Last year, the District of Sechelt's accumulated surplus (all assets, both financial and non‐financial, less any liabilities) rose by $4 million.
According to a financial audit conducted by MNP LLP, Sechelt's accumulated surplus for 2024 was almost $190.4 million compared to $186.3 million for 2023.
Cory Vanderhorst of MNP discussed the highlights of the audit at a regular meeting of council, May 14. He explained annual financial statements are completed as consolidated funds, which include revenue from general, sewer, capital, reserve, and Sunshine Coast Community Forest Ltd., which are then recorded as net investment value.
“When you get reports from staff throughout the year, you might get just the reserve fund or just the sewer fund or things like that,” said Vanderhorst. “We're bringing it all together at the end of the year.”
According to the statement of financial position, Sechelt's cash investments have increased from almost $39 million in 2023 to just over $40 million for 2024. Meanwhile, Sechelt's total financial assets are down slightly from just over $49.1 million in 2023 to almost $48.7 million in 2024.
But with the total liabilities coming in at just over $29.2 million in 2024 compared to $31.2 million in 2023, that leaves net financial assets of just over $19.5 million for 2024, compared to almost $17.9 million in 2023.
Meanwhile, tangible capital assets for 2024 were $170.5 million compared to $168.1 million for 2023, bringing the total accumulated surplus for 2024 to almost $190.4 million compared to $186.3 million for 2023.
Vanderhorst explained total revenue for 2024, including taxation, user fees, grants and more, totalled just over $28 million for 2024 compared to $36.5 million for 2023. Expenses for 2024 came in at almost $24 million compared to $22.4 million for 2023. Vanderhorst noted, expenses were budgeted at $27.6 million for 2024, so Sechelt came in under budget for the year.
That left an annual surplus of just over $4.1 million for Sechelt for 2024, compared to just over $14 million for 2023.
According to the report, cash flows provided by operations came to just over $8.2 million, purchases of tangible capital assets cost $6.8 million, the net proceeds of portfolio investments and dividends were $25,890, new debt equals almost $900,000, but the amount of debt repaid came to $839,000, for a cash inflow of almost $1.5 million.
Summing up Sechelt's financial position, Vanderhorst said the equity in tangible assets equals just over $162.2 million (explaining this is not cash on hand), $11.3 million in statutory reserves, $2.5 million in investments in the Sunshine Coast Community Forest, $9.3 million for general government and almost $5 million for the sewer fund.
“That's the breakdown of what's in your accumulated surplus at the end of the year,” Vanderhorst told council. “Shifting gears then, out of the numbers and into our audit and our audit process, we are happy to be providing a clean audit opinion... We are satisfied that the financial statements you have in front of you today are prepared accurately in all material respects, in accordance with the appropriate accounting standards for local government, which is the Public Sector Accounting Standards.”
