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Report from Chief Financial Officer
from 2022 Annual Report
by Lake Country
Our auditors, BDO LLP, have audited the 2022 financial statements and provided a clean audit opinion. The draft financial statements are contained in Attachment 1. The full financial statements were presented to Council by BDO LLP and by management at the May 9, 2023 Special Council meeting.
These financial statements have been prepared in accordance with generally accepted accounting principles for local governments following recommendations and guidance provided by Public Sector Accounting Standards (PSAS). The integrity and objectivity of these statements are management’s responsibility.
Relevant Observations:
A net financial position indicates the extent that net financial resources are available to fund future operations and expenditures. In 2022 the District moved to a net financial position of $8,716,578 compared to $14,519,118 in 2021. While this is a significant drop from the prior year, it is largely as a result of planned significant capital expenditures and we consider the net financial position to be quite healthy for funding future operations and expenditures.
2022 revenues were below budget by $15,719,622 with the actual amount being $36,912,102 and the 2022 budgeted amount being $52,631,724.
The majority of this difference is due to Government Transfers revenue coming in at $1,795,768 compared to budget of $17,528,923 for a difference of $15,733,155.
$14,116,025 was budgeted for Wastewater Treatment Plant Phase 5 to be grant funded which has not yet been received (still undetermined if this will eventually be received).
CFO Trevor James is not only interested in the sustainability of the financial position of Lake Country, he also spent his lunch hour on Earth Day planting trees under the direction of the Parks team at Jack Seaton Park.
The dip in 2021 and 2022 is largely attributable to the significant capital expenditures. The district spent $22,954,802 on tangible capital assets in 2021 and $15,973,412 in 2022. Figure 2 shows the trend of acquisition of tangible capital assets over the years:
Acquisition of tangible capital assets
The dip in 2021 and 2022 is largely attributable to the significant capital expenditures. The district spent $22,954,802 on tangible capital assets in 2021 and $15,973,412 in 2022. Figure 2 shows the trend of acquisition of tangible capital assets over the years:
