Presentation
Town of View Royal 2022 Consolidated Financial Statements Presentation
May 9, 2023Pages 44–7128 sections
A slide deck summarizing the 2022 consolidated financial statements, sustainability ratios, and flexibility ratios for the Town.
Accumulated surplus: $142,846,5402022 deficit: $3,970,600Net financial assets (debt): $19,883,182
Town of View Royal
Page 44–71
2022 Consolidated Financial Statements
Page 44–71
Contents
- Management’s responsibility for financial reporting
- Consolidated Statements:
- Financial Position
- Operations
- Net Financial Assets
- Cash Flows
- Notes
- Segment Disclosures
- Tangible Capital Assets
- Independent Auditor’s Report
- Audit Findings Report
Page 44–71
Who does what?
Management’s responsibility
- To prepare compliant financial statements that are objective, consistent and have integrity
Mayor and Council’s responsibility
- Make sure management does its job
- Meet with management and auditors to review and discuss matters
Auditor’s responsibility
- Conduct independent examination
- Evaluate the systems of internal control
- Express an opinion on the financial statements – do they fairly represent the actual position of the Town?
Page 44–71
Consolidated Statement of Financial Position
aka Balance Sheet Statement A
Where are we at on December 31, 2022?
- Net financial assets (debt)
- Non-financial assets
- Accumulated surplus
Note the NOTES!
Page 44–71
Town of View Royal
Consolidated Statement of Financial Position
as at December 31, 2022
Statement A
| Financial assets | 2022 | 2021 (Restated - Note 21) |
|---|---|---|
| Cash and cash equivalents (Note 3) | $ 37,253,511 | $ 30,682,611 |
| Property taxes receivable | 143,284 | 100,388 |
| Accounts receivable (Note 4) | 1,918,353 | 2,808,257 |
| Inventory held for sale | 15,845 | 9,629 |
| Total Financial assets | 39,330,993 | 33,600,885 |
| Liabilities | ||
| Accounts payable and accrued liabilities (Note 5) | 4,520,651 | 3,803,710 |
| Deposits | 2,148,916 | 2,273,748 |
| Deferred revenue (Note 6) | 7,301,961 | 6,144,745 |
| Prepaid property taxes | 595,492 | 525,264 |
| Long-term debt (Note 7) | 4,587,651 | 5,012,823 |
| Employee benefits and retirement obligations (Note 8) | 293,140 | 283,228 |
| Total Liabilities | 19,447,811 | 18,043,518 |
| Net financial assets | 19,883,182 | 15,557,367 |
Page 44–71
Sustainability ratios
Page 44–71
Town of View Royal
Consolidated Statement of Financial Position (Continued)
as at December 31, 2022
Statement A
| 2022 | 2021 (Restated - Note 21) | |
|---|---|---|
| Net financial assets | 19,883,182 | 15,557,367 |
| Non-financial assets | ||
| Tangible capital assets (Note 9) (Schedule 3) | 122,831,577 | 131,164,623 |
| Inventory of supplies | 15,858 | 14,947 |
| Prepaid expenses | 115,923 | 80,203 |
| Total Non-financial assets | 122,963,358 | 131,259,773 |
| Commitments and contingencies (Note 15) | ||
| Accumulated surplus (Note 10) | $ 142,846,540 | $ 146,817,140 |
Page 44–71
Flexibility ratios
Page 44–71
Consolidated Statement of Operations
aka: Income Statement Statement B
What happened in 2022?
