HomeMy WebLinkAboutAFC 2023-04-25 Agenda.pdf City of Maple Ridge
Audit & Finance Committee
AGENDA – REGULAR MEETING
Tuesday, April 25, 2023 at 9:00 am
Meeting Access Information
Audit & Finance Committee (AFC) meetings are held in a hybrid format. Members of the AFC and the
public can join the meeting in-person in the Blaney room at Maple Ridge City Hall or remotely using
the following access information:
Join the meeting from your computer, tablet or smartphone
https://mapleridge-ca.zoom.us/j/86216286799
Or join the meeting using your phone
Dial: 1-778-907-2071 Meeting ID: 862 1628 6799
1.CALL TO ORDER
2.APPROVAL OF THE AGENDA
3.ADOPTION OF MINUTES – February 7, 2023
4.DELEGATIONS
5.NEW AND UNFINISHED BUSINESS
5.1 2022 Audited Financial Statements
5.2 2022 Auditor’s Update on the 2022 Financial Statements
6.QUESTION PERIOD FOR THE PUBLIC
7.NOTICE OF CLOSED MEETING
Recommendation:
THAT, pursuant Section 90 of the Community Charter, this portion of the meeting be closed to
the public as the subject matter being considered relates to the following:
•90(1)(l) – Discussions with municipal officers and employees respecting municipal
objectives, measures and progress reports for the purposes of preparing an annual report
under section 98 [annual municipal report].
AND, any other matter that may be brought before the Committee of Council that meets the
requirements for a meeting closed to the public pursuant of Section 90 of the Community
Charter or Freedom of Information and Protection of Privacy Act.
8.ADJOURNMENT
Next Meeting: To be determined
Agenda Submission Deadline: To be determined
QUESTION PERIOD
Question Period provides the public with the opportunity to ask questions or make comments on
subjects that are of concern to them. Each person will be given 2 minutes to speak.
Up to ten minutes in total is allotted for Question Period.
mapleridge.ca
City of Maple Ridge
Audit & Finance Committee
MEETING MINUTES
The Minutes of the Regular Meeting of the Audit & Finance Committee
held in the Thornhill Room, City Hall on February 7, 2023 at 9:00 am
COMMITTEE MEMBERS PRESENT
Mayor Ruimy
Councillor Korleen Carreras, Chair
Councillor Jenny Tan
STAFF MEMBERS PRESENT
Scott Hartman Chief Administrative Officer
Catherine Nolan Deputy Director of Finance
Christina Crabtree General Manager Corporate Services
Patrick Hlavac-Winsor General Counsel and Executive Director, Legislative Service
Trevor Thompson Director of Finance
GUEST
Brian Szabo BDO Canada LLP
1.CALL TO ORDER – 9:00 am
2.APPROVAL OF THE AGENDA
R/2023-AFC-001
It was moved and seconded
That the agenda for the February 7, 2023 Audit & Finance Committee Meeting be approved as
circulated.
CARRIED UNANIMOUSLY
3.ADOPTION OF MINUTES
R/2023-AFC-002
It was moved and seconded
That the minutes of the July 4, 2022 Audit & Finance Committee Meeting be adopted as
circulated.
CARRIED UNAMIMOUSLY
4.DELEGATIONS – NIL
5.NEW AND UNFINISHED BUSINESS
5.1. Appointment of Chairperson
R/2023-AFC-003
It was moved and seconded
That Councillor Carreras be appointed as Chairperson of the Audit & Finance Committee
Meeting for 2023.
CARRIED UNAMIMOUSLY
3
Audit & Finance Committee Meeting Minutes
February 7, 2023
Page 2 of 2
5.2. Role of the Audit & Finance Committee
The Deputy Director of Finance, provided an overview of the role of the Audit & Finance
Committee and the role of the External Auditor.
5.3. Review Terms of Reference
R/2023-AFC-004
It was moved and seconded
That the Terms of Reference for the Audit & Finance Committee be approved as circulated with
no amendments.
CARRIED UNAMIMOUSLY
5.4. Proposed 2023 Work Plan
The Deputy Director of Finance, provided details on the 2023 proposed Work Plan for the Audit
& Finance Committee.
R/2023-AFC-005
It was moved and seconded
That the draft 2023 Audit and Finance Committee Work Plan be approved with the addition of
an update on Development Cost Charges and Amenity Charges.
CARRIED UNAMIMOUSLY
5.5. Proposed Meeting Schedule for 2023
The Deputy Director of Finance, provided details on proposed meetings in Q1, Q2, Q3, and Q4.
5.6. Audit Planning Report for 2022
Brian Szabo, audit partner with BDO Canada LLP provided details on the Audit Planning Report.
6. QUESTION PERIOD – NIL
7. NOTICE OF CLOSED MEETING – NIL
8. ADJOURNMENT at 12:30pm
Councillor Korleen Carreras, Chair
5.1
TO:
FROM:
SUBJECT:
mapleridge.ca City of Maple Ridge
His Worship Mayor Ruimy
and Members of Council
Chief Administrative Officer
MEETING DATE:
FILE NO:
MEETING:
2022 Consolidated Financial Statements
EXECUTIVE SUMMARY:
May 2, 2023
05-1830-20
cow
The purpose of this report is to present the Consolidated Financial Statements (the "Statements") for
the 2022 fiscal year. The City financial statements are a retrospective document intended to
communicate the fiscal health and well-being of the community as at December 31 of the previous
year. They provide a snapshot of the City's financial condition at a point in time and its financial
performance for the year just ended. The following refers to key terms in public sector financial
reporting which are defined on page 2 of this report. In 2022 the City's Net Financial Position
increased by $17.75 million to $139.1 million and our Accumulated Surplus increased by $41.8
million to $1.334 billion.
The 2022 Statements have been prepared using the accounting standards and reporting model
mandated by the Public Sector Accounting Board (PSAB). BOO Canada LLP (BOO) has conducted an
audit of the Statements and in order to satisfy current Canadian Auditing Standards, Council must
approve the Statements before BOO can issue their final audit opinion. The audit report will be
"unqualified"; the highest form of assurance an auditor can provide, indicating the Statements are
free of material misstatements and that readers · can rely on them for decision making purposes.
RECOMMENDATION:
That the 2022 Consolidated Financial Statements be approved.
DISCUSSION:
Financial reporting in local government serves to communicate the fiscal health and well-being of a
community and there are two main documents that accomplish this: the Financial Plan and the
Financial Statements, each with very different objectives.
The Financial Plan is a forward-looking document that sets out the City's planned expenditures and
transfers to Reserves for the next five years , and also identifies how those expenditures and transfers
will be funded. The Community Charter requires that municipalities prepare a "balanced budget". This
means that the total of any proposed expenditures or transfers to Reserves must not exceed the total
of proposed revenues or transfers from Reserves. In simple terms, the Financial Plan answers the
question: "What are we going to do and how are we going to pay for it?"
Doc# 33517 56 1 of 7
In contrast, the Financial Statements are a retrospective document that provides snapshot of the City's
financial condition as at December 31 of the yearthatjust ended. The statements compare our actual
financial performance in the year to the activities identified in the applicable Financial Plan. The
Community Charter requires municipalities to prepare the Financial Statements in accordance with
generally accepted accounting principles for local governments. In Canada, those principles are set
by the PSAB. The objective of a municipality's Financial Statements is to report on its financial
condition at a point in time and its financial performance for the year just ended.
The differing objectives of the Financial Plan and the Financial Statements, combined with the different
rules guiding their preparation, can easily result in confusion when trying to compare the two
documents. For example, the Financial Plan treats transfers to and from Reserves as transactions,
while the Financial Statements, at the summary consolidated level, ignore transfers as they take place
within the corporate entity. It is important to keep the different rules and objectives in mind as we
look at financial results for 2022.
The 2022 Statements present the City's results of operations during the year and the financial position
as at December 31, 2022. Financial performance is compared to the Financial Plan adopted in May
of 2022 as this was the plan used to set property taxation rates, and to prior year results. The
transactions included in the Financial Statements are those that took place between the City and
outside parties. Internal transactions, such as transfers between Reserves, which are important for
financial planning purposes, have been eliminated.
The City's auditors, BDO, have conducted an audit of the Statements and will finalize their audit report
once Council has approved the statements as noted in the recommendation to this report. The audit
report will be "unqualified". This is the highest form of assurance an auditor can provide and indicates
the Statements are free of material misstatements and that readers can rely on them for decision
making purposes.
There are a number of key terms used in the Financial Statements, that are defined here prior to
reviewing the statements themselves.
• Net Financial Position: provides a snapshot of where the City stood financially in terms of the
resources it held and the amounts it owed at December 31, 2022. It is the difference between
our financial assets and our liabilities and is considered an indicator of financial flexibility. If
Net Financial Position is negative, it is referred to as Net Debt and indicates revenues that will
be collected in the future are needed to pay for liabilities that already exist. If it is positive, it
is referred to as Net Financial Assets and may indicate a greater degree of flexibility.
• Accumulated Surplus: is the total of all the City's assets, both financial and non-financial, less
our liabilities. It represents the net economic resources available for service provision. The
largest element of this number is the value of our tangible capital assets, the physical assets
used in day-to-day service provision, meaning the Accumulated Surplus balance does not
represent a source of cash available to finance our day-to-day operations.
• Annual Surplus: is the difference between annual revenues and expenses, as reported on the
Statement of Operations. It is important to keep in mind that items included in revenue do not
necessarily represent cash received during the year. For example, the value of contributed
tangible capital assets is reported as a revenue, but does not represent cash the City received.
On the expense side, only the annual cost of using those assets is recognized through
amortization. The amounts expended for capital investment or renewal is not included, nor is
the value of infrastructure contributed to the City through development. This accounting
requirement results in a large reported Annual Surplus, but does not represent a cash surplus.
Doc# 3351756 2 of 7
The City's Financial Statements are comprised of the following:
• Statement of Financial Position
• Statement of Operations
• Statement of Change in Net Financial Assets
• Statement of Cash Flow
• Significant Accounting Policies
• Notes to the Financial Statements
• Segment Report
• Supporting Schedules 1-2
The Notes to the Financial Statements provide additional information for the items found on the
Statement of Financial Position and the Statement of Operations, and are referenced on each of these
statements. Of note, Schedule 2 is a temporary schedule to the Financial Statements and meets the
Provincial requirement to provide information regarding the use of the BC Safe Restart funding
received by the City. As at the end of 2022, that funding is fully expended and this schedule will not
form part of future financial statements.
A discussion of the Financial Statements follows:
Statement of Financial Position
The Statement of Financial Position provides information about the City's financial assets, liabilities,
and it's non-financial asets. One of the key indicators on this statement is the Net Financial Position.
As noted above, it is calculated by subtracting our liabilities from our financial assets and is one piece
of information available to assess the City's financial flexibility. At the end of 2022, the City had Net
Financial Assets of $139.1 million, an increase of $17.75 million from 2021. The increase can be
attributed to increases in cash and investments of $8.8 million and accounts receivable of $9 million.
The other key indicator that appears on the Statement of Fiancial Position is the Accumulated Surplus.
As noted above, this is the total of all of our assets, both financial and non-financial, less our liabilities.
This number represents the net economic resources available for service provision. The bulk of this
number comes from the value of our tangible capital assets, meaning it does not represent cash that
can be spent to support our operations. At the end of 2022, the City's Accumulated Surplus was
$1.334 billion compared to $1.293 billion for 2021. Of this amount, $1.177 billion is the book value
of the City's tangible capital assets, compared to $1.154 billion in 2021.
