The City of Orillia has achieved a clean financial audit for 2020.
The City received a clean third-party audit opinion from external auditors, BDO Canada LLP, who indicated the Consolidated Financial Statements and Audit Report are presented fairly with no unadjusted differences or internal control deficiencies.
“Despite being faced with the significant challenges associated with COVID-19, Council and staff were able to maintain and, in some areas, improve the City’s financial position in 2020,” said Mayor Steve Clarke. “Overall, the City is in good financial shape as the statements reflect positive cashflows, steadily growing assets, comparatively lower liabilities and improving reserves.”
The 2020 Consolidated Financial Statements consist of the City’s financial status and include information and values related to capital assets (such as City-owned land, buildings, vehicles, etc.), liabilities, operations (revenues and expenses), financial assets such as investments and debentures, and cash flows. Financial Statements are prepared on a different basis than the City’s budget and are meant to show the overall picture of the financial health of the Corporation.
In 2020, the City had a $505 million accumulated surplus, which consists largely of the following:
- $432 million in net tangible capital assets (land, buildings, infrastructure, etc.).
- $23 million investment in Orillia Power Corporation (Orillia is the sole shareholder).
- $50 million in net reserves (much of this balance is related to the Orillia Power Distribution Corporation sale legacy funds, asset management funds, or funds set aside for specific obligations).
- Other net items, such as unfunded liabilities.
The City’s accumulated surplus grew by $40 million from 2019 to 2020, due largely to the $36 million sale of Orillia Power Distribution, increases in City assets, and improvements in reserve levels.
“The 2020 financial statements reflect good financial management demonstrated by a healthy balance sheet, positive equity and strong internal controls,” said John Henry, Chief Financial Officer/City Treasurer. “It’s important to understand while the City has an accumulated surplus, this is not directly tied to the City’s operating and capital budgets or cash flow, but is primarily made up of net capital assets.”
Other highlights of the 2020 Consolidated Financial Statements and Audit Report include:
- A significant increase in investments resulting from the proceeds received following the sale of Orillia Power Distribution.
- The retirement of debt pertaining to the Orillia Public Library.
- Lower-than-budgeted user fee revenues due to the COVID-19 pandemic; however, some operating budgets were also lower than expected due to operating and facilities restrictions.
- Health, social, and family services were also under budget resulting from additional provincial funding support for these services during the pandemic. The savings and funding allocations were applied to all benefitting municipal partners.
To view the complete 2020 Consolidated Financial Statements and Audit Report, visit orillia.ca/financials.
The City’s 2021 Consolidated Financial Statements and Audit Report are anticipated for late spring 2022.
For more details, please click here.
The City of #Orillia had an overall positive financial performance in 2020 based on the Consolidated Financial Statements and Audit Report. The audited financial statements are now available at https://t.co/ecow1pk2em.
See details in the news release: https://t.co/yg970Obn0A pic.twitter.com/rNOagiOmLy
— City of Orillia (@cityoforillia) February 17, 2022