qathet Regional District (qRD) has been given a clean audit for the year ending December 31, 2023.
At the April 24 board meeting, directors heard from Cory Vanderhorst, from auditing company MNP LLC, who provided details of the audit findings.
Vanderhorst outlined the statement of financial position, which shows cash and investments of $24.8 million and total financial assets of $59.1 million. qRD’s own debt sits as $13.4 million, which indicates $10 million of new debt from 2022. Total liabilities sit at $58.8 million, for net financial assets of $303,220.
“It’s still in a positive position and not in a net debt position,” said Vanderhorst.
Tangible capital assets being managed by the regional district amount to $39.4 million, which involves infrastructure, said Vanderhorst. There is an accumulated surplus at the end of the year of $40 million.
The income statement shows revenues of $19.2 million, up from the prior year’s 14.6 million, and very close to the budget of $19.9 million, said Vanderhorst. Total expenses were $12.8 million, coming in under the budget of $14.3 million, for an annual surplus of $6.4 million.
In the statement of cash flows, there was a net cash inflow of $4.9 million.
Vanderhorst then outlined the composition of accumulated surplus, with $24.7 million invested in tangible capital assets, and $6.4 million in the statutory reserve fund.
In terms of asset retirement obligations, the total estimate of $1.5 million includes $1.3 million for asbestos and other hazardous materials in buildings, and $212,281 for landfill post closure costs.
“We are happy to be providing an unqualified opinion, or unmodified opinion, so that is auditor language for a clean audit opinion,” said Vanderhorst. “We are satisfied that the financial statements are prepared in all material respects in accordance with public sector accounting standards.”
Vanderhorst said the audit required board approval and there is a requirement for a check with legal council to make sure there are no hidden liabilities. He said that request had been sent out and there should be an answer back soon.
The auditing firm samples transactions that have occurred throughout the year and does not audit everything, said Vanderhorst.
“We didn’t find anything unusual to bring to the board’s attention, so that’s a good news item,” said Vanderhorst.
The board approved the qRD financial statements for the year ending December 31, 2023.
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