Audit findings: Already good financial position improving

 

South Dundas’ financial position is better than last year, a year in which South Dundas already had a very strong financial position, this according to Jamie Pollock of the accounting firm Craig, Keen, Dispatie and Markell, which handles the yearly audit of South Dundas’ finances.

He presented the audit findings to South Dundas council at the May 21 meeting.

South Dundas’ net worth increased by 12 percent, its net financial assets increased by 11 percent and municipal debt decreased by one percent.

The result: an operating surplus of almost $624,000.

“You had a very good year and that’s why you are in better financial position than last year,” Pollock told council. He credits South Dundas staff with “good management of budget items. They were very close to budget on most line items.”

In terms of reserves and reserve funds Pollock also reported that South Dundas had a “very good year.”

For a township of this size, the auditors expect to see reserves of between $2.3 and $4.6 million.

“You’re at the high end of that range,” said Pollock who reported in the audit of the 2012 finances they found little change from last year with $4.1 million in reserve funds.

Looking at the big picture, Pollock remained positive reporting that South Dundas’ long term debt is decreasing and that South Dundas is managing the tax rate very well, as shown by little change in taxation revenue.

Taxation revenue is a little lower than it was five years ago and expenses are up about 10 percent, but still South Dundas has been able to maintain its strong financial position. “This shows good budget management,” commented Pollock.

“All financial indicators show that administration and council are doing a good job,” he said.

Regarding the surplus, South Dundas council will receive a report from their treasurer in the near future with recommendations about what should be done with the surplus funds left over from last year’s budget.

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