Gregory, Harriman & Associates, an independent public accounting firm based in Strathmore, has conducted the annual audit of the City of Chestermere’s financial statements. An unqualified, or ‘clean’ audit opinion was issued for the City of Chestermere’s 2015 year-end financial statements.
The auditors presented their report to the Audit Committee (made up of two Councillors and two citizens with the chair of the audit committee being an accountant). The audit committee reviewed the auditor’s findings and presented the final report at the Council Meeting on Monday April 18, 2016.
Below are some highlights from the 2015 audited financial statements:
- The City’s net financial assets increased during the year, indicating that the City has sufficient assets to meet its current liabilities and for the delivery of future services.
- The accumulated surplus of the City also increased. Accumulated surplus is an accumulation of all the surpluses and deficits of the City over its life. This measures the net resources that are available for providing future services.
- The total new capital assets acquired were $11.9 million. $5.7 million of these assets were contributed from developers and $1.03 million of capital assets were disposed during the year. Amortization of capital assets during 2015 was $5.7 million.
- New debt of $8.5 million was incurred which was used to purchase land intended for future resale for commercial and industrial purposes. To learn more about this project, visit www.chestermere.ca/business.
- The City’s cash position improved slightly during the year with investments increasing and realizing a healthy rate of return of 3.58%.
- Actual revenues were greater than budgeted due primarily to the higher returns on investments and developer levies (which are budgeted conservatively).
- Actual expenses were under budget in all departments mainly as a result of lower labour costs due to several position vacancies and new positions not being filled during 2015. Staffing was intentionally restrained in 2015 due to the provincial economic downturn.
- Overall the City is in a good financial position with a restricted surplus (reserves) and deferred revenues covered by available cash and investments. Despite the increase in long term debt, the City has unused debt capacity of over 35%.
To read the full financial statements or to view past statements, visit www.chestermere.ca/financials