Lightfoot presents 2020 external audit to North Perth council

·2 min read

NORTH PERTH – The 2020 external audit was completed and presented to council on Aug. 9 by Robert Lightfoot, a partner at BDO Canada.

The financial assets total $39,833,530, comprised mostly of cash but also accounts receivable of $3,687,790 and drain receivables of $2,069,522.

Lightfoot noted the municipality had outstanding liabilities at the end of the year, expenses incurred but not yet paid a total of $3,223,327 and deferred revenue of just under $14,509,057.

“So this is funding that has been received but it’s actually intended for future use… so we recommend it as revenue in a later year,” he said.

At the end of 2020 North Perth had long-term debt of $25,241,754.

“These are loans that are outstanding for a long period,” said Lightfoot.

There was also solid waste closure and post-closure liabilities for $2,017,000.

“The idea here is that as you use up your landfills they are costs that should be accruing that will be expended in future years to… close... and then to maintain the site after it’s full,” he said. “So we tried to match those future expenses with current use.”

The liabilities and deferred revenue included in the audit were $44,196,156, giving a net debt position of $5,162,626.

“Added to that are the non-financial assets which are capital assets and prepaid expenses and inventories of supplies,” said Lightfoot.

Those tangible capital assets total $154,005,615 and therefore the accumulated surplus was just under $148,842,989 at the end of the year.

For operational expenses, the total revenues were just under $25,111,842 – mainly tax, government transfers and user fees – giving an annual surplus of just under $10,742,556.

“Adding in last year’s cumulative surplus, adjusting for the afore-mentioned prior period adjustment of $2.5 million, leaves us a surplus at the end of the year of $149,000,000,” said Lightfoot.

The external audit report and financial statements which are available on the financial statements page of northperth.ca are important financial indicators and documentation for council, staff and public to review.

Colin Burrowes, Local Journalism Initiative Reporter, The Walkerton Herald Times

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