DOCSLIB.ORG

2020 Consolidated Financial Statements

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2020 Consolidated Financial Statements Consolidated Financial Statements of The City of Spruce Grove For the Year Ended December 31, 2020 KPMG LLP 2200, 10175 – 101 Street Edmonton, AB T5J 0H3 Telephone (780) 429-7300 Fax (780) 429-7379 www.kpmg.ca INDEPENDENT AUDITORS’ REPORT To the Mayor and Members of Council of the City of Spruce Grove Opinion We have audited the consolidated financial statements of the City of Spruce Grove (the “Entity”), which comprise: the consolidated statement of financial position as at December 31, 2020 the consolidated statement of operations and accumulated surplus for the year then ended the consolidated statement of changes in net debt for the year then ended the consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements, including a summary of significant accounting policies (Hereinafter referred to as the “financial statements”). In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position of the Entity as at December 31, 2020, and its consolidated results of operations, its consolidated changes in net debt and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audit of the Financial Statements” section of our auditors’ report. We are independent of the Entity in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Entity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Entity’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Entity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group Entity to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. Chartered Professional Accountants Edmonton, Canada April 26, 2021 CONTENTS Independent Auditors' Report Management's Report......................................................................................................................................1 Consolidated Statement of Financial Position..................................................................................................2 Consolidated Statement of Operations and Accumulated Surplus..................................................................3 Consolidated Statement of Changes in Net Debt............................................................................................4 Consolidated Statement of Cash Flows...........................................................................................................5 Notes to the Consolidated Financial Statements.............................................................................................6 Schedules: Schedule 1 - Property Taxes.......................................................................................................................31 Schedule 2 - Government Transfers...........................................................................................................32 Schedule 3 - Expenses by Department.......................................................................................................33 DocuSign Envelope ID: 4EAC84C9-EE28-476B-A390-6C9444906F8E MANAGEMENT’S REPORT The consolidated financial statements of the City of Spruce Grove (the “City”) are the responsibility of management and have been prepared in accordance with Canadian Public Sector Accounting Standards. The consolidated financial statements include amounts that are based on the best estimates and judgements of management. Management has determined such amounts on a reasonable basis in order to ensure that the consolidated financial statements are presented fairly, in all material respects. Management maintains systems of accounting and administrative controls to provide reasonable assurance that the transactions are appropriately authorized, accurately recorded, that assets are properly accounted for and safeguarded and that the consolidated financial statements reliably report the City’s operating and financial results. City Council has approved the information contained in the consolidated financial statements. KPMG LLP, have been appointed by City Council to provide an independent audit opinion on the consolidated financial statements. Louise Frostad, CPA, CMA, CLGM Dean Screpnek, CPA, CMA, CLGM Chief Financial Officer City Manager April 26, 2021 Spruce Grove, Alberta CITY OF SPRUCE GROVE CONSOLIDATED STATEMENT OF FINANCIAL POSITION December 31, 2020 (in thousands of dollars) 2020 2019 Financial Assets Cash and Cash Equivalents (Note 2) $ 5,629 $ 8,539 Accounts Receivable (Note 3) 15,179 17,099 Investments (Note 4) 43,145 32,470 Land Held for Resale (Note 5) 1,746 1,746 65,699 59,854 Liabilities Accounts Payable and Accrued Liabilities (Note 6) 14,881 13,769 Deferred Revenue (Note 7) 27,817 31,579 Liability for Contaminated Sites (Note 8) 1,250 1,300 Long-Term Debt (Note 9) 41,713 42,122 85,661 88,770 Net Debt (19,962) (28,916) Non-Financial Assets Inventory and Prepaid Expenses 1,062 1,082 Tangible Capital Assets (Note 11) 553,603 543,773 554,665 544,855 Accumulated
Load more

Recommended publications
  • Glossary of Terms for Budget Publications