- Revenue
- Expense
- Annual surplus (deficit)
- Accumulated surplus = Statement A
Page 44–71
Town of View Royal
Consolidated Statement of Operations
Year ended December 31, 2022
Statement B
| Revenue | Financial plan (Note 17) | 2022 | 2021 (Restated - Note 21) |
|---|---|---|---|
| Taxes for municipal purposes (Note 12) | $ 10,208,319 | $ 10,203,427 | $ 9,616,909 |
| User charges and sales of services | 4,646,625 | 5,047,620 | 4,515,231 |
| Investment income | 115,000 | 361,967 | 22,047 |
| Actuarial adjustments on debt | - | 118,083 | 107,373 |
| Penalties and fines | 60,000 | 109,361 | 95,780 |
| Development charges earned | 591,503 | 183,167 | 26,055 |
| Contributions from developers and others | - | 1,033,479 | 1,526,020 |
| Other revenue from own sources | 258,470 | 375,139 | 647,501 |
| Government grants and transfers (Notes 13, 14) | 2,881,953 | 3,309,008 | 3,245,148 |
| Gain (loss) on sale of tangible capital assets (Note 9) | - | (5,473,983) | 454,588 |
| Total revenue | 18,761,870 | 15,267,268 | 20,256,652 |
| Expense | |||
| General government services | 2,738,060 | 2,827,319 | 2,613,908 |
| Protective services | 5,687,129 | 5,065,624 | 5,296,182 |
| Transportation services | 5,257,090 | 4,483,074 | 4,668,214 |
| Environmental health services | 2,710,444 | 2,544,182 | 2,471,385 |
| Development services | 623,439 | 561,941 | 609,189 |
| Recreation and cultural services | 3,513,516 | 3,755,728 | 3,229,261 |
| Total expense | 20,529,678 | 19,237,868 | 18,888,139 |
| Annual surplus (deficit) | (1,767,808) | (3,970,600) | 1,368,513 |
| Accumulated surplus, beginning | 146,817,140 | 146,817,140 | 145,448,627 |
| Accumulated surplus, ending | $ 145,049,332 | $ 142,846,540 | $ 146,817,140 |
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Flexibility ratios
Page 44–71
Flexibility ratios
Page 44–71
Consolidated Statement of Change in Net Financial Assets
aka Change in financial equity Statement C
Takes the non-financial assets out of the annual surplus, so we have a better understanding of our net financial asset position
Page 44–71
Town of View Royal
Consolidated Statement of Change in Net Financial Assets
Year ended December 31, 2022
Statement C
| Financial plan (Note 17) | 2022 | 2021 (Restated - Note 21) | |
|---|---|---|---|
| Annual surplus (deficit) | $ (1,767,808) | $ (3,970,600) | $ 1,368,513 |
| Acquisition of tangible capital assets | (4,026,290) | (1,144,797) | (1,667,022) |
| Contributed tangible capital assets | - | (466,779) | (1,342,270) |
| Amortization of tangible capital assets | 3,164,347 | 3,151,045 | 3,103,043 |
| (Gain) loss on disposal and write-down of tangible capital assets | - | 5,473,983 | (433,244) |
| Proceeds on sale of tangible capital assets | - | 922,871 | 591,748 |
| Change in proportionate share of West Shore Parks and Recreation Society | - | 396,723 | 160,591 |
| Change in inventory of supplies | - | (911) | (2,248) |
| Change in prepaid expenses | - | (35,720) | 21,188 |
| Increase (decrease) in net financial assets | (2,629,751) | 4,325,815 | 1,800,299 |
| Net financial assets, beginning | 15,557,367 | 15,557,367 | 13,757,068 |
| Net financial assets, ending | $ 12,927,616 | $ 19,883,182 | $ 15,557,367 |
Page 44–71
Consolidated Statement of Cash Flows
Statement D
Reports the change in cash and investments in the period, and how the Town financed its activities
Where did the cash come from and how was it used?