Key items to note on the Statement of Financial Position:
• Combined cash and cash equivalents, and portfolio investments increased by $8.8 million.
• Accounts receivable and recoverable local improvements Increased by $9 million with key
contributors to the increase being a $2.3 million increase in accrued grants receivable and an
increase in accrued interest receivable of approximately $4 million.
Statement of Operations
The Statement of Operations reports the City's revenues and expenses for the year. The difference
between revenues and expenses is referred to as the Annual Surplus if positive, or the Annual Deficit
if negative. It is important to note that accounting rules require us to include in revenue items such
as the value of infrastructure contributed to the City through development, but on the expense side
we include only the cost of using those assets through amortization, not the value of the assets
received. This requirement contributes to a reported Annual Surplus that does not fully represent a
cash surplus.
Doc# 3351756 3 of 7
In 2022, the City recorded contributed infrastructure with a value of $17.56 million; this amount was
recognized as revenue. On the expense side, the amortization recorded for these assets was
approximately $1.3 million. The City's Annual Surplus was $41.8 million and $16.26 million of that
amount comes from the transactions associated with contributed assets received during the year, and
as noted previously, there is no cash received by the City related to these assets.
As noted earlier in this report, when the Financial Plan is prepared, we ensure that all planned sources
of funding are equal to all planned uses of funding. This is referred to as a "Balanced Budget". Not
all of the elements that result in a Balanced Budget are included in the Statement of Operations. Some
Financial Plan transactions, such as transfers to and from Reserves, are eliminated from the summary
Financial Statements as they are internal transactions; other items are not included as they do not
meet the definition of an expense. For example, our planned investment in tangible capital assets will
result in an expenditure of resources, but not an expense. The annual cost of using our tangible capital
assets, recorded as amortization, is an expense and is included on this Statement of Operations.
Information about the difference between the Financial Plan and the Financial Statements is shown
in Note 19 to the Financial Statements.
The following discusses the Statement of Operations:
Consolidated Revenues: Actual $201.4 million; Budget $230. 7 million
Not all monies the City receives are recorded as revenues at the time of payment. Monies, such as
Development Cost Charges, that are collected for specific works, typically capital in nature, are
recorded as restricted revenue and reported as a liability when received. It's only when we do the
works funded from these sources that we draw down the liability and recognize the revenue. Until that
occurs, the funds remain recorded as a liability.
In 2022, consolidated revenues were below budget by $29.34 million. This is comprised of variances
in a number of categories, particularly those related to capital. The following highlights some of the
key variances:
• Government Transfers (grants) revenues were below budget estimates by $5.58 million due
to timing delays in grant funded capital projects.
• Development revenues below budget estimates by $28.8 million. This is due in large part to
factors such as expenditures for DCC funded capital projects not being incurred and, as noted
previously, when this happens the funds remain recorded as a liability.
• The value of contributed assets was $2.4 million below the budgeted provision for this item,
noting again that this item does not represent cash received.
While revenues related to the capital program were below budgeted estimates this was offset on the
operating side by the following:
• User fees exceeded budgeted estimates by $2.5 million with key contributors including $200
thousand from business licences and $582 thousand from recycling revenues; subdivision
inspection fees exceeded targets by $250 thousand and $1.1 million from user fees for sewer
& water;
• Gaming revenues exceeded budget by $827 thousand; and,
• Interest income exceeded targets by $4.1 million.
Consolidated Expenses -Actual $159.6 million; Budget $173.3 million
Expenses are comprised of general operating expenses for goods and services, labour, interest on
debt, and amortization of our tangible capital assets. The actual cash expended to invest in the
replacement or acquisition of assets is not reflected on this Statement.
Doc# 3351756 4 of 7
In 2022, consolidated expenses were below budget by $13. 7 million. Some key items contributing to
this result include:
• RCMP contract costs below budget estimates by $1.6 million;
• Approximately $9.0 million in projects provided for in 2022 for which work will proceed or
continue in 2023; and,
• Savings of approximately $2.5 million on labour costs, due in part vacancies throughout the
organization and ongoing recruitment challenges.
Statement of Change in Net Financial Assets
The change in Net Financial Position in a year is explained by the difference between revenues and
expenditures. If we recognize more revenue that we expend, then the net financial position will
increase; if less, then it will decrease. In 2022, the City's financial position increased by $17.75
million to $139.1 million.
Statement of Cash Flow
The Statement of Cash Flow explains the change in the balance of cash and cash equivalents for the
year, showing the impact of various types of transactions on the balance. For example, the statement
shows that the City invested $32.6 million to acquire or construct tangible capital assets.
Segment Report
The Segment Report repeats the the information found on the Consolidated Statement of Operations
but breaks it down into a greater level of detail. On this report, City services have been segmented by
grouping activities by function, as directed by PSAB. Where possible, revenues and expenses have
been attributed to the appropriate reporting segment. Expenses have been broken down into the
categories of goods and services, labour, debt servicing, and amortization. The Segment Report allows
us to see how much each segment contributes to the Annual Surplus before considering allocations
of taxes and other municipal resources. As described earlier, Annual Surplus is the difference between
annual revenues and expenses.
The following table shows the departments included in each segment:
Reporting Segments
Parks Pl . p bl. . . annmg· u 1c .
General Gov't Protective Svc Re~~:~~~~ & Health & Other Transportation Water Sewer
Administration Police
Legal & Fire
Legislative
Economic Dev Bylaws
Communications Inspection Svc
Finance Emergency Svc
Human
Resources
Information Svc
Parks
Leisure Svc
Youth Svc
Arts
Library
Planning
Recycling
Cemetery
Social Planning
Engineering
Operations
Drainage
Roads
Water Sewer
The above discussion focuses on the summary level Consolidated Financial Statements, and, as noted,
consists of transactions only with outside parties; internal transactions, such as transfers, are not
included. The following section of the report looks at various elements of the organization in isolation,
in particular the General Revenue Fund, the Sewer & Water Utilities and the City's reserves.
Doc# 3351756 5 of 7
General Revenue Fund
The majority of the City's diverse day-to-day operations take place within the General Revenue Fund.
This includes activities ranging from the development of master plans to guide the community's future,
to maintaining infrastructure such as roads to all the activities integral to the delivery of the essential
City services.
The accumulated surplus balance in the General Revenue fund is a source of one-time monies that,
by policy, is available to Council to fund extraordinary one-time items. The accumulated surplus
balance is the cumulative balance of revenues over expenditures and net transfers to reserves over
time. It is not the result of a single year of operations, rather the balance has been fluctuating each
year since the City was incorporated. At the beginning of 2022, the General Revenue Accumulated
Surplus balance was $8.6 million and the Financial Plan contemplated drawing that balance down by
$1.4 million. As a result of variations between budgeted and actual results and Council decisions to
use surplus to advance a strategic land acquisition we ended 2022 by drawing the accumulated
surplus balance down by $2.8 million to $5.73 million.
Sewer and Water Utilities
The Sewer and Water Utilities are self-funded business units that manage the collection and
distribution of water and liquid waste and the related infrastructure. A large portion of the costs in the
utilities are driven by the Regional District and Council has historically employed a rate stabilization
practice to manage fluctuations in these costs. Under this practice, we will see cycles where
Accumulated Surplus amounts are deliberately built up over a period of time, then subsequently drawn
down in order to provide for our commitment towards larger regional projects as well as variations in
our own annual infrastructure investment. This practice allows Council to smooth the impact of
variations in annual spending levels on our rate payers.
The Financial Plan included activities that would have have seen the Accumulated Surplus balances
in the Water Utility drawn down by $2.2 million and in the Sewer Utility by $1.8 million. As with the
General Revenue Fund, variations between budgeted and actual results final results differed. We saw
the Water Utility Accumulated Surplus was increased slightly and the Sewer Utility Accumulated
Surplus was drawn down slightly.
The following shows the Accumulated Surplus amounts in each of the General Revenue fund and the
Sewer and Water Utilities, and can also be found in Note 14 to the Financial Statements:
Reserves
General Revenue
Sewer Utility
Water Utility
2022
$ 5,727,398
5,937,537
13,793,118
$ 25.458.053
2021
$ 8,563,194
5,966,930
13,707,170
$ 28.237,294
The City's Reserves are an important financial planning tool, providing a mechanism to build capacity
over time to undertake strategic projects or address long-term infrastructure sustainability
requirements. They are reviewed on a regular basis to assess their adequacy, with adjustments made
when capacity permits.
The City's Reserves consist of two distinct categories, Reserve Funds and Reserve Accounts. Reserve
Funds are statutory, meaning they are established by bylaw for specific purposes. Once monies are
transferred to a Reserve Fund, they can only be used for the purpose outlined in the establishing bylaw.
Doc# 3351756 6 of 7
Reserve Accounts are appropriations of surplus, established to meet specific business needs. They
can be established or dissolved as directed by Council, as long as identified business needs are met
and risks are managed appropriately.
Note 15 to the Financial Statements provides a listing of all the City's Reserves showing an opening
balance of $139.7 million and a closing balance of $156.9 million. Contributors to the increase of
$17.1 million include the following:
• Allocation of interest earnings
• Ongoing studies & projects
• Capital Projects in progress
• RCMP Contract savings
• Funding PRC projects (Albion Community Centre)
CONCLUSION:
$ 1.8 million
$ 9.0 million
$ 7.8 million
$ 1.6 million
$(4.0) million
The 2022 Consolidated Financial Statements (the "Statemetns") have been prepared using the
accounting standards and reporting model mandated by the Public Sector Accounting Board (PSAB).
BOO Canada LLP (BOO) has conducted an audit of the Financial Statements. In order to satisfy current
Canadian Accounting Standards, Council must formally approve the Statements before BOO can issue
their final audit opinion. The audit report will be "unqualified"; this is the highest form of assurance
an auditor can provide and indicates the Statements are free of material misstatements and that
readers can rely on them for decision making purposes.
As noted previously, the City's Financial Statements represent a snapshot of the City's Financial
Position on December 31, 2022. We ended the year with an Annual Surplus amount of $41.8 million,
an Accumulated Surplus balance of $1.29 billion, and Net Financial Assets of $139.1 million.
Prepared by: Catherine Nolan, CPA, CGA
Deputy Director of Finance
7 ~-------Reviewed by: Trevor T~BBA, CPA, CGA
Director of Finance
Approved by: Christina Crabtree
GM, Corporate Services
Concurrence: ' cott Hartman
Chief Administrative Officer
Append ices:
(A) 2022 Consolidated Financial Statements
(B) BOO Audit Results Letter
Doc# 33517 56 7 of 7
City of Maple Ridge
Financial Statements
and
Auditor's Report
APPENDIX A
For the Year Ended December 31, 2022
MAPLE RIDGE
British Columbia
The information in this report is the responsibility of management. The consolidated financial statements have been
prepared in accordance with Canadian Public Sector accounting guidelines as outlined under "Significant Accounting
Policies". These include some amounts based on management's best estimates and careful judgment.
Management maintains a system of internal accounting controls to provide reasonable assurance that assets are
safeguarded and that transactions are authorized, recorded, and reported properly. Management also administers a
program of proper business compliance.
BDO Canada LLP, the Municipality's independent auditors have audited the accompanying financial statements. Their
report accompanies this statement.