    GLOSSARY OF TERMS ADOPTED EXPENSE AND REVENUE BUDGET: A BUDGET CODE: A 4-character code assigned to a financial plan for the City and its agencies for a fiscal schedule within an agency which identifies the year, setting forth operating expenditures and allocation made in such schedule in terms of its anticipated revenues, following due authorization accounting fund class, unit of appropriation, through the charter-mandated process. responsibility center, control category, local service district and program. ALLOCATION: A sum of money set aside for a specific purpose. BUDGET GAP: The difference between estimated expenditures and revenues for a future fiscal year. ANNUALIZATION: The impact of a new appropriation or expenditure reduction on the basis of a full year. For BUDGET LINE: An identified amount allocated for a instance, if an employee is terminated halfway through specific purpose in the expense budget supporting the fiscal year, the budget reduction in that year will schedules for each budget code within a unit of equal half the employee’s annual salary. The appropriation. Budget lines are used to provide “annualized” reduction is the full amount of the detailed information on the number of positions, titles, employee’s salary. salaries and other expenses in a budget code. ANNUAL RATE: Sum of the salaries paid to the full- BUDGET MODIFICATION: A change in an amount in time active employees in a title description. any budget line during the fiscal year. APPROPRIATION: A general term used to denote the BUDGET STABILIZATION ACCOUNT: An amount authorized in the budget for expenditure by an appropriation which applies excess revenues to prepay agency.
    [Show full text]
  • Preparing a Short-Term Cash Flow Forecast
    Preparing a short-term What is a short-term cash How does a short-term cash flow forecast and why is it flow forecast differ from a cash flow forecast important? budget or business plan? 27 April 2020 The COVID-19 crisis has brought the importance of cash flow A short-term cash flow forecast is a forecast of the The income statement or profit and loss account forecasting and management into sharp focus for businesses. cash you have, the cash you expect to receive and in a budget or business plan includes non-cash the cash you expect to pay out of your business over accounting items such as depreciation and accruals This document explores the importance of forecasting, explains a certain period, typically 13 weeks. Fundamentally, for various expenses. The forecast cash flow how it differs from a budget or business plan and offers it’s about having good enough information to give statement contained in these plans is derived from practical tips for preparing a short-term cash flow forecast. you time and money to make the right business the forecast income statement and balance sheet decisions. on an indirect basis and shows the broad categories You can also access this information in podcast form here. of where cash is generated and where cash is spent. Forecasts are important because: They are produced on a monthly or quarterly basis. • They provide visibility of your future cash position In contrast, a short-term cash flow forecast: and highlight if and when your cash position is going to be tight.
    [Show full text]
  • Joint Analysis Enacted 2021-22 Budget July 13, 2021
    Joint Analysis Enacted 2021-22 Budget July 13, 2021 Table of Contents BACKGROUND ..........................................................................................................3 INTRODUCTION ........................................................................................................3 BUDGET OVERVIEW ..................................................................................................3 Budget Shaped by recovery from covid-related Recession .............................................. 3 Investments focus on relief and recovery for californians................................................ 4 CALIFORNIA COMMUNITY COLLEGES FUNDING ..........................................................5 Immediate Action Package ............................................................................................... 5 Proposition 98 Estimates.................................................................................................. 6 California Community Colleges Funding Levels ............................................................... 6 Changes in Funding .......................................................................................................... 7 Local Support Funding by Program ................................................................................ 17 Capital Outlay ................................................................................................................. 21 State Operations ...........................................................................................................
    [Show full text]
  • Growing Your Business Through Mergers & Acquisitions
    Growing Your Business Through Mergers & Acquisitions Mergers and acquisitions occur when companies consolidate, usually with a larger company acquiring a smaller company, or two companies merging their business activities. There can be many benefits of M&A such as increased growth, cost synergies, complementary product and service offerings, skilled talent, new markets, increased liquidity and much more. The current economic environment may present excellent opportunities for M&A. Suitors may find opportunities to acquire companies that may otherwise not be open to being acquired. Struggling companies may find a lifeline from a merger or acquisition. Even if neither company is struggling, combining forces may give companies the ability to aggressively gain market share when competitors are just trying to maintain the business that they have. Depending on your goals and options at hand, you may want to consider M&A as part of your company’s growth strategy. This article cover some of the benefits, challenges and key things to consider with M&A. Benefits One of the primary benefits of merging companies over more traditional forms of growth is the speed with which a merger can be implemented. Growth through traditional sales and marketing simply takes time. And, the more crowded and competitive a market, the more time it can take. Mergers, on the other hand, can often grow a business much faster - as quickly as the merger can be completed. Time may not be the only benefit from a customer and revenue growth perspective. Traditional sales and marketing can be expensive and carries a certain cost to acquire a customer.
