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qathet Regional District finance committee reviews SOFI report

Statement of financial information outlines regional district’s monetary position
PROVIDES HIGHLIGHTS: qathet Regional District Electoral Area E director Andrew Fall had questions about regional district assets in the 2021 statement of financial information, which the regional board must file with the provincial government by June 30.

qathet Regional District’s (qRD) finance committee is recommending the regional board approve the 2021 statement of financial information (SOFI).

At the June 22 finance committee meeting, directors considered SOFI, which consists of core financial statements and schedules for employee remuneration and payments to suppliers for goods and services provided to the regional district. Local governments must file by June 30.

Electoral Area E director Andrew Fall, during discussion on SOFI, said the net book value of tangible assets to the cost of capital assets was on the high side, which he presumes is good, because there is high value compared to the replacement cost.

“My question is, we’re in a high inflation period, and with high inflation, would that be pushing up the replacement cost, and thereby pushing down the indicator?” asked Fall. “Is that likely to have a downward pressure on this metric, that we won’t be looking as good after a year or two of inflation at seven or eight per cent?”

Manager of financial services Linda Greenan said the net book value is based on the costs amortized over the lifespan of the asset, so it won’t go down because the annual depreciation won’t change.

“The only way that ratio would go down is if we failed to replace assets or failed to keep them up to date,” said Greenan. “If we let our assets deteriorate, then that ratio will go down, but it shouldn’t go down just as a result of inflation. For example, we’ll be replacing an asset at a high dollar value, and if it’s an asset that lasts 50 years, you are still going to depreciate it at one-50th of the cost, so as long as you are replacing your assets, and not letting them deteriorate, then the ratio should stay consistent.”

According to a report from Greenan, the net book value of tangible capital assets to cost of capital assets indicates the extent to which estimated useful lives of capital assets are available to provide services.

According to the SOFI report, at the end of 2021, the regional district had total financial assets of $2.7 million, and total liabilities of $34.7 million, with net financial assets of nearly $8 million.

qRD had revenue of $16.3 million, including $8.3 million in taxation levies and $388,905 in parcel taxes. There were $5.2 million in grants and $1.5 million in waste management tipping fees. Total revenue was $16.3 million. Expenses amounted to $11.7 million, for an annual surplus of $4.6 million.

The SOFI report contains a schedule of payments made for the provision of goods or services over $25,000, which amounted to $9.2 million. The consolidated total paid to suppliers who received aggregate payments of $25,000 or less was $1.8 million.

“Our board is committed to ensuring regional district services remain accessible and affordable for all our residents,” stated board chair and Electoral Area A director Patrick Brabazon, in a media release. “Our staff continue to leverage savings in reserves, as well as grant funding to reduce our dependency on taxation for required infrastructure upgrades and maintenance.”

In terms of the 2021 schedule of remuneration and expenses, elected officials, including regional board members and alternate members, amounted to $161,139 in remuneration and $10,682 in expenses.

There were 10 employees who received remuneration of $75,000 or more, amounting to $1,065,234 in remuneration and 18,752.38 in expenses. The consolidated total of other employees with remuneration of $75,000 or less amounted to $1,243,965 in remuneration and $43,122 in expenses. Total wages for the regional district in 2021 were $2,309,199, with expenses of $61,875.