WOODLANDS COUNTY – The 2024 financial audit results were presented to Woodlands County Council at its April 23 meeting by Jeff Alliston, CPA and partner at Metrix Group.
“We don’t have any significant findings. We do have some control deficiencies,” said Alliston during his presentation.
He identified three areas of focus with potential risks within the financial statements. One area was management override of controls, where management is in a unique position to manipulate financial results. However, no significant issues were found. The second was salaries, wages, and benefits, where there is a risk of employees being paid incorrect rates. Again, no significant findings were noted. The third area involved cash and cash equivalents, where auditors ensured that year-end balances were accurate.
Tangible capital assets had three unrecorded adjustments.
In total, auditors made 18 audit adjustments, which increased the annual surplus by approximately $5 million and assets by $1.8 million. An additional $1.1 million in unrecorded misstatements, mainly amortization adjustments, were not reflected in the statements. Alliston said these were well below the audit threshold and would not impact the audit opinion.
Auditors also reviewed the County’s control environment and made observations regarding access, controls, and segregation of duties. They recommended more frequent reviews and approvals of bank statements and noted the need to monitor manual journal entries more closely.
New accounting policies related to revenue, intangible assets, and public-private partnerships were adopted this year but did not impact the County’s financial statements.
Auditors recommended preparing a separate financial statement for a regional-based authority that is currently included in the County’s consolidated reporting.
Alliston also flagged that some employees had exceeded their allowable vacation accruals and recommended working with those staff to avoid future liabilities.
Key financial highlights included a total of $79.9 million in non-financial assets, which comprise tangible capital assets, inventory for consumption, and prepaid items. The accumulated surplus as of Dec. 31, 2024, was $91.3 million.
The County’s long-term debt was $8.6 million, consisting of eight debentures held with the Province of Alberta. Total revenue for 2024 was $28.6 million, with 72 per cent coming from municipal taxes. Total expenditures for the year were $31 million. The unrestricted surplus was $3.1 million, while the restricted surplus stood at $26.1 million.
Equity intangible capital assets—such as roads, water, sewer, and engineering—grew from $87.4 million to $91.3 million. The net book value of capital assets decreased from $79.2 million in 2023 to $77.4 million due to $7.1 million in amortization and $5.4 million in new additions.
The total annual surplus was $3.9 million, a slight decline from $4.1 million in 2023. Net financial assets increased to $11.4 million, up from $5.7 million the previous year.
Councillor Alan Deane asked about manual journal entries. Alliston noted that no irregularities were observed and that the comments were intended to encourage better control.
Andrew World, Corporate Services Manager, clarified that all journal entries are reviewed and approved separately.
Councillor Jeremy Wilhelm inquired about a payroll grid incident where a temporary adjustment was made during a job offer but later reversed. It was confirmed that no one was paid outside the approved pay grid, and the situation was associated with a previous CAO.
Woodlands County Council approved the audit as presented.