    [Show full text]
  • Debt Service Deeming Resolution Deferral of Budget Authority
    Terms and Definitions Debt Service Payment of interest on, and repayment of principal on, borrowed funds. The term may also be used to refer to payment of interest alone. (See also Means of Financing.) As used in the Congressional Budget Office’s (CBO) Budget and Economic Outlook, debt service refers to a change in interest payments resulting from a change in estimates of the surplus or the deficit. Deeming Resolution An informal term that refers to a resolution or bill passed by one or both houses of Congress that in the absence of a concurrent resolution, serves for the chamber passing it as an annual budget resolution for purposes of establishing enforceable budget levels for a budget cycle. The Congressional Budget and Impoundment Control Act of 1974 requires the adoption each year of a concurrent resolution on the budget. (See Concurrent Resolution on the Budget.) At a minimum, deeming resolutions provide new spending allocations to the appropriations committees, but they also may set new aggregate budget levels, provide revised spending allocations to other House and Senate committees, or provide for other related purposes. A deeming resolution may even declare that a budget resolution (in its entirety), passed earlier in the session by one house is deemed to have the force and effect as if adopted by both houses. Deferral of Budget Authority Temporary withholding or delaying of the obligation or expenditure of budget authority or any other type of executive action, which effectively precludes the obligation or expenditure of budget authority. A deferral is one type of impoundment. Under the Impoundment Control Act of 1974 (2 U.S.C.
    [Show full text]
  • IFRS Example Consolidated Financial Statements 2019
    IFRS Assurance IFRS Example Global Consolidated Financial Statements 2019 with guidance notes Contents Introduction 1 19 Cash and cash equivalents 61 IFRS Example Consolidated Financial 3 20 Disposal groups classified as held for sale and 61 Statements discontinued operations Consolidated statement of financial position 4 21 Equity 63 Consolidated statement of profit or loss 6 22 Employee remuneration 65 Consolidated statement of comprehensive income 7 23 Provisions 71 Consolidated statement of changes in equity 8 24 Trade and other payables 72 Consolidated statement of cash flows 9 25 Contract and other liabilities 72 Notes to the IFRS Example Consolidated 10 26 Reconciliation of liabilities arising from 73 Financial Statements financing activities 1 Nature of operations 11 27 Finance costs and finance income 73 2 General information, statement of compliance 11 28 Other financial items 74 with IFRS and going concern assumption 29 Tax expense 74 3 New or revised Standards or Interpretations 12 30 Earnings per share and dividends 75 4 Significant accounting policies 15 31 Non-cash adjustments and changes in 76 5 Acquisitions and disposals 33 working capital 6 Interests in subsidiaries 37 32 Related party transactions 76 7 Investments accounted for using the 39 33 Contingent liabilities 78 equity method 34 Financial instruments risk 78 8 Revenue 41 35 Fair value measurement 85 9 Segment reporting 42 36 Capital management policies and procedures 89 10 Goodwill 46 37 Post-reporting date events 90 11 Other intangible assets 47 38 Authorisation
    [Show full text]
  • Budget Management and Financial Reporting
    BUDGET MANAGEMENT AND FINANCIAL REPORTING BUDGET MANAGEMENT AND FINANCIAL REPORTING Presented by: AMANDA DUNLAP COMMUNICATIONS & TRAINING COORDINATOR OFFICE OF FINANCE BRUCE AIRD UNIVERSITY BUDGET OFFICER BUDGET OFFICE February 16, 2017 Part of the Certificate in University Financial Management – revised February 16, 2017 BUDGET MANAGEMENT AND FINANCIAL REPORTING TABLE OF CONTENTS Overview and Objectives ............................................................................................................ 3 Definitions ................................................................................................................................... 4 Fund/Ledger Information ............................................................................................................ 8 Accrual Accounting .................................................................................................................... 11 Budget Management (Minding the Store) .................................................................................. 12 Establishing a New Budget ........................................................................................................ 12 Budget Unit Director’s Responsibilities .................................................................................... 13 Requesting Banner Finance Access ......................................................................................... 14 Master Signature List .................................................................................................................