Page 44–71
Town of View Royal
Consolidated Statement of Cash Flows
Year ended December 31, 2022
Statement D
| Cash provided by (used in) | 2022 | 2021 (Restated - Note 21) |
|---|---|---|
| Operating activities | ||
| Annual surplus | $ (3,970,600) | $ 1,368,513 |
| Items not affecting operating activities: | ||
| Contributed tangible capital assets | (466,779) | (1,342,270) |
| Amortization of tangible capital assets | 3,151,045 | 3,103,043 |
| (Gain) loss on disposal and write-down of tangible capital assets | 5,473,983 | (433,244) |
| Change in inventory of supplies | (911) | (2,248) |
| Change in prepaid expenses | (35,720) | 21,188 |
| Actuarial adjustment on debt | (109,557) | (100,604) |
| Change in proportionate share of West Shore Parks and Recreation Society | 396,723 | 160,591 |
| Decrease (increase) in non-cash financial assets: | ||
| Property taxes receivable | (42,896) | 67,518 |
| Accounts receivable | 889,904 | (1,802,591) |
| Inventory held for sale | (6,216) | (1,572) |
| Increase (decrease) in liabilities: | ||
| Accounts payable and accrued liabilities | 716,941 | (568,462) |
| Deposits | (124,832) | 1,087,332 |
| Deferred revenue | 1,157,216 | 221,470 |
| Prepaid property taxes | 70,228 | 3,938 |
| Employee benefits and retirement obligations | 9,912 | 25,870 |
| 7,108,441 | 1,808,472 | |
| Capital activities | ||
| Acquisition of tangible capital assets | (1,144,797) | (1,667,022) |
| Proceeds on disposal of tangible capital assets | 922,871 | 591,748 |
| (221,926) | (1,075,274) | |
| Financing activities | ||
| Debt principal repaid | (315,615) | (306,470) |
| Increase in cash and cash equivalents | 6,570,900 | 426,728 |
| Cash and cash equivalents, beginning | 30,682,611 | 30,255,883 |
| Cash and cash equivalents, ending | $ 37,253,511 | $ 30,682,611 |
Page 44–71
Notes to Consolidated Financial Statements
aka “Notes”
- Context
- Accounting policies
- Details
- Information
Page 44–71
Town of View Royal
Notes to Consolidated Financial Statements
Year ended December 31, 2022
The Town of View Royal (the "Town") was incorporated on December 5, 1988 by letters patent issued by the Province of British Columbia. Its principal activities are the provision and coordination of local government services to residents of the incorporated area. These services include general government administration, bylaw enforcement, planning and development services, building inspection, fire protection and emergency response planning, public transportation, parks and recreation, solid waste collection and disposal, sewer collection and disposal, and street lighting.
1. Significant accounting policies
a) Principles of consolidation The Town follows Canadian public sector accounting standards. The consolidated financial statements of the Town are prepared in accordance with the recommendations of the Public Sector Accounting Board (PSAB).
b) Reporting entity The consolidated financial statements reflect the combined assets, liabilities, accumulated surplus, revenue and expense of all of the Town's activities and funds. The consolidated financial statements also include the Town's proportionate share of the West Shore Parks and Recreation Society (West Shore). Interfund transactions and fund balances have been eliminated on consolidation.
c) Basis of accounting The Town follows the accrual method of accounting for revenue and expense...
