NORTH HURON – Peter Seebach from Seebach and Company, professional chartered accountants, presented the results of the 2020 audited financial statements to North Huron council at the regular meeting, held virtually on June 7.
The audit was presented as acceptable and in accordance with Canadian Public Sector Accounting Standards (PSAB).
There are four separate components to the financial statements outlined in the report presented to council:
· assets – what the municipality owns or controls;
· liabilities – what the municipality owes;
· net financial assets/net debt – liabilities minus financial assets; and
· accumulated surplus – what remains after the assets have been used to meet the liabilities.
The remaining assets are available to council to provide service during future periods.
As of Dec. 31, 2020, the township had financial assets of $19,959,441 and financial liabilities of $3,004,503, leaving a net financial asset amount of $16,954,938.
Tangible assets are physical; they include cash, inventory, vehicles, equipment, buildings, and investments, according to the Business Development Bank of Canada.
The township's tangible capital assets totalled $50,368,016.
The net financial assets of the township at the end of 2020 totalled $67,322,954.
The Consolidated Statement of Operations is a statement that reports on:
· expenses; and
· results for a fiscal year or reporting period.
The township’s revenue for 2020 was $13,467,418 and total expenditures were $12,870,815, leaving a surplus amount of $596,603.
The final two statements are broken down in the report from Seebach and Company. They can be viewed online on the township website.
The Consolidated Statement of Change in Net Financial Assets explains the difference between the annual surplus or deficit and the change in net financial assets (net debt). This is where reports can be found on spending to acquire tangible capital assets and inventories of supplies and reports on disposal of tangible assets and the use of inventory.
The Consolidated Statement of Cash Flow is a statement that provides details on changes in cash and cash equivalents since the previous reporting period by identifying where the cash came from and showing how cash was used.
To remain transparent to the ratepayers of North Huron, the township provides its financial statements at the end of each year.
These statements ensure the municipality is being accountable and transparent, and they assist the municipality in long-term strategic planning, North Huron’s Director of Finance, Donna White said in a report.
“Financial statements are also an important tool for both council and administration and provide a method for reporting the municipality’s financial situation to the taxpayers.”
Cory Bilyea, Local Journalism Initiative Reporter, Wingham Advance Times