    [Show full text]
  • GAO-19-36, FEDERAL BUDGET: Government-Wide Inventory Of
    United States Government Accountability Office Report to Congressional Requesters November 2018 FEDERAL BUDGET Government-Wide Inventory of Accounts with Spending Authority and Permanent Appropriations, Fiscal Years 1995 to 2015 GAO-19-36 November 2018 FEDERAL BUDGET Government-Wide Inventory of Accounts with Spending Authority and Permanent Appropriations, Highlights of GAO-19-36, a report to Fiscal Years 1995 to 2015 congressional requesters Why GAO Did This Study What GAO Found Congress can provide budget authority A total of $3.2 trillion in spending authority and permanent appropriations was to federal agencies and programs reported in fiscal year 2015; an increase of 88 percent from fiscal year 1994 through the annual appropriations adjusted for inflation in fiscal year 2015 dollars. Fiscal year 1994 was the last process. It can also provide budget year included in GAO’s prior work. For the purposes of this report, spending authority through laws other than authority and permanent appropriations is budget authority provided to agencies annual appropriations acts, or through through laws other than annual appropriations acts or available permanently by permanent appropriations that permit law without further legislation. These authorities include permanent the agency to obligate budget authority appropriations, contract authority, borrowing authority, offsetting collections, and without further congressional action. monetary credits or bartering. As shown in figure 1, permanent appropriations Analysis of these authorities helps were the primary driver of the increase in spending authority and permanent provide Congress with visibility into spending authority that is not appropriations. Offsetting collections authority—which includes certain fees, considered during the annual fines, and penalties—also grew.
    [Show full text]
  • Basics of Federal Budget and Financial Management
    Introduction Introduction Financial Management Course 1. Overview of the Federal Budget Process 2. The Philosophy of Appropriations Law 3. Contracts, Grants and Cooperative Agreements 4. Spending Plans, Operating Plans and Budget Execution 5. Financial Responsibilities 1 Module 1: Overview of the Federal Budget Process Module 1 Objectives • Identify the major legislation that affects the federal budget process. • Know the phases of the budget process and timeline. • Recognize the purpose of an operating plan. 2 Module 1: Overview of the Federal Budget Process The Budget and Accounting Act of 1921 • Requires the President of the United States to submit an annual budget proposal and a statement of the government’s financial condition to Congress. • Includes a budget message and a summary of reporting information on past and future budgets. • Established the Bureau of the Budget, now known as the Office of Management and Budget (OMB), which provides 1921 resources to produce the President’s budget. • Established the General Accounting Office now known as the Government Accountability Office (GAO) to provide Congress with resources to ensure accountability. 3 Module 1: Overview of the Federal Budget Process Government Performance and Results Act of 1993 (GPRA) The primary legislative framework includes three main components: Strategic Plan • Mission statement • General goals and objectives (outcome related) Performance Plan • Measurable performance goals by program activity • Operational processes, technology, human capital, and other resources
    [Show full text]
  • Budget Requirements and Annual Financial Reporting Requirements for Texas Public Community and Junior Colleges
    Budget Requirements and Annual Financial Reporting Requirements for Texas Public Community Colleges FY 2014 Due Annually by January 1st Planning and Accountability Texas Higher Education Coordinating Board Harold Hahn, CHAIR El Paso Robert “Bobby” Jenkins Jr., VICE CHAIR Austin David Teuscher, M.D., SECRETARY OF THE BOARD Beaumont Gerald T. Korty, STUDENT MEMBER OF THE BOARD Fort Worth Dora G. Alcala Del Rio Ambassador Sada Cumber Sugarland Christopher M. Huckabee Fort Worth Jacob M. Monty Houston Janelle Shepard Weatherford John T. Steen, Jr. San Antonio Raymund A. Paredes, COMMISSIONER OF HIGHER EDUCATION Mission of the Coordinating Board The Texas Higher Education Coordinating Board’s mission is to work with the Legislature, Governor, governing