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Notes
10. Accumulated surplus
Accumulated surplus consists of individual fund surplus and reserve funds as follows:
| Surplus | 2022 | 2021 (Restated - Note 21) |
|---|---|---|
| Equity in tangible capital assets | $ 118,306,465 | $ 126,235,265 |
| Appropriated surplus - casino revenue | 4,606,192 | 4,188,767 |
| Appropriated surplus - Community Works Fund (Note 11) | 2,750,248 | 2,349,862 |
| Appropriated surplus - other | 506,660 | 381,232 |
| Unrestricted accumulated surplus | 5,855,751 | 4,896,436 |
| 132,025,316 | 138,051,562 | |
| Capital Renewal | 907,642 | 701,602 |
| Capital Works and Land Acquisition | 1,342,857 | 1,336,220 |
| Community Amenity Contributions | 662,178 | 177,669 |
| Fire Department Equipment | 140,090 | 197,834 |
| Future Operating Expenditures | 1,084,103 | 977,968 |
| Machinery and Equipment Depreciation | 371,043 | 305,216 |
| Parks and Open Space | 1,431,067 | 501,292 |
| Parks Improvements | 490,136 | 381,897 |
| Police Equipment, Property and Contract | 353,126 | 384,109 |
| Police Operation and Maintenance | 2,009,760 | 1,653,589 |
| Sewer System Capital | 1,669,747 | 1,877,857 |
| West Shore Parks and Recreation Society reserves | 359,475 | 270,325 |
| 10,821,224 | 8,765,578 | |
| Total Accumulated surplus | $ 142,846,540 | $ 146,817,140 |
Difference $3,970,600 = 2022 deficit
Page 44–71
Notes
10. Accumulated surplus
Accumulated surplus consists of individual fund surplus and reserve funds as follows:
| Surplus | 2022 | 2021 (Restated - Note 21) |
|---|---|---|
| Equity in tangible capital assets | $ 118,306,465 | $ 126,235,265 |
| Appropriated surplus - casino revenue | 4,606,192 | 4,188,767 |
| Appropriated surplus - Community Works Fund (Note 11) | 2,750,248 | 2,349,862 |
| Appropriated surplus - other | 506,660 | 381,232 |
| Unrestricted accumulated surplus | 5,855,751 | 4,896,436 |
| 132,025,316 | 138,051,562 | |
| Capital Renewal | 907,642 | 701,602 |
| Capital Works and Land Acquisition | 1,342,857 | 1,336,220 |
| Community Amenity Contributions | 662,178 | 177,669 |
| Fire Department Equipment | 140,090 | 197,834 |
| Future Operating Expenditures | 1,084,103 | 977,968 |
| Machinery and Equipment Depreciation | 371,043 | 305,216 |
| Parks and Open Space | 1,431,067 | 501,292 |
| Parks Improvements | 490,136 | 381,897 |
| Police Equipment, Property and Contract | 353,126 | 384,109 |
| Police Operation and Maintenance | 2,009,760 | 1,653,589 |
| Sewer System Capital | 1,669,747 | 1,877,857 |
| West Shore Parks and Recreation Society reserves | 359,475 | 270,325 |
| 10,821,224 | 8,765,578 | |
| Total Accumulated surplus | $ 142,846,540 | $ 146,817,140 |
Difference $3,970,600 = 2022 deficit
Page 44–71
Consolidated Schedules of Segment Disclosure by Service
aka Segmented Info Schedule 1 (2022) Schedule 2 (2021)
Describes R & E categories for each function shown on Statement B
Statement B functions:
- General Government
- Protective
- Transportation
- Environmental Health
- Development
- Recreation & Culture
Scheds 1 & 2 categories:
- Labour & benefits
- Goods & services
- Amortization
- Debt interest
- WSPR change in share
Page 44–71
Town of View Royal
Consolidated Schedule of Segment Disclosure by Service
Year ended December 31, 2022
Schedule 1