Council carries out its responsibility for the consolidated financial statements jointly with its Audit and Finance
Committee. The Committee meets with management on a scheduled basis and at least semi-annually with BDO Canada
LLP to review their activities and to discuss auditing, internal control, accounting policy, and financial reporting matters.
BDO Canada LLP has unrestricted access to the Municipality, the Audit and Finance Committee, and Council. Council
approves the consolidated financial statements, the Audit and Finance Committee reviews the recommendations of the
independent auditors for improvements to controls as well as the actions of management to implement such
recommendations.
Scott Hartman
Chief Administrative Officer
Trevor Thomps • n, BBA, CPA, CGA
Director of Finance
City of Maple Ridge -2022 Financial Statements
Page 3 of 28
To the Mayor and Council of the City of Maple Ridge
Opinion
Independent Auditor's Report
We have audited the consolidated financial statements of the City of Maple Ridge (the "City"), which
comprise the Consolidated Statement of Financial Position as at December 31, 2022, the Consolidated
Statements of Operations, Changes in Net Financial Assets and Cash Flows for the year then ended, and
notes and schedules, comprising a summary of significant accounting policies and other explanatory
information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the financial position of the City as at December 31, 2022 and its results of operations, changes
in net financial assets, and cash flows or the year then ended in accordance with Canadian public sector
accounting standards.
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the City in
accordance with the ethical requirements that are relevant to our audit of the consolidated financial
statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with Canadian public sector accounting standards, and for such ir,ternal control
as management determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the City's
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the City or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the City's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Canadian generally accepted auditing standards will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements (Continued)
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
City of Maple Ridge -2022 Financial Statements
Page 4 of 28
• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the City's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report
to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor's report. However, future events or conditions may cause the City to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Unaudited Information
We have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of
'Schedule 2 -Schedule for BC Safe Restart Grant' that is included in these consolidated financial
statements.
Chartered Professional Accountants
Vancouver, British Columbia
[REPORT DATE]
City of Maple Ridge -2022 Financial Statements
Page 5 of 28
Consolidated Statement of Financial Position
as at December 31, 2022
2022 2021
Financial Assets
Cash and cash equivalents (Note 1) $ 22,933,056 $ 116,531,792
Portfolio investments (Note 2) 253,251,692 150,882,727
Accounts receivable (Note 3) 25,283,520 16,238,012
Recoverable local improvements (Note 4) 614,913 772,641
Other assets (Note 5) 1,146,868 1,121,812
Inventory available for resale 561169 56169
303,286,218 285,603,153
Liabilities
Accounts payable and accrued liabilities (Note 6) 32,565,424 32,035,516
Deferred revenue (Note 8) 19,475,845 18,065,700
Restricted revenue (Note 9) 38,878,746 38,083,113
Refundable performance deposits and other 27,470,091 25,945,403
Employee future benefits (Note 10) 2,861,700 3,145,300
Debt (Note 11) 4219301686 4619751903
164, 182,492 164,250,935
Net Financial Assets 13911031726 1211352218
Non Financial Assets
Tangible capital assets (Note 12, Schedule 1) 1,177,844,681 1,154,325,050
Undeveloped land bank properties (Note 13) 15,526,529 15,526,529
Supplies inventory 610,871 533,617
Prepaid expenses 1A56I190 110031351
1 l 195A381271 1117113881547
Accumulated Surplus (Note 14) $ 1133415411997 $ 11292)401765
Scott Hartman
Chief Administrative Officer
Trevor Thompson, BBA, CPA, CGA
Director of Finance
The accompanying summary of significant accounting policies and notes to the Consolidated Financial
Statements are an integral part of this statement.
City of Maple Ridge -2022 Financial Statements
Page 6 of 28
Consolidated Statement of Operations
For the year ended December 31, 2022
Budget Actual Actual
2022 2022 2021
Note 19
Revenue (Segment Report, Note 23)
Taxes for municipal purposes (Note 16) $ 103,991,814 $ 104, 187,540 $ 99,296,699
User fees and other revenue 52,910,221 55,431,092 50,497,200
Government transfers (Note 17) 12,910,331 7,325,205 6,803,129
Development revenue 37,457,515 8,634,346 5,016,024
Interest and investment income 2,694,988 6,801,307 2,411,236
Gaming revenues 750,004 1,576,904 780,946
Refinancing and asset disposal losses (149,126) (1,065,038)
Contributed tangible capital assets (Note 12) 2010001000 1715601027 16,4351062
230,714,873 201,367,295 180,175,258
Expenses (Segment Report, Note 23)
Protective services 52,284,717 48,800,726 45,049,842
Transportation services 27,487,924 26,247,478 22,798,719
Parks, recreation & cultural 26,669,074 24,654,225 21,263,223
Water utility 19,652,587 17,441,267 16,757,542
Sewer utility 15,576,404 13,339,392 13,395,349
General government 23,238,572 21,830,513 20,074,697
Planning, public health and other 813521812 7 1252A62 711731527
173,262,090 159,566,063 146,512,899
Annual Surplus 57,452}83 4118011232 3316621359
Accumulated Surplus -beginning of year 1129217401765 11292z140z165 112591078,406
Accumulated Surplus -end of year (Note 14) $ 1135011931548 $ 1133415411997 $ 112921740}65
The accompanying summary of significant accounting policies and notes to the Consolidated Financial Statements are
an integral part of this statement.
City of Maple Ridge -2022 Financial Statements
Page 7 of 28
Consolidated Statement of Change in Net Financial Assets
For the year ended December 31, 2022
Budget Actual Actual
2022 2022 2021
Note 19
Annual Surplus $ 57,452,783 $ 41,801,232 $ 33,662,359
Add (Less):
Change in Tangible Capital Assets
Acquisition of tangible capital assets (187,741,339) (50,169,026) (57,444,676)
Amortization 24,593,930 26,466,120 23,863,066
Proceeds from disposal of tangible capital assets 34,149 139,110
Loss on disposal of tangible capital assets 1491126 115651038
(163,147,409) (23,519,631) (31,877,462)
Change in Other Non Financial Assets
Increase in supplies inventory (77,254) (71,664)
Increase in prepaid expenses {4521839) (1501135)
(530,093) (221,799)
Increase (decrease) in Net Financial Assets (105,694,626) 17,751,508 1,563,098
Net Financial Assets beginning of the year 12113521218 12113521218 119)891120
Net Financial Assets end of the year $ 1516571592 $ 1391103i126 $ 12113521218
The accompanying summary of significant accounting policies and notes to the Consolidated Financial Statements are an
integral part of this statement.
City of Maple Ridge -2022 Financial Statements
Page 8 of 28
Consolidated Statement of Cash Flow
For the year ended December 31, 2022
Actual Actual
2022 2021
Operating transactions
Annual surplus $ 41,801,232 $ 33,662,359
Items not utilizing cash
Amortization 26,466,120 23,863,066
Loss on disposal of assets 149,126 1,065,038
Contributed tangible capital assets (17,560,027) (16,435,062)
Actuarial adjustment on debt (500,883) (440,357)
Restricted revenues recognized {719691147) (415501168)
585,189 3,502,517
Change in non-cash operating items
Increase in prepaid expenses (452,839) (150,135)
Increase in supplies inventory (77,254) (71,664)
Decrease (increase) in accounts receivable (9,045,508) (1,205,428)
Decrease in recoverable local improvements 157,728 403,071
Increase in other assets (25,056) (307,415)
Increase (decrease) in accounts payable and accrued liabilities 529,908 3,987,620
Increase (decrease) in deferred revenue 1,410,145 2,779,302
Increase (decrease) in refundable performance deposits 1,524,688 5,471,404
(Decrease) in employee future benefits {2831600) (2021900)
(6,261,788) 10,703,855
Cash provided by operating transactions 36,124,633 47,868,731
Capital transactions
Proceeds on disposal of tangible capital assets 34,149 139,110
Cash used to acquire tangible capital assets {3216081999) (4110091614)
(32,574,850) (40,870,504)
Investing transactions
Proceeds on disposal of land available for sale 500,000
(Increase) decrease in portfolio investments {10213681965) (60 I562A93)
(102,368,965) (60,062,493)
Financing transactions
Proceeds from debt issues 29,000,000
Debt repayment (3,544,334) (2,260,235)
Collection of restricted revenues 8i164i180 11 894 417
5,220,446 38,634,182
(Decrease) increase in cash and cash equivalents (93,598,736) (14,430,084)
Cash and cash equivalents -beginning of year 1161531i192 13019611876
Cash and cash equivalents -end of year $ 2219331056 $ 1161531}92
The accompanying summary of significant accounting policies and notes to the Consolidated Financial Statements are an integral part of this
statement.
City of Maple Ridge -2022 Financial Statements
Page 9 of 28
Summary of Significant Accounting Policies
For the year ended December 31, 2022
The City of Maple Ridge (the "City") is a municipality in the province of British Columbia and operates
under the provisions of the Community Charter. The City provides municipal services such as fire, public
works, planning, parks, recreation and other general government services.
(a) Reporting Entity and Basis of Consolidation
These financial statements have been prepared in accordance with Canadian Public Sector
Accounting Standards (PSAS) using guidelines developed by the Public Sector Accounting Board of
the Chartered Professional Accountants of Canada.
They consolidate the activities of all of the funds of the City and the City's wholly owned subsidiaries
C.D.M.R. Developments Ltd. and Maple Ridge Municipal Holdings Ltd. Transactions between the
City's funds and wholly owned subsidiaries have been eliminated and only transactions with outside
entities are reported.
(b) Basis of Accounting
The basis of accounting followed in these financial statements is the accrual method and includes
revenues in the period in which the transactions or events occurred that gave rise to the revenues
and expenses in the period the goods and services were acquired and a liability was incurred.
(c) Non-financial Assets
Non-financial assets are not available to discharge existing liabilities and are held for use in the
provision of services. They have useful lives extending beyond the current year and are not
intended for sale in the ordinary course of business.
(d) Tangible Capital Assets
Tangible capital assets are a special class of non-financial assets and are recorded at cost less
accumulated amortization. Cost includes all costs directly attributable to acquisition or construction
of the tangible capital asset including transportation and installation costs, design and engineering
fees, legal fees and site preparation costs. Interest costs are not capitalized during construction.
Amortization is recorded on a straight line basis over the estimated life of the tangible capital asset
commencing once the asset is put into use. Assets under construction are not amortized.
Contributed tangible capital assets are recorded at estimated fair value at the time of the
contribution and are also recorded as revenue.
Estimated useful lives of tangible capital assets are as follows:
Buildings (including building components)
Transportation network
Storm sewer system
Fleet and equipment
Technology
Water system
Sanitary sewer system
Furniture and fixtures
Structures
7 to 50 years
10 to 75 years
1 Oto 75 years
8 to 20 years
3 to 25 years
10 to 85 years
30 to 75 years
3 to 20 years
15 to 75 years
Natural resources, works of art and historic assets are not recorded as assets in these consolidated
financial statements.
City of Maple Ridge -2022 Financial Statements
Page 10 of 28
(e) Liability for Contaminated Sites
Contaminated sites are a result of contamination being introduced into air, soil, water or sediment of
a chemical, organic or radioactive material or live organism that exceeds an environmental
standard.
