Town’s financial matters further.

After Council’s acceptance of the 2022 Consolidated Financial Statements, staff will submit the statements and all other required information to the Inspector of Municipalities by May 15, 2023, in compliance with Community Charter Section 167.

BACKGROUND:

As required by legislation, Town of View Royal staff have prepared consolidated financial statements in accordance with public sector accounting standards. The 2022 Consolidated Financial Statements were audited by the Council-appointed audit firm, MNP LLP for the year ended December 31, 2022, following Canadian generally accepted auditing standards. The Community Charter requires that the annual consolidated financial statements be publicly presented to Council for its review and acceptance.

DISCUSSION:

Attached to this report are:

1. Draft 2022 Consolidated Financial Statements with notes and supporting schedules accompanied by the Management’s Responsibility for Financial Reporting statement and draft independent Auditor’s Report; and
2. Town of View Royal 2022 Audit Findings Report to Mayor and Council, December 31, 2022.

The Auditor’s Report concludes that the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Town of View Royal as at December 31, 2022. The 2022 Consolidated Financial Statements reflect Council’s commitment towards fiscal sustainability and further analysis indicates that the Town’s overall fiscal health is satisfactory.

The auditors confirm independence from the Town of View Royal and that they have had access to Council without interference from management. Council may choose to convene a restricted, closed session to discuss with the auditors any financial matters pertaining to the Town of View Royal.

SUSTAINABILITY/CLIMATE CHANGE IMPACTS:

This matter has no significant sustainability or climate change impacts.

FINANCIAL IMPLICATIONS:

A delay in accepting the 2022 Consolidated Financial Statements may risk delaying approval of or access to funding, to the extent the funding provider requires audited financial statements from the prior year.

ALTERNATIVES:

Council may defer the decision to accept the 2022 Consolidated Financial Statements pending further information. Doing so may result in a failure to comply with legislated deadlines and risks losing or delaying access to some funding sources.

CONCLUSION:

The 2022 Consolidated Financial Statements have been prepared by View Royal management and staff in compliance with public sector accounting standards, have been audited by MNP LLP, and have been found to present fairly the consolidated financial position of the Town. Staff recommends Council accept the consolidated financial statements before submission to the Inspector of Municipalities, as required by legislation prior to May 15 each year.

ATTACHMENTS:

• DRAFT 2022 Town of View Royal Consolidated Financial Statements, December 31, 2022
• Town of View Royal 2022 Audit Findings Report to the Mayor and Council, December 31, 2022