| 2022 Revenue | General Government | Protective Services | Transportation Services | Environmental Health Services | Planning and Development Services | Recreation and Cultural Services | 2022 Actual | 2022 Budget (Note 17) |
|---|---|---|---|---|---|---|---|---|
| Taxation for municipal purposes | $ 2,591,520 | $ 3,859,268 | $ 2,826,264 | $ - | $ 361,799 | $ 564,576 | $ 10,203,427 | $ 10,208,319 |
| User charges and sales of services | 13,949 | 448,633 | 62,173 | 2,960,595 | 676,315 | 885,955 | 5,047,620 | 4,646,625 |
| Investment income | 302,966 | 12,638 | 15,005 | 13,347 | 7,623 | 10,388 | 361,967 | 115,000 |
| Actuarial adjustments on debt | - | 118,083 | - | - | - | - | 118,083 | - |
| Penalties and fines | 91,351 | 18,010 | - | - | - | - | 109,361 | 60,000 |
| Development charges earned | - | - | 63,910 | 119,257 | - | - | 183,167 | 591,503 |
| Contributions from developers and others | 688 | - | 466,779 | - | 560,700 | 5,312 | 1,033,479 | - |
| Other revenue from own sources | 92,986 | 40,866 | 168,928 | - | - | 72,359 | 375,139 | 258,470 |
| Government grants and transfers | 906,103 | 367,008 | 451,572 | - | 304,687 | 1,279,638 | 3,309,008 | 2,881,953 |
| Gain (loss) on sale of tangible capital assets (Note 9) | (5,473,983) | - | - | - | - | - | (5,473,983) | - |
| Total revenue | (1,474,420) | 4,864,506 | 4,054,631 | 3,093,199 | 1,911,124 | 2,818,228 | 15,267,268 | 18,761,870 |
| Expense | ||||||||
| Labour and benefits | 1,507,418 | 2,064,417 | 622,035 | 49,260 | 420,844 | 1,539,455 | 6,203,429 | 6,016,900 |
| Goods and services | 1,249,975 | 2,374,205 | 1,872,091 | 2,211,554 | 141,097 | 1,420,637 | 9,269,559 | 11,131,319 |
| Amortization | 69,926 | 409,890 | 1,988,948 | 283,368 | - | 398,913 | 3,151,045 | 3,164,347 |
| Change in proportionate share of West Shore Parks and Recreation Society | - | - | - | - | - | 396,723 | 396,723 | - |
| Debt interest | - | 217,112 | - | - | - | - | 217,112 | 217,112 |
| Total expense | 2,827,319 | 5,065,624 | 4,483,074 | 2,544,182 | 561,941 | 3,755,728 | 19,237,868 | 20,529,678 |
| Surplus (deficit) | $ (4,301,739) | $ (201,118) | $ (428,443) | $ 549,017 | $ 1,349,183 | $ (937,500) | $ (3,970,600) | $ (1,767,808) |
Page 44–71
Town of View Royal
Consolidated Schedule of Segment Disclosure by Service
Year ended December 31, 2022
Schedule 2
| 2021 Revenue | General Government | Protective Services | Transportation Services | Environmental Health Services | Planning and Development Services | Recreation and Cultural Services | 2021 Actual (Restated - Note 21) | 2021 Budget |
|---|---|---|---|---|---|---|---|---|
| Taxation for municipal purposes | $ 1,245,112 | $ 3,949,860 | $ 2,757,139 | $ - | $ 361,343 | $ 1,303,455 | $ 9,616,909 | $ 9,614,978 |
| User charges and sales of services | 17,872 | 557,692 | 19,384 | 2,825,077 | 382,137 | 713,069 | 4,515,231 | 4,097,438 |
| Investment income | (1,224) | 6,738 | 7,512 | 6,877 | (81) | 2,225 | 22,047 | 110,000 |
| Actuarial adjustments on debt | - | 107,373 | - | - | - | - | 107,373 | - |
| Penalties and fines | 90,110 | 5,670 | - | - | - | - | 95,780 | 60,000 |
| Development charges earned | - | - | - | 24,485 | - | 1,570 | 26,055 | 123,350 |
| Contributions from developers and others | - | - | 1,285,653 | 56,617 | 177,750 | 6,000 | 1,526,020 | - |
| Other revenue from own sources | 80,216 | 49,220 | 50,417 | 410,002 | - | 57,646 | 647,501 | 240,168 |
