Staff Report: 2020 Consolidated Financial Statements and Audit Report

2020 Consolidated Financial Statements and Audit Report

RECOMMENDATION:

THAT Council approves the audited 2020 Consolidated Financial Statements.

CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:

I concur with the recommendation.

PURPOSE OF REPORT:

To present the draft 2020 Consolidated Financial Statements and auditor’s report prepared by MNP LLP relating to the audit of the Town of View Royal’s financial position and results for the year ended December 31, 2020.

TIME CRITICAL:

The Community Charter 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 financial statements must be presented to Council for its acceptance prior to submission to the inspector.

DISCUSSION:

As required by legislation, Town of View Royal staff have prepared consolidated financial statements in accordance with public sector accounting standards. The 2020 Consolidated Financial Statements were audited by the Council-appointed audit firm, MNP LLP for the year ended December 31, 2020 following Canadian generally accepted auditing standards. The Community Charter requires that the annual financial statements be publicly presented to Council for its review and approval.

Canadian Audit Standards require the Council to accept the annual financial statements prior to the completion of the work of the auditors. Once this process has been completed, the Auditors’ Report will be included in the 2020 Financial Statements, submitted to the Inspector of Municipalities and posted on View Royal’s website.

Attached to this report are:

Draft 2020 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
Town of View Royal 2020 Audit Findings Report to Mayor and Council, December 31, 2020.

The Auditor’s Report concludes that the financial statements present fairly, in all material respects, the consolidated financial position of the Town of View Royal as at December 31, 2020. The 2020 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.