Friday, April 08, 2011

City Finishes year With $340K surplus – audit (as published in the Daily Gleaner on March 29/11)

The City of Fredericton has received a clean audit opinion for 2010.

The audit, conducted by Ernst & Young Chartered Accountants, shows the city ended the 2010 financial year with a $339,928 surplus in its general operating fund, which works out to 0.36 per cent of the $93.2-million budget.

"This audit shows the city is making smart decisions now and is on course for a financially sustainable future," said Coun. Mike O'Brien, chairman of the city's finance and administration committee. "We have a major capital project funding and financing plan in place to keep the city moving forward and our infrastructure reinvestment strategy is a smart way to maintain what we have now," he said.

The 2010 audited financial statement was conducted using the Public Sector Accounting Board accounting standards set for governments by the Canadian Institute of Chartered Accountants. This is the second year the city has been audited using the new accounting rules which establishes a valuation on everything the municipality owns - from vehicles to buildings to pipes in the ground and even its pension fund.

Fredericton is the only municipality in New Brunswick to have adopted the modern standard. According to the valuation, the city has $494 million in capital assets.

The city's net debt stands at $84.7 million due to its capital construction that included financing of a new ice hockey arena, fire station, convention centre, parking garage and government office building as well as upgrades to other sports facilities.

"We have the financial resources and physical assets to sustain services, but we will also be keeping a close eye on how events beyond our control may affect us in the future," O'Brien said. "We will continue to be financially responsible, transparent and accountable to Fredericton."

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