boards, higher education institutions, and other entities to help Texas meet the goals of the state’s higher education plan, Closing the Gaps by 2015, and thereby provide the people of Texas the widest access to higher education of the highest quality in the most efficient manner. Philosophy of the Coordinating Board The Texas Higher Education Coordinating Board will promote access to quality higher education across the state with the conviction that access without quality is mediocrity and that quality without access is unacceptable. The Board will be open, ethical, responsive, and committed to public service. The Board will approach its work with a sense of purpose and responsibility to the people of Texas and is committed to the best use of public monies. The Coordinating Board will engage in actions that add value to Texas and to higher education. The agency will avoid efforts that do not add value or that are duplicated by other entities.
    [Show full text]
  • Lease Financing and Business Valuation E3 Not Known with Certainty—Rather, They Depend on Volume
    CHAPTER LEASE FINANCING AND BUSINESS 18 VALUATION Learning Objectives After studying this chapter, readers will be able to • Describe the two primary types of leases. • Explain how lease financing affects financial statements and taxes. • Conduct a basic lease analysis from the perspective of the lessee. • Discuss the factors that create value in lease transactions. • Explain in general terms how businesses are valued. • Conduct a business valuation using both discounted cash flow and market multiple approaches. Introduction This chapter contains two unrelated topics: lease financing and business valu- ation. Leasing is a substitute for debt financing and hence expands the range of financing alternatives available to businesses (and to individuals). However, leasing should be used only when it offers some advantage over conventional financing. We begin this chapter by discussing how businesses analyze lease transactions and what factors contribute to the large amount of leasing activity among healthcare businesses. The valuation of entire businesses, as opposed to individual projects, is a critical step in the merger and acquisition process. In addition, business valuation plays an important role when one owner is bought out by other owners and when businesses are inherited. The second part of this chapter discusses two specific techniques used to value businesses: discounted cash flow and market multiple. Leasing Basics Businesses generally own fixed assets, but it is the use of land, buildings, and equipment that is important, not their ownership. One way to obtain the use of such assets is to raise debt or equity capital and then use these funds to buy e1 e2 Healthcare Finance them.
    [Show full text]
  • Chapter 5 Chart of Accounts and Accounting Structure
    UNIVERSITY OF COLORADO BOULDER DEPARTMENTAL FINANCIAL MANAGEMENT GUIDE BUDGET TABLE OF CONTENTS - CHAPTER 8 CHAPTER PURPOSE ............................................................................ 2 I. OVERVIEW .................................................................................. 2 II. BUDGET CYCLE ............................................................................ 4 A. OVERVIEW .......................................................................... 4 B. WORKING WITH THE BUDGET THROUGHOUT THE BUDGET CYCLE ........... 5 Planning and Development .................................................. 5 Implementation ................................................................. 5 Monitoring ......................................................................... 5 III. METHODS OF BUDGETING ........................................................... 6 A. INCREMENTAL BUDGETING ........................................................ 6 B. ZERO-BASE BUDGETING .......................................................... 6 IV. BUDGETING PRACTICES BY FUND ................................................ 7 A. LEDGER .............................................................................. 7 B. GENERAL FUND (FUNDS 10, 11) ................................................. 7 C. AUXILIARY/SELF-FUNDED FUND (FUNDS 20, 26, 28, 29) .................. 7 D. GRANT AND CONTRACT FUND (FUNDS 30, 31) ............................... 7 E. GIFT FUND (FUND 34) ............................................................. 7 F. PLANT
    [Show full text]