Sixteen Mile Sports Complex | Officially opened ... - Oakville

Report from the Financial Operationsschedules such as transactions relating to reserves andreserve funds, a continuity schedule for tangible capitalassets, along with detailed information relating to thetown’s investment in Oakville Hydro.The consolidated financial statements combine theoperations of the town, Oakville Public Library, OakvilleGalleries and the town’s three business improvementareas. The statements also include the town’s investmentin Oakville Hydro using the modified equity method ofaccounting which reports only the net assets and thetown’s equity in Oakville Hydro Corporation.Lynn HorlorGord LalondeThe Town of Oakville’s Consolidated FinancialStatements for 2010 confirm that our town is in a soundfinancial position and continues to be well positioned toface economic challenges.The statements have been prepared in accordance withCanadian Public Sector Accounting Standards (PSAB).Commencing in 2009, the financial statements nowreport the net book value of the town’s tangible capitalassets and reflect current year amortization expense in itsoperations. The town’s external auditors, KPMG, haveexamined the statements in accordance with generallyaccepted auditing standards and have expressed theunqualified opinion that the consolidated statements arefree from material misstatement and fairly present thefinancial position of the town as at December 31, 2010in all material respects.The financial statements include the consolidatedstatement of financial position, the related consolidatedstatements of operations, change in net financial assets(net debt) and cash flows. The statements indicatehow the town financed its activities; confirm thatresources obtained were used in accordance with thetown’s approved budgets; and adhere to the financialmanagement and planning policies of the town.The notes to the statements provide supportinginformation to the financial schedules as well details withrespect to information no longer provided in financialConsolidated Statement ofFinancial PositionThe Consolidated Statement of Financial Position isthe municipal equivalent of the private sector’s balancesheet especially now since effective January 1, 2009,all municipalities are required to record their tangiblecapital assets in their financial statements. This statementincludes two key components – net financial assets (assetsminus liabilities), and accumulated surplus.A key indicator of a municipality’s financial condition isits net financial assets. Net financial assets represent thedifference between the financial assets of the corporation(cash, receivables, investments) less its financial liabilities(accounts payable, deferred revenues, debentures andpost employment liabilities). The town is in a net assetposition, where its assets exceed liabilities by $259.2million, a significant increase of $74.7 million from2009. The contributing factors include increased cash andinvestments of $51.6 million which can be attributed to the$40 million dividend received from Oakville Hydro dueto the sale of Blink. In addition, the net income reportedby Oakville Hydro has increased the town’s investmentby $42.4 million. These increases in assets were offsetby an increase in liabilities of $18.7 million. The liabilityincrease is due to accounts payable and accrued liabilities,as well as an increase of $10.9 million in long term debt.The town’s accumulated surplus, increased by $117.3million from $1.475 billion in 2009 to $1.592 billion in2010. This increase relates to the increase in net financialassets of $74.7 million as detailed above, plus an increasein the town’s value of its tangible capital assets of $42.1million. It is important to note the accumulated surpluscannot be construed as “cash or funds” available forspending, as the majority of the value is for “non financialTown of Oakville 2010 Annual Report | 15