Local Government Financial Statements & Annual Reports
Audited financial statements and annual reports aid public accountability by providing a independent and transparent account of the financial state of each local government in B.C.
Financial statements report the local government’s actual financial position (assets and liabilities) and financial activities (revenues and expenditures) for the previous year.
The financial statements include consolidated financial information about the local government and all of the services or entities controlled by the local government, such as fire protection, utilities and libraries.
Financial Statement Requirements
The Community Charter and Local Government Act require local governments to prepare financial statements each fiscal year. The financial statements must be presented in accordance with Generally Accepted Account Principles for Local Government (also know as Public Sector Accounting Board standards - PSAB) and independently audited by a qualified auditor.
Financial statements must include a statement of:
- Financial position
- Changes in net debt
- Statement of cash flow
Additional information may be provided by local governments in schedules and notes to the financial statements.
It is the responsibility of the local government's chief financial officer to prepare the statements in accordance with PSAB. The statements must be presented to the municipal council or regional district board for acceptance, and are part of the public record and therefore must be available for public inspection. In addition, financial statements must be submitted to the Inspector of Municipalities by May 15 each year.
- Guide to Local Government Financial Statements (PDF)
- Local Government Financial Statements Example (PDF, 1.5MB)
Audited Financial Statements
Local governments must produce annual financial statements that are independently audited by a qualified auditor (an authorized auditor under the Business Corporations Act) . The auditor reports directly to the municipal council or regional district board and provides an audit opinion on the statements. The audited financial statements must also be available for public viewing, and must be included in the both Statement of Financial Information (SoFI) and the annual municipal report.
Annual Municipal Report
Local governments are required to prepare an annual report which states their goals and objectives for the coming year and demonstrates what progress has been made toward the preceding year's goals and objectives. Local governments must present the report at a public meeting before June 30 each year, and make the report available for public inspection at least 14 days prior to that meeting.