In 2023 Sechelt received $36.4 million of funding and revenue – $4 million more than they had budgeted for, in what the municipality’s auditors called a “significant” increase.
At its May 22 meeting, Sechelt council received an overview of its 2023 audit of consolidated financial statements by MNP LLP.
The audit is intended to assure that financial statements from the district are free from material misstatement, whether due to fraud or error and to issue an auditor's report that includes their opinion, the MNP report states.
Cory Vanderhorst of MNP said the increase in revenue was due to investment income and the district receiving the Growing Communities Fund.
Vanderhorst said that the district’s total cash and investments at the end of 2023 were $38.6 million – over $11 million higher than the year before.
Sechelt's total financial assets also grew to $49.1 million from $32.7 million.
Vanderhorst explained that the total liabilities, which cover debt, accounts payable and asset retirement obligation add up to $31.2 million.
Asset retirement obligation is a new liability aimed at reducing future spending, Vanderhorst explained. The $3.6 million estimate for 2023 covers $2.8 million for septage site closures and $749,290 for asbestos and other remediation.
He clarified that this is a long-term estimate for what the district will have to pay on various assets it owns, not an expense for next year.
MNP also recorded an accounting surplus of $14 million, which Vanderhorst said does not include capital spending ($12 million) and repayment of debt ($825,013).
Auditors also reported that Sechelt accumulated a surplus of $186.3 million by the end of 2023.
Vanderhorst explained this figure is predominantly made up of equity in tangible capital assets, which amounts to $160 million, as well as smaller figures such as $10 million of statutory reserves and just under $2 million in Sunshine Coast Community Forest investment.
While MNP doesn’t specifically monitor for fraud, Vanderhorst confirmed that there were no irregularities in the financial statements they examined, no unusual transactions or illegal or questionable payments.
Coun. Darren Inkster recognized the work of district staff and council and congratulated them on what he called a clean audit.
Council unanimously approved the 2023 Draft Audited Consolidated Financial Statements as presented.
Jordan Copp is the Coast Reporter’s civic and Indigenous affairs reporter. This reporting beat is made possible by the Local Journalism Initiative.
