This is another in a series of comments on the Audit Committee minutes.
Mr. Duffett reviewed the Consolidated Statement of Changes and Financial Position. This report details on one page the disposition of cash activities within all funds of the Town during the year. The overall position increased from $1,856,240 last year to $2,295,115 this year
Up $340,000. The auditor is quite right in pointing out substantial variances. Here’s another one:
Mr. Duffett reviewed the Investment and Capital Assets statement. He noted that the Town’s capital program for the past year totalling $1,529,399 with work in progress at year end of $154,499. This is up considerably given the fact the Town’s Capital Program has averaged a million dollars annually for the last five years.
The CAO had this as a response- it is going to go up more.
The Chief Administrative Officer suggested that in the coming years the Town’s Capital Program will approach two million dollars. This has to take place in order to catch up with infrastructure improvements.
Notice he didn’t really explain why it was up so much this year. It’s up substantially from the 5 year average and yet there is still work to CATCH UP! Why catch up? Shouldn’t this work be done in a balanced way over the years and therefore shouldn’t that keep the Capital Program to an average amount?
Responding to a question from Councillor MacKay with respect to note 14 – Transfers, the Chief Administrative Officer noted that budgeted funds of $3,500 were transferred from the contingency account to the special allowance account to permit council chambers modifications to include a photo wall that would contain photos and other historical memorabilia. Although the transfer took place the project was not done because of insufficient staff time available to complete it.
Wonder what was planned to go there?
The Chief Administrative Officer directed members to the amount of $6,394 showing as the ending budget balance for the contingency. He acknowledged that no expenditures were made against this amount of money and therefore the sum makes up a small portion of the town’s surplus position.
Surplus position. Nice to have some of that back, wouldn’t it?