Audited Financial Statements & Role of the Auditor

The Municipal Government Act requires that Council appoints an independent auditor to review the financial activity every year. Baker Tilly WCR LLP , a local firm, has been the auditor to the Town of Rocky Mountain House for many years. It was recently the successful candidate in a request for proposal for the upcoming audit term.

The role of Baker Tilly WCR LLP is to review the financial activity and present an independent audit opinion that the consolidated statement presents fairly the financial position of the Town, and that the statements are prepared in accordance with Canadian Public Sector Accounting Standards.

The audit committee contains all members of Council and it is their responsibility to appoint the auditor, review and approve the terms of engagement every year, meet with the auditor prior to the audit to discuss the scope of the audit and to review the final audited statements as well as any audit findings and to accept and approve the audited financial statements. They are also responsible to ensure that management is completing its responsibilities in managing the entire financial process including the audit.

Quarterly financial statements are presented to Council for March, June and September each year and a year-end analysis is presented once the financial statements are complete.

The reader will notice that the signatures have been redacted in the presented financial statements. This was done following section 17 of the Freedom of Information and Protection of Privacy Act (FOIP) for the purpose of protecting personal information.

Town Of Rocky Mountain House

CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2022

Redacted under sec. 17 of the FOIP Act

Redacted under sec. 17 of the FOIP Act

Baker Tilly Wcr Llp

INDEPENDENT AUDITORS' REPORT

To the Mayor and Councilof the Town of RockyMountain House Opinion

We have audited the accompanying consolidated financial statements of the Town of Rocky Mountain House (the "Town"), which comprise the consolidated statement of financial position as at December 31, 2022, and the consolidated statements of operations, changes in net financial assets and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatoryinformation.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects the consolidated financial position of the Town as at December 31, 2022, and the results of its consolidated operations, change in net financial assets and cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report.

We are independent of the Town in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the consolidated financial statements and our auditors' report thereon. The Annual Report is expected to be made available to us after the date of this auditors' report.

Our opinion on the consolidated financial statements does not cover the other information and we will not express anyform of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statement or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read the annual report, if we conclude that there is a material misstatement of this other information, we are required to report that fact to the Mayor and Council.