A liability for remediation of a contaminated site is recognized when a site is not in productive use or
an unexpected event occurs and the following criteria are met:
i. an environmental standard exists;
ii. contamination exceeds the environmental standards;
iii. the City is directly responsible or accepts responsibility;
iv. it is expected that future economic benefits will be given up; and
v. a reasonable estimate of the amount can be made.
The liability is recognized as management's best estimate of the cost of remediation and post-
remediation, including operation, maintenance and monitoring, that are an integral part of the
remediation strategy for a contaminated site. Management has assessed its potential liabilities for
contamination, including sites that are no longer in productive use and sites for which the City
accepts responsibility. There were no such sites that had contamination in excess of an
environmental standard requiring remediation at this time, therefore no liability was recognized at
December 31, 2021 or December 31, 2020.
(f) Landfill Closure and Post Closure Costs
The Ministry of Environment establishes certain requirements for the closure and post closure
monitoring of landfill sites. The obligation for closure and post closure costs associated with the
City's former landfill is based on the present value of estimated future expenses.
(g) Expense Recognition
Expenses are recorded using the accrual basis of accounting whereby expenses are recognized as
they are incurred and measurable based upon receipt of goods and services and/or the legal
obligation to pay.
(h) Revenue Recognition
Taxation
Taxes are recorded at estimated amounts when they meet the definition of an asset, have been
authorized and the taxable event occurs. Annual levies for non-optional municipal services and
general administrative services are recorded as taxation for municipal purposes in the year they
are levied. Taxes receivable are recognized net of an allowance for anticipated uncollectable
amounts. Levies imposed by other taxing authorities are not included in the City's revenues.
Through the British Columbia Assessments' appeal process, taxes may be adjusted by way of
supplementary roll adjustments. The effects of these adjustments on taxes are recognized at the
time they are awarded.
User fees and other revenue
Charges for sewer and water usage are recorded as user fees and other revenue when the
services are provided.
Government transfers
Government transfers are recognized as revenue in the financial statements when the transfer is
authorized and any eligibility criteria are met, except to the extent that transfer stipulations give rise
to an obligation that meets the definition of a liability. Government transfers are recorded as
deferred revenue when transfer stipulations give rise to a liability and are recognized in the
statement of operations as the stipulated liabilities are settled.
City of Maple Ridge -2022 Financial Statements
Page 11 of 28
Development revenues
Receipts that are restricted by the legislation of senior governments or by agreement with external
parties are a liability of the municipality and are reported as Restricted Revenues at the time they
are received. When qualifying expenditures are incurred Restricted Revenues are brought into
revenue as development revenue.
Investment income
Investment income is recorded on the accrual basis and recognized when earned. Investment
income is allocated to various reserves and operating funds on a proportionate basis.
To the extent that financial instruments have no stated rate of return, investment income is
recognized as it is received.
Contributed tangible capital assets
Subdivision developers are required to provide subdivision infrastructure such as streets, lighting,
sidewalks, and drainage etc. Upon completion, these assets are turned over to the City.
Contributed tangible capital assets are recorded at their estimated fair value at the time of
contribution and are also recorded as revenue.
(i) Use of estimates/measurement uncertainty
The preparation of financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Significant areas requiring use of management estimates
relate to the useful lives of tangible capital assets, determination of employee future benefits, landfill
closure and post closure obligations, the outcome of litigation and claims, and the percentage of
completion of buildings and subdivision inspections. Actual results could differ from these
estimates.
(j) Budget figures
The budget figures reported in the Consolidated Financial Statements represent the 2022
component of the Financial Plan Bylaw, No. 7727-2021, adopted by Council on May 10, 2022.
(k) Financial instruments
The City's financial instruments consist of cash and cash equivalents, portfolio investments,
accounts receivable, recoverable local improvements, other assets, accounts payable and accrued
liabilities, refundable performance deposits and,debt. Unless otherwise indicated, it is
management's opinion that the City is not expo§ed to any significant interest, credit or currency
risks arising from these financial instruments.
(I) Cash and cash equivalents
Cash and cash equivalents are comprised of the amounts held in the City's bank accounts and
investments with an original term to maturity of three months or less.
(m) Portfolio Investments
Investments with an original term to maturity of more than three months from the date of acquisition
are reported as portfolio investments. Investments and pooled investments are reported using the
cost method. Provisions for declines in the market value of investments are recorded when they
are considered to be other than temporary. Declines in the market values of investments are
considered to be other than temporary when the carrying value exceeds market value for more than
three years.
City of Maple Ridge -2022 Financial Statements
Page 12 of 28
(n) Basis of segmentation
Municipal services have been segmented by grouping services that have similar service objectives
(by function). Revenues that are directly related to the costs of the function have been attributed to
each segment. Interest expense is allocated to functions based on the purpose of specific
borrowings.
(o) Employee future benefits
The City and its employees make contributions to the Municipal Pension Plan, and the employees
accrue benefits under this plan based on service. The City's contributions are expensed as
incurred. As this is a multi-employer plan, no liability is attributed to the City and no liability is
recorded in the financial statements.
Sick leave benefits and retirement severance benefits are also available to the City's employees.
The costs of these benefits are actuarially determined based on service and best estimates of
retirement ages and expected future salary and wage increases. The liabilities under these benefit
plans are accrued based on projected benefits prorated as the employees render services
necessary to earn the future benefits.
City of Maple Ridge -2022 Financial Statements
Page 13 of 28
Notes to the Consolidated Financial Statements
For the year ended December 31, 2022
1. Cash and cash equivalents
Cash and cash equivalents as at December 31, 2022 were comprised as follows:
Dec 31, 2022
Cash $ 7,443,999 $
Cash equivalents 15,489,057
$ 22,933,056 $
Dec 31, 2021
108,452,634
8,079,158
116,531,792
Cash equivalents were comprised of a pooled mortgage fund with an effective interest rate of 3.10% (4.82%
for 2021).
2. Portfolio Investments
3.
Portfolio investments include Canadian bank notes, Guaranteed Investment Certificates and BC Credit Union
term deposits with effective interest rates of 1.41 % -5.48%. A portion of the bank notes held have interest
payments linked to the performance of a set of equities or a financial index without stated or certain interest
rates.
The carrying value of portfolio investments at December 31, 2022 was $253,251,692 ($150,882,727 for
2021 ). The market value of portfolio investments at December 31, 2022 was $243,693,597 ($151,802,777
for 2021).
Accounts Receivable
2022 2021
Property Taxes $ 6,400,737 $ 5,594,269
Other Governments 6,343,201 3,178,097
General and Accrued Interest 8,672,159 4,257,060
Development Cost Charges 4,077,852 3,395,482
25,493,949 16,424,908
Less: Allowance for Doubtful Accounts {210,429) (186,896)
$ 25,283,520 $ 16,238,012
4. Recoverable Local Improvements
The City provides interim financing for certain geographically localized capital projects. It recovers these
amounts from benefiting property owners. Interest rates are established at the outset of the process and are
a function of borrowing rates at the time. Repayment is typically made over fifteen years.
5. Other Assets
Debt Reserve Fund:
The Municipal Finance Authority of British Columbia (MFA) provides capital financing for regional districts and
their member municipalities. As part of each loan issuance, 1 % of the gross debt proceeds are held back by
the MFA to form the MFA's Debt Reserve Fund (ORF). The amounts in the ORF are held in trust for each
borrower by the MFA, as protection against borrower default. Upon maturity of each debt issue, the ORF and
any interest earned is discharged to the borrower. The City has estimated that there is only a remote
possibility that these funds will not be recovered and therefore these funds have been included in Other
Assets of$1,146,868 ($1,121,812 for2021).
City of Maple Ridge -2022 Financial Statements
Page 14 of 28
6. Accounts Payable and Accrued Liabilities
2022 2021
Accounts Payable:
General $ 11,227,439 $ 9,779,172
Other Governments 14,401,385 14,853,709
Salaries and Wages 113441351 116391827
26,973,175 26,272,708
Accrued Liabilities:
Landfill Liability 3,454,381 3,750,986
Vacation Pay 1,071,537 887,756
Other Employment Benefits 110661331 111241066
515921249 517621808
$ 32 1565A24 $ 3210351516
The City's Landfill closed in 1989 and legislation requires closure and post closure care of solid waste landfill
sites. Closure is estimated to be completed in 2030 and includes final covering, landscaping, erosion control,
leachate and gas management. Post closure requirements extend for 30 years beyond completion of the
closure plan and includes inspection and maintenance of the final covering, ground water monitoring, gas
management systems operations, inspections and annual reports.
The liability recognized in the consolidated financial statements is the present value of the expected future
cash flows for the closure and post closure care activities and is subject to measurement uncertainty. The
inflation rate used was 3.08% (2.16% for 2021) and the discount rate was 4.07% (2.59% for 2021). As at the
Consolidated Financial Statement date the feasibility of a revised closure plan is being considered. Should
a revised plan be approved by the provincial regulator, it is expected the liability will increase.
7. Contingencies and Commitments:
(a) Where losses related to litigation are likely and can be reasonably estimated management accrues its
best estimate of loss. These amounts are included in accounts payable and accrued liabilities.
There are various other claims by and against the City, the outcome of which cannot reasonably be
determined. Any ultimate settlements will be recorded in the year the settlements can be determined
and are not expected to be material.
(b) In 1998 the City entered into an agreement to purchase ice sheet time for five years commencing
in 1999, with five five-year renewal options. In 2018, the agreement was renewed for an additional
five-year period. The minimum annual payment due for the provision of ice time is $706,000.
Additional ice time is purchased separately. These payments are recorded as expenses when the
ice time is provided.
(c) The City is a shareholder and member of E-Comm Emergency Communications for British Columbia
Incorporated ("E-Comm") whose services provided include: regional 9-1-1 call centre for the Greater
Vancouver Regional District; Wide Area Radio network; dispatch operations; and records management.
The city has 2 Class A share and 1 Class B shares (of a total of 37 Class A shares and 18 Class B
shares issued and outstanding as of December 31, 2022.
As a class A shareholder, the City shares in both funding the future operations and capital obligations of
E-Comm (in accordance with a cost sharing formula), including any lease obligations committed to by E-
Comm up to the shareholder's withdrawal date.
City of Maple Ridge -2022 Financial Statements
Page 15 of 28
8. Deferred Revenues
Deferred revenues held by the City were comprised as follows:
December 31 1 2021 Additions Revenue earned December 31, 2022
Property taxes $ 8,589,236 $ 17,332,653
Connection Revenues 1,841,494 832,804
Other 7,6341970 610531218
$ 181065,700 $ 24,218,675
9. Restricted Revenues
Restricted revenues held by the City were comprised as follows:
Development cost charges
Parkland acquisition
charges
Amenity Charges
Parking Charges
Other
10. Employee Future Benefits
December 31, 2021 Collections/Interest
$ 21,077,096 $ 5,533,077
2,195,991
7,003,779
999,812
6,806A35
$ 3810831113
350,922
2,267,542
70,847
5421392
$ 817641780
$
$
16,783,679 $ 9,138,210
816,331 1,857,967
5,2081520 8A791668
22,808,530 $ 19A75,845
Disbursements December 31, 2022
$ (7,215,685) $ 19,394,488
(622,901)
(1301561)
$ (719691147)
2,546,913
8,648,420
1,070,659
7218266
$ 3818781746
The City provides employee future benefits in the form of severance benefits and vested and non-vested sick
leave to qualifying employees. These benefits are not separately funded.
