Understanding Municipal Financial Reporting in 2009: Key Changes and Importance of Statements
Financial statements play a crucial role in municipal governance by demonstrating accountability, transparency, and aiding in long-term planning. In 2009, new accounting standards were required for local governments in Canada, leading to changes in reporting practices. Key financial statements include the Statement of Financial Position, Statement of Operations, Statement of Change in Net Financial Assets, and Statement of Cash Flow. Supplementary schedules provide additional details, and notes offer important explanations and disclosures.
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Presentation Transcript
Municipal Financial Reporting Town of New Sampleford 2009 Annual Results
Why are the financial statements important? Municipal financial statements Demonstrate accountability and transparency to citizens Fulfill legislated requirements Aid in effective long-term planning Provide a snapshot in time
What has changed? New accounting standards for local governments take effect Required for 2009 reporting Consistent across Canada Tangible capital assets to be recorded Statements now based on the net financial assets (debt) model
What are the key financial statements? Statement of Financial Position Reports on assets, liabilities, accumulated surplus Statement of Operations Reports on revenues, expenses, results Statement of Change in Net Financial Assets (Debt) Reports on surplus (deficit), tangible capital asset acquisitions Statement of Cash Flow Identifies cash sources and use
Supplementary Schedules Components of the annual statements that provide additional information Included to assist the reader of the statements to understand the financial condition of the municipality Can vary in detail and form Should be consistent with individual municipality s reporting format and content
Typical Supplementary Schedules Schedule of Tangible Capital Assets Compares net book value of TCAs to previous year Schedule of Property and Other Taxes Reports on taxation, Alberta School Foundation Fund Schedule of Government Transfers Transfers from federal, provincial and other local governments Schedule of Consolidated Expenses by Object Includes amortization expense for TCAs
Notes to the Financial Statements Notes contain important detail and explanations of the financial statement information Some note disclosure required by legislation Debt limits Salary Disclosure
Typical Note Disclosure Notes to the financial statements disclose information about: Accounting policies Cash and investments Deferred revenue Employee benefit obligations Debt and debt limits Tangible capital assets Accumulated surplus
Town of New Sampleford 2009 Statement of Financial Position Current Year Previous Year Total Financial Assets $ (insert amount) $ (insert amount) Total Liabilities $ (insert amount) $ (insert amount) Long Term Debt $ (insert amount) $ (insert amount) Net Financial Assets (Debt) $ (insert amount) $ (insert amount) Non Financial Assets $ (insert amount) $ (insert amount) Accumulated Surplus $ (insert amount) $ (insert amount)
Town of New Sampleford 2009 Statement of Operations Current Year Budgeted Total Revenue $ (insert amount) $ (insert amount) Total Expenses $ (insert amount) $ (insert amount) Excess (Shortfall) of Revenue Over Expenses $ (insert amount) $ (insert amount) Accumulated Surplus (beginning) $ (insert amount) Accumulated Surplus (ending) $ (insert amount)
Town of New Sampleford 2009 Change in Net Financial Assets (Debt) Current Year Budgeted Acquisition of TCAs $ (insert amount) $ (insert amount) Contributed TCAs $ (insert amount) $ (insert amount) Increase (Decrease) in Net Debt $ (insert amount) $ (insert amount) Net Financial Assets (Debt) (beginning) Net Financial Assets (Debt) (ending) $ (insert amount) $ (insert amount)
Town of New Sampleford 2009 Statement of Cash Flows Current Year Budget Cash provided by operating transactions $ (insert amount) $ (insert amount) Cash applied to capital transactions $ (insert amount) $ (insert amount) Cash provided by (applied to) investing transactions $ (insert amount) $ (insert amount) Cash provided by (applied to) financing transactions $ (insert amount) $ (insert amount) Change in cash and equivalents, during the year Cash and cash equivalents, end of year $ (insert amount) $ (insert amount)
Town of New Sampleford 2009 Schedule 1 - TCAs 2009 2008 Cost of Tangible Capital Assets - opening $ (insert amount) $ (insert amount) Additions & Reductions $ (insert amount) $ (insert amount) Amortization & Adjustments $ (insert amount) $ (insert amount) Net Book Value of Tangible Capital Assets $ (insert amount) $ (insert amount)
Town of New Sampleford 2009 Notes to Financial Statements (Insert Summary of Notes to Financial Statements) (Add additional slides as necessary)
Summary of Audit Report (Insert summary/outcome of annual audit)
