On June 25, the District of Sechelt filed their 2012 financial statement - 41 days after the statutory reporting deadline.
Glenn Brown, deputy inspector of municipalities, chastised Mayor John Henderson and council for the delay in a letter requesting the statements on June 11.
"This is not the first time your local government has missed the deadline in the past three years," Brown wrote.
Chief financial officer Victor Mema said he was unsure why statements had been filed late in the past, but noted this year's problem was the staff turnover at the District.
"Really it's change in staff and shortage in senior staff in financial services," Mema said. "Tim [Anderson, the interim financial officer] did a great job working in December/January, but then there's two things that are happening at the same time in Q-1 [the first quarter]. You have the budget and you have the financial statements and if you are short-handed then you have to do one and then take on the next, so that's where the delay came from."
The finalized statements show Sechelt had a deficit of $296,189 in 2012, which was covered by surplus money, as municipalities are not allowed to carry a deficit.
Mema pointed to the Sechelt golf course takeover, repairs to the Trail Bay foreshore and the sinkhole issue at Concordia Seawatch as the reason for the deficit.
"These three things amounting to about $1 million were unanticipated," Mema said. "If we hadn't paid these, then we would actually be in a surplus position."
The draft financial statements were presented to council and the public at the June 19 regular council meeting; however, the standard auditor's report was absent, causing some to question the validity of the statements.
The auditor's report was later included in the finalized financial statements released at the June 26 committee of the whole meeting. That report showed no concerns.
The financial statements were audited by BDO Canada LLP who wrote, "The financial statements have, in management's opinion, been properly prepared within reasonable limits of materiality and in accordance with Canadian public sector accounting standards."
Mema noted that the financial statements won't be filed late again on his watch, thanks to the financial calendar he created, which council recently adopted.
"That's why I put out that timeline so that we have our marching orders and we can actually keep track of what we're doing," he said.
You can view the 2012 financial statements as part of the June 26 committee of the whole agenda posted on the District of Sechelt's website at www.sechelt.ca.