Severance benefits are cash settlements paid to employees who cease their employment with the City after a
specified period of time. Employees hired before February 11, 1999 qualify for five days pay per year of
employment, provided they either work a minimum of 20 years with the City or retire as defined by the Public
Sector Pension Plan Act. Full time employees hired after February 11, 1999 qualify for 20 days pay provided
they work a minimum of 10 years with the City and retire as defined by the Public Sector Pension Plan Act.
The City permits regular employees to accumulate up to 18 days per year of service for future illnesses up to
a maximum of 250 days. For certain qualifying employees a portion of this benefit vests; for the balance, this
benefit does not vest and cannot be converted to any other type of benefit.
An actuarial valuation of these benefits was performed to determine the City's liability and accrued benefit
obligation as at December 31, 2021 and updated for December 31, 2022. The valuation resulted in a
cumulative unamortized actuarial gain of $290,000 at December 31, 2022, (cumulative unamortized loss of
$64,200 for 2021). Actuarial gains or losses are amortized over the expected average remaining service life
of employees. The benefit liability at December 31, 2022 was $2,861,700, ($3,145,300 for 2021) comprised
as follows:
Accrued benefit obligation, beginning of year $
Add: Current service costs
Interest on accrued benefit obligation
Actuarial (gain)/loss
Less: Benefits paid during the year
Accrued benefit obligation, end of year
Add: Unamortized actuarial (loss)/gain
Accrued Benefit liability
City of Maple Ridge -2022 Financial Statements
Page 16 of 28
2022 2021
3,209,500 $ 3,317,900
183,200 200,400
70,900 49,100
(290,000) 82,300
{532A00) (4401200)
2,641,200 3,209,500
2201500 (64,200)
21861i700 311451300
10. Employee Future Benefits (cont'd)
Actuarial assumptions used to determine the City's accrued benefit obligation are as follows:
Discount rate (long-term borrowing rate)
Expected future inflation rate
Merit and inflationary wage and salary increases averaging
Estimated average remaining service life of employees (years)
11. Debt
2022
4.30 %
2.00%
2.68 %
12.0
2021
2.25 %
2.00%
2.73 %
12.0
The City obtains debt instruments through the Municipal Finance Authority (MFA), pursuant to security issuing
bylaws under authority of the Community Charter, to finance certain capital expenditures. Debt is reported net
of Sinking Fund balances and interest expense is reported net of Sinking Fund earnings. During the year, the
City's outstanding debt balance was reduced by a combination of direct principal payments and sinking fund
earnings totaling $4,045,217 ($2,700,592 for 2021). Interest payments for the year totalled $1,632,244
($1,581,216 for 2021).
The gross amount of debt less sinking fund installments and actuarial adjustments to date are as follows:
MFA Bylaw No. Purpose Rate Due Gross Debt Cumulative 2022 Debt 2021 Debt
Issue Payments Outstanding Outstanding
93 6246 Downtown Civic Facilities 5.70% 2027 32,100,000 22,992,077 9,107,923
99 6246 Downtown Office Complex 5.00% 2026 16,300,000 12,041,938 4,258,061
121 6560 Animal Shelter 2.90% 2027 625,000 377,911 247,089
121 6559 Cemetery Expansion 2.90% 2037 1,520,000 441,899 1,Q78,101
121 6679 Cemetery Expansion 2.90% 2037 700,000 203,506 496,494
153 6558 Fire Hall #4 2.41% 2031 6,000,000 550,409 5,449,591
153 7370 Leisure Ctr. Reno 2.41% 2046 3,500,000 107,522 3,392,478
153 7371 Synthetic Field 2.41% 2046 7,000,000 215,044 6,784,956
153 7372 Albion Community Ctr. 2.41% 2046 8,500,000 261,125 8,238,875
153 7374 Hammond Community Ctr. 2.41% 2046 2,000,000 61,441 1,938,559
153 7376 MRSS Track Facility 2.41% 2046 210001000 61 441 119381559
80,2451000 3713141313 42,9301686
The following debenture debt amounts plus projected Sinking Fund earnings are payable over the next five
years and thereafter are as follows:
2023
2024
2025
2026
2027
Thereafter
Actuarial earnings
Debt Payments
$ 3,599,153
3,647,762
3,697,744
3,749,136
3,254,597
15,974,864
91007A30
$ 421930,686
The City has the following authorized but unissued financing available as at December 31, 2022:
LIA Bylaw
#6560
#7373
#7375
#7377
LIA Amount LIA Bylaw
$ 275,000 #6679
1,000,000 #7374
1,000,000 #7376
23,500,000
Total
City of Maple Ridge -2022 Financial Statements
Page 17 of 28
LIA Amount
$ 1,100,000
500,000
500,000
$ 27l875l000
10,782,231
5,251,753
291,492
1,130,022
520,405
6,000,000
3,500,000
7,000,000
8,500,000
2,000,000
2,000,000
461975,903
12. Tangible Capital Assets
Land $
Buildings
Transportation network
Storm sewer system
Fleet and equipment
Technology
Water system
Sanitary sewer system
Other
$
Net book value
2022 2021
296,648,241 $ 287,303,392
84,764,834 85,896,611
224,884,037 216,622,442
222,877,103 222,817,744
22,175,953 20,263,737
5,672,612 6,217,561
138,161,075 136,157,705
141,310,826 141,032,148
41,350,000 38,013.710
1,177,844,681 $===1=.1===5===4=.3===25=,0=5==0
For additional information, see the Schedule of Tangible Capital Assets (Schedule 1)
During the year there were no write-downs of assets (2021 -$Nil). In addition, the fair value of roads and
related infrastructure, underground networks and land contributed to the City totaled $17,560,027
($16,435,062 for 2021) and was capitalized and recorded as revenue at the time of recognition.
Natural assets, works of art, artifacts, cultural and historic assets are not recorded as assets in these financial
statements. The City controls various works of art and historical treasures including artifacts, paintings,
sculptures and mosaics located at City sites and public display areas.
13. Undeveloped Land Bank
The City owns property in various areas identified for future growth in the Official Community Plan. These
properties are not currently used in the provision of service to the citizens of Maple Ridge. The properties
represent a strategic, non-renewable resource available for the advancement of Council's strategic plan.
14. Accumulated Surplus
Accumulated Surplus is comprised of operating surpluses and equity in tangible capital assets held in the
general, sewer and water funds as well as reserves. Accumulated surplus for 2022 is $1,334,545,933
($1,292,740,765 for 2021) and is distributed as follows:
Operating surplus
Equity in the capital funds
Reserves
Accumulated Surplus
2022
General $ 5,727,398
Sewer 5,937,537
Water 13,793,118
25,458,053
General 867,398,256
Sewer 143,022,206
Water 141,808,064
1, 152,228,526
Funds 49,015,284
Accounts 107,840,134
156,855,418
$ 1,334,541,997
City of Maple Ridge -2022 Financial Statements
Page 18 of 28
$
$
2021
8,563,194
5,966,930
13,707.170
28,237,294
842,930,177
142,398,327
139,437.695
1,124,766,199
44,524,272
95.213.000
139,737.272
1.292.740.765
15. Reserves
Reserve Funds
Local Improvement
Equipment Replacement
Capital Works
Fire Department Capital Acquisition
Sanitary Sewer
Land
Total Reserve Funds
Reserve Accounts
Specific Projects -Capital
Specific Projects -Operating
Self Insurance
Police Services
Fire Services
Core Development
Recycling
Community Safety Initiatives
Building Inspections
Gravel Extraction
Community Works (Gas Tax)
Facility Maintenance
Snow Removal
Park & Recreation Improvements
Cemetery Maintenance
Infrastructure Sustainabiilty (Town Centre Bldgs)
Infrastructure Sustainability (Roads)
Infrastructure Sustainability (Drainage)
Drainage Improvements
Gaming Revenues
Self Insurance (Sewer)
Self Insurance (Water)
Specific Projects (Sewer)
Specific Projects (Water)
Total Reserve Accounts
Total Reserves
16. Property Tax Levies
$
December 31,
2021
2,669,747 $
19,583,271
16,176,221
4,094,702
1,227,204
773127
44,524,272
13,799,761
9,846,884
653,809
9,746,964
485,230
1,724,172
4,106,894
772,746
3,569,030
912,857
966,576
448,144
850,061
5,310,021
256,840
5,415,418
3,341,593
5,797,872
2,253,496
171,940
152,252
11,762,103
12,868,337
95,213,000
$ 139,737,272
Interest Contributions/ Use of
Allocated Transfers Reserves
40,817 $
429,002
338,432
104,717
25,219
15 910
954,097
13,600
273,121
9,983
35,036
86,424
73,440
19,613
17,497
18,267
124,817
76,600
140,887
889,285
1,843,382
3,134,544
3,344,418
1,196,111
7,675,073
5,511,139
6,089,562
45,000
1,624,451
5,918,375
646,902
59,349
315,198
2,140,000
2,379,997
160,241
794,200
4,280,587
1,050,884
2,000,239
1,576,904
6,504
6,504
7,482,001
6,648,396
48,736,433
56,411,506
$ $
(1,959,854)
(1,768,502)
(357,649)
(52,153)
(4,138,158)
(3,945,358)
(7,135,909)
(67,842)
(415,401)
(48,543)
(6,237,915)
(410,325)
(188,808)
(5,846)
(24,988)
(2,087,874)
(143,372)
(4,302,480)
(13,568)
(559,531)
(4,366,308)
(814,673)
(323,047)
(766,324)
(6,542)
(2,645,605)
(2,488,325)
(36,998,584)
(41,136,742)
December 31,
2022
2,710,564
21,186,963
18,090,569
5,037,881
1,200,270
789.037
49,015,284
15,365,542
8,800,537
644,567
11,229,135
446,670
1,439,668
4,429,895
583,938
3,642,470
985,973
1,274,283
518,537
706,689
3,387,538
403,513
234,669
5,454,514
3,654,404
7,615,951
3,064,076
178,444
152,214
16,598,499
17,028,408
107,840,134
156,855,418
In addition to its own tax levies, the City is required to collect taxes on behalf of various other taxing
authorities. These include the provincial government for local school taxes, incorporated dyking districts
located within the City and organizations providing regional services in which the City has become a member.
