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

T OWNSHIP OF P USLINCH 2018 F INANCIAL S TATEMENT P RESENTATION Presented By: Krista Walford, CPA, CA Sally Slumskie, HBA, CPA, CA O UTLINE  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 1

R EVISION TO F INANCIAL S TATEMENTS  Change to budget numbers for development charges and cash in lieu of parkland  Effected numbers have been highlighted in financial statement excerpts presented S TATEMENT OF F INANCIAL P OSITION  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 2

S TATEMENT OF F INANCIAL P OSITION S TATEMENT OF O PERATIONS AND A CCUMULATED S URPLUS  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 3

S TATEMENT OF O PERATIONS AND A CCUMULATED S URPLUS H IGHLIGHTS OF M UNICIPALITY P ERFORMANCE – R EVENUE 2018 1,396,380 20% 929,948 Taxation 14% 4,046,025 Fees and user charges 60% Grants 407,248 Other income 6% 4

H IGHLIGHTS OF M UNICIPALITY P ERFORMANCE – E XPENSES 2018 Salaries 12,563 195,455 0% Interest 4% Materials & supplies 997,650 Contracted services 20% Rents & financial expense 2,484,459 50% External transfers 1,284,375 26% 2,975 0% S TATEMENT OF C HANGES IN N ET F INANCIAL A SSETS  Takes annual surplus from statement of operations 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 5

S TATEMENT OF C HANGES IN N ET F INANCIAL A SSETS S TATEMENT OF C ASH F LOWS  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) 6

S TATEMENT OF C ASH F LOWS A CCUMULATED S URPLUS N OTE  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 7

A CCUMULATED S URPLUS N OTE H IGHLIGHTS OF M UNICIPALITY P ERFORMANCE – G ENERAL SURPLUS 8

R ESERVES N OTE H IGHLIGHTS OF M UNICIPALITY P ERFORMANCE – R ESERVE BALANCES 9

H IGHLIGHTS OF M UNICIPALITY P ERFORMANCE – R ESERVE BALANCES F INAL R EPORT TO C OUNCIL 10

FINAL REPORT TO COUNCIL FINAL REPORT TO COUNCIL 11

Year Title Matter Identified Action Taken Identified Review of The current capital asset policy is very general and broad. 2014 Scheduled for 2020. Capital Asset This may lead to incorrect classification of assets and Policy 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. Purchase Orders The municipality currently does not use a purchase order 2014 Scheduled for 2020. system. We recommend that a purchase order system be implemented that requires all non-routine purchases to have a purchase order approved in advance. Procurement The existing procurement policy allows purchasing up to 2014 Scheduled for 2020. Policy $10,000 with limited authorization. We recommend that the procurement policy be reviewed and lower threshold be considered. Invoice and A master authorization list for payroll and purchases 2014 To be included as Timesheet Sign indicating who is authorized to sign off on invoices and part of the offs Master timesheets for approval does not exist. We recommend procurement policy. Authorization that a policy be implemented that contains a list of List authorized individuals, as well as their levels of authorization. Tangible Capital The capital asset module in Keystone is being used to 2015 Software Assets track assets, which does not easily record disposals of opportunities to be assets or perform capital asset forecasting. It is investigated after recommended the Township look at other capital asset update of Asset programs, including CityWide. Management Plan FINAL REPORT TO COUNCIL 12