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Auditor looks into Orangeville’s financials for 2022

May 18, 2023   ·   0 Comments

By JAMES MATTHEWS, LOCAL JOURNALISM INITIATIVE REPORTER

Orangeville received a clean audit opinion from the firm that was tasked with taking a look at the ledger for 2022.

Murray Short, a partner at RLB Chartered Professional Accountants, walked councillors through the town’s audited 2022 financial statements during a regular council meeting on May 15.

For the 2022 fiscal year, the Town of Orangeville’s net cash surplus position is $6,358,537. During the 2023 budget deliberations on Jan. 24, the council approved $488,745 from 2022 general bank interest income.

Included in the 2022 general surplus is the $488,745 surplus in interest income. Therefore, the net surplus amount to be transferred is $5,869,792.

In a report to the council, staff recommended allocating the 2022 general cash surplus to the town’s general capital reserves. Council had undertaken a similar approach in previous years.

The approval of the recommended allocation of the 2022 net cash surplus would result in an increase in general capital reserves of $5,869,792. The $488,745 has already been accounted for in the 2023 budget.

Short said the audit showed no internal control deficiencies.

“We’re satisfied that the processes around the financial reporting are sufficient for us to be able to sign off on our audit report,” Short said.

He noted that the municipality’s cash, restricted cash, and temporary investments saw an increase last year over the tally at the end of 2021.

In those line items, Orangeville realized a tally of $103 million in 2022 compared to $75 million the previous year for an increase of about $28 million.

“You won’t be surprised to hear that’s largely coming from the sale of various lands from (Orangeville Railway Development Corp.),” Short said.

The town’s taxes receivable balance increased about 18 percent or $430,000 year over year.

“That sounds like a lot, but it’s pretty consistent across what we’re seeing for our various other municipal clients,” he said. “In fact, it’s almost bang-on what I’ve seen in the files that we’ve completed so far.”

For whatever reason, Short said, the 18 per cent mark seems to be common for taxes owing across municipalities.

“It does seem to be fairly consistent that there’s been an increase in receivables at the end of the year for taxes,” he said.

The municipality added three new loans last year for the Ontario Provincial Police station, the Orangeville Fire Department station, and Centennial Drive properties.

That drove the town’s long-term debt up to $31.7 million from just under $30 million.

“You do have a bit more in long-term debt than other municipalities,” Short said. “Certainly well within what we’d consider to be the normal range, though. So we’re not concerned with that.”

He said when the long-term debt is cross-referenced against the town’s stronger cash, Orangeville isn’t “over-leveraged.”

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