WESTLOCK – Westlock County’s finances are in solid shape heading into 2025, according to an independent audit presented to council on April 22.
Jeff Alliston, managing partner of Metrix Group, told council the 2024 financial statements received a clean audit opinion with no major issues uncovered. “The importance of the audit is to enhance the degree of confidence of the intended users of these financial statements,” Alliston said. “This is achieved by us as auditors giving assurance that the numbers are free from a material misstatement. It's a high-level assurance, but it's not absolute.”
While not every transaction is audited, auditors exercise professional judgment and maintain professional skepticism to detect potential misstatements, he added.
Overall, the audit found no significant control deficiencies, unusual policies, or estimates. Auditors had no significant findings in their review, although three adjustment entries were made following the audit's completion. Alliston noted the adjustments would not materially change users’ views of the county’s financial position.
One adjustment involved correcting a $275,000 overstatement of the county’s surplus, primarily tied to the net effect of prior year misstatements that carried forward. However, the actual impact on the surplus was minor—just $646. Another adjustment related to reallocating credit balances within accounts receivable, reducing the amount reported on one side and increasing it on the other. A third adjustment concerned timing issues between the 2023 and 2024 financial years but was not deemed a serious concern.
Alliston said the financial results are in accordance with Canadian Public Sector Accounting Standards.
The total accumulated surplus as of Dec. 31, 2024, is $51.27 million. Long-term debt sits at $6.7 million, consisting of six debentures with the Province of Alberta. Total revenue for the year was $16.7 million, with 69 per cent of that revenue coming from municipal taxes. Total expenditures for the year amounted to $16.74 million, resulting in a budgeted deficit of just $20.
The unrestricted surplus stands at $958,581, while the restricted surplus balance at the end of the year was $17.11 million. Non-financial assets, which include tangible capital assets, inventory for consumption, and prepaid expenses, total $38.86 million. Tangible capital assets alone amount to $33.13 million, with the net book value increasing from $33.44 million in 2023 to $35.64 million in 2024.
The county reported an annual surplus of $2.55 million, up from $888,920 in 2023. Net financial assets grew to $12.41 million, compared to $11.97 million the previous year. Equity in tangible capital assets, such as roads, water, sewer, and engineering infrastructure, rose from $48.66 million to $51.27 million.
During the meeting, Reeve Christine Wiese requested clarification regarding temporary investments, accrued wages, and debenture amounts. Councillor Stuart Fox-Robinson asked questions about salaries, wages, outstanding vacation time, and confirmation of specific audited items.
Council accepted the audit report as information.
