Written By Olena Riznyk
LUCAN BIDDULPH – At the last township council meeting on June 17th, Christene Scrimgeour, the township’s auditor, presented the draft audited report for the year ending December 31, 2023, giving a detailed account of the township’s financial standing and activities over the past year.
Scrimgeour explained that the report is a consolidated one, encompassing all the boards within the township while eliminating inter-entity transactions, such as those related to the fire board’s self-purs ownership.
Scrimgeour also reminded council that a portion of 2022 was still under COVID-19 restrictions, significantly affecting the recreation department’s costs and revenues. The lifting of these restrictions in 2023 led to an increase in both expenditures and revenues as operations returned to pre-pandemic levels.
The materiality threshold for the audit was set at $155,000. However, this does not mean that only transactions above this amount were scrutinized. A statistical sampling of revenues, expenses, and payrolls was conducted to ensure a thorough examination. Scrimgeour proudly announced that the township received a clean auditor opinion, reflecting accurate and reliable financial records.
The township embarked on several major projects in 2023, including phase two of the community centre, pool construction, and soccer field development. These projects transitioned from work-in-progress to completed assets, significantly affecting the financial statements. Notably, accounts receivable and payable decreased as construction activities settled.
The statement highlighted a consistent revenue increase and prudent budget management. Government grants and investment income saw positive variances. While transportation costs were higher last year due to county road projects, the overall expenditure remained controlled. The accumulated surplus at the end of the year was significantly higher, driven by investments in tangible capital assets.
Council discussed the variability in investment income, influenced by fluctuating interest rates. Christene Scrimgeour advised that future budgets should adjust to these changes, ensuring realistic financial planning.
Council members, including councillor Regan and Deputy Mayor Manders, commended the township staff for their diligent financial management. They expressed pride in the township’s ability to maintain strong financial health while managing extensive projects.
Council members discussed the potential for an investment policy to maximize returns on reserves once major projects are completed.
In response to a query from the Mayor, Scrimgeour also assured council that the township is in good shape. However, she highlighted the ongoing challenge of managing water and wastewater projects, given their high costs and the need for growth-capable facilities.
