Staff Report #3
June 29, 2022
To All Commissioners
Re: 2021 Audited Financial Statements
Recommendation
That the Commission APPROVE the audited financial statements as set out in Enclosure I.
Background
At the March 30, 2022 meeting, the Commission received a presentation from KPMG with respect to the annual audit process and financial statements. At the meeting, KPMG expressed an unqualified opinion that the financial statements present fairly, in all material respects, the financial position of the Commission as at December 31, 2021 and the results of its operations for the year then ended. The statements were tabled at the time given an outstanding confirmation with respect to the finalization of an Actuarial Report pertaining to Non-Pension Post-Retirement and Post-Employment Benefit Plans by Mercer which has now been confirmed.
There are four required financial statements to be presented: a statement of financial position; a statement of operations; a statement of changes in net financial assets; and a statement of cash flows.
The statement of financial position highlights four key areas that together describe the financial position of a government:
- The cash resources of the entity.
- The net debt position as calculated as the difference between financial assets and liabilities. Net debt representing future revenues required to pay for past transactions.
- The non-financial assets that are normally held for service provision such as tangible capital assets, noting the presentation of tangible capital assets is predicated upon the adopted administrative policy.
- The accumulated surplus/deficit (or in private sector terms, retained earnings) as there are no shareholder contributions or distributions.
Each of the three remaining financial statements illustrate changes in each of the key areas presented on the statement of financial position.
The statement of operations reports the net favourable or unfavourable performance from operations during the accounting period. The statement displays the cost of services provided, the revenues recognized in the period and the difference between them.
The statement of change in net financial assets reports the extent of change in investment/make-up of the Commission’s assets.
The statement of cash flow reports changes in cash and cash equivalents resulting from operations and shows how a government financed its activities during the period and met its cash requirements. It is noteworthy that the statement of operation requires budget information to be presented on the same basis as the actual figures are presented.
Enclosure
Recommended by:
E.P. (Ted) Graham, Manager of Accounting
Mike Gregor, Director of Finance
Concurred in by:
Kelly S. Paleczny, General Manager