Taxes levied for other agencies are not included in City revenues. Total tax levies were comprised as follows:
Municipal Tax Levies
Levies for other authorities
School taxes
Translink
British Columbia Assessment
Metro Vancouver Regional District
Dyking Districts
Municipal Finance Authority
Total Collections for Others
Total Tax Levies
$
$
2022 Budget
103,991,814 $
47,004,053
9,437,278
1,419,700
2,061,422
1,144,538
7 877
61.074.868
165.066.682 $
City of Maple Ridge -2022 Financial Statements
Page 19 of 28
2022
104,187,540 $
46,999,301
9,441,526
1,420,328
2,061,483
1,144,538
7.879
61,075,055
165,262,595 $
2021
99,296,699
42,974,954
8,277,785
1,259,526
1,693,254
744,042
6 003
54.955.564
154.252.263
17. Government Transfers
Government transfers recognized as revenues during the year were comprised of the following:
2022 2021
Capital Operating Total Total
Federal Government $ 500,837 $ 419,118 $ 919,955 $ 1,697,618
Provincial Government 331,557 2,425,882 2,757,439 2,518,261
Translink 1,986,977 1,644,398 3,631,375 2,559,687
Other 16A36 16A36 27,563
Total $ 218351807 $ 4A891398 $ 713251205 $ 618031129
18. Trust Funds
Certain assets have been conveyed or assigned to the City to be administered as directed by an agreement
or statute. The City holds the assets for the benefit of, and stands in a fiduciary relationship, to the
beneficiary. The following trusts are excluded from the City's consolidated financial statements:
Balance
Dec 31, 2021
Interest
Earned Receipts Disbursements
Balance
Dec 31, 2022
Latecomer Fees
Cemetery Perpetual Care
Election Surplus
$
Metro Vancouver Sewer & Drainage
District
Translink
School Site Acquisition Fees
Road 13 Dyking District
Albion Dyking District
$
19. Expenses and Expenditures by Object
Operations
Goods and services
Wages and salaries
Interest
Total
Amortization expenses
Contributed tangible
capital assets
Total Expenses and
$ 76,937,666 $
54,459,133
1,703,144
133,099,943
26,466,120
1,410,782
8,690
$ $ 776,201 $
3,345 87,586
111
(2,940) $
(3,345)
(8,801)
773,261
1,498,368
2,222,066 1,598,490 (1,704,548) 2,116,008
919,448 810,228 (1,038,733) 690,943
26,100 26,100
1,420,980 179,951 (20,035) 1,580,896
2.401 .485 311286 (51763) 217071008
8,383,451 $===3=4=5=6 $ 3)89,842 $ (2,784,165) $===9,=3=92=15=8=4
Capital
Acquisitions
31,742,700 $
866,299
32,608,999
17,560,027
2022 Total
108,680,366 $
55,325,432
1 703 144
165,708,942
26,466,120
17,560,027
2022 Budget
257,620,023 $
57,029,491
1,759,984
316,409,498
24,593,930
20,000,000
2021 Total
110,720,871
51,308,259
1,630,317
163,659,447
23,863,066
16,435,062
Expenditures $ 159,566,063 $ 50,169,026 $ 209,735,089 $ 361,003,428 $ 203,957,575
City of Maple Ridge -2022 Financial Statements
Page 20 of 28
20. Budget
Budget amounts represent the Financial Plan Bylaw adopted by Council on May 10, 2022. The Financial
Plan anticipated use of surpluses accumulated in previous years to balance against current year expenditures
in excess of current year revenues.
The following shows the reconciliation of the amounts presented on the financial statements to the approved
budget:
Revenue
Taxation $ 103,991,814
User fees and other revenue 52,910,221
Other 53,812,838
Contributed subdivision infrastructure 2010001000
Total Revenue 23017141873
Expenses
Protective services 52,284,717
Transportation services 27,487,924
Recreation and cultural 26,669,074
Water utility 19,652,587
Sewer utility 15,576,404
General Government 23,238,572
Planning, public health and other 813521812
Total expenses 17312621090
Annual Surplus $ 5714521783
Less:
Capital expenditures 187,741,338
Debt repayment 4,055,066
Add:
lnterfund transfers 80,848,953
Amortization 24,593,930
Borrowing proceeds 2819001738
Financial Plan Bylaw $
21. Contractual Rights
There are a number of development projects in progress throughout the City where there is a requirement
for the developer to provide infrastructure to the City, such as roads, sewers, sidewalks and street lighting.
The estimated fair value of the infrastructure is recognized as "contributed tangible capital assets" revenue in
these consolidated financial statements when the City accepts responsibility for the infrastructure. Estimated
fair value is determined at the time the assets are recognized.
City of Maple Ridge -2022 Financial Statements
Page 21 of 28
22. Municipal Pension Plan
The City of Maple Ridge and its employees contribute to the Municipal Pension Plan (a jointly trusteed
pension plan). The board of trustees, representing plan members and employers, is responsible for
administering the plan, including investment of assets and administration of benefits. The plan is a multi-
employer defined benefit pension plan. Basic pension benefits are based on a formula. As at December 31
2021, the plan has about 227,000 active members and approximately 118,000 retired members. Active
members include approximately 42,000 contributors from local governments.
Every three years, an actuarial valuation is performed to assess the financial position of the plan and
adequacy of plan funding. The actuary determines an appropriate combined employer and member
contribution rate to fund the plan. The actuary's calculated contribution rate is based on the entry-age normal
cost method, which produces the long-term rate of member and employer contributions sufficient to provide
benefits for average future entrants to the plan. This rate may be adjusted for the amortization of any
actuarial funding surplus and will be adjusted for the amortization of any unfunded actuarial liability.
The most recent valuation for the Municipal Pension Plan as of December 31, 2021, indicated a $3.761
million funding surplus for basic pension benefits on a going concern basis.
The City of Maple Ridge paid $4,060,332 (2021 $3,848,908) for employer contributions while employees
contributed $3,567,537 (2021 $3,218,889) to the plan in fiscal 2022.
The next valuation will be as at December 31, 2024, with results available in 2025.
Employers participating in the plan record their pension expense as the amount of employer contributions
made during the fiscal year (defined contribution plan accounting). This is because the plan records accrued
liabilities and accrued assets for the plan in aggregate, resulting in no consistent and reliable basis for
allocating the obligation, assets and cost to individual employers participating in the plan.
23. Segmented Information
The City is a diversified municipal government entity in the province of British Columbia that provides a wide
range of services to its citizens. Municipal services have been segmented by grouping activities that have
similar service objectives (by function) and separately disclosed in the segment report. Where certain
activities cannot be attributed to a specific segment they have been reported as unallocated. The segments
and the services they provide are as follows:
Protective Services
Protective Services is comprised of the Ridge Meadows RCMP detachment, the Maple Ridge Fire
Department, bylaw enforcement, inspection services and emergency services. Services provided by the
segment are focused on protecting the citizens of Maple Ridge.
Transportation Services
Transportation Services is comprised of Engineering, Operations, Drainage and Roads. Services provided by
the segment include the construction and maintenance of transportation related infrastructure.
Parks, Recreation & Cultural Services
Recreation and cultural services provides library services, access to recreation facilities and maintains and
operates City parks.
Water Utility
The Water Utility, in conjunction with Metro Vancouver, provides safe, clean, reliable water to the residents
and businesses of the City of Maple Ridge.
Sewer Utility
The Sewer Utility collects waste water and transports it to treatment plants operated by Metro Vancouver in
addition to maintaining the sanitary sewer infrastructure.
City of Maple Ridge -2022 Financial Statements
Page 22 of 28
23. Segmented Information (cont'd)
General Government
General Government provides administrative, legislative and support services for the City. Functions
include financial planning and reporting, information technology, economic development and communications.
Commerical operations are also included in this segment.
Planning, Public Health and Other
This segment is comprised of Planning, Recycling, Cemetery and Social Planning. Activities include land use
guidelines, development of the City's official community plan, management of the recycling contract and
improving the social well-being of the community.
Unallocated
Unallocated includes revenues that cannot be directly attributed to the activities of an identified
functional segment.
City of Maple Ridge -2022 Financial Statements
Page 23 of28
Segment Report
Consolidated Report of Segmented Revenue and Expenses
Revenue
Tax revenue
Other revenues
Government transfers
Development revenue
Interest and investment income
Gaming Revenues
Asset disposal gain(loss)
Contributed infrastructure
Total Revenue
Expenses
Operating:
Goods and services
Labour
Debt Servicing
Sub total
Amortization
Total Expenses
Excess (deficiency) of revenue over
expenses
For the year ended December 31, 2022
Protective Transportation Recreation
Services Services and Cultural
$ $ $
5,875,627 901,510 3,351,390
1,655,024 4,213,176 918,128
13,557 1,842,314 5,602,176
(255) 402,270 (22,348)
911591013 418831000
7,543,953 16,518,283 14,732,346
26,434,870 5,718,797 11,185,867
19,952,549 7,044,600 9,397,819
1401853 11016)96
46,528,272 12,763,397 21,600,482
212721455 13A84I080 31053)42
4818001727 26 I247A77 2416541224
$ (4\2561774) $ (917291194) $ (919211878)
City of Maple Ridge -2022 Financial Statements
Page 24 of 28
Water Utility Sewer Utility
$ 155,558 $ 996,800
21,694,371 15,667,907
35,871 (48,076)
289,867 455,612
(177,979) (346,387)
215691439 948P5
24,567,127 17,674,431
12,454,810 9,924,530
2,138,161 587,174
14,592,971 10,511,704
218481297 218271687
17A41 I268 1313391391
$ 711251859 $ 413351040
General Commercial
Government Tower
$ $ $
2,203,702 2,065,407
540,098
418,320
(4,427)
3,157,693 2,065,407
6,720,834 710,352
12,216,418
1361579 367 061
19,073,831 1,077,413
116791270
20}531101 1 077 413
$ (17 I595A08) $ 987 994 $
Planning
Public Health Total
& Other Unallocated 2022 Actual
2,482,585 $ 100,552,597 $ 104,187,540
3,671,178 55,431,092
10,984 7,325,205
12,500 8,634,346
6,801,307 6,801,307
1,576,904 1,576,904
(149,126)
1715601027
6,177,247 108,930,808 201,367,295
3,787,606 76,937,666
3,122,412 54,459,133
41 855 1i7031144
6,951,873 133,099,943
3001589 26i4661120
7 I252A62 15916661063
(110751215) $ 10819301808 • $ 4118011232
City of Maple Ridge -2022 Financial Statements
Page 25 of 28
Total
Total Budget 2021 Actual
$ 103,991,814 $ 99,296,699
52,910,221 50,497,200
12,910,331 6,803,129
37,457,515 5,016,024
2,694,988 2,411,236
750,004 780,946
(1,065,038)
2010001000 1614351062
230,714,873 180,175,258
89,878,685 70,531,201
57,029,491 50,488,315
\7591984 116301317
148,668,160 122,649,833
2415931930 2318631066
1732621090 14615121899
$ 5714521783 $ 3316621359
Schedule 1
Schedule of Tangible Capital Assets
For the year ended December 31, 2022
Land 2 Building Transportation Storm System
Network
Historical Cost 1
Opening cost $ 287,303,392 $ 144,466,521 $ 356,899,006 $ 300,231,449
Additions 9,344,849 2,204,111 15,465,590 5,150,298
Disposals (121888) 638 319 (1 I618A99)
296,648,241 146,657,744 373,002,915 303,763,248
Accumulated
Amortization
Opening balance 58,569,910 140,276,564 77,413,705
Amortization expense 3,330,583 8,633,596 4,049,654
Effect of disposals (71583) (7911282) (5771211)
6118921910 148 118 878 8018861148
Net Book Value as $ 2961648241 $ 84 764 834 $ 22418841037 $ 22218771100 at December 31,
2022
Net Book Value as at $ 287,303,392 $ 85,896,611 $ 216,622,442 $ 222,817,744 December 31, 2021
1 Historical cost includes work in progress at December 31, 2022 of $14,756,896 ($31,977,067 for 2021) comprised of:
Land $658,032 ($614,988 for 2021); Buildings $111,063 ($20,275,525 for 2021); Transportation network $6,027,059
($876,825 for 2021); Storm system $24,641 ($24,641 for 2021); Fleet and equipment $437,010 ($430,962 for 2021);
Technology $248,001 ($177,218 for 2021 ); Water system $1,776,196 ($1,960,180 for 2021 ); Sanitary system $3,856,060
($6,697,799 for 2021); and Other $1,618,834 ($918,930 for 2021). Work in progress is not amortized.
2 Additions to land are net of $-Nil ($-Nil for 2021) of land reclassified to inventory available for sale.
3 "Other" at net book value includes Furniture and Fixtures at $1,131,451 ($967,734 for 2021) and Structures at $40,218,549
($37,045,974 for 2021)
City of Maple Ridge -2022 Financial Statements
Page 26 of 28
Fleet and
Equipment
$ 37,703,513 $
4,110,154
(2281023)
41,585,644
17,439,776
2,189,124
(2191209)
19A09I691
$ 2211751953 $
$ 20,263,737 $
Technology Water System Sanitary
S stem
15,980,714 $ 179,820,507 $ 196,857,458
849,426 4,871,173 3,321,831
(2591072) (3911968) (7321278)
16,571,068 184,299,712 199,447,011
9,763,153 43,662,802 55,825,310
1,389,501 2,683,846 2,689,116
(2541199) (2081013) (3781243)
10I898A55 4611381635 5811361183
5P21613 $ 138116to77 $ 14Um828
6,217,561 $ 136,157,705 $ 141,032,148
City of Maple Ridge -2022 Financial Statements
Page 27 of 28
Other3 Total
$ 57,285,158 $ 1,576,547,718
4,851,594 50,169,026
(991893) (217041302)
62,036,859 1,624,012,442
19,271,448 422,222,668
1,500,700 26,466,120
(851287) (215211027)
2016861861 44611671761
$ 4t3491998 $ 1117718441681
$ 38,013,710 $ 1,154,325,050
Grant Received
Schedule for BC Safe Restart Grant
For the year ended December 31, 2022
(unaudited)
Balance of BC Safe Restart Grant
Application of Grant
Lost revenue*
Operational adaptations**
Total Application
Balance Remaining
Schedule 2
$ 165,613
165.613
$ _ ____,;1 ___ 65 __ , 6 __ 1_3
$
* Lost revenues are comprised of revenue shortfalls associated with the closure of City Recreation facilities
**Operational adaptations are comprised of expenditures incurred to faciliate remote work and meeting attendance
for staff and Council, the installation of physical barriers in the workplace, increased cleaning and various other
incremental costs.
City of Maple Ridge -2022 Financial Statements
Page 28 of 28
To the Mayor and Cou ncil of City of Maple Ridge
We are pleased to provide you with the results of our audit of City of Maple Ridge (the "City") consolidated financial statements for the year
ended December 31, 2022.
The enclosed final report includes our approach to your audit, including: significant risks identified and the nature, extent, and results of
our audit work. We will also report any significant internal control deficiencies identified during our audit and reconfirm our independence.
During the course of our audit, management made certain representations to us-in discussions and in writing. We documented these
representations in the audit working papers.
This report has been prepared solely for the use of City's Mayor and Council and others within the organization, and should not be
distributed without our prior consent. Consequently, we accept no responsibility to a third party that uses this communication.
We look forward to discussing our audit conclusions with you. In the meantime, please feel free to contact us if you have any questions or
concerns.
Yours truly,
BDO~LLP
BDO Canada LLP
2 I City of Maple Ridge
For the year ended December 31. 2022
IBDO
BDO'S DIGITAL AUDIT SUITE
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ext Gen
software and documentation
tool to save time, streamline
processes, and go paperless
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Status of the audit
We have substantially completed our audit of the year ended December 31, 2022 consolidated financial statements, pending completion of
the following items:
Approval of consolidated financial statements by the Mayor and Council
Receipt of signed management representation letter
Subsequent events review through to the consolidated financial statements approval date
We conducted our audit in accordance with Canadian generally accepted auditing standards. The objective of our audit was to obtain
reasonable , not absolute, assurance about whether the consolidated financial statements are free from material misstatement. Please refer
to the draft financial statement for the copy of the draft independent auditor's report.
5 I City of Maple Ridge
For the year ended December 31. 2022
IBDO
As reported in our planning report for the fiscal 2022 audit , Canadian Auditing
Standard , CAS 315 , Identifying and Assessing the Risks of Material Misstatement, was
significantly revised to have more robust risk identification , assessment , and response
procedures. The revised standard is required and has been implemented for the City's
2022 fiscal year.
The update to this audit standard resulted in a significant amount of additional audit
work , including more focus on IT systems as they related to financial reporting. Most of
the effort to implement CAS 315 was incurred in this initial year of implementation and
may require a reduction of additional work in the following years.
More in depth consideration of inherent risks (risk of material misstatement without
consideration of control) and control risks (risk of control not preventing or detecting
material misstatement), including increased focus on risks arising from the use of IT
systems
Inherent risk is concluded based on the assessment of likelihood and magnitude of
misstatement in absence of controls, considering how inherent risk factors impact the
degree to which inherent risk varies.
6 I City of Maple Ridge
With the revised CAS 315 requirements, there are now four levels at which risks can be
assessed:
Significant Risk of Material Misstatement
Elevated Risk
Moderate Risk
Low Risk
The new risk assessments resulted in an adjusted audit strategy that focuses on
addressing the concluded risk level for all areas of the financial statement. This allows
for more consistent and effective audits with improved responses to identified risks,
improving audit quality for all stakeholders.
As part of our audit , we have performed the following :
-updated our understanding and documentation of accounting cycles and processes
within the City
-updated our documentation around the information technology environment and
associated controls to assess any control deficiencies that would impact our audit
testing approach
-assessed risks identified and documented internal controls that address these risks
-reviewed audit procedures to ensure they align with risks identified, incorporating
internal controls to ensure audit procedures are efficient
-performed stand back procedures to ensure overall audit approach is sufficient to
provide effective audit evidence.
All audit testing in this area was executed with no issues to be reported.
IBDO
50
45
40
35
30
25
20
15
10
5
0
~
SIGN IFI CANT (1)
SEE PAGES 8-10
Risks Under CAS 315
ELEVATED (4)
SEE PAGES 8-10
MODERATE (10)
■ Risks Under CAS 315
LOW (46)
For the year ended December 31 , 2022
Audit findings
As part of our ongoing communications with you, we are required to have a discussion on our views about significant qualitative aspects of the City's accounting practices, including
accounting policies, accounting estimates and consolidated financial statements disclosures. We look forward to exploring these topics in depth and answering your questions. A summary of
the key discussion points are below:
Financial statement areas
Management Override of Internal
Controls
[Mandatory audjt consjderatjon -
Signjfkant Rjsk]
Employee Future Benefits
[Elevated Rfak]
8 I City of Maple Ridge
Risks noted
Management is generally in a unique position to perpetrate fraud because
of its ability to directly or indirectly manipulate accounting records and
prepare fraudulent financial statements by overriding controls that
otherwise appear to be operating effectively.
This risk is not unique to the City.
The City records a liability for post-retirement and post-employment
liabilities. Employee future benefits is a complex area that requires much
estimation and reliance on actuarial experts.
Audit findings
We reviewed transactions recorded in the various ledgers for unusual or
non-recurring adjustments not addressed by other audit procedures.
We reviewed the controls relating to processing of journal entries and
examined a sample of journal entries subject to risk.
All audit testing was performed in this area as planned with no issues to
report where controls were overridden.
We reviewed the actuarial report and audit the significant assumptions.
We directly communicated with the external actuary.
We tested the data provided to the actuary for accuracy and completeness,
as it drives the actuarial calculations.
All audit testing in this area was executed as planned with no issues to
be reported.
I BDO
For the year ended December 31 , 2022
Audit findings
As part of our ongoing communications with you, we are required to have a discussion on our views about significant qualitative aspects of the City's accounting practices, including
accounting policies, accounting estimates and consolidated financial statements disclosures. We look forward to exploring these topics in depth and answering your questions. A summary of
the key discussion points are below:
Financial statement areas
Development Revenue &
Development Cost Charges
[Elevated Risk]
Inappropriate Payments
[Elevated Risk]
9 I City of Maple Ri dge
Risks noted
There is a risk that development cost charges have not been recognized as
revenue in alignment with when the resources are used for the purposes
specified . This is a complex area that requires an element of judgement in
determining whether a project or expense is eligible for DCC funding.
There is a risk of inappropriate payments to individuals and third parties
Audit findings
We enquired with management how DCC's are tracked and that all have
been accounted for.
We tested significant DCC collections and vouched to supporting
documentation for completeness, existence and accuracy.
All audit testing was performed in t his area as planned with no issues to
report .
We reviewed transactions such as expense reimbursements to test the
validity of the expense and to ensure that it was subject to the proper
approval process .
We reviewed transactions recorded in the various ledgers for unusual or
non-recurring adjustments not addressed by other audit procedures
All audit t esting was performed in this area as planned with no issues to
report .
I BDO
For the year ended December 31, 2022
Audit findings
As part of our ongoing communications with you, we are required to have a discussion on our views about significant qualitative aspects of the City's accounting practices , including
accounting policies, accounting estimates and consolidated financial statements disclosures. We look forward to exploring these topics in depth and answering your questions. A summary of
the key discussion points are below:
Financial statement areas
Landfill Liability
[Elevated Risk]
Risk of Fraudulent Revenue
Recognition
{Rebuttable presumption}
Recognition of Grant ft
Government Transfer Revenue
[Moderate Risk]
10 I Ci ty of Maple Ridge
Risks noted
There is a risk that the assumptions used, and calculations made in determining the
liability for closure and post closure costs are not accurate.
Audit findings
We confirmed that the experts are qualified and in good standing.
We verified the landfill liability and changes to this liability
All audit testing in this area was executed as planned with no issues to
be reported.
Auditing standards require us to consider the risk of fraudulent revenue Grant funding received was confirmed through a review of agreements. We
recognition. Due to the nature of the City's revenue, we have rebutted this also ensured revenue is recorded accurately in accordance with the
presumption. settlement of any stipulations.
Nevertheless, accounting standards relating to grant and government
transfer revenue recognition are complex and open to variation in
application. There is a risk that grants, or revenue derived from other
government transfers may be incorrectly deferred into future periods or
recognized prior to stipulations being met.
We reviewed the deferred revenue balances by examining supporting
documentation validate the accounting treatment.
Other revenues streams also contain revenue recognition issues which we
reviewed in context of the relevant revenue recognition standards.
All audit testing was performed in this area as planned with no issues to
report.
I BDO
Internal control mat ters
► During the audit, we performed the following procedures regarding the City's internal
control environment:
► Documented operating systems to assess the design and implementation of control
activities that were relevant to the audit.
► Discussed and considered potential audit risks with management.
We considered the results of these procedures in determining the extent and nature of audit
testing required.
11 I Ci t y of Maple Ridge
Q
......
For the year ended December 31 , 2022
We are required to report to you in writing about any significant
deficiencies in i nternal control that we have identified during the audit.
A significant deficiency is defined as a deficiency or combination of
deficiencies in internal control that merits the attention of those
charged with governance .
The audit expresses an opinion on the City's consolidated financial statements . As a
result, it does not cover every aspect of internal controls-only those relevant to
preparing the consolidated financial statements and designing appropriate audit
procedures . This work was not for the purpose of expressing an opinion on the
effectiveness of internal control.
No control deficiencies were noted that, in our opinion, are of significant importance to
discuss.
