TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: March 4, 2024 Report No. FIN-24-004
TO: Council
FROM: Ian Irvine, Director of Financial Services
SUBJECT: 2023 Preliminary Year End Financial Reporting
RECOMMENDATION:
Recommendation
That Council receive the 2023 Preliminary Year End Financial Reports as attached to Staff Report FIN-24-004.
Body
EXECUTIVE SUMMARY:
The purpose of this report is to provide Council with preliminary year end variance analysis and financial information, including the status of supplemental operating and capital items.
BACKGROUND:
The Township’s financial results are generated monthly and are made available to each municipal department for their review. These figures are provided with the expectation that departments will perform a thorough review against their budget and will identify any concerns or coding errors to ensure data accuracy and completeness. Three times per year, senior management is expected to provide explanations for significant or unusual variances and these details are compiled in a summary report to Council.
This represents a shift in the reporting process and is the first year that the summary analysis document and variance reports in their current form have been prepared. Earlier this year, Council provided feedback about the information being provided and made suggestions about how it could be improved. Staff has tried to incorporate these suggestions to help ensure the financial reporting information is relevant and easy to understand.
Attached to this staff report are the following documents with preliminary results for the year ended December 31, 2023:
- Budget vs Actual Reporting Analysis
- Operating Budget Variance Report
- Operational Project Variance Report
- Capital Project Variance Report
ANALYSIS:
The financial information is generated from the Township’s financial system. This data is then consolidated into the document formats as attached to this report. Once compiled, departments are asked to provide details regarding the various supplemental operating and capital items as well as explanations for any significant, identified variances.
While the financial information is generated using existing system reports, the documents prepared and information included for Council review can be amended or supplemented by additional reports or analysis if requested.
OPTIONS:
1. That Council receive the 2023 Preliminary Year End Financial Reports as attached to Staff Report FIN-24-004.
2. That Council receive the 2023 Preliminary Year End Financial Reports as attached to Staff Report FIN-24-004 and request additional information from staff.
COUNCIL PRIORITY:
Good Governance and Organizational Excellence
FINANCIAL IMPACT:
There are no financial implications of this decision.
COMMUNICATIONS/ENGAGEMENT:
There is no requirement for additional communication regarding the information presented in this report.
TIMELINES & NEXT STEPS:
Upon receipt of this staff report and the attached documents, there are no other actions required.
REPORT REVIEWED BY:
1. Deb Hopkins, Director of Corporate Services, Reviewed
2. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Variance Analysis Summary
2. 2023 Operating Budget Variance Report
3. Operational Project Variance Report
4. Capital Project Variance Report