4
ANNUAL REPORT 2020
EXECUTIVE SUMMARY The Municipal District of Bonnyville’s 2020 Annual Report is information for residents, stakeholders, and other users about the financial performance of the municipality from January 1 to December 31, 2020. It lends assistance to understanding the complete set of audited financial statements. It also provides an opportunity to highlight the efforts of all departments for the year, comparing the financial results achieved to the approved budget passed by Council. Management is responsible for the information contained in the annual financial report. The Province of Alberta’s Municipal Government Act (MGA) provides the M.D. with the legislative authority as a local government within the Province of Alberta. The consolidated financial statements are prepared in accordance with Section 276 of the MGA and public sector accounting standards established by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants. The 2020 consolidated financial statements have been prepared and audited by Metrix Group LLP and their Independent Auditors’ Report is included in this Annual Report.
Respectfully submitted,
Tolulope Maraiyesa Tolulope Maraiyesa, CPA, CGA General Manager, Corporate Services
CONSOLIDATED STATEMENT OF FINANCIAL POSITION The consolidated statement of financial position, as found on page 31, presents the financial status of the M.D. of Bonnyville as of December 31, 2020, allowing the reader to measure the financial performance in comparison to the prior fiscal year. Financial assets increased by $4.8 million, and liabilities increased by $4.4 million. The increase
FINANCIAL SUMMARY
in liabilities is due to amounts payable
The comparative Financial Statements presented reveal financial information
to neighbouring municipalities while the
for two consecutive years. Comparative Financial Statements are quite
Intermunicipal Collaboration Framework
useful in communicating financial information for the following reasons:
negotiations were ongoing. The M.D.
•
P rovides a comparison of the M.D. of Bonnyville’s performance over
had net financial assets of $80.6 million
two years to determine trends,
(2019: $80.2 million), which is an
P rovides a comparison of expenses to revenues and the proportions of
indication of a strong financial position
various items on the balance sheet over the two-year period, lending
where financial assets exceed financial
useful information for cost management purposes,
liabilities.
P rovides a comparison of expenses and revenues to the approved
Non-financial assets, which consist
budget to determine if the municipality has met its financial forecasting
primarily of tangible capital assets,
projections and to consider whether there are areas that need more
inventory and prepaid expenses,
funding,
increased by $12.2 million. The net
May be useful for predicting future performance, though more reliance
changes in net financial assets and non-
should be placed on operational indicators and leading indicators than
financial assets result in a net increase
on historical performance for this type of analysis.
in accumulated surplus of $12.5 million.
•
•
•