| Government grants and transfers | 923,580 | 264,484 | 678,180 | - | 50,717 | 1,328,187 | 3,245,148 | 2,815,775 |
| Gain (loss) on sale of tangible capital assets (Note 9) | 454,588 | - | - | - | - | - | 454,588 | - |
| Total revenue | 2,355,666 | 4,941,037 | 4,798,285 | 3,323,058 | 971,866 | 3,412,152 | 20,256,652 | 17,061,709 |
| Expense | ||||||||
| Labour and benefits | 1,399,013 | 2,053,797 | 660,682 | 52,054 | 434,897 | 1,392,520 | 5,992,963 | 5,631,434 |
| Goods and services | 1,145,377 | 2,636,540 | 1,983,229 | 2,135,731 | 174,292 | 1,305,279 | 9,380,448 | 10,911,008 |
| Amortization | 69,518 | 354,751 | 2,024,303 | 283,600 | - | 370,871 | 3,103,043 | 3,099,457 |
| Change in proportionate share of West Shore Parks and Recreation Society | - | - | - | - | - | 160,591 | 160,591 | - |
| Debt interest | - | 251,094 | - | - | - | - | 251,094 | 260,633 |
| Total expense | 2,613,908 | 5,296,182 | 4,668,214 | 2,471,385 | 609,189 | 3,229,261 | 18,888,139 | 19,902,532 |
| Surplus (deficit) | $ (258,242) | $ (355,145) | $ 130,071 | $ 851,673 | $ 362,677 | $ 182,891 | $ 1,368,513 | $ (2,840,823) |
Page 44–71
Consolidated Schedule of Tangible Capital Assets
aka TCA Schedule Schedule 3
Details for each category of TCA
- Historical costs
- Additions and disposals in the year
- Amortization
- Net book value
Includes prior year comparatives
Page 44–71
Town of View Royal
Consolidated Schedule of Tangible Capital Assets
Year ended December 31, 2022
Schedule 3
| Cost | Land | Land Improvements | Buildings | Vehicles, Machinery & Equipment | Roads | Drainage | Sewer | Work in Progress | West Shore | 2022 | 2021 (Restated - Note 21) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance, beginning | $ 49,876,492 | $ 5,979,480 | $ 10,526,158 | $ 8,702,685 | $ 62,766,705 | $ 22,779,093 | $ 12,769,593 | $ 277,810 | $ 10,502,094 | $ 184,180,110 | $ 181,658,194 |
| Additions | - | 206,304 | 31,445 | 223,655 | 426,855 | 19,256 | - | 608,370 | 118,118 | 1,634,003 | 4,439,802 |
| Disposals or write-downs | (6,396,854) | - | - | (178,026) | - | - | - | - | (599,533) | (7,174,413) | (487,376) |
| Completed during year | - | - | - | - | - | - | - | (22,427) | - | (22,427) | (1,430,510) |
| Balance, ending | 43,479,638 | 6,185,784 | 10,557,603 | 8,748,314 | 63,193,560 | 22,798,349 | 12,769,593 | 863,753 | 10,020,679 | 178,617,273 | 184,180,110 |
| Accumulated amortization | |||||||||||
| Balance, beginning | - | 2,944,366 | 3,180,279 | 4,532,551 | 29,892,826 | 5,432,113 | 3,574,002 | - | 3,459,349 | 53,015,486 | 50,080,725 |
| Current year amortization | - | 252,858 | 210,728 | 433,357 | 1,626,310 | 266,401 | 143,562 | - | 217,829 | 3,151,045 | 3,103,043 |
| Accumulated amortization on disposals or write-downs | - | - | - | (178,026) | - | - | - | - | (202,809) | (380,835) | (168,281) |
| Balance, ending | - | 3,197,224 | 3,391,007 | 4,787,882 | 31,519,136 | 5,698,514 | 3,717,564 | - | 3,474,369 | 55,785,696 | 53,015,487 |
| Net book value | $ 43,479,638 | $ 2,988,560 | $ 7,166,596 | $ 3,960,432 | $ 31,674,424 | $ 17,099,835 | $ 9,052,029 | $ 863,753 | $ 6,546,310 | $ 122,831,577 | $ 131,164,623 |
Page 44–71
Flexibility and Vulnerability ratios
Page 44–71
Questions?
Page 44–71
Document Images
(1)
Extracted from: 2023 05 09 Special Council Agenda - Agenda - Pdf