Report from the Chief Financial Officer
Report from the Chief Financial Officer
May 18 , 2016
To Mayor Baker and Members of Council :
I am pleased to present the District of Lake Country ’ s 2016 Annual Report , which includes the District ’ s audited 2016 financial statements and statistical information .
The 2016 financial statements have been prepared by District staff pursuant to Section 167 of the Community Charter and are the responsibility of management . Management ’ s responsibilities also include maintaining a system of internal controls for financial statement reliability purposes and for the protection of the District ’ s assets . The financial statements have been prepared in accordance with generally accepted accounting principles for local governments , as established by the Public Sector Accounting Board ( PSAB ) of the Canadian Institute of Chartered Accountants .
Grant Thornton LLP , the District ’ s independent external auditors , have examined the District ’ s financial statements in accordance with generally accepted auditing standards . In their opinion , as expressed in their audit report , the District ’ s financial statements present fairly in all material respects the financial position of the District of Lake Country as at December 31 , 2016 , and the results of operations and cash flows for the year then ended .
In compliance with PSAS , the following financial statements were presented for Council ’ s review at a meeting of Council May 9 , 2017 .
Statement of Financial Position
Some items that are unique to PSAS financial reporting are as follows : �
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Separation of financial assets and non-financial assets – in typical financial statements of a business , a balance sheet is separated into three main categories – assets , liabilities and shareholders ’ equity . In public sector financial statements , total assets are not specifically presented . Assets are separated between “ financial ” assets and “ non-financial ” assets : o Financial Assets are assets that generate cash flow and can be used to repay liabilities . Financial Assets include cash and cash equivalents and accounts receivables . o Non-Financial Assets generally do not provide cash flow and include tangible capital assets and other assets that are utilized on a continuing basis for public purposes having a useful life beyond one year . These assets are reflected at net book value ( initial cost less amortization to date ) and not intended to be sold in the normal course of operations .
Net Debt or Net Financial Assets – With this separation of financial assets and non-financial assets , a performance measure unique to public sector financial statements results . The difference between financial assets and liabilities either reflects a “ net debt ” or “ net financial asset ” position . o Net Debt – A net debt position indicates the extent that debt and other liabilities have been taken on by the municipality to fund the delivery of services , investments in tangible capital assets and other transactions . Future revenue streams need to contemplate the requirement to repay debt obligations as they come due based on established repayment terms . In 2015 the District was in a Net debt position of $( 1,573,953 ).
2016 Annual Report 52 | P a g e