Kneehill County council approves 2023 financial statement, tax rate bylaw
Kneehill County council approved both its 2023 audited financial statement and its 2024 tax rate bylaw after the municipality’s official audited gave last year's document a clean bill of health. The resolutions were passed at the April 23 regular meeting of council.
Councillors heard a detailed report from BDO Financial representative Mitchell Kennedy, who stated he was the senior manager on Kneehill’s 2023 audit.
Kennedy began his presentation by noting the past year has seen two major changes occur to public sector accounting, the first being the introduction of asset retirement obligation, which affects things like landfill liabilities and gravel pit reclamation.
The second major change included what Kennedy described as “financial instrument risk.” He noted the second change wasn’t likely to affect Kneehill much other than to increase disclosure.
Kennedy noted Kneehill County’s 2023 financial statement received a clean audit and reminded councillors such an audit is conducted under generally accepted accounting practises and is conducted with the help of municipal staff, who provide the information requested.
As Kennedy went through the audited financial statement he pointed out some sections were labelled “restated;” the auditor pointed out this had to do with the first major change, asset retirement obligation.
Kennedy stated Kneehill County’s investments are up, adding he felt the county’s investment were “...doing quite well.” He noted they are GICs.
The county’s accounts receivable were up by about $2 million over the year previous and further noted Kneehill County’s financial position looked better in 2023.
Kennedy described to councillors where certain “deferred revenue” was sitting. Deferred revenue in this instance involved grant money Kneehill County received from other levels of government, and the auditor noted some of it was in accounts receivable and some in cash.
The auditor also discussed Kneehill County’s debt limit, and the reason for this was a $20 million letter councillors approved guaranteeing a loan by the Town of Trochu for a seniors housing facility. The auditor noted if the town defaulted, Kneehill County committed to paying this debt.
However, the auditor stated this letter doesn’t affect Kneehill County’s current debt limit, which is set out by a formula in the Municipal Government Act (MGA).
Coun. Wade Christie asked if that $20 million letter affects Kneehill County’s interest rate for investments. Kennedy answered that investments wasn’t his area of expertise and he really didn’t have an answer.
However, County Chief Administrative Officer (CAO) Mike Haugen responded that judging from his experience when shopping for investments he doesn't think debt plays any role in interest rates.
Councillors had no other questions for the auditor.
“The clean audit is important,” observed the reeve.
Later, when councillors discussed the presentation they had no questions for staff and unanimously approved the 2023 audited financial statements.
Afterwards, councillors also approved the 2024 tax rate bylaw. Staff noted as the tax rate bylaw was now in effect property tax bills can be mailed out.
Stu Salkeld, Local Journalism Initiative Reporter, East Central Alberta Review