I BDO
Adjusted differen ces
Summary of adjusted differences
The following is a summary of corrected misstatements noted during the course of our audit engagement:
To reflect developer contributed tangible capital assets that the City obtained
control over during November-December 2021 as additions to the prior year (2021)
accumulated surplus, instead of the current year (2022) annual surplus.
DR Developer contributed asset revenue
CR Opening accumulated surplus
Effect of prior year's reversing errors
Total adjusted differences
12 I City of Maple Ridge
Debit (Credit)
Assets Liabilities
For the year ended December 31, 2022
Opening
Accumulated Surplus
(1,176,000)
(1,176,000)
Annual Surplus
1,176,000
1,176,000
I BDO
For the year ended December 31 , 2022
Adju sted differences
Summary of ad j usted differences
There were no differences that were corrected by management during the course of our audit engagement.
13 I City of Maple Ridge I BDO
For the year ended December 31, 2022
Other required co mmunic ations
Professional standards require independent auditors to communicate with those charged with governance certain matters in relation to an audit. In addition to the points communicated
within this letter, the attached table summarizes these additional required communications.
Issue BDO response
Potential effect on the financial statements of any material risks and exposures , such as pending litigation, that are
required to be disclosed in the financial statements.
Material uncertainties related to events and conditions that may cast significant doubt on the City's ability to continue as a
going concern.
Disagreements with management about matters that, individually or in the aggregate, could be significant to the City's
financial statements or our audit report.
Matters involving non-compliance with laws and regulations.
Significant related party transactions that are not in the normal course of operations and which involve significant
judgments made by management concerning measurement or disclosure.
Management consultation with other accountants about significant auditing and accounting matters.
Other Matters
14 I City of Maple Ridge
No such matters noted.
No such matters noted.
No disagreements with management.
No such matters noted.
No such matters noted.
No such matters noted.
No such matters noted.
I BDO
I BDO
April 20, 2023
To the Mayor and Council
The City of Maple Ridge
Dear Mayor and Council:
Tel: (604) 688-5421
Fax: (604) 688 -5132
www.bdo.ca
BDO Canada LLP
1100 Royal Centre
1055 West Georgia Street
Vancouver, British Columbia
V6E 3P3
Direct Line: 604-646-3389
E-mail: bszabo@bdo.ca
We have been engaged to audit the consolidated financial statements of The City of Maple Ridge (the "City") for
the year ended December 31, 2022.
Canadian generally accepted auditing standards require that we communicate at least annually with you
regarding all relationships between the City and our Firm that, in our professional judgment, may reasonably be
thought to bear on our independence.
In determining which relationships to report, these standards require us to consider relevant rules and related
interpretations prescribed by the appropriate provincial institute/ order and applicable legislation, covering such
matters as:
• Holding a financial interest, either directly or indirectly in a client;
• Holding a position, either directly or indirectly, that gives the right or responsibility to exert significant
influence over the financial or accounting policies of a client;
• Personal or business relationships of immediate family, close relatives, partners or retired partners, either
directly or indirectly, with a client;
• Economic dependence on a client; and
• Provision of services in addition to the audit engagement.
We are not aware of any relationships between the City and our Firm that, in our professional judgment may
reasonably be thought to bear on independence that have occurred from the date of our last letter, April 13,
2022, to the date of this letter.
We hereby confirm that we are independent with respect to the City within the meaning of the Code of
Professional Conduct of the Chartered Professional Accountants of British Columbia as of the date of this letter.
This letter is intended solely for the use of the Mayor and Council, management and those charged with
governance within the City and should not be used for any other purpose.
Yours truly,
BDO ~ LLP
Chartered Professional Accountants
Page 1 of 1
BD O Canada LLP , a Canadian limited liability partn ership , i s a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO
network of independent member firms.
For the year ended December 31. 2022
Appendix B: Representation letter
21 I City of Maple Ridge IBDO
AUDIT REPORT DATE
BDO Canada LLP
Chartered Professional Accountants
Unit 1100 -Royal Centre
1055 West Georgia Street
Vancouver, BC V6E 3P3
City of Maple Ridge
This representation letter is provided in connection with your audit of the financial statements of City
of Maple Ridge for the period ended December 31, 2022, for the purpose of expressing an opinion as to
whether the financial statements are presented fairly, in all material respects, in accordance with
Canadian Public Sector Accounting Standards.
We confirm that to the best of our knowledge and belief, having made such inquiries as we considered
necessary for the purpose of appropriately informing ourselves:
Financial Statements
We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated January 20,
2023, for the preparation of the financial statements in accordance with Canadian Public Sector
Accounting Standards; in particular, the financial statements are fairly presented in accordance
therewith.
• The methods, significant assumptions, and data used in making accounting estimates and their
related disclosures are appropriate to achieve recognition, measurement and/ or disclosure that
are reasonable in accordance with Canadian Public Sector Accounting Standards.
• Related party relationships and transactions have been appropriately accounted for and disclosed
in accordance with the requirements of Canadian Public Sector Accounting Standards.
• All events subsequent to the date of the financial statements and for which Canadian Public Sector
Accounting Standards require adjustment or disclosure have been adjusted or disclosed.
• The financial statements of the entity use appropriate accounting policies that have been properly
disclosed and consistently applied.
• The effects of uncorrected misstatements are immaterial, both individually and in the aggregate,
to the financial statements as a whole. A list of the uncorrected misstatements is attached to the
representation letter.
Information Provided
• We have provided you with:
• access to all information of which we are aware that is relevant to the preparation of the
financial statements, such as records, documentation and other matters;
• additional information that you have requested from us for the purpose of the audit; and
• unrestricted access to persons within the entity from whom you determined it necessary to
obtain audit evidence.
• We are responsible for the design, implementation and maintenance of internal controls to
prevent, detect and correct fraud and error, and have communicated to you all deficiencies in
internal control of which we are aware.
• All transactions have been recorded in the accounting records and are reflected in the financial
statements.
• We have disclosed to you all known instances of non-compliance or suspected non-compliance with
laws and regulations whose effects should be considered when preparing the financial statements.
• We have disclosed to you the identity of the entity's related parties and all the related party
relationships and transactions of which we are aware.
Fraud and Error
• We have disclosed to you the results of our assessment of the risk that the financial statements
may be materially misstated as a result of fraud.
• We have disclosed to you all information in relation to fraud or suspected fraud that we are aware
of and that affects the entity and involves:
• management;
• employees who have significant roles in internal control; or
• others where the fraud could have a material effect on the financial statements.
• We have disclosed to you all information in relation to allegations of fraud, or suspected fraud,
affecting the entity's financial statements communicated by employees, former employees,
analysts, regulators, or others.
General Representations
• Where the value of any asset has been impaired, an appropriate provision has been made in the
financial statements or has otherwise been disclosed to you.
• We have provided you with significant assumptions that in our oprn10n are reasonable and
appropriately reflect our intent and ability to carry out specific courses of action on behalf of the
entity when relevant to the use of fair value measurements or disclosures in the financial
statements.
• We confirm that there are no derivatives or off-balance sheet financial instruments held at year
end that have not been properly recorded or disclosed in the financial statements.
• Except as disclosed in the financial statements, there have been no changes to title, control over
assets, liens or assets pledged as security for liabilities or collateral.
• The entity has complied with all provisions in its agreements related to debt and there were no
defaults in principal or interest, or in the covenants and conditions contained in such agreements.
• There have been no plans or intentions that may materially affect the recognition, measurement,
presentation or disclosure of assets and liabilities (actual and contingent).
• The nature of all material uncertainties have been appropriately measured and disclosed in the
financial statements, including all estimates where it is reasonably possible that the estimate will
change in the near term and the effect of the change could be material to the financial statements.
• There were no direct contingencies or provisions (including those associated with guarantees or
indemnification provisions), unusual contractual obligations nor any substantial commitments,
whether oral or written, other than in the ordinary course of business, which would materially
2
affect the financial statements or financial position of the entity, except as disclosed in the
financial statements.
Other Representations Where the Situation Exists
• We have informed you of all known actual or possible litigation and claims, whether or not they
have been discussed with legal counsel. When applicable, these litigation and claims have been
accounted for and disclosed in the financial statements.
• We consider the assumptions used in the calculations of employee future benefits to be the best
estimate of future events, in particular, long-term borrowing rates and compensation escalation
over the expected average remaining service life of the employee group.
• The financial statements and any other information in the annual report provided to you prior to
the date of this representation letter are consistent with one another, and there is no material
misstatement of the other information. We have provided you with the final version of the
document(~) comprising the annual report.
• (If some/all of the document(s) comprising the annual report will not be available until after the
date of the auditor's report, include:) We will provide to you, when available and prior to issuance
by the entity, the final version of the document(s) comprising the annual report.
Yours truly,
Trevor Thompson, Chief Financial Officer
Catherine Nolan, Deputy Director_of Finance
3
For the year ended December 31. 2022
Appendix C: Management Letter
22 I City of Maple Ridge IBDO
I BDO
April 20, 2023
Tel: 604 -688-5421
Fax: 604-688-5132
Toll Free: 1-866-667-1365
www.bdo.ca
Mr. Trevor Thompson, Chief Financial Officer
City of Maple Ridge
11995 Haney Place, Maple Ridge
BC V2X 6A9
Dear Mr. Thompson,
BDO Canada LLP
1100 Royal Centre
1055 West Georgia Street
Vancouver, BC
V6E 3P3
Direct Line: 604-646-3389
E-mail: bszabo@bdo.ca
The objective of an audit is to obtain reasonable assurance whether the financial statements are
free of any material misstatement and it is not designed to identify matters that may be of interest
to management in discharging its responsibilities. Accordingly an audit would not usually identify
all such matters.
During the course of our audit of the financial statements of City of Maple Ridge for the year ended
December 31, 2022, we did not encounter any significant matters which we believe should be
brought to your attention.
This communication is prepared solely for the information of management and is not intended for
any other purposes. We accept no responsibility to a third party who uses this communication.
We shall be pleased to discuss with you further any matters mentioned in this report at your
convenience.
Yours truly,
Brian Szabo, CPA, CA
Partner through a corporation
BDO Canada LLP
Chartered Professional Accountants
B5/cd
Page 1
BDO Canada LLP , a Canadian limited liability partnership , is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO
netw ork of independent member firms .
IBDO
Appendix 1
Current Year Recommendations
We have not noted any new matters to bring to your attention in the current year.
Update on Prior Year Recommendations
Records and Financial Management Software
We previously commented on two elements of City's information systems: tangible capital asset
record keeping and document management. We had observed that the City's enterprise resource
planning system ("ERP") is no longer meeting the organizations needs, and that this is impacting
the City's ability to maintain complete and timely tangible capital asset records. We had
recommended that the City begin investigating options to replace the current ERP system and
consider a dedicated system for the management and planning of the City's infrastructure. We
also recommended that the City consider incorporating a digital document storage solution
alongside or within any new system implementation in order to reduce reliance on paper-based
processes and storage.
In response, management previously noted the City's long-term capital program includes a
provision to replace the City's financials systems in the near future, and that these
recommendations will be considered within the scope of that plan.
We understand management has begun the needs assessment process for a new Financial ERP to
ensure the final scope meets the needs of the organization. Management is targeting late 2023 to
proceed to RFP with implementation to proceed in 2024.
We have not identified any further recommendations in relation to this matter.
Page 2
For the year ended December 31 . 2022
Appendix D: Changes in accounting standards with impact to the
City
23 I City of Maple Ridge IBDO