T OWNSHIP OF P USLINCH 2018 F INANCIAL S TATEMENT P RESENTATION - - PDF document

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TOWNSHIP OF PUSLINCH 2018 FINANCIAL STATEMENT PRESENTATION

Presented By: Krista Walford, CPA, CA Sally Slumskie, HBA, CPA, CA

OUTLINE

 Review of significant financial statement

elements including:

 Statement of financial position  Statement of operations and accumulated surplus  Statement of changes in net financial assets  Statement of cash flows  Accumulated surplus note  Reserves note  Final report to Council

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REVISION TO FINANCIAL STATEMENTS

 Change to budget numbers for development

charges and cash in lieu of parkland

 Effected numbers have been highlighted in

financial statement excerpts presented

STATEMENT OF FINANCIAL POSITION

 Statement of financial position is a snapshot of

the municipality at a point in time.

 It highlights the following:  Cash resources  Net financial assets  Non-financial assets  Accumulated surplus or deficit

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STATEMENT OF FINANCIAL POSITION STATEMENT OF OPERATIONS

AND ACCUMULATED SURPLUS

 Reports the revenues and expenses of the

municipality for the year.

 Total revenue less costs (expenses) gives annual

surplus

 It highlights the following  Actual vs. budget vs. prior year results  Annual surplus  Accumulated surplus

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STATEMENT OF OPERATIONS

AND ACCUMULATED SURPLUS

HIGHLIGHTS OF MUNICIPALITY PERFORMANCE – REVENUE

4,046,025 60% 407,248 6% 929,948 14% 1,396,380 20%

2018

Taxation Fees and user charges Grants Other income

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HIGHLIGHTS OF MUNICIPALITY PERFORMANCE – EXPENSES

2,484,459 50% 2,975 0% 1,284,375 26% 997,650 20% 12,563 0% 195,455 4%

2018

Salaries Interest Materials & supplies Contracted services Rents & financial expense External transfers

STATEMENT OF CHANGES IN NET FINANCIAL ASSETS

 Takes annual surplus from statement of

• perations and removes activity in non-financial

assets to get change in net debt for the year that agrees to statement of financial position

 It highlights the following:  Changes in capital assets for the year  Change in net debt/net financial assets

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STATEMENT OF CHANGES IN NET FINANCIAL ASSETS STATEMENT OF CASH FLOWS

 Shows the change in cash and cash equivalents

for the year

 Breaks down cash between operating, capital,

investing and financing

 It highlights the following:  Primary sources of cash (Operating , investing or

financing)

 Primary use of cash (Capital transactions)

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STATEMENT OF CASH FLOWS ACCUMULATED SURPLUS NOTE

 Provides a breakdown of the accumulated

surplus balance found on the Statement of Financial Position and Statement of Operations and Accumulated Surplus

 Includes details of:  Amount invested in capital assets  General surplus (Accumulated Operating

Surpluses/Deficits)

 Capital assets financed by long term liabilities

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ACCUMULATED SURPLUS NOTE HIGHLIGHTS OF MUNICIPALITY PERFORMANCE – GENERAL SURPLUS

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RESERVES NOTE HIGHLIGHTS OF MUNICIPALITY PERFORMANCE – RESERVE BALANCES

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HIGHLIGHTS OF MUNICIPALITY PERFORMANCE – RESERVE BALANCES FINAL REPORT TO COUNCIL

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FINAL REPORT TO COUNCIL FINAL REPORT TO COUNCIL

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Title Matter Identified Year Identified Action Taken Review of Capital Asset Policy The current capital asset policy is very general and broad. This may lead to incorrect classification of assets and inappropriate useful life estimates. We recommend that the capital asset policy be reviewed to ensure that the correct useful lives are being attached to the different asset classes. 2014 Scheduled for 2020. Purchase Orders The municipality currently does not use a purchase order

• system. We recommend that a purchase order system be

implemented that requires all non-routine purchases to have a purchase order approved in advance. 2014 Scheduled for 2020. Procurement Policy The existing procurement policy allows purchasing up to $10,000 with limited authorization. We recommend that the procurement policy be reviewed and lower threshold be considered. 2014 Scheduled for 2020. Invoice and Timesheet Sign

• ffs Master

Authorization List A master authorization list for payroll and purchases indicating who is authorized to sign off on invoices and timesheets for approval does not exist. We recommend that a policy be implemented that contains a list of authorized individuals, as well as their levels of authorization. 2014 To be included as part of the procurement policy. Tangible Capital Assets The capital asset module in Keystone is being used to track assets, which does not easily record disposals of assets or perform capital asset forecasting. It is recommended the Township look at other capital asset programs, including CityWide. 2015 Software

• pportunities to be

investigated after update of Asset Management Plan

FINAL REPORT TO